Third quarter estimated tax payment due September 15

Who should pay quarterly?

· Individuals, including sole proprietors, partners, and S corporation shareholders

· Who has no regular tax withholding.

Penalty for underpayment

· Taxpayer may have to pay a penalty if they underpaid their tax

· Exception:

1. Taxpayers owe less than $1,000 in tax with their tax return, OR

2. Taxpayer paid the smaller of at least 90% f tax for current year or 100% of tax shown on their prior year

Tax withholding estimator

· https://www.irs.gov/individuals/tax-withholding-estimator

Next payment due date

· The fourth and final 2020 estimated taxpayment is due Jan 15, 2021

Tax form

· Form 1040-ES, Estimated Tax for Individuals

· From 1120-W, Estimated tax for Corporation

How to make estimated payment?

• Direct Pay from a bank account.

• Paying by credit or debit card or the Electronic Federal Tax Payment System.

• Mailing a check or money order to the IRS.

• Paying cash at a retail partner.