TaxMamaâsÂ® TaxQuips Updates and Due Dates
It’s TaxQuips time from TaxMama.com® –
Today TaxMama® wants to remind you about tomorrow’s due date – June 15th.
With two topsy turvy tax years due to COVID19, it’s harder to keep track of deadlines.
But, for the rest of this year, all deadlines are the same as they have been historically, unless you live in a federally declared disaster area. https://www.irs.gov/newsroom/tax-relief-presidentially-declared-disaster-areas
So, let’s review what’s due tomorrow
- Federal and state estimated tax payments for the second quarter.
This applies to individuals and to corporations, estates and trusts.
- Although you can use Form 1040-ES to send in a check, please do NOT!
- Pay the IRS electronically to ensure they get your payment.
Be sure to select 2021 and Form 1040
- Your state probably has a similar option – look up your state’s tax agency website here – https://www.taxadmin.org/state-tax-agencies
- Remember, if you took COVID19-qualified distributions from retirement accounts and are spreading the taxes over 3 years – you need to include those amounts in this year’s estimated tax payments.
- Form 1040 is due for Americans living outside the US. If you’re not ready, you can still file an extension using Form 4868 – see if you can file this electronically through your software. https://www.irs.gov/pub/irs-pdf/f4868.pdf
- Gift Tax returns for Americans abroad – your Form 4868 will automatically also extend your gift tax filing. But if you expect to take advantage of the Foreign Earned Income Exclusion (Form 2555) when you file your tax return, you will need to file a separate extension for your gift tax return, using Form 2350
The IRS will be releasing 3 interfaces (links) relating to the new advance Child Tax Credit. Keep an eye on this page for updates and details.
- One for people who want to opt out.
- Another for people who aren’t already in the database as having children (either due to new births or getting custody or foster custody of children) – and who want to receive the advance funds.
- And another option to update your banking and/or mailing data.
In the meantime, we are nearly halfway through the year.
Perhaps it’s time to review your projected income and tax breaks for 2021?
Maybe you need to change your withholding – or increase/reduce your estimated tax payments for the year.
Those folks who have found yourselves in a position where you owe a tax balance and don’t really know how to pay it, the IRS has a lot of options to help. So don’t just ignore the balance due. https://www.irs.gov/about-irs/irs-offers-new-relief-options-to-help-taxpayers-affected-by-covid-19
Consider scheduling an appointment with your tax professional to help you.
And remember, you can find answers to all kinds of questions about taxes and business issues, and EA Education, free. Where? Where else? At http://iTaxMama.com/AskQuestion
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