Estimated Taxes 2016: Due Dates and Tax Penalty Info

Individuals and corporations must pay estimated taxes on income that is not subject to withholding, which includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Estimated taxes are paid in installments (usually quarterly) and if left unpaid, or paid late, you or your business will face interest and penalties.

2016 Due Dates for individuals and calendar year C corporations
Estimated Tax Payment Due dates:
Individual - Due Dates April 18th - June 15th - September 15th - January 17th, 2017
Federal C Corporations April 18th - June 15th - September 15th - December 15th

(25%)What forms report this information?
For individuals, Form 1040ES is where estimated taxes are reported and paid, and for C corporations, Form 1120W  (generally paid electronically using the Federal EFTPS system)

Do the due dates change periodically?
Not exactly.  The only reason the first estimated tax payment is due April 18th for individuals this year is because of Emancipation Day celebrated in the District of Columbia (falls on April 15th this year). Normally, the first individual due date would be April 15th, in line with the due date of form 1040. Similarly, fourth quarter payments are due January 17th this year because the 15th falls on a Sunday, and is followed by Martin Luther King Jr. Day on Monday, January 16th.

It is important to comply with your tax obligations; you do not want to be tacked with unwanted penalties that will affect your payments at the time of filing.

Questions on your estimated tax obligations or how to file?
Call us today for a free estimated tax vouchers Mike McVay, Accountant / 850-725-5696
McVay Business Services - Virtual Bookkeepers USA - www.VirtualBookkeepersUSA.com