Looking for something to do this weekend? If you pay estimated taxes on earnings that aren't subject to withholding, then you can work on your third 1040-ES filing for the 2013 tax year.
In case you haven't yet encountered estimated taxes, these four extra payments are for such taxable income as investment and self-employment earnings, as well as unexpected income like prizes, gambling winnings or a lottery jackpot.
Estimated taxes are the way to meet the tax code's pay-as-you-earn system that's covered for most wage income via payroll withholding.
The Internal Revenue Service wants us to estimate how much we'll get in the tax year that isn't covered by withholding, then divide that by four and send in the payments each April, June, September and the following January.Estimated Tax Payment Deadlines
|Payment #||Due Date||For income received in|
|1||April 15||Jan. 1 through March 31|
|2||June 15||April 1 through May 31|
|3||Sept. 15||June 1 through Aug. 31|
(of the next year)
|Sept. 1 through Dec. 31|
The estimated deadlines are the 15th of those four months and they follow the same IRS rules when it comes to a due date on a Saturday, Sunday or legal holiday; that is, you have until the next business day to make the payment.
That's the case this month. Since Sept. 15 is on Sunday, your third estimated tax payment isn't due until Monday, Sept. 16.
You can pay your estimated tax amounts electronically. The IRS includes direct payments from your bank account, one you set up via the Electronic Federal Tax Payment System (EFTPS) or by using the always popular debit or credit card option.
If you want to mail your payment, download Form 1040-ES and send that voucher and your check or money order so that it's postmarked by the deadline.Other September deadlines: The impending estimated tax due date and other financial deadlines were included in one of the posts last week at my other tax blog.
In addition to individual taxpayers who must meet the Sept. 16 deadline, Congress is facing looming financial deadlines. The new federal fiscal year begins Oct. 1, giving Representatives and Senators just a couple of weeks to come up with money to keep the government running.
As part of that financial package, lawmakers must consider a new round of automatic cuts imposed by sequestration. And they need to get on the stick to bump up Uncle Sam's borrowing authority by approving a new debt ceiling.
Yep, the waning days of September are going to be fun -- if you count political posturing as fun -- on Capitol Hill.
Congress could get some added revenue if it would eliminate the tax-exempt status of some professional sports leagues. At least one Senator is seeking that change, with the incredibly popular and profitable National Football League being the prime target.
Yes, the NFL operates as a tax-exempt entity.
No, the NFL is not the type of nonprofit that accepts donations from the general public.
So sorry, the exorbitant price you pay for your tickets to the Dallas Cowboys or your favorite team is not tax-deductible as a charitable gift on your Schedule A.You can find my additional tax thoughts at Bankrate Taxes Blog, usually on Tuesdays and Thursdays, with a weekend refresher here.
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