Our New York City tax office encourages taxpayers to plan ahead and take steps to avoid a penalty for underpayment of tax when filing their return in 2019. Now is the ideal time for taxpayers to check their tax situation, including withholding and estimated tax payments to determine if they need to make an additional tax payment to avoid an unwelcome surprise at tax time.

Taxpayers who are self-employed or have other income, such as interest, dividends, capital gains, prizes and awards, or have too little tax withheld from wages may need to make estimated or additional tax payments. Further, estimated tax is used to pay not only income tax but other taxes such as self-employment tax and alternative minimum tax. Taxpayers can also adjust withholding on their paychecks or the amount of their estimated tax payments to help prevent penalties.

For 2018, the remaining payments are due September 17, 2018, and January 15, 2019. Those who make estimated payments may be charged a penalty if those payments are late. If you need assistance calculating your tax obligations or if you have tax penalties that you cannot pay, please contact our NYC CPA firm so we can help you.