It’s safe to say that few of us like looming deadlines. And when those deadlines relate to filing and paying taxes, the number likely drops even more.
While taxes may be a certainty in life, the filing and payment dates aren’t always quite as rock solid. Whether it’s the effect of the pandemic or just the observance of local holidays, small business tax deadlines can vary from year to year.
If you’re not sure what’s due and when for 2022, we’re here to help.
Let’s take each small business tax deadline in order.
The end of January marks the deadline for issuing tax documents for your employees and contractors.
If you have employees, you’ll need to fill out two copies of Form W-2 for each of your employees.
One copy needs to go to the IRS. The other one needs to be sent to the employee. Both need to be sent out by January 31, 2022 (via mail or electronically).
You can get the Form W-2, Wage and Tax Statement free from the IRS.
Form 1099-NEC (nonemployee compensation) is similar to the W-2, except that it's used for independent contractors.
Copy A must be filed with the IRS and Copy B must be sent to the contractor by January 31, 2022.
Use this form to report payments other than nonemployee compensation made by a trade or business to others. This includes rents, royalties, prizes and awards, and other fixed determinable income.
As with the 1099-NEC form above, Copy B needs to be sent to the payee by January 31, 2022.
Send Form 1099-MISC to the IRS
While you are required to send Copy B to payees by January 31, Copy A needs to be filed with the IRS by February 28 (March 31, if filing electronically).
This is also the deadline to file for an extension for S-corp and partnership tax returns.
As we mentioned above, this is the date for filing Copy A of this form with the IRS. Please be aware that this due date is for electronic filings only.
For many taxpayers, April 18, 2022, is the deadline for filing individual income tax returns and often represents the end of the annual tax season. However, if your business pays taxes each quarter, the cycle begins anew.
Form 1040-ES, Estimated Tax for Individuals (Payment Voucher 1) needs to be filed with your first 2022 estimated quarterly tax payment.
This is the day that can stress out so many of us. It’s the deadline to file individual tax returns (Form 1040).
You may be able to qualify for Free File software from the IRS if your income is $66,000 or less. According to the IRS, you’ll need a computer and an email address in order to get started on the Free File website.
You’ll need to use Schedule C (Form 1040) to report income or loss from a business you operated as a sole proprietor. The IRS considers you a business if:
Tax deadlines can sneak up on us. If you find yourself needing more time to complete your forms, you can file for an extension. While that will buy you some time, there are some important things to be aware of.
It’s more time to file, not more time to pay — Using Form 4868 gets you only more time to file your tax forms. If you owe money to the federal government, you’re still required to make a payment this year by April 18.
It can be better to overpay — If you’re unsure about the amount you may owe, some find it a good idea to send the IRS a bit more. If, in the end, you overpay, you’ll get a refund. On the other hand, if you underpay, you’ll likely have to pay interest on the amount you owed.
Individuals and businesses affected by tornadoes, hurricanes, and other natural disasters can be granted extensions and other tax relief from the IRS. If natural disasters have had a negative impact on you or your business, you can find out about any potential extensions or other relief on the IRS website.
When certain state holidays fall on a tax deadline, residents and businesses in those states can be granted filing extensions. For 2022, states with filing extensions due to holidays include:
Massachusetts — Patriot’s Day holiday — Deadline extended to April 19, 2022
Maine — Patriot’s Day holiday — Deadline extended to April 19, 2022
Laws and requirements for filing taxes vary among states. You can get some quick information about your particular state here.
This is when your second 2022 estimated quarterly tax payment is due. You should use Form 1040-ES, Estimated Tax for Individuals (Payment Voucher 2).
Time for Round 3 of your estimated quarterly tax payments. You’ll need to complete Form 1040-ES, Estimated Tax for Individuals (Payment Voucher 3).
If you filed an extension for your S Corporation or partnership, your tax return needs to be filed by September 15, 2022.
Here are a couple of forms you may need:
Form 1120S, Income Tax Return for an S Corporation
Form 1065, U.S. Return of Partnership Income
If your business is a C Corporation and you filed for an extension, your time is up. This is also true for sole proprietorships. Corporations will need to use Form 1120, while sole proprietorships should file with the appropriate individual income tax return.
One way to help take the worry and anxiety out of tax filing is by being prepared. Making the right end-of-year tax moves can not only help reduce tax-related stress, it also could reduce your tax burden.
This would be a good time to talk with your accountant or tax preparer to see what are the best steps for your business.
We also recommend checking out this handy guide on how to make tax planning easier.
Remember those steps you discussed with your tax professional back in November? This is the last day you can implement them for the 2022 tax year.
If the range of your thinking and planning extends beyond the upcoming tax cycle and into your retirement years, you may want to look into the tax and other advantages of a solo 401(k) plan.
OK, we may be jumping the gun a bit here by looking into 2023, but if you’re making your last estimated payment for 2022, it’s helpful to know that your 2022 fourth payment is actually due in January 2023.
In any given tax year, there’s a lot you need to be aware of. Missing a deadline can land you in trouble and can often cost you money as well, so it makes sense to stay on top of key tax dates throughout the year.
The good news is that there are a number of tools that can help you. Even better, some of the most helpful ones come from the IRS, and they’re free. Here’s a short list to get you started.
An online tax calendar. You can check it out on your mobile device too.
Emailed calendar reminders. Once you sign up, the IRS will email you reminders one or two weeks in advance of when a payment is due.
Tax calendar import. You can subscribe or download the IRS’s tax calendar so it shows up in your Outlook email program.
One more thing to consider: Find a good accountant or tax professional. Many of them are small business owners themselves, so they know what it’s like to run a business and stay on top of changing tax regulations and annual deadlines.
The dates provided in this article were taken from IRS information that can be found here.
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