Hope you all are excited about summer and how things are slowly getting back to normal, or maybe “new normal.”
As we always want our clients to stay ahead with their taxes, this is an important reminder that the Q2 estimated payment due date is right around the corner (June 15th).
As you know very well, the US tax system operates on a “pay-as-you-go” basis. If you earn money that isn’t subject to withholding from an employer, you will have to pay taxes every quarter on those earnings.
This can include earnings from the sale of an investment, rental income, dividends, interest, and self-employment income.
Even if you are withholding taxes from your paycheck, you might have to pay quarterly taxes if your withholdings don’t cover enough.
We can project your taxable income and related estimated income tax liability for the second quarter based on information you provide to us. In addition to the income tax projection, we can provide you with a summary of tax planning strategies that may reduce your 2021 tax liability.
Tax compliance and tax strategies are certainly not for tax filing season only and this is why Team Encore stays busy all year round.
Let’s stay proactive about your tax planning and complete your tax projections for the second quarter.