Don’t give the government an interest-free loan this year. (Your estimated tax payments could be significantly lower!)
April 17, Tax Day, is fast approaching. It’s also the first date that estimated tax payments are due for corporations and individuals.
The good news is that corporate and individual tax rates are lower for 2018. As a result, your taxes (and estimated payments) may be lower than they were for 2017.
But if your estimates are calculated using the IRS safe harbor method – 110 percent of your 2017 tax – you could substantially overpay your estimated 2018 taxes during the year. In effect, you’ll be giving the government an interest-free loan.
Here’s a better alternative. Let LWBJ determine if your 2018 estimates are too high, based on your anticipated income. You could improve your cash flow now, instead of when your tax return is filed in 2019.
Please contact us with any questions.