Taxes can get really complicated—even in the most standard circumstances. When you throw some self-employment into the mix, suddenly taxes feel like half your job! With the right guidance, you can pay self-employed taxes without stressing out.
Keep reading for our go-to guide on self-employment taxes.
When to Pay Self-Employed Taxes
You’re no doubt aware of the standard April deadline for taxes; however, if you’re self-employed, there are a handful of other dates and deadlines you should be adding to your calendar!
For example, tax deadlines don’t start in April for self-employed people. January 15 is actually the first deadline you should know, and it’s for 4th quarter 2021 estimated taxes.
With April comes not only your standard individual tax deadline but also your 1st quarter estimated tax payment. Also remember that April 18 is the last day to make 2021 IRA contributions. If you have a Keogh, SEP, or other qualifying plan that grants you a filing extension, you can wait until your extension deadline to make any contributions.
Second quarter 2022 estimated taxes are due on June 15, 2022, and 3rd quarter taxes are due on September 15. Then the tax deadline calendar rolls back around to 4th quarter estimated taxes, due January 15!
What to Do if You Miss a Tax Deadline
If you’ve missed a tax deadline, don’t fret! There are several factors to take into account when figuring out what you should do, as well as any penalties you might face.
You Missed a Deadline & Were Owed a Refund
If you filed your taxes and found that you’re owed money, you don’t have much to worry about. While you should file your taxes as soon as you can, you have up to three years after the due date to claim your tax refund. Of course, ideally you want to be as close as possible to owing or receiving nothing from the government.
You Missed a Deadline & Owe the IRS Money
This situation, as you can probably imagine, isn’t quite so forgiving. Every day that your tax return is late, the IRS will typically charge interest. It’s important to file your taxes as soon as you can to avoid owing way more than you did originally!
You Missed an Estimated Tax Payment Deadline
Like a lot of things with self-employment, there isn’t a straight answer to this dilemma. Any interest the IRS charges you will depend on several things, including how much you owe and how late you are. Minimize any penalties are interest charges you receive by submitting and paying your estimated taxes as soon as you possibly can.
Need Help Sorting Out Your Self-Employed Taxes?
At Banks, Finley, White & Co., we know everything there is to know about taxes—especially when it comes to small businesses and/or self-employment! The best way to avoid owing the IRS more money, submitting the wrong form, or missing an important deadline is to get professional guidance. Get in touch with us today to take charge of your financial future!