Whether you’re self-employed, own a small business or work a side gig, you’re responsible for meeting many tax deadlines throughout the year.
You’ll need to track your income, estimated tax payments and employment records. If you have employees, you’ll need to pay employment taxes throughout the year. And if you pay another independent contractor or small business, you may need to file information with the IRS.
Staying on top of all of this can be challenging—but we’re here to help.
Use our guide to make sure you have the right forms on hand by each deadline.
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What Is Tax Day?
Tax Day is the final deadline to submit your federal income individual tax return for the year. Typically, Tax Day is April 15, unless that date falls on a weekend or holiday. When that happens, the deadline is extended to the next business day. If you file using a fiscal year—that is, your tax year ends in any month other than December—your tax return is due on or before the 15th day of the fourth month after your fiscal year ends.
Occasionally, the IRS may extend the tax deadline due to unforeseen circumstances. For example, for the tax year 2020, the IRS extended the filing deadline to May 17, 2021, due to the challenges of the Covid-19 pandemic. Without that extension, Tax Day would have been April 15, 2021.
Tax Due Dates for the Self-Employed
Income Taxes
If you’re self-employed, you might choose to be taxed as a sole proprietorship. A sole proprietor files a Form 1040 federal income tax return with a Schedule C, which is normally due by April 15.
You may need to file both a federal and state income tax return. Since state tax return due dates vary, you should check with your state tax agency to determine when your return is due.
Some states do not require state income tax filings: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas and Wyoming. New Hampshire and Washington tax only income from investments and capital gains.
Estimated Tax Payments
Paying estimated income tax payments can help avoid a large bill at tax time. The IRS requires self-employed people to pay estimated tax payments if they expect to owe taxes of at least $1,000 for the year.
To calculate and pay your estimated taxes, you’ll need to divide the tax year into four quarters and make a payment based on your income earned for each tax period. Here’s when your quarterly payments are due in 2024:
The IRS may charge a tax penalty if you don’t pay enough or fail to pay on time. Even if you expect to receive a refund when you file your tax return for the year, you may still be charged a penalty for submitting estimated payments late. You may want to seek a tax professional’s assistance to determine your quarterly estimated tax payments.
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Employment Taxes
If you pay wages, tips or other compensation to your employees, you need to file and pay employment taxes.
You’re responsible for filing Form W-2, Wage and Tax Statement, with Form W-3, Transmittal of Wage and Tax Statements to the Social Security Administration office, reporting all wages paid to each employee during the year.
The IRS requires you to file Form 940, the Federal Unemployment Tax Act (FUTA) tax return, annually. The federal government uses this tax to pay unemployment benefit claims to workers who have lost their jobs. In most cases, the employer pays the FUTA tax for the first $7,000 of wages earned for each employee during the year.
Not only are you responsible for filing some employment tax returns annually, but you are also required to file quarterly returns. If your employees’ wages are subject to federal income tax withholdings, Social Security and Medicare taxes, you might need to file Form 941, Employer’s Quarterly Federal Tax Return.
You might also need to file this return if you do not have any taxes to report for a specific quarter.
There are certain instances where you are not required to file Form 941 but can opt to file Form 944, Employer’s Annual Federal Tax Return instead. Form 944 is a simplified form and is only required annually.
For instance, you can file Form 944 if the IRS has notified you by mail that you’re eligible to file it. Also, if you expect your employment taxes will be $1,000 or less, you can choose to file Form 944. However, you must contact the IRS during the first quarter of the year to request to file Form 944.
Form 1099-MISC and Form 1099-NEC Information Tax Return Filings
Most self-employed people pay other small businesses for different services and might be required to file Form 1099-MISC or Form 1099-NEC. These services may include accounting, legal, advertising, administrative, tax services and other professional services.
If you made a payment during the year to a small business or self-employed person who did work for your business, you might need to submit Form 1099-MISC or Form 1099-NEC to the IRS and provide a copy to the person whose services you used.
The type of payment you made will determine which form you’ll need to file.
Compensation payments made to non-employees (for example, a self-employed person or contractor) should be reported on Form 1099-NEC. If applicable, you must file with the IRS and send it to recipients by January 31.
You may need to file a Form 1099-MISC for payments you made for prizes and awards, rents, royalties, attorney fees and certain medical services (if you paid more than $600 in one calendar year or at least $10 in royalty payments).
Generally, Form 1099-MISC must be sent to recipients by January 31 and filed with the IRS by February 28, if you file on paper, or by March 31 if you file electronically. In some cases, you may have additional time to provide Form 1099-MISC to recipients.
Frequently Asked Questions (FAQ’s)
What happens if you miss the tax deadline?
Even if it’s after the official tax filing deadline, you should file your tax return immediately. Otherwise, you may be subject to penalties and interest on the amount due. However, if you are getting a refund, you won’t generally be charged a penalty.
Can you skip a year of filing taxes?
You shouldn’t. Instead, file each year on time with both the IRS and applicable state and local taxing agencies. That will ensure you escape any penalties or interest that may result from skipping a year of filing.
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