Tax Season Resources
Estimated payments for income tax returns (both federal and state) are important for several reasons. Keeping track of the date and amount of each estimated payment will make your tax return preparation much smoother and reduce potential IRS or State Department of Revenue notices - which nobody likes!
Estimated payments go towards any tax liability you have for the year the estimated payment is recorded. This means you may owe less tax when your return is completed or even have a refund! In any event, estimated payments reduce or eliminate potential penalties and interest - neither of which is deductible.
In addition, we may calculate estimated payments for you with your current tax return. While these estimated payments may not cover the entire amount you owe next year, it will eliminate late payment penalties if you pay them on time. There are four quarterly estimated payments each year, due on April 15, June 15, September 15 and January 15. Look for your estimated payments with your tax return. If you receive your return electronically, the estimated payment coupons are in your 'Action Item' on your portal. Login to download these and include them with your payments.