As we approach what would have been the June 15 estimated quarterly tax payment due date, Doeren Mayhew wants to remind individuals and corporations they have until July 15 to make their payment without penalty due to the COVID-19 outbreak.

Who Has to Pay

Taxpayers, including individuals and businesses, need to pay taxes as income is received either by having it withheld from pay, pension or certain government payments such as Social Security; or by making quarterly estimated tax payments during the year. Furthermore, an underpayment penalty can be avoided by owing less than $1,000 at tax time or by paying most of the taxes during the year. Generally, for 2020 that means making payments of at least 90% of the tax expected on their 2020 return.

Estimating Taxes

To estimate tax withholding amounts, taxpayers can use the Tax Withholding Estimator to help avoid having to pay estimated tax by asking their employer to withhold more tax from their earnings.

Paying Estimated Taxes

Taxpayers can make estimated tax payments electronically and schedule them up to 30 days in advance with Direct Pay or up to 365 days in advance with the Electronic Federal Tax Payment System.

Doeren Mayhew is here to assist you and your business calculate your estimated quarterly tax payments and proper withholdings, contact our tax advisors today.