08/31/2026
This is a friendly reminder that 3rd quarter estimated taxes are due September 15th. According the IRS, "Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough."
Basically it is your with-holding tax for those of us who do not received a W-2 paycheck. Most small business owners are well aware that they are liable for estimated taxes. The problem can arise from those individuals who may receive a cash windfall in the year and don't set aside money to cover the tax liability for that extra income.
Maryland also has their version of estimated taxes under the "Pay as You Go" law. This is basically following the IRS guidelines and requires all Maryland residents to have withholding throughout the year.
If you should have any questions on how much to pay, where to send payments or other concerns on this or other tax or financial issues; please do not hesitate to contact us. 410.975.5565