IRS reminder: the second quarter estimated tax payment deadline is June 16
Taxpayers that receive income not subject to withholding, such as income from self-employment, gig work, interest, dividends, capital gains, rent or 1099 earnings, may need to make estimated tax payments throughout the year. This includes freelancers, retirees, investors, businesses and corporations.
Why it matters?
Paying on time helps taxpayers avoid falling behind on their taxes and possible underpayment penalties.
Who needs to pay estimated tax?
- Taxpayers including sole proprietors, partners and S corporation shareholders who expect to have a tax liability of at least $1,000 for the year.
- Corporations that expect to owe tax of $500 or more. See Publication 542, Corporations.
- Individuals earning income from gig work, freelance work or from sales of goods and services, even if they receive a Form 1099-K. Recipients of Form 1099-K, Payment Card and Third Party Network Transactions PDF must use it with other tax records to report income.