ESTIMATED INCOME TAXES DUE BY APRIL 15TH

IMPORTANT FILING DEADLINES

As most, if not all, of you know the Federal income tax deadline is extended from April 15th to May 17th, 2021. This extension is for individual income tax returns and any payments due on these returns. Any balances normally due on April 15th are extended to May 17th with no additional penalties or interest due regardless of the amount owed.

What the law does not extend are C corporation income tax returns, Trust and Estate income tax returns, gift tax returns and Estimated income tax payments. Each of these are still due on April 15th.

If you are a taxpayer that makes estimated tax payments, make sure to pay your first quarter by April 15th. If you have been unable to complete enough of your 2020 income tax return to accurately calculate your first quarter estimate, then do your best to approximate the amount. It’s better to make an estimate, even if it’s not totally accurate, then to not make any payment. If you pay in either too much or too little in the first quarter, you can adjust that in subsequent quarters.

Another alternative is to file your Federal extension, complete with payment, by April 15th. The reason for this is if you have an overpayment on your return and payment was made on or before April 15th, then it can be applied to your 2021 first quarter estimate and it should be considered timely.

If you file C corporation returns, trust returns, income tax returns of Estates or gift tax returns make sure to file by April 15th, or file for extension.

Additionally, individuals must check to see if their state individual income tax deadlines are moved.

Lastly, S corporations and partnerships which had a Federal due date of March 15th must be looked at because many of these entities have state filing deadlines on April 15th.

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Hang in there and stay safe,

Jeff Skolnick, CPA, M.S. Taxation