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The Next Estimated Tax Deadline Is January 15 If You Have To Make A Payment

If you’re self-employed and don’t have withholding from paychecks, you probably have to make estimated tax payments. These payments must be sent to the IRS on a quarterly basis. The fourth 2020 estimated tax payment deadline for individuals is Friday, January 15, 2021. Even if you do have some withholding from paychecks or payments you receive, you may still have to make estimated payments if you receive other types of income such as Social Security, prizes, rent, interest, and dividends.

Pay-as-you-go system

You must make sufficient federal income tax payments long before the April filing deadline through withholding, estimated tax payments, or a combination of the two. If you fail to make the required payments, you may be subject to an underpayment penalty, as well as interest.

In general, you must make estimated tax payments for 2020 if both of these statements apply:

  1. You expect to owe at least $1,000 in tax after subtracting tax withholding and credits, and
  2. You expect withholding and credits to be less than the smaller of 90% of your tax for 2020 or 100% of the tax on your 2019 return — 110% if your 2019 adjusted gross income was more than […]
By |2020-12-28T20:11:16+00:00December 28th, 2020|estimated tax payments, tax deadlines|0 Comments

California Tax Updates for July 29th

Update 1:

Here’s one last reminder that California’s sales and use taxes are due July 31, 2020. Sales and use taxpayers are expected to meet this deadline for: the June tax return (for accounts that report monthly; for the first quarter 2020 return (for quarterly and quarterly prepay accounts that we don’t owe in excess of $1 million); and the tax return for July 1, 2019, through June 30, 2020, for fiscal yearly accounts. Contact us with questions.

Update 2:

Interest rates on California tax overpayments and underpayments in California will change soon. Beginning in Jan. 1, 2021, through June 30, 2021, the adjusted interest rate on personal income tax underpayments and overpayments will be 3%. On corporation tax underpayments, the rate will decrease from 5% to 3%. And on corporation tax overpayments the interest rate will decrease from 2% to 0%. Contact your Linkenheimer CPA with questions.

By |2020-09-03T20:02:09+00:00July 30th, 2020|tax deadlines|0 Comments

California Tax Updates for July 2nd

The inscription Tax Day on the note like Notification of the need to file tax returns, tax form

Post 1:

Businesses that hold unclaimed property in California get extra time to file reports. Due to COVID-19, the CA State Controller (SCO) has postponed the due date for holders of such property, including unclaimed wages, to submit their Remit Reports and Remittances for properties reported on their 2019 Notice Reports. Regarding the June 1-15 period for holders to submit their reports and remittances for properties reported on 2019 Notice Reports is extended from June 1, 2020, to August 15, 2020. Holders or agents of holders who are able to submit their Remit Reports and remittances during the original reporting period are encouraged to do so. Contact your Linkenheimer CPA with questions.

Post 2:

As Tax Day approaches, the Franchise Tax Board offers tips to help Californians prepare to file by the July 15 deadline. Among other things, the tips include the following: COVID-19 relief […]

By |2020-09-03T20:02:21+00:00July 2nd, 2020|california, tax deadlines|0 Comments

Haven’t Filed Your 2019 Business Tax Return Yet? There May Be Ways To Chip Away At Your Bill

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The extended federal income tax deadline is coming up fast. As you know, the IRS postponed until July 15 the payment and filing deadlines that otherwise would have fallen on or after April 1, 2020, and before July 15.

Retroactive COVID-19 business relief

The Coronavirus Aid, Relief and Economic Security (CARES) Act, which passed earlier in 2020, includes some retroactive tax relief for business taxpayers. The following four provisions may affect a still-unfiled tax return — or you may be able to take advantage of them on an amended return if you already filed.

Liberalized net operating losses (NOLs). The CARES Act allows a five-year carryback for a business NOL that arises in a tax year beginning in 2018 through 2020. Claiming 100% first-year bonus depreciation on an affected year’s return can potentially create or increase an NOL for that year. If so, the NOL can be carried back, and you can recover some […]

California Tax Updates for April 15th

Post 1:

Special tax relief is available for certain filing and payment deadlines, said the California Franchise Tax Board (FTB), in response to the coronavirus (COVID-19). The FTB has posted on its website a spreadsheet of certain filing and payment deadlines for all individuals and businesses entities. The spreadsheet has been updated to include information on real estate withholding, nonresident, nonwage, withholding and foreign partner or member withholding. https://bit.ly/2yoWpGK

Post 2:

Small California businesses get interest-free payment plans for sales tax, effective April 2. Governor Gavin Newsom is allowing businesses with sales less than $5 million to defer payment of sales and use taxes, up to $50,000, for up to 12 months, said the CA Dept. of Tax and Fee Administration (CDTFA) (other help may also be available for larger tax liabilities). For taxpayers choosing to defer their first quarter 2020 liability, for example, their tax liability would be paid in 12 monthly installments, […]

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