I'm new to managing my own taxes, as I opened up my own business. I've put together a high estimated income for the year just to insure I don't underpay on my taxes. In submitting my Q1 taxes, I accidentally combined q1&2 estimates, (I know q3 isn't usually paid on). What do I need to do to avoid future penalties for Q2 payments?
I accidentally submitted my Q1&Q2 estimated taxes to California at the first deadline. What do I do for Q2 payment?
byu/pokeman888 intax
Posted by pokeman888
5 Comments
Skip the Q2 payment; you simply paid it April 15 instead of June 15.
You paid in early that’s all, no need to make Q2.
Don’t worry about paying early. You’ll get it back if you over pay.
When Q2 arrives, True up Q1 and revise Q2 if needed and if excess track that amount for Q3. True up Q2 and use subtract any excess in Q3 payment. If short, you know what to do.
You’re fine.
You didn’t skip Q2, you just paid it early. California doesn’t care which quarter you intended, they care that enough tax was paid by the deadlines.
As long as that combined payment covers what Q1 + Q2 should’ve been, there’s no penalty sitting there waiting for you.
Where people get in trouble is underpaying, not overpaying early.
Just make sure you stay on track for Q3 and Q4 and you’re good. If anything, you gave yourself a little cushion.
Happens more than you’d think when people first start doing estimates.