July 2020

Between mortgages, car loans, credit cards, and student loans, most people are in debt. While being debt-free is a worthwhile goal, most people need to focus on managing their debt first, and these tips will help you to do just that.
Most small business owners will visit a bank or other lending institution to borrow money, and understanding what your bank is looking for can mean the difference between getting a loan or scrambling to find cash from other sources.

If you received income from a foreign source in 2019 or are a U.S. citizen or resident who worked abroad, you'll need to report it.
Here's How to Pay If You Owe Money to the IRS

The federal tax deadline is quickly approaching. If you owe money to the IRS - including estimated and other business taxes - six options are available that let you make quick and easy electronic payments.

If you've received an economic impact payment for a deceased family member or another taxpayer who is not eligible to receive one, you may have questions about what to do. Here are some answers.

TAX DUE DATES

July 10

Employees Who Work for Tips -
If you received $20 or more in tips during June, report them to your employer. You can use Form 4070.

July 15

Employers -
Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in June.

Employers -
Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in June.

Individuals -
File an income tax return for 2019 (Form 1040 or Form 1040-SR) and pay any tax due. If you want an automatic 3-month extension of time to file the return, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return and pay what you estimate you owe in tax to avoid penalties and interest. Then file Form 1040 or Form 1040-SR by October 15.

Household Employers -
If you paid cash wages of $2,100 or more in 2019 to a household employee, file Schedule H (Form 1040 or Form 1040-SR) with your income tax return and report any employment taxes. Report any federal unemployment (FUTA) tax on Schedule H (Form 1040 or Form 1040-SR) if you paid total cash wages of $1,000 or more in any calendar quarter of 2018 or 2019 to household employees.

Individuals -
If you are a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 or Form 1040-SR and pay any tax, interest, and penalties due. If you want additional time to file your return, file Form 4868 to obtain 3 additional months to file. Then file Form 1040 or Form 1040-SR by October 15.

However, if you are a participant in a combat zone you may be able to further extend the filing deadline.

Individuals -
If you are not paying your 2020 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2020 estimated tax. Use Form 1040-ES.

Individuals -
Make a payment of your 2020 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the second installment date for estimated tax in 2020.

Corporations -
File a 2019 calendar year income tax return (Form 1120) and pay any tax due. If you want an automatic 3-month extension of time to file the return, file Form 7004 and deposit what you estimate you owe in taxes.

Corporations
Deposit the first installment of estimated income tax for 2020. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

Corporations
Deposit the second installment of estimated income tax for 2020. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

July 31

Employers -
Social Security, Medicare, and withheld income tax. File Form 941 for the second quarter of 2020. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until August 10 to file the return.

Employers -
Federal unemployment tax. Deposit the tax owed through June if more than $500.

Employers -
If you maintain an employee benefit plan, such as a pension, profit-sharing, or stock bonus plan, file Form 5500 or 5500-EZ for calendar-year 2019. If you use a fiscal year as your plan year, file the form by the last day of the seventh month after the plan year ends.

Certain Small Employers -
Deposit any undeposited tax if your tax liability is $2,500 or more for 2020 but less than $2,500 for the second quarter.

IN THIS ISSUE
Tax Tips
QuickBooks Tips

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Dawson & Associates | 818 379-9800 | team@dawsoncpa.com | http://www.dawsoncpa.com
16027 Ventura Boulevard Suite 501
Encino, CA 91436
Dawson & Associates, 16027 Ventura Boulevard  Suite 501, Encino, CA 91436
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