PaydayNow Explains Everything You Need to Know About the Tax Deadlines And Dates for 2022
Individuals must submit their tax returns by April 18 for the 2022 tax filing season. If you cannot fulfill this year’s deadline, you must request an extension. October 17 is the extended deadline for 2022.
If, on the other hand, you are self-employed, operate a small company, or have a side hustle, you are responsible for completing several tax dates throughout the year.
You’ll need to maintain records of your earnings, projected tax payments, and employment. If you hire people, you must pay quarterly employment taxes. Additionally, if you spend another independent contractor or small company, you may be required to submit paperwork with the IRS (IRS).
Due Dates for Self-Employed Taxes
Personal Income Taxes
If you work for yourself, you may elect to be taxed as a sole proprietorship. A sole owner submits a federal income tax return on Form 1040, which includes a Schedule C, by April 18 for the 2022 tax filing season. Schedule C enables self-employed individuals to report their business income or loss to the IRS.
You may be required to submit federal as well as federal taxes. Because government tax return deadlines vary, you should contact your state tax office to discover when your return is due.
Certain states, including Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming, do not require state income tax filings.
PaydayNow.net – Quick Payday Loans Online platform CEO, Merjen Novosel says, Estimated income tax payments may help you avoid a big tax bill at the end of the year. Self-employed individuals must make due tax payments if they anticipate owing at least $1,000 in taxes for the year.
Divide the tax year into four quarters and pay quarterly based on your income.
If you do not pay enough tax or do not pay on time, the IRS may assess a penalty. If you don’t pay your taxes on time, the IRS will charge you a 0.5% penalty. If you fail to submit your taxes on time, the IRS will assess a 5% penalty. Each month, both sentences are considered. Your taxes will remain owing but not exceed 25% of the entire amount owed.
If you fail to submit and pay your taxes on time, the IRS will assess a cumulative penalty equal to 5% of the unpaid taxes for each month or portion of a month your return is filed late.
Even if you anticipate receiving a refund when you complete your annual tax return, you may still be assessed a penalty for late estimated payments. Due to the complexity of these calculations, you may want to seek the aid of a tax specialist.
Taxes on Employment
If you pay your worker’s salary, tips, or other remuneration, you must file and pay employment taxes.
You are responsible for completing Form W-2, Wage, and Tax Statement, and Form W-3, Wage and Tax Statement Transmittal, with the Social Security Administration, detailing all earnings earned by each employee throughout the year.
The Internal Revenue Service (IRS) mandates that you submit Form 940, the Federal Unemployment Tax Act (FUTA) tax return. The federal government uses this tax to provide unemployment benefits to employees who have lost their jobs. Employers are typically responsible for the FUTA tax on the first $7,000 of earnings earned by each employee throughout the year.
You are obliged to submit yearly employment tax forms, but you must also file quarterly reports. If you withhold federal income taxes, Social Security, and Medicare from your workers’ salaries, you may be required to submit Form 941, Employer’s Quarterly Federal Tax Return.
Additionally, you may be required to submit this return if you have no taxes to declare for a specific quarter.
Certain conditions may require you to technical Documentation 944, Client’s Yearly Federal Taxable Income, instead of Form 941. Form 944 is intended for small businesses with minor tax obligations ($1,000 or less) and needs just yearly filing.
Form 944 is to enable small employers (those having a yearly responsibility for social security, withheld federal income taxes, and Medicare of $1,000 or less) to submit and pay these taxes annually rather than quarterly.
For example, you may submit Form 944 if the IRS notifies you through the letter that you are qualified to do so. Additionally, if your employment taxes are expected to be less than $1,000, you may submit Form 944. You must, however, contact the IRS within the first quarter of the year to request the filing of Form 944.
Information Tax Returns 1099-MISC and 1099-NEC.
The majority of self-employed individuals compensate other small companies for various services rendered and may be required to submit Form 1099-MISC or Form 1099-NEC. Accounting, legal, advertising, administrative, and tax services are only some of the professional services available.
If you paid a small company or self-employed person to do work for your business throughout the year, you might be required to file Form 1099-MISC or Form 1099-NEC with the IRS and submit a copy to the person whose services you used.
Depending on the payment you made, you’ll need to submit a different form.
Non-employee compensation payments (for example, to self-employed individuals or contractors) should be reported on Form 1099-NEC. If relevant, you must file with the IRS and provide the information to recipients by February 1.
You may be required to submit a Form 1099-MISC for payments made for prizes and awards, rentals, royalties, legal fees, and some medical services (if the payment totals more than $600 in a calendar year or at least $10 in royalty payments).
By February 1, beneficiaries must receive Form 1099-MISC, submitted with the IRS by March 1.