Hope all is well. This is a reminder that Q3 Individual Estimated Tax Payments are due on September 15, 2021. Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when they file their return. Taxpayers can avoid an underpayment penalty by owing less than $1,000 at tax time or by paying most of their taxes during the year.
Generally, for 2021 that means making payments of at least 90% of the tax expected on their 2021 return. Most taxpayers who pay at least 100 percent of the tax shown on their return for tax year 2020 may also avoid the penalty.
Feel free to contact us should you have any questions, or if changing circumstances require a review of your estimated tax calculation.
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