Don’t Miss These Small Business Quarterly Tax Due Dates

As a small business owner, managing taxes is crucial to avoid penalties and maximize profits. Quarterly tax obligations can be particularly challenging, given their recurring nature, tricky deadlines, and the complex rules around them. To stay on top of your game and prevent unpleasant surprises, it’s vital to mark your calendar and account for all the small business quarterly tax due dates. Let’s take a closer look at each of them and what you need to know to comply with the law.

First Quarter Due Date: April 15th

The first quarter of the year covers the months of January, February, and March, and the deadline to pay your estimated tax owed is April 15th. This due date applies to all businesses that report income tax on a calendar year basis, regardless of the entity type. Sole proprietors, partnerships, LLCs, S corporations, and C corporations all must comply with this obligation.

To calculate your estimated tax for this period, you should use Form 1040-ES, which includes detailed instructions and worksheets. You’ll need to estimate your income, deductions, and credits for the quarter and take into account any changes that may affect your tax liability. Ideally, you should aim to pay at least 90% of the total tax you’ll owe for the year, or 100% of the prior year’s tax liability if your adjusted gross income was less than $150,000.

Second Quarter Due Date: June 15th

The second quarter spans April, May, and June, and the deadline to pay your estimated tax owed is June 15th. This date applies to all businesses that report income tax on a fiscal year basis – that is, any period other than the calendar year – as well as to certain household employers who pay federal taxes on household employees.

To calculate your estimated tax for this period, you should use Form 1040-ES as well. You’ll need to extrapolate your income, deductions, and credits for the quarter based on the prior period and adjust for any significant events or changes. As with the first quarter, you should aim to pay at least 90% of the total tax you’ll owe for the year, or 100% of the prior year’s tax liability if your adjusted gross income was less than $150,000.

Third Quarter Due Date: September 15th

The third quarter comprises July, August, and September, and the deadline to pay your estimated tax owed is September 15th. This due date applies to all businesses, regardless of the reporting period, and household employers who deferred their social security and Medicare taxes.

To calculate your estimated tax for this period, you should use Form 1040-ES as well. You’ll need to project your income, deductions, and credits for the quarter based on the prior period and adjust for any significant events or changes. Again, you should aim to pay at least 90% of the total tax you’ll owe for the year, or 100% of the prior year’s tax liability if your adjusted gross income was less than $150,000.

Fourth Quarter Due Date: January 15th

The fourth quarter comprises October, November, and December, and the deadline to pay your estimated tax owed is January 15th of the following year. This due date follows the same rules as the third quarter and applies to all businesses, as well as household employers who deferred their social security and Medicare taxes.

To calculate your estimated tax for this period, you should use Form 1040-ES again. You’ll need to forecast your income, deductions, and credits for the quarter based on the prior period and adjust for any significant events or changes. You must pay the full annual tax liability by this date to avoid penalties and interest, or make an additional payment by April 15th of the following year.

Conclusion

Managing small business quarterly tax due dates can be an overwhelming task, but necessary to stay compliant and avoid costly mistakes. You should prioritize accurate record-keeping, timely payment, and constant communication with your tax advisor or accountant to maximize your tax benefits and minimize your risks. By understanding the rules and deadlines around each quarter and applying the best practices, you can be confident in your financial position and focus on growing your business.

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