Pay estimated taxes on April 15, with a best guess estimate as to what is owed, while planning to file the tax return in May. For everyone else, he said that вЂњwe believe the penalty exposure may be limited.вЂќ In addition, he noted that many of his clients вЂњhavenвЂ™t sent in their documents, so that adds to the challenge of assessing any estimate calculations before April 15.вЂќДў. Harold Forbus, Senior Tax Manager with Bogdan & Frasco in San Francisco, explained that his firm is focusing on clients who will have substantial Q1 estimates and will ask them to pay by April 15, particularly if the firm knows the Q1 estimates (e.g., based on stock option exercises) will be very large. вЂњMy only balk came from a tech-company client who didnвЂ™t want to have to sell his company stock to pay 2020 taxes now and wanted to wait until May 17 because his company stock was rising.

вЂњNo one has balked at making that first estimate by April 15,вЂќ she continued. With two separate dates, вЂњour concern has been client confusion over what to do on what dateвЂќ she said. She explained to me that they pay estimated tax either quarterly or with each vesting to make up for the withholding shortfall. Randy Joseph, CPA in Seattle, WA with Joseph & Hetrick, has many clients with equity compensation, such as employee stock options and restricted stock units. That lets you make an accurate estimated tax payment and gets your tax return out of the way by the same date. Ignore the May 17 deadline and view April 15 as your tax-return due date. From my discussions with tax-return professionals, below are the four alternatives they see for their clients.ДЎ. Most people who pay estimated taxes base their payments on the income reported on their tax return to fit into the 100% or 110% safe harbors. What To Do About April 15 Estimated Tax Payments States that have income tax also have their own estimated tax requirements and safe harbors. If you donвЂ™t pay enough taxes, IRS Form 2210В helps you calculate any penalty for underpayment of estimated tax.

Federal taxes due 2021