James D. Lynch
Reminder: First Estimated Tax Payment Due July 15, 2020 Instead of April 15th
Taxpayers can defer federal income tax payments due on April 15, 2020 to July 15, 2020 without penalties and interest, regardless of the amount owed. This applies to individuals, corporations, trusts and estates, as well as those who pay self-employment tax.
Estimated tax is the method used to pay tax on income that is not subject to withholding. This income includes earnings from self-employment, interest, dividends, rents, and alimony. Taxpayers with such income are required to pay estimated taxes on a quarterly basis.
Normally, the estimated tax deadlines are:
● April 15 ● June 15 ● September 15 ● January 15
For 2020, taxpayers have until July 15 to submit both first and second quarter estimated taxes. The other deadlines remain the same. Taxpayers should still check in with their states, as state deadlines may differ.
Employees do not need to make estimated tax payments on their income because wages and salaries are subject to federal withholdings throughout the year.