Tax time. A term that individuals and business owners alike are all too familiar with.
Also referred to as “tax season”, this time frame begins in January and ends in April if you are filing in a calendar year. This usually prompts the question, “When are my taxes due?” Although your accountant will serve as a professional reminder of this date, it is very important to remember.
Tax Day: April 15th
If your fiscal year is a calendar year, then tax day will usually be April 15th every year. This is with the exception that April 15th falls on the weekend or on a holiday. In this instance, it will be the next business day. Any filing extension would begin from this date.
April 18th is the 2022 tax filing deadline for employees, independent contractors, and self-employed individuals to file their federal income taxes. Businesses, including service-based businesses such as partnerships and S or C corps, have a few more dates to be cognizant of. It is crucial to know what needs to be completed by these dates to avoid late filing fees.
In a service-based business, things happen and time moves quickly. Therefore, if you notice the 2022 tax filing deadline drawing nearer, you have the option to request a filing extension. It is important to note that this does not change the deadline date. You have up until the tax deadline to request an extension – that is, until April 18th.
If you are constantly asking, “When are my taxes due?”, then it would be prudent to learn the dates. We’re here to help! As your trusted accountant, we can guide you into a smooth tax season.
Tax Dates to Remember
- January 17, 2023
The 4th quarter estimated tax payment is due and applicable to employees, businesses, and self-employed individuals who have other income without any tax withholding. Around this time (mid-January), the IRS will begin accepting 2022 tax returns.
- January 31, 2023
This is the due date that the IRS requires for employers to send W-2 forms to their employees. Another copy should be sent to the IRS. Forms 1099-MISC, 1099-K, and 1099-NEC, which are used by self-employed individuals and independent contractors, are also due on this date.
- February 15, 2023
This is the time to reclaim your exemption from withholding if you opted to claim an exemption from your employer withholding taxes from your paycheck in the last year when you filed your W-4. You will have to re-file the form by this date.
- March 15, 2023
On this date, tax returns are due for business types such as partnerships, S-Corps and LLCs. These business types must file Form 1120S or 1065. It is important to remember that partnerships and S-Corps do not pay taxes on their income as they are pass-through entities. Businesses like partnerships, multi-member LLCs, and S-Corporations must file Form 1120S or 1065 by March 15 if they are a calendar year business.
- April 18, 2023
This is the official 2022 tax filing deadline date! Other important items due on this day:
- This is the last day to request a filing extension.
- The 1st quarter 2023 tax payment is due on this date as well.
- Taxes for C-Corps are due.
- This is the deadline to make IRA and HSA contributions for the 2022 year.
- June 15, 2023
This is when the 2nd quarter estimated tax payment is due.
- September 15, 2023
This is the date that the 3rd quarter estimated tax payment is due. It is also the deadline for S-Corps and partnerships to file their tax returns.
- October 16, 2023
This date is the deadline to file your 2022 tax return if you received a filing extension. It is the due date for tax returns to be filed for C-Corps as well.
- December 31, 2023
This is the last opportunity to make any changes that could reduce your taxable income and help your business in the upcoming year.
Late Filing & Payments
Asking the question “When are my taxes due?” often leads to another question: “What will happen if I don’t pay on time?”
This is a pertinent query and must be taken into serious consideration, especially by service-based businesses. Your accountant should advise you that paying past the 2022 tax filing deadline will incur a late payment penalty.
If you file your return late, your penalty will be 5% of unpaid taxes every month. Moreover, If you pay your taxes after the due date, or after an extension deadline, you will be charged 0.5% of additional unpaid taxes every month. This will continue each month until you pay what you initially owed.
As a small- or medium-sized business owner, it is essential that you are aware of the dates discussed here. Depending on your business model or your employment type, tax season is a year-round commitment, one that must always be top priority. As always, working along with a tax professional can make the entire process less stressful and we can always answer that question, “When are my taxes due?”