Don’t be surprised by a large tax liability

Deadlines for filing and paying many 2019-2020 taxes have been deferred to July 15, 2020. But deferment is only a delay. On July 15, taxpayers will be liable for ALL accumulated deferments, which could result in a larger than expected tax liability due at one time.

Here’s some of what’s due on July 15:

  • Amount due, if any, on 2019 taxes
  • First-quarter estimated tax payments
  • Second-quarter estimated tax payments
  • Self-employment taxes owed by sole proprietors
  • Estate taxes or gift taxes that would have been due prior to July 15, 2020
  • 2019 IRA contributions
  • 2019 health savings account funding

You don’t have to wait until July 15 to begin paying some of your taxes. Don’t get caught on July 15 with a total tax liability that’s more than you expected!