Quarterly Estimates

What are estimated tax payments?

Estimated tax payments are payments for taxes on income that is not subject to withholding tax. This can include income from self-employment, business earnings, interest, rent, dividends and other sources. Many business owners and individuals who receive K-1s for their interests in companies must make estimated tax payments on this type of income.

The IRS requires estimated taxes to be paid quarterly, typically in four installments. If you underpay your estimated taxes, you will have to write a bigger check to the IRS when you file your tax return. If you overpay your estimated tax, you will receive the excess amount as a tax refund (similar to how withholding tax works).

The following types of people are typically required to make estimated tax payments:

  • Self-Employed Persons or Sole Proprietor Business Owners:  Those who have income from their own business will need to make estimated tax payments if their tax liability is expected to be more than $1,000 for the year. This includes both part-time and full-time enterprises.
  • Partners in Partnerships and S Corporation Shareholders:  Business ownership earnings usually will require estimated tax payments. These individuals will receive Form K-1 representing their income and expenses from the partnership/S-Corporation.
  • People Who Owed Taxes for the Prior Year:  If you owed taxes at the end of last year, it probably means that too little was withheld from your paychecks, or you had other income that increased your tax liability. This is a flag to the IRS that you should be making estimated tax payments.

Looking for assistance with quarterly estimated taxes?

David Beck, CPA will help you accurately calculate and file your estimated taxes properly and on-time.  Failing to pay on time can result in penalties. Let our tax professional prepare your federal, state and local estimated taxes. David has helped clients all over the United States solve these tax issues.

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Quarterly Payment Deadlines

  • 2021 First Quarter: Deadline is April 15, 2021
  • 2021 Second Quarter: Deadline is June 15, 2021
  • 2021 Third Quarter: Deadline is September 15, 2021
  • 2021 Fourth Quarter: Deadline is January 15, 2022

If you have missed a quarter, catch up as quickly as possible. Contact us now and allow us to balance out the amount that should be paid for the upcoming quarter!

Just started the relationship with David Beck. What has stood out, was his grasp of the Tax Laws and his ability to clearly explain them to a non-CPA person. He gives you the confidence that he will do perform a great service for you.

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