How do you know how to calculate what you should pay in quarterly in estimated tax payments when you deliver for Doordash, Grubhub, Uber Eats, or others? Do you have to pay quarterly? WHEN do you have to pay?
NORMALLY you would make your second quarterly payment on June 15. This year, the federal government has moved back the quarterly payment date for both the 1st and 2nd quarter to July 15 (as well as the deadline for 2019 taxes) thanks to the Covid-19 pandemic and the impact of the lockdown on the economy. I had planned this episode based around the old June 15 schedule, but thought I’d go forward with it anyway just so you are prepared.
Not that the payment times ever made much sense anyway. It makes sense to pay every 3 months. Three months is a quarter. So the month after the first quarter, the month after the second quarter, and so on and so on. Makes sense, right? Not to Uncle Sam. We have April, that makes sense. And then…. June? 2 months later. THEN September, 3 months, and then in January which is four months later.