Reminder for our interested partners. The IRS issued a reminder: For those who pay estimated taxes, the second-quarter June 15 deadline approaches.
The Internal Revenue Service reminds taxpayers
For those who pay estimated taxes, second quarter June 15 deadline approaches
WASHINGTON — The Internal Revenue Service reminds taxpayers who pay estimated taxes that the deadline to pay their second quarter tax liability is June 15.
Taxes are pay-as-you-go
This means taxpayers need to pay most of the tax they expect to owe during the year, as income is received. There are two ways to do that:
- Withholding from pay, pension or certain government payments such, as Social Security.
- Making quarterly estimated tax payments during the year.
Estimated tax is the method used to pay tax on income that isn’t subject to withholding. This includes income from self-employment, interest, dividends, rent, gains from the sale of assets, prizes and awards.
Taxpayers may also have to pay estimated tax if the amount of income tax being withheld from their salary, pension or other income isn’t enough. If necessary, those who receive a salary or wages can avoid having to pay estimated taxes by asking their employer to withhold more tax from their earnings. To do this, taxpayers should submit a new Form W-4 to their employer. There is a special line on Form W-4 for them to enter the additional amount they want their employer to withhold.
Source: IRS Newswire