When are estimated tax payments due for small business owners?
5 min read
January 05, 2023 • Block Advisors
Quick tip: If you’re a small business owner, mark your calendar after you find out your estimated tax due dates!
Did you know federal income tax is a pay-as-you-go system in some cases? In fact, if you are a small business owner, you may need to file quarterly estimated tax payments in order to avoid an IRS penalty. Read on to learn about specific estimated tax due dates for payments this year.
When are estimated tax due dates?
Even if you’ve paid them in the past, you may be wondering, “when are estimated tax payment dates?”
If you meet the requirements for paying estimated taxes every quarter, payments for the tax year are due every quarter on these dates. As you can see, the dates will roll into the next calendar year.
|PAYMENT PERIOD||ESTIMATED TAX DUE DATE|
|September 1 to December 31||January 15|
|January 1 to March 31||April 15|
|April 1 to May 31||June 15|
|June 1 to August 31||September 15|
|September 1 to December 31||January 15|
NOTE: The estimated tax due dates are generally April 15, June 15, September 15, and January 15 but if they fall on a weekend or holiday, the deadline is moved to the next workday.
The estimated tax payment dates above are when your 1040-ES should be postmarked. The postmark date lets the IRS know if the estimated tax payment is paid on time.
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“Can I make estimated tax payments all at once?”
Many people wonder, “can I make estimated tax payments all on the same date?” or pay a quarter up front?
Because people might think it’s a nuisance to file taxes quarterly, this is a common question. The answer is NO. Because the U.S. tax system is pay as you go, you need to pay and file on a quarterly basis by the estimated tax due date or you’ll be charged a penalty.
Who pays estimated tax?
Individuals, sole proprietors, partners, and S corporation shareholders who expect to owe tax of $1,000 or more when you file your return, generally have to make estimated tax payments.
Corporations who expect to owe $500 (or more) in tax when their corporate return is filed generally have to make estimated tax payments.
If you have business income from self-employment, you are required to file an annual return and pay estimated tax by the estimated tax payments date – that is, quarterly. Not sure if this applies to you? Find more information about who should pay quarterly tax payments and tax deadlines, including corporate tax deadlines.
Working for yourself? Find out what you need to know about taxes for self-employed individuals.
How do you pay quarterly taxes?
You have a few options for paying your quarterly taxes. They are as follows:
- Apply your refund from this year to your estimated taxes for the next year (at the time you submit your annual tax return).
- Use Form 1040-ES to figure your estimated tax. Then mail a check or money order with Form 1040-ES each quarter.
- Visit IRS.gov to use the Electronic Federal Tax Payment System. Here you can make payments weekly, quarterly, or monthly, and you can set up payments up to a year in advance.
- Enlist the help of a Block Advisors small business certified tax pro. You can add this service to your tax prep and a tax pro will review your unique situation and suggest changes to your quarterly amount.
Need motivation to get things sorted by the estimated tax due dates? Check out 5 reasons to knock out your taxes this week!
What happens if you don’t pay by the estimated tax due dates?
If you don’t pay any of your estimated taxes, you may incur a penalty for the underpayment. The penalty is a complicated formula; it’s imposed on the amount of underpayment for the number of days it’s unpaid, starting with the first quarter payment.
Still wondering, “When are quarterly estimated taxes due?”
Do you have additional questions about when to pay estimated tax or when small business taxes are due? Rely on our team of Block Advisors to get your small business taxes right and keep your business on track.
Our small business tax preparation process works to ensure you’re paying proper amount of quarterly taxes by the right estimated tax due dates.