January reminders: estimated tax payments, farmers and fishermen January 2021 Tax News

Estimated tax payments

For individuals the fourth quarter estimated tax payments are due on January 15th, 2021.

Additionally, as we stated in our November 2020 edition: we will extend the time to file 2019 tax returns and pay 2020 estimated taxes due during the disaster period until January 15, 2021, for affected taxpayers in the following counties - Fresno, Los Angeles, Madera, Mendocino, San Bernardino, San Diego, Siskiyou, Napa, Shasta, and Sonoma. This matches the relief that the IRS has provided for these fires. (Announcements IR-2020-237; CA-2020-07).

Farmers and fishermen

There are special provisions for farmers and fishermen regarding estimated tax payments. If your tax year is the calendar year and at least two-thirds of your gross income (for 2019 or 2020) is from farming or fishing, your payment due date for your 2020 estimated tax is January 15, 2021.

Calendar year

The due dates for the first three payment periods don't apply to you. If you're a calendar year taxpayer and you file your 2020 Tax return (Form 540) by March 1, 2021, you don't need to make an estimated tax payment if you pay all the tax you owe at that time.

Fiscal year

If your tax year is a fiscal year you can either:

  • Pay all your estimated tax by the 15th day after the end of your tax year
  • File your return and pay all the tax you owe by the 1st day of the 3rd month after the end of your tax year

Visit our Underpayment of Estimated Tax by Farmers and Fishermen (5805F Instructions) or to IRS’ Tax Withholding and Estimated Tax (Publication 505) for more information.

Electronic payment may be mandatory but we encourage Web Pay for everyone. It’s fast, easy and the most direct way to ensure payment has been made.