The tax filing deadline (April 15) for sole proprietors is on the horizon. Yet being responsible for paying self-employment taxes, freelancers should follow a couple of more due dates for taxes.
Quarterly Estimated Taxes
According to IRS, all self-employed individuals, including sole proprietors, partners, and S corporation, generally, shareholders have to make estimated tax payments if they expect to owe of $1,000 or more when they file for a return.
When to Pay Quarterly Estimated Taxes
As the name suggests, for those who use the calendar as the fiscal year, the year is divided into four payment periods, quarters. Here are the due dates for each quarterly estimated taxes:
April 15, 2020: 1st payment, 2020 Estimated Tax
June 15, 2020: 2nd payment, 2020 Estimated Tax
September 15, 2020: 3rd payment, 2020 Estimated Tax
January 15, 2020: 4th payment, 2020 Estimated Tax
IRS requires you yo use the Form 1040ES to estimate your quarterly payments.
File Extension Date
If you can not make it to April 15 for tax filing for some reason, it is also the due date for filing an extension. The extension saves you six more months, postponing the filing date to October 15.
There is one thing about taxes for sure: They are complex, and there is a lot to remember. The truth is most freelancers usually don't pay estimated taxes bearing to pay for a penalty.
Lunafi helps freelancers to be on top of their taxes and all due dates. Check our free tax calculators and a complete list of due dates here.