IRS reminds taxpayers of quarterly estimated payment deadline; disaster victims granted extension

IRS reminds taxpayers of quarterly estimated payment deadline; disaster victims granted extension

Record-Journal
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If you make quarterly estimated tax payments, the Internal Revenue Service wants you to know the next deadline is fast approaching.

The IRS deadline for those who need to make quarterly estimated tax payments is Friday. Self-employed people, including those involved in the sharing economy, need to pay their taxes quarterly, the IRS said, along with investors and retirees, as well as others with a substantial amount of income that is not subject to withholding, often need to make these payments.

Some people who haven’t made estimated tax payments in the past may want to consider making them now. This includes many of those who had a large amount due when they filed their 2016 return. Taxpayers who receive most of their income late in the year should also consider this option.

Victims of Hurricanes Harvey and Irma and other recent disasters have more time to make these payments, without penalty. Visit the special Hurricane Harvey and Hurricane Irma pages and the disaster relief page on IRS.gov for details.

People who received an estimated tax penalty notice, known as a CP30, this summer from the IRS should also consider making these quarterly payments. Normally, this penalty applies to those who pay too little of their total tax, usually less than 90 percent, during the year through withholding, estimated tax payments or a combination of the two.

Exceptions to the penalty and special rules apply to some groups of taxpayers, such as farmers, fishers, casualty and disaster victims, those who recently became disabled, recent retirees, those who base their payments on last year’s tax and those who receive income unevenly during the year.

For tax-year 2017, estimated tax payments were due April 18 and June 15, with upcoming payments still due for Sept. 15 and Jan. 16, 2018. Use Form 1040-ES to figure these payments.

The fastest and easiest way to make estimated tax payments is to do so electronically using IRS Direct Pay or the Treasury Department’s electronic federal tax payment system. For information on other payment options, visit IRS.gov/payments. For those who choose to pay by check, be sure to make the check payable to the U.S. Treasury.

Many taxpayers, such as employees who may have additional income that is not subject to withholding can choose to forgo making estimated tax payments and instead increase the amount of income tax withheld from their pay. Employees can do this by filling out a new Form W-4 and giving it to their employer. Similarly, recipients of pensions and annuities can make this change by filling out Form W-4P and giving it to their payer.

In either case, taxpayers can typically increase their withholding by claiming fewer allowances on their withholding form. If that’s not enough, they can also ask employers or payers to withhold an additional flat dollar amount each pay period. For help determining the right amount to withhold, check out the Withholding Calculator on IRS.gov.

Taxpayers who receive Social Security benefits, unemployment compensation and certain other government payments can also choose to have federal tax taken out by filling out Form W-4V and giving it to their payer. Some restrictions apply, so see the form and its instructions for details.

More information about tax withholding and estimated tax can also be found on IRS.gov.

— Sun staff


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