Estimated tax is a method of paying tax on income that is not subject to withholding tax. This can include income from self-employment, business earnings, interest, rent, dividends and other sources. The IRS requires estimated tax to be paid quarterly, typically in 4 equal installments. If you underpay your estimated tax, 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 At Spina and Company we will calculate and provide estimated quarterly tax estimate coupons for you to easily pay and mail. We also provide quarterly email reminders to pay.
Estimated taxes are due generally following the below schedule:
- January 1 – March 31: Deadline is April 15
- April 1 – May 31: Deadline is June 16
- June 1 – August 31: Deadline is September 15
- September 1 – December 31: Deadline is January 15 (of the following year)
If you miss the tax deadline, it is in your best interest to file an extension and then file your tax return as soon as possible thereafter to avoid major fines and penalties.
Partnership penalties for failure to file an extension are extensive. A partnership return on Form 1065 is required even though the partnership has no taxable income. A penalty of $195 per partner per month is imposed on the partnership for failure to file a timely or complete Form 1065 (a maximum of 12 months’ penalty).
File an Extension for Individual or for your business with Spina & Company to avoid significant interest and penalties. By filing an extension you can have flexibility to file after the tax return deadline, for up to 6 months.
If you are seeking help or expertise with estimated taxes or extensions, please contact one of our expert consultants today. With over three decades of tested and true experience, Spina CPA has the proper resources and knowledge to help you with your tax service needs.