Tax and Money Tip this Week:
September 15, 2016 Tax Deadlines: Individual Estimate Taxes and Tax Planning Checkups
August 24, 2016 | No. 299
This is the time of year in our CPA practice that I work with small business owners and individuals to perform tax checkups to help them project their tax liabilities for 2016 and make tax saving recommendations of moves they can make between now and year-end. Frequently, just defining the amount of taxes they owe via these planning services helps manage their cash flow so the businesses and individuals don’t have a big amount due and/or surprise each Spring when they prepare their tax returns.
Coming up September 15, 2016 is the date in which the 3rd installment for individuals that have income that is not taxed and withheld (like W-2 income) is due.
Self employed businesses, e.g. Proprietor Schedule C filers, folks that own S Corporations, Partnerships, LLCs, or other flow-through entities must estimate their unpaid income and/or self-employment taxes for the period January 1-August 31, 2016 and pay ½ of this amount to IRS and/or NC Dept of Revenue on September 15, 2016 and the other ½ of this amount on or before January 15, 2017. (April 15th and June 15th of each year are also Quarterly Estimated Tax Payment dates that have also passed by if you weren’t aware)
The rules for estimated tax payments depend on your modified adjusted gross income for 2016. “Safety” estimates can be designed to avoid penalties and interest, optimize cash flow, and save taxes
Questions or Comments?
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Mark Vitek, CPA/PFS, CFP®
…until next week.