Estimated Taxes – 3rd Quarter Estimated Taxes Still Due 9/15

Last week, I wrote about the change in due dates for 2016 trust fiduciary income tax returns. But what hasn’t changed is the due date for the 3rd quarter estimated taxes. Estimated tax payments are still due 9/15/2017.

 

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How to distribution excess tax payments — 2013

Trusts have the option (under IRC §643(g)) to treat any portion of a payment of estimated tax made by a trust for any taxable year as a payment made by a beneficiary of the trust. The election to allocate must be made on or before the 65th day after the end of the tax year by filing Form 1041-T.

March 6

(The 65th day of 2013 is March 6. See related post here.)

The amount is treated as paid by the beneficiary on January 15 of the following tax year (for the purposes of calculating underpayment of estimated taxes). This election may also be made by an estate, but only in its last taxable year.

This election may be useful for trusts which unexpectedly have little or no tax liability last year, or after distributions were made causing the tax liability to shift from the trust to the beneficiary.

Citation: IRC §643(g)

Estimated Tax Payments: 1/15/2013

Estimated tax payments for individuals, trusts, and calendar year estates are due next week.

You may have completed your year-end tax planning last month. And you may have paid your state estimated tax payments before 12/31/2012 (if you did not expect to be subject to the AMT).

Now your Federal (and maybe state) estimated tax payments must be mailed to the government on or before next Tuesday, January 15, 2013.

How to distribution excess tax payments

Trusts have the option (under IRC §643(g)) to treat any portion of a payment of estimated tax made by a trust for any taxable year as a payment made by a beneficiary of the trust. The election to allocate must be made on or before the 65th day after the end of the tax year by filing Form 1041-T.

March 7

(The 65th day of 2011 is March 7. See related post here.)

The amount is treated as paid by the beneficiary on January 15 of the following tax year (for the purposes of calculating underpayment of estimated taxes). This election may also be made by an estate in its last taxable year.

This election may be useful for trusts which unexpectedly have little or no tax liability last year, or after distributions were made causing the tax liability to shift from the trust to the beneficiary.

Citation: IRC §643(g)