I hope all of you had a great Memorial Day weekend. My wife and I spent a day at the Indianapolis Speedway and took in a few events that lead up to the “Greatest Spectacular Auto Race Event”.
Now on the topic of income taxes, we are approaching the due date for the 2nd installment to pay estimated taxes on or before June 15, 2015. Estimated tax is method used to pay tax on income not subject to withholding. This includes income from self employment, interest, dividends, alimony, rents, gain from sale of assets and prizes. Also you have to pay estimated tax when the withholdings on salary, pensions and other income is not enough. If you don’t pay enough through withholding and estimated taxes you maybe be charged a penalty. If you don’t pay enough by the due date of each payment period you may be charged a penalty even if you are due a tax refund when you file your tax return.
If you are filing as a sole proprietor, partner, S Corporate shareholder and as a self employed individual you should used Form 1040ES to pay the estimated taxes. IRS also allows for direct pay via online or through the telephone.
Estimated tax due dates for individuals are:
For Period Due Date
Jan 1– Mar 31 April 15
April 1– May 31 June 15
June 1– Aug 31 Sept 15
Sept 1– Dec 31 Jan 15 next year
State estimated taxes are also due. Each state will have the forms and the method of payment listed on their website.
If you are filing as a C corporation you should use form 1120-W to compute the estimated taxes. Corporations must use the federal electronic tax payment system to pay and deposit estimated taxes. Calendar year end Corporations must deposit tax payments as follows:
For Period Due Date
Jan 1– Mar 31 April 15
April 1– May 31 June 15
June 1– Aug 31 Sept 15
Sept 1– Dec 31 Dec 15
If we can be of assistance, please contact Jaya Naiken CPA to answer your tax questions.
In the meantime enjoy the summer.
