Today TaxMama® wants to take a moment to remind you about two key June deadlines. Today – estimated taxes are due. June 30th – the FBAR filing.
Today, June 16th, your second quarter estimated tax payment is due. If you’re running late and haven’t had time to address this yet, I have good news for you. The IRS has a new Direct Pay system. It allows you to make the payment directly from your checking account – with no fees. So you don’t have to run down to the bank, or to the post office, or…Nor must you pay about 3% to an online payment service and use your credit card.
If you don’t know how much to pay, here are two simple rules of thumb:
1) Self-Employed – pay the IRS at least 30% of your profits for the quarter (April and May). This will cover your 15.3% self-employment taxes and 15% tax bracket. If you’re in a 25% tax bracket – pay the IRS 40%. Pay the state, their tax rate.
2) Income is from investments and pensions – pay the IRS 15% – 25% of your income, depending on your tax bracket. If you’re in a 15% bracket and all your income is from dividends and capital gains, you might not need to pay any estimated taxes.
The next deadline is the FBAR – to report the balance and location of your offshore accounts. This report must REACH the U.S. Treasury by June 30th. It must be filed online. There is need to send any money with this report. But if you don’t file it – and should have, the minimum penalty is $10,000 and goes up from there. Some people don’t realize they need to file. So, please, read today’s MarketWatch article to see if you are affected.
And remember, you can find answers to all kinds of questions about June deadlines and other tax and business issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed version of TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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