TAX DEADLINES

1. Individual Tax Filings: April 15, 2025

For most individual taxpayers, the deadline to file your federal income tax return is Monday, April 15, 2025. If you’re unable to file by this date, you can request an automatic extension, which will give you until October 15, 2025. However, keep in mind that any taxes owed are still due by April 15, even if you extend your filing date. Failure to pay on time can result in penalties and interest on the unpaid amount.

2. S Corporation and Partnership Filings: March 15, 2025

S corporations and partnerships must file their tax returns by March 15, 2025. These business entities file IRS Form 1120S or 1065, respectively. If you need more time, you can request an extension, which will give you until September 15, 2025. However, keep in mind that extensions only extend the time to file the return, not the time to pay any taxes owed.

3. Corporate Tax Filings: April 15, 2025

C corporations, unlike S corporations and partnerships, must file their returns by April 15, 2025 (if operating on a calendar-year basis). The IRS requires these businesses to file IRS Form 1120. If you need more time, you can request a 6-month extension until October 15, 2025, but, again, any taxes owed must still be paid by the original deadline.

ESTIMATED TAX PAYMENTS

4. Quarterly Estimated Tax Payments: Individuals

For Individuals, estimated tax payments are generally due quarterly, with the following deadlines:

• January 15, 2025 – 4th Quarter Estimated Tax Payment for 2024
• April 15, 2025 – 1st Quarter Estimated Tax Payment for 2025
• June 15, 2025 – 2nd Quarter Estimated Tax Payment for 2025
• September 15, 2025 – 3rd Quarter Estimated Tax Payment for 2025

5. Quarterly Estimated Tax Payments: C Corporations

For C corporations, estimated tax payments are generally due quarterly, with the following deadlines:

• December 15, 2024 – 4th Quarter Estimated Tax Payment for 2024
• April 15, 2025 – 1st Quarter Estimated Tax Payment for 2025
• June 15, 2025 – 2nd Quarter Estimated Tax Payment for 2025
• September 15, 2025 – 3rd Quarter Estimated Tax Payment for 2025

ESTIMATED TAX CALCULATIONS

Estimated tax payments are prepayments of income tax made throughout the year to avoid penalties for underpayment. The calculation process differs for individuals and corporations but shares some general principles. Here’s a step-by-step guide for both:

For Individuals:

1. Determine Total Tax Liability:
   1. Estimate your total income for the year, including wages, self-employment income, dividends, and other taxable income.
   2. Deduct adjustments, deductions, and credits to estimate your total tax liability.
2. Check Withholding:
   1. Subtract any federal income tax withholding (from W-2s or 1099s) and credits you expect to claim. This gives your remaining tax due.
3. Safe Harbor Rules (to avoid penalties):
   1. Pay at least 90% of the current year’s tax liability or
   2. Pay 100% of the prior year’s tax liability (110% if your adjusted gross income (AGI) exceeded $150,000 in the prior year).
4. Divide Payments into Quarterly Installments:
   1. Divide the total estimated tax by four to get the quarterly payment amount.
   2. Deadlines: April 15, June 15, September 15, and January 15 of the following year.
5. Make Payments:
   1. Use IRS Form 1040-ES for calculations and payments. Payments can be made online via the IRS website, by mail, or through other methods.

For Corporations:

1. Estimate Taxable Income:
   1. Project your corporation’s total income, minus deductions and credits.
2. Calculate Corporate Tax Liability:
   1. Use the corporate tax rate (currently 21% in the U.S.) to determine your total tax liability.
3. Safe Harbor Rules:
   1. Pay 100% of the tax liability for the current year or 100% of the prior year’s tax liability to avoid underpayment penalties.
4. Divide into Quarterly Installments:
   1. Divide the total estimated tax into four equal payments.
   2. Deadlines: April 15, June 15, September 15, and December 15 (for calendar-year corporations).
5. Make Payments:
   1. Corporations use IRS Form 1120-W to calculate payments and the Electronic Federal Tax Payment System (EFTPS) to pay.

Additional Tips:

• Adjustments During the Year: If your income changes, recalculate your estimated taxes to avoid overpaying or underpaying.
• State Taxes: Many states require estimated payments; check specific state rules.
• Penalties: The IRS charges penalties for underpayment, so adhering to safe harbor rules is crucial.

Stay Ahead of the Tax Deadlines

While the above deadlines represent the most common ones, there are many others that could apply depending on your specific situation, such as state-specific deadlines, deadlines for claiming certain credits or filing amendments.

At Verdant Strategies and 420 CPA, we understand that keeping track of tax deadlines can be overwhelming. That’s why we’re here to help! Our team of experienced professionals can assist you with tax planning, filing, and ensuring you stay compliant with all federal and state requirements.

Don’t wait until the last minute – contact us today to schedule your consultation and ensure your business or personal taxes are in order before the deadlines approach.

Disclaimer: This article provides general information and should not be considered legal or tax advice. Please consult with your CPA or tax professional for advice tailored to your individual or business situation.