No one likes doing taxes. The whole process of tracking down numbers, invoices, and receipts; getting them organized; parting with your hard-earned money…honestly, what is there to like? However, taxes are inevitable. It’s very important to stay up-to-date on your tax obligations so you can protect yourself and your business.
Keeping up with, filing, and mailing off your taxes are all probably on your resolution list for 2022. Will you get everything sent off in time, or will it be a last-minute, extension-filing, sweat-induced mad dash to the mailbox on Tax Day?
If you look ahead, you can easily stay ahead of both the tax collector and the tax filing dates. Here are a few critical tax dates you need to know for 2022:
Estimated Quarterly Payments
W-2 employees have taxes withheld from their paychecks. If you are a contractor or self-employed, you won’t have regular withholdings. Instead, it is your responsibility to make quarterly estimated payments to the IRS. This year’s dates are:
- January 18, 2022
- April 18, 2022
- June 15, 2022
- September 15, 2022
The January 18 payment reflects income earned in the last quarter of 2021. If you are planning on submitting your income tax return by January 31 and paying any remaining balances with that submission, you can roll that last payment in with it.
Another thing to note: your quarterly tax payments are estimated based on the income reported on the previous year’s tax statement. If you expect your income to change significantly, it’s worth consulting with a tax professional regarding what your payments might look like. Without making necessary adjustments, you may overpay or get stuck with a sizable bill come next year.
S-Corp and Partnership Tax Returns
The deadline to file S-Corp and partnership tax returns is March 15, 2022. If your business is registered as one of these types of entities, you will not pay taxes on the income earned through the entity. Instead, the income is passed through to the individual shareholders/partners and paid as part of their income tax.
Not quite ready to complete the filing? You can also request an extension for your returns, as long as you do so by March 15, 2022.
Tax Day is April 18, 2022 (shifted from the customary April 15 because it falls on a Friday this year). Grab your calendar and big red Sharpie—this is the day you want to circle. It is when your federal income tax return needs to be filed with the IRS.
If you’re e-filing, you have until midnight on Tax Day to get your information in. If you’re mailing in your return, you need to have it signed and sealed (with the correct address and postage) and postmarked no later than April 15.
As a reminder, you don’t have to wait until the last minute to file. The IRS typically begins accepting tax return filings in January or February.
If you need an extension, you can request one and extend your filing date by six months to Monday, October 17, 2022. However, requesting an extension doesn’t affect the timing of your payments. All tax payments must still be remitted; it’s merely an extension of the deadline to file the official return form.
State Income Tax
There’s a lot of variation from state to state regarding how and when to file state income tax.
Some states have issued specific relief guidelines related to COVID; some states don’t require income tax payments. In addition, about half of all states require a corporate franchise tax payment to be filed. These payments can also be paid on a quarterly schedule; check for details regarding your specific state.
Retirement Planning Dates
If you’re planning for retirement, you may also want to consider specific dates for tax-advantaged saving programs like a Roth IRA or a 401(k).
For a Roth IRA, contributions for 2021 can be made through April 15, so you have the opportunity to catch up if needed. If you’re setting up a 401(k), you have until the end of the calendar year to establish one.
As we mentioned, very few business owners get excited about the idea of paying their taxes or keeping up with mandatory filing deadlines. However, we like to reframe taxes in the same way we think about getting an annual physical or bringing our car in for a full service. It can feel inconvenient, but it’s a necessary part of life that keeps us (or, in this case, our livelihood) in tip-top shape.