Since the due date for both Q1 and Q2 are the same this year (extended to July 15, 2020 due to Covid-19), do I need to file estimated taxes for the 2 quarters separately or can I just figure my estimated taxes through July 15 (essentially for the first half of 2020) and just file Q2 estimated taxes? It will be much easier to figure as one and just pay once, but I am concerned that the IRS might penalize me for not filing Q1 estimated.
Thank you.
You are correct. You can combine the payments without a penalty.
The IRS says;
"Besides the April 15 estimated tax payment previously extended, today’s notice also extends relief to estimated tax payments due June 15, 2020.
This means that any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty."
But I wonder how the IRS is going to deal with the form 2210 & 2210AI, for people who need to break out their income by quarters. I guess they could combine income for the first 2 qtrs and just have (1st+2nd), then 3rd then 4th....that would require significant changes to those forms, just for one year (we hope). But if they don't, which part of a combined est payment is applied to each qtr.
I doubt they've figured that out yet....seems like a calculation mess in the making.
Might be better to be specifying a 1st qtr, & 2nd qrtr payment, done separately just in case they end up wanting separate payment values....even if paid the same day.