Update your estimated tax payments
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) allows taxpayers to delay self-employment taxes. While this is valid for taxes due in 2020, the same cannot be said for 2021.
Americans with an irregular income should make estimated tax payments to make sure you won’t have to pay a penalty for underpayment, recommends financial blogger and entrepreneur Jim Wang of Wallethacks.
If your income has been changing in the past months, either because of freelance income or income from selling property like stocks, you need to review your tax liability and update accordingly, to make sure that the amount you’re paying complies with federal as well as state taxes, he adds.
