August?! Already?? Time flies – which is why we want to make sure this upcoming tax season doesn’t sneak up on you and you are unprepared. 

For example, if you are a small business owner, self-employed, or a wage earner – you definitely should find out if you need to make estimated tax payments this year. Why? It can help you avoid paying an unexpected tax bill… and even perhaps save you from a penalty come next year’s tax season. 

If you are not subject to withholding your income, that usually means you need to make quarterly estimated tax payments. 

This is the case IF…

• You owe $1,000 or more when you file your 2019 tax return
• If you tax was more than zero in 2018
• You are a corporation and expect to owe more than $500 when you file your 2019 tax return
• You are a sole proprietor, partner, or an S corporation shareholder

Facts about making estimated payments:

1. The two remaining deadlines for paying 2019 estimated payments are September 16th, 2019 and January 15th, 2020
2. You can also pay other taxes (besides income tax) through estimated tax payments – including self-employment and alternative minimum tax
3. You can pay estimated payments in four ways: direct pay, credit/debit card, mailing a check or money order to the IRS, or paying cash at a retail partner 

Potential Penalties:

If you pay too little tax from withholding or estimated payments… you may owe a penalty come April 2020. This could also apply if your estimated tax payments are late. It typically applies to anyone who pays less that 90% of reported tax on your 2019 tax return. 

BUT do not worry – if you are making on time payments (hint: if you are a one of our clients, you get email reminders of when they are due) and accurate payments, the penalty will not apply to you. 

Time really does fly… before you know it, 2020 will be here! Let’s end the year right – which makes it easier for you come tax season 2020.

Contact us: 
[email protected] | CA (760) 888-6247 | NY (845) 237-4060

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