The Deadline for Filing Taxes is Approaching – What to Know
Summertime is almost here, and the end of the second quarter for most businesses is all on the radar. Taxpayers can sigh with relief till April of next year. Nevertheless, entrepreneurs and self-employed individuals should keep in mind that the anticipated deadline for the second quarter taxes is approaching.
The tax system in the US is “pay-as-you-go,”. What that implies is that the IRS wants to claim back your income as soon as you receive it. Every time you earn a paycheck, the state gets the money through withholding taxes.
Taxes might be deducted from Social Security benefits and pension schemes. They can also be deducted from the minimum guaranteed.
Unless you’re self-employed or don’t have taxes taken from other types of taxable income (such as loans, profits, investment income, inheritance, or rent), you’ll need to make anticipated tax payments to the IRS regularly.
According to the IRS’s yearly schedule, taxes are usually paid in four equal payments. Even though they’re commonly referred to as “quarterly” payments, the timelines aren’t always three months apart or include three months’ worth of revenue.
So, now that the deadline for filing taxes is approaching – here’s what to know. Follow the steps below to pay your anticipated taxes for the second quarter.
Dates for 2022 Tax Payments
We’re entering the deadline for quarterly anticipated taxes, and a review of the last two years may be helpful:
- April 15, 2022: Estimated tax deadline
- June 15, 2022: Estimated tax deadline
- September 15, 2022: Estimated tax deadline
- Estimated tax deadline for the fourth quarter: January 15, 2023
Also, considering that January 15, 2023, would be a Sunday, your payment will not be received until the following business day, Monday, January 16, 2023.
If you’ve already forgotten one of these deadlines, don’t panic. Even if you’re a few weeks and months past the date, it’s still crucial to submit your anticipated tax payment as soon as you remember.
When are Quarterly Taxes Due?
The second-quarter runs from April 1 through May 31.
Expected taxes for the second quarter are due on June 15, 2022.
The IRS requires small business owners to pay assessed tax in the same way that a person must pay income tax.
For business taxes, the rules are a little more complicated. You can pay your projected taxes for the second quarter’s earnings. Alternatively, you can pay a fraction of your year’s expected total income tax.
Be aware that if you pay low wages on your business taxes during the year, the IRS may impose a late penalty on your tax return the following year. To avoid future problems, it’s best to keep notice of these quarterly deadlines.
Where to File Your Payments
The next stage is to submit your payment after you’ve computed your quarterly expected taxes.
The quickest and most secure way to pay your corporation taxes is through the IRS’s Electronic Federal Tax Payment System (EFTPS). You can arrange and file your payments straight after enrolling on the site, as well as maintain track of prior submissions.
You’ll provide your social security number or business identification number to enroll online or over the phone.
After that, the IRS will mail you a secure PIN.
You can also make direct payments to the IRS online without creating an account, but you’ll have to record the payments yourself.
How Do I Pay My Quarterly Taxes?
You’ll have to figure out how much revenue you’re bringing in before you could even evaluate your quarterly estimated taxes.
The IRS form 1040-ES is an easy way to do this. Use this form to enter your estimated personal tax returns so you can figure out how much tax you’ll owe in 2022. The tax you pay every quarter should be one-fourth of your total tax.
Additionally, companies will need to calculate estimated tax using IRS form 1120-W.
Although most big businesses would love to see their profits rise year after year, there are some benefits to consistency. You can use this as an estimate on your tax form if you expect your yearly salary to be comparable to last year in 2022. Simply repeat the computation and pay one-fourth of the total each quarter.
We understand that estimating your earnings can be frustrating, specifically when your business is always changing. However, you shouldn’t worry about underestimating your earnings because penalties are unlikely to be imposed.
In general, it’s a smart option to use the total tax due from the preceding year. Furthermore, if you’ve paid everything for the previous year, you shouldn’t have to make any extra quarterly payments or fines.
Get Your Taxes in Check with Your Part Time Accountant
If you’re strategic, plan, and have a professional accountant on your side, managing the process of completing your small business taxes doesn’t have to be unpleasant.
Your Part Time Accountant’s professionals can handle all aspects and guarantee that you are confident in fulfilling your criteria and achieving your objectives.