![]() However, since this would have resulted in second-quarter payments coming due a month before first-quarter payments, the IRS subsequently extended both the first- and second-quarter estimated tax payment due dates to July 15. ![]() When the Internal Revenue Service (IRS) initially extended the federal income tax deadline to July 15, the new due date applied only to taxes that were originally due April 15, leaving the second-quarter estimated tax payment due date unchanged at June 15. While most states (with several exceptions) typically set their quarterly estimated tax payment due dates to match the federal government, some states have chosen to depart from the federal government when it comes to offering extensions for 2020 estimated tax payments. However, due to the COVID-19 pandemic, the federal government and states have extended various tax deadlines to provide financial flexibility and reduce compliance burdens at a time when many businesses have faced extended closures and many individuals are out of work. Under normal circumstances, quarterly estimated tax payments for tax year 2020 would have come due April 15, June 15, and September 15 of this year, with the final payment due on January 15, 2021. ![]() As such, the responsibility falls on taxpayers to know when their state’s estimated tax payments are due, and to pay special attention to whether any applicable state due dates come before the extended federal due date. Most individuals who make quarterly estimated tax payments to the federal government must also make payments to their state, but each state sets its own requirements. In general, if a taxpayer is expected to owe at least $1,000 in federal income taxes but does not have a way to have those taxes withheld throughout the year by an employer (or a spouse’s employer, if filing jointly), then that individual is required to remit estimated income tax payments throughout the year. Many people, however, receive income from sources other than an employer, such as self-employment income, interest and dividend income, unemployment compensation, Social Security benefits, rental income, and alimony, among others. When that employee files his or her annual income tax return, taxes that were overpaid throughout the year are returned to the taxpayer in the form of a refund, or, if an insufficient amount of money was withheld throughout the year, the remaining balance will come due on Tax Day. Upon beginning work for a new employer, one of the first things salaried and hourly employees are asked to do is fill out Form W-4, which allows the employer to withhold income taxes from each paycheck throughout the year, both on wages earned from that employer and from other sources of income. Who Makes Quarterly Estimated Tax Payments? To prevent confusion and to ensure taxpayers receive the full benefit of the extended federal deadline, states, wherever possible, ought to consider extending their first- and second-quarter estimated tax payment due dates to July 15 or later. There are also several states in which second-quarter estimated tax payments will come due before first-quarter payments. However, self-employed individuals, investors, and others who receive income from sources other than an employer must also pay attention to changes in quarterly estimated tax payment due dates that have occurred this year at both the federal and state levels.Ĭurrently, there are some states in which first- and second-quarter estimated tax payments for tax year 2020 will come due before final tax year 2019 federal income tax forms and payments are due. ![]() When it comes to tax deadline extensions that have occurred in response to the COVID-19 pandemic, deadlines for filing and paying 2019 income taxes have received much of the public attention. ![]()
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