Mini-extension for 2020 individual returns:
Surely you know that the State and Feds extended the individual tax filing date to May 17 – which is ALSO an extension of time to pay 2020 tax due.
For our clients, we will be preparing your individual return by the due date, or if an extension is recommended or necessary, we will prepare the standard extension to October 15 and inform you of any tax owing prior to mid-May.
Tax Estimates for 2021:
However, the due dates for 2021 tax estimates were NOT extended. You still need to pay a 2021 tax estimate on 4-15 and 6-15 based on 2020.
Our recommendation: Pay the same amount on 4/15/21 and 6/15/21 as you paid for your 3rd or 4th 2020 tax estimate, whichever is higher. If you are concerned that this amount might be too high or too low, and you would like to discuss, simply reply to this email or contact our office.
Payments are best made electronically online.
To Pay Federal 2021 Tax Estimates:
Pay online at www.irs.gov
Click on “Pay” in the upper dark blue menu bar (left side), then “Bank Account (Direct Pay)” or “Debit or Credit Card” in the window.
To pay via your bank account:
Select “Make a Payment”
In the “Reason for Payment”, select “Estimated Tax”
The next boxes are automatically filled with “1040ES” and “2021”
Click “Continue”
Under “Verify Identity”, “Tax Year for Verification”, select a tax year for which you have already filed a tax return ( that is, 2019 or earlier), and proceed.
To pay via your credit card:
Choose a “Click to Pay” button
Select “Make a Personal Payment”, or similar language
Under “Payment Category”, select “Pay your 2021 Estimated Tax (Form 1040ES)”. And proceed.
[Online payments assure that the government gets the payment on time. Whereas, payments with a voucher via mail will result in an unfounded penalty assessment if processed by the government after the due date.]
To Pay California 2021 Tax Estimates:
Pay online at www.ftb.ca.gov
click on “Pay” just under the blue menu bar, then “Payment Options” in the left hand side menu bar. Then under “Personal”, click on your desired payment method.
Depending on the payment method you select, click on the dark blue pay button that appears.
For a payment from your bank account, follow the prompts to enter your personal information. When you arrive at “Payment Type”, select the first box entitled “Estimated Tax Payment (Form 540 – ES)”. Select “Continue”, then Select “2021”, and proceed.
For a payment by credit card, you will be taken off the FTB website. Select “Individual Estimated Tax – Filing Jointly” – or “Filing Individually” if single.
Follow the prompts thereafter. When you are asked to input the “Tax Year”, be sure to type in “2021”.
[Online payments assure that the government gets the payment on time. Whereas, payments with a voucher via mail will result in an unfounded penalty assessment if processed by the government after the due date.]