Estimated Tax Payments – Extension Request

As the 4th quarter payment lingers on January 15th make sure you cover the safe harbor amount. This means that you need to have paid 100% of last years tax or 90% of the current year tax. Note that doing this can help the Taxpayer avoid penalties for underpayment of taxes when you file your return. Note that if you can not pay full amount by the due date you should make as much as you are able. Then I would advise making periodic payments up to 4/15 – this will reduce the amount of penalties. If you are not sure how much you will owe at 4/15 and you intend to extend it is advisable that you include your 1st quarter estimate in your extension payment. If you find out after 4/15 that you owe more you can make an additional payment on the extension – again this will reduce penalties you could owe for underpayment of tax.