Income tax deadline is extended, but estimated tax payment is still due on April 15

As you have already heard, due to the COVID-19 pandemic, the federal government extended this year’s federal income tax filing deadline from April 15, 2021, to May 17, 2021. This extension is automatic and applies to filing and payments. The Franchise Tax Board (FTB) also announced that, consistent with the Internal Revenue Service, it has postponed the state tax filing and payment deadline for individual taxpayers to May 17, 2021 and most of other states have extended income tax filing and payment deadlines to May 17 as well.

However, please be reminded that the estimated tax payments are still due on April 15 and the IRS has not extended the due date for estimated income tax payments.  The same is for FTB and the postponement only applies to individual taxpayers, and it does not apply to estimated tax payments, which are still due on April 15.

Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments. If you receive the income that isn’t subject to income tax withholdings such as self-employment income, interest, dividends, alimony or rental income, you must make estimated tax payments to the IRS quarterly.

We are always here to help. If you haven’t done so yet, please reach out to us today.