April 2021 Individual Due Dates
April 12 - Report Tips to Employer
If you are an employee who works for tips and received more than $20 in tips during March, you are required to report them to your employer on IRS Form 4070 no later than April 12.
Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.
April 15 - Taxpayers with Foreign Financial Interests
A U.S. citizen or resident, or a person doing business in the United States, who has a financial interest in or signature or other authority over any foreign financial accounts (bank, securities, or other types of financial accounts), in a foreign country, is required to file Form FinCEN 114. The form must be filed electronically; paper forms are not allowed. The form must be filed with the Treasury Department (not the IRS) no later than April 15, 2021, for 2020. An extension of time to file of up to 6 months is automatically allowed. This filing requirement applies only if the aggregate value of these financial accounts exceeds $10,000 at any time during 2020. Contact our office for additional information and assistance filing the form.
April 15 - The Normal April 15 Tax Filing Due Date has been extended to May 17, 2021
The IRS has extended the normal April 15 individual tax return due date to May 17. Caution: the extension does not apply to the 2021 estimated tax payment which is still due on April 15, 2021.
April 15 - Estimated Tax Payment Due (Individuals)
It’s time to make your first quarter estimated tax installment payment for the 2021 tax year. Our tax system is a “pay-as-you-earn” system, so you need to pay and file on a quarterly basis or you’ll be charged a penalty. Here is a refresher on how it works:
Who needs to pay estimated tax?
Individuals, sole proprietors, partners, and S corporation shareholders who expect to owe tax of $1,000 or more when you file your return, generally have to make estimated tax payments.
Corporations who expect to owe $500 (or more) in tax when their corporate return is filed generally have to make estimated tax payments.
If you have business income from self-employment, you are required to file an annual return and pay estimated tax quarterly.
How do you pay your quarterly taxes?
Apply your refund from this year to your estimated taxes for the next year (you can do this at the time you submit your annual tax return).
Use Form 1040-ES to figure your estimated tax. Then mail a check or money order with Form 1040-ES each quarter.
Visit IRS.gov to use the Electronic Federal Tax Payment System. Here you can make payments weekly, quarterly, or monthly, and you can set up payments up to a year in advance.
Call your BATS Xpress team – we can assist you with calculations and submissions.
What happens if you don’t pay your 2021 estimated taxes?
If you don’t pay any of your 2021 estimated taxes, you may incur a penalty for the underpayment. The penalty is a complicated formula; it’s imposed on the amount of underpayment for the number of days it’s unpaid, starting with the first quarter payment. Call us if you have questions or concerns about your estimated payments.