Avoiding Penalties
WITHHOLD PROPERLY OR MAKE ESTIMATED TAX PAYMENTS
Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If the amount of income tax withheld from your salary or pension is not enough, or if you receive income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, you may have to make estimated tax payments. If you are in business for yourself, you generally need to make estimated tax payments. Estimated tax is used to pay not only income tax, but other taxes such as self-employment tax. We will provide vouchers and estimates for the new tax year with your tax return.
Federal CaliforniaFILE AN EXTENSION
A tax filing extension provides an automatic six-month extension to file federal or state income tax returns, but it does not extend the deadline to pay any taxes owed. To avoid penalties, taxpayers must file an extension AND pay the estimated balance due by the deadline.
Federal CaliforniaREPORT ALL INCOME
Make sure you do not underreport your income by comparing your W-2s and 1099s with your check stubs and deposits, OR by obtaining a federal and state transcript. You can also contact studio/payroll houses for missing W-2s.
SAG-AFTRA Federal CaliforniaREGISTER AND RENEW WITH CITY OF LOS ANGELES
Note that this tax is not part of your federal and state filing responsibilities that I file for you. Generally, if you are self-employed and conduct business within the City of LA, you should proactively register for a BTRC. Then each year before March 1, you must report your gross LA receipts or you may receive a penalty later in the year.
Register Renew