If you are self employed or have income in the second quarter that you will owe taxes on, you are required to make an estimated tax payment. You will want to get in the habit of making these payments in a timely manner to avoid or minimize the underpayment penalty.
Here is a sample of an email I send my clients as a reminder:
This is a reminder that the first quarter estimated tax payment is due on June 15. If things have changed and you want to discuss how much to pay in let me know. Based on your income and taxes from last year, if you make estimated tax payments of $amount each quarter it should help you minimize the underpayment penalty. Here are the due dates for the year:
First Quarter April 15
Second Quarter June 15
Third Quarter September 15
Fourth Quarter January 15 of the following year.
Remember, it is easy now to make the payments online, so you don't have to mail anything in. To do so go to this IRS site:
For 2018 - select Make a PaymentReason - Estimated TaxApply Payment to - 1040ESTax Period - 2018
Avoid the Underpayment PenaltyThe underpayment penalty may be applied if you didn't pay enough tax, either from withholding from your paycheck or by making TIMELY estimated tax payments. Generally, you may owe a penalty if any of the following situations apply:
* your tax payments were not at least 90% of your tax for the current year
* or 100% of your tax from the prior year
* or 110% of your tax from the prior year if you are a higher income taxpayer.
For more information from the IRS on Estimated Tax Payments refer to Publication 505
Get Started NowIf you are a situation that requires you to make estimated tax payments, get started now by contacting me to help you figure out how much you should pay in. You will want to avoid the trap of paying when your tax return is due because by then, April 15, your first payment for the following year will be due. It is hard playing catch-up with your taxes.
File and Pay OnlineThe days of mailing in a coupon with a payment as your only option are gone. Now you can make your payment online using the link above without needing to send in a 1040ES estimated payment form. Using the link above you can make your payment from your bank account or use a credit card but that service comes with a fee.
Act NowSo act now by contacting me, The CPA Superhero, today to get started. You can email me at email@example.com to arrange an initial conversation to discuss your situation. Remember, while taxes are complicated and stressful, I have been through numerous times and I can help you. So email me today to arrange an appointment to discuss your situation.
Jeff Haywood, CPA
The CPA Superhero
The above information is general information and is not all inclusive and as always in your tax situation everything "depends on facts and circumstances." So call me to talk about your specific facts and circumstances.