Friday is Money Day ! Are you making your 1st and 2nd 2020 tax estimates today ?
Usually quarterly tax estimates are based on prior year’s income. This is called “penalty proofing” yourself. This year, I don’t recommend using your 2019 tax to estimate 2020 tax unless you have maintained your taxable income through the pandemic. For most of us, our 2020 taxable income thus far, is significantly less than 2019 income so we should calculate what we actually owe as estimates for 2020 and not make inflated payments based on 2019.
How did you calculate your estimates for 2020 ?