Do you know when your next estimated tax payments are due?

This week is a quick post related to estimated tax payments because of the Labor Day holiday.

If you’re self-employed or a small business owner, your next quarterly estimated tax payment is due on SEPTEMBER 16.

Here's the link to your quarterly IRS tax form 941.

According to the IRS you must make quarterly tax payments. The 2019 dates for payment are April 15, June 17, September 16, and January 15, 2020. All dates are for estimated payments due for the prior quarter.

The only way not to have an underpayment penalty is to have completed one of the following:

1. You have paid at least 90% of the income taxes you owe in a given year

or

2. You have paid 100% of your tax liability from the prior year.

If your adjusted gross income on the prior years return is greater than $150,000, the threshold for not having to pay is 110% of last year’s tax liability.

If you are confused about what you owe, first, its easier to pay quarterly rather than wonder if you’ve paid enough, second, if you’re still confused, ask a tax consultant to help you with your quarterly taxes so you don’t have a nasty surprise at the end of the year.

Good luck and have a great short week.