Do you owe quarterly estimated tax payments? 

By
Education & Training with KLSM CPA Firm, PLLC

Did you have a tax liability in the prior year? If so, you may be subject to quarterly estimated tax payments. Due to the COVID-19 pandemic, the IRS has extended the 1st and 2nd quarterly estimated tax payment deadlines to July 15th, 2020

Individuals, including sole proprietors, partners, and S corporation shareholders, are generally required to make estimated tax payments if they expect to owe tax of $1,000 or more when their tax return is filed.

You do not have to make estimated tax payments for the current year if you meet all three of the following conditions:

  • Your tax liability for the prior year didn't exceed $1,000
  • You were a U.S. citizen or resident for the whole year
  • Your prior tax return year covered 12 months

Please keep in mind that failure to pay quarterly estimated tax payments may result in a penalty for underpayment of estimated tax.

Comments (4)

Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you for the update.  I still have to get my yearly taxes for last year paid.    Probably next week.

Jun 05, 2020 10:28 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Krystin,

Thank you for always updating us on the latest.  Wishing you a most delightful weekend.  A

Jun 05, 2020 01:44 PM
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Krystin.

A long time ago me and my CPA decided on a monthly payment.  It sure works for me

Jun 06, 2020 01:00 AM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

My accountant helps me keep track of how much I should send to the IRS each and every quarter.

Jun 06, 2020 07:20 AM