In most cases, if you are self-employed or expect to owe $1,000 or more to the IRS when you file your 2021 tax return in 2022, you will need to pay estimated taxes to the IRS. If you do not have taxable taxes for the 2020 tax year, or if you have been a U.S. citizen or resident for the entire year, and your 2020 tax return covers 12 months of income, you expect to pay taxes in 2021. This is what you need to know about estimated taxes for the second quarter of 2021.

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When is the estimated tax due for the second quarter of 2021 for self-employed persons due?

The U.S. tax system is “pay as you use it”, so it is estimated that taxes should be paid quarterly.It is expected that each taxpayer will pay their estimated income, and Self-employment tax The deadline is the most recently completed calendar quarter.

The tax due date for the second quarter is from April 1, 2021 to May 31, 2031 June 15, 2021. The U.S. Internal Revenue Service (IRS) recently extended the deadline for 2020 tax returns and individual tax returns from April 15, 2021 to May 17, 2021. However, this extension does not affect the quarterly estimated tax payment.

How do I calculate my estimated tax for the second quarter?

If you think you should pay the quarterly estimated tax, you can use the IRS Form 1040-ES. You will need to calculate the estimated adjusted gross income, taxable income, estimated deductions and credits for the current year in order to arrive at an estimated payment amount.

It can help you use your last tax return as a guide to determine these figures and adjust the estimated income for the current year based on current forecasts. If your estimate is too high or too low, you can adjust the third quarter calculations and quarterly remittances to compensate.

If I receive a forgiven PPP loan, will I owe taxes?

Part of the tax relief provided under the CARES Act includes forgivable Payroll Protection Program (PPP) loans for qualified small businesses. If the recipient uses the loan proceeds for certain types of business expenses, the maximum amount of the loan can be forgiven.

According to the Internal Taxation Law, paid-off debts are usually classified as taxable income. However, the “CARES Law” clearly excludes forgiving PPP loans from the scope of taxation. In other words, if you receive a PPP loan and are forgiven, the loan income is not taxable.

More importantly, the IRS clarified and actually overturned the previous guidelines in January 2021, stating that the fees paid with exemptable PPP loan proceeds are tax-deductible if these fees could have been tax deductible.

What taxes can I pay quarterly?

You can remit estimated taxes for the second quarter in a variety of ways. First, you can print and mail the 1040-ES form with a check.If you want to pay online, you can use Bank accounts Or with Credit or debit card (May need to pay).Another option is to use a mobile phone or tablet IRS2Go application.

You can also use IRS Electronic Federal Taxation System (EFTPS) Make federal tax deposits, installment agreement payments (if applicable), and quarterly estimated tax payments. In fact, you can use the EFTPS system to pay estimated taxes more frequently than quarterly, weekly, bi-weekly, monthly or other regular payments, which may help some taxpayers budget.

What happens if I don’t pay my estimated tax for the second quarter?

It may be tempting to postpone the payment of your estimated quarterly taxes, thinking that you only need to pay all your taxes when you file your 2021 tax return next year. However, this can be a costly error.If you don’t make enough payments throughout the year, you may be subject to tax withholding from your employer’s salary or direct payment of the estimated tax to the IRS. Underpaid fines.

If after accounting for withholding taxes and estimated payments, if you owe less than $1,000 when you file your 2021 tax return, or if the amount you paid is at least 90% of your 2021 tax owed or For 100% of the tax owed in 2020, you will not face a fine for underpayment. Other limited exceptions may apply, including exemptions related to casualties, disasters, or other special circumstances that make the punishment unjust, or the underpayment is due to your retirement or disability rather than intentional negligence.

Plan ahead to meet your quarterly estimated payment obligations

Small business tax May cause confusion.Your state and local tax authorities may also require quarterly estimates of payments, although the deadline and method may vary Federal requirements. It is important to understand your obligations so that you can proactively fulfill them. If you need assistance in estimating your estimated tax payable or have questions, Ask a lawyer Ask for help today.

This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm, nor is it a substitute for a lawyer or a law firm. The law is complex and changes frequently.Seek legal advice Ask a lawyer.