Don’t Miss The Deadlines For Filing Estimated TaxesNews
Posted in on December 31, 2018
Pretty much everyone knows that Federal Tax Day – the deadline for filing the previous year’s Internal Revenue Service personal income tax return – is April 15. If you are a Virginia taxpayer, you probably know that the state tax-filing deadline is May 1.
But you might not realize that, under the federal and Virginia “pay as you go” systems, if you’re self-employed or have income that is not otherwise subject to withholding, tax day comes a lot more frequently.
The Internal Revenue Service and the state of Virginia expect tax payments to be made periodically, as income is earned, not just once a year in the spring. So if you are earning income and your taxes are not already being withheld from your paycheck, you will probably need to make quarterly tax payments.
Read on to get the basics about who must pay and when. If you’re still not sure – or if you think you might have missed payments – a Virginia tax lawyer can advise you on how to proceed.
Who Must Pay Estimated Taxes?
Generally speaking you must make estimated IRS tax payments if:
- You are self-employed or the sole proprietor of a business, regardless of whether you work full time or part time; if you expect your taxes to be $1,000 or more for the year, you need to pay estimated taxes quarterly.
- You are the shareholder in a corporation or a partner in an enterprise and expect to have at least $500 of tax liability.
- You owed taxes at the end of the previous year, an indication that either you had additional income that you should have been paying estimated taxes on or you had too little money withheld from your paycheck.
If you are required to file a Virginia state tax return and you have a Virginia income tax liability that you expect to exceed $150 above and beyond any amounts that might have been withheld, you need to file estimated tax payments with the state of Virginia as well.
When Do You Have to Pay Estimated Taxes?
Under IRS rules, you are required to pay estimated taxes quarterly, usually in four equal installments. Payments are to be made on specific deadlines and if you miss the deadline you could incur IRS penalties.
- For income earned from January 1 through March 31, the IRS deadline for estimated tax filing and payment is April 15.
- For income earned between April 1 and May 31, the IRS deadline for filing is June 16.
- For income earned on June 1 through August 31, the IRS deadline is September 15.
- For income earned September 1 through December 31, quarterly tax payments are due to the IRS on January 15 of the following year.
For Virginia, estimated tax payments are due in equal installments four times a year: on or before May 1, June 15, September 15 and the following year on January 15.
If any of these due dates fall on a weekend or holiday, the due date is the next regular business day.
What Happens If You Haven’t Been Paying Your Taxes on Time?
Paying taxes on time is a serious legal obligation, and missing required payments can result in penalties. If nonpayment is the result of any kind of illegal behavior or suspected tax fraud, then criminal penalties and even prison time are possibilities.
Thorn Law Group Virginia tax lawyer Kevin E. Thorn can assist you with understanding tax filing requirements and any exposure you have for not filing. Give us a call at 703-752-3752 or contact us online.Share This Post