Are you a business owner or self-employed individual? Or a small business owner? It is important to make sure you pay your estimated taxes in order to avoid any unforeseen tax bills or even a penalty for your file the following year. Letting your tax bills pile up leaves unpleasant surprises for the end of the year and we want to make sure that doesn’t happen to you. Keep in mind that estimated taxes are due January 15, 2022.
Take a Look! Here’s What You Need to Know for Estimated Tax Payments
- It’s necessary for taxpayers to make estimated tax payments if they owe more than $1,000 for taxes in that year.
- Who should make estimated tax payments? S corporation shareholders, sole partners, or sole proprietors. Basically, if you don’t get a W2 every year you will likely need to pay estimated taxes. Corporations that are expected to owe more than $500 on their tax return should also make estimated tax payments.
- Estimated tax payments can be utilized to pay other taxes such as alternative minimum tax and self-employment tax.
Here are some additional dates to keep note of for your business:
- January 3 – Payment of Employer Share of Social Security Tax from 2020 or Payment of the Deferred Employee Share of Social Security Tax from 2020
- January 18 – Employer’s Monthly Deposit Due or Farmers and Fishermen
- January 31 – Form 1098 and other 1099s, Employers W2s, File Form 941 and 943, W-2Gs, File Form 940 and 945
Here are some additional dates to keep note of for you:
- January 3 – Call for a Tax Appointment
- January 10 – Report Your Tips to Employer
- January 18 – Estimated Tax Payment is Due
To get more details, check out this article from the IRS. This provides information specific on estimated tax payments that you’ll want to know. Let us know if you have any questions or need more assistance by sending us an email to [email protected]! Our business coaching will be beneficial for your creative startups! Contact us now!