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.