Personal & Business Taxes

The conclusion of the 2024 tax season for most Americans falls on April 15, 2024. In case you are unable to meet this deadline, there are alternative options available.

One option is filing for an extension, which grants you an additional six months until October 15, 2024, to submit a comprehensive tax return. If you anticipate owing taxes, it’s crucial to estimate the amount owed and make the payment along with your extension form.

Alternatively, you can file a late return without an extension. If there’s no tax liability or you expect a refund, you might not face a penalty. However, in cases where taxes are owed, a penalty for late filing may be applied.

While there might be no penalty if you don’t owe taxes or expect a refund, it’s advisable to file as promptly as possible. This ensures timely receipt of any refunds and reduces the risk of owing a balance. Further details on free filing options and the process of claiming your tax refund are provided below.

If your income falls below the standard deduction threshold for 2023, set at $13,850 for single filers and $27,700 for married couples filing jointly, filing a tax return might not be mandatory. However, opting to file can be beneficial, particularly for individuals with lower incomes, as it could potentially increase the refund amount. Here are crucial aspects to consider:

1. Over-withholding:

• If you were employed in 2023 and had taxes deducted from your paycheck, you may be eligible to reclaim some or all of the “over-withholding” in your refund. Ensure you collect W2 forms from all your employers and input this information accurately when completing the tax form.

2. Earned Income Tax Credit (EITC):

• Individuals who worked or were self-employed with earned income below $63,698 may qualify for the Earned Income Tax Credit (EITC) by filing a tax return. Eligible individuals can receive varying amounts:
  • $600 with no dependent children
  • $3,995 with one qualifying child
  • $6,604 with two qualifying children
  • $7,430 with three or more qualifying children

3. Child Tax Credit (CTC):

• The Child Tax Credit offers a maximum of $2,000 per qualifying child, with up to $1,500 being refundable. To qualify for CTC, you must have earned more than $2,500.

In summary, even if your income is below the standard deduction threshold, filing a tax return can be advantageous due to potential refunds through features like over-withholding, the Earned Income Tax Credit, and the Child Tax Credit. Ensure you consider these factors when completing your tax form for a comprehensive financial assessment.

Running a business entails numerous responsibilities, and among them is the timely filing of tax returns or requesting an extension. Equally important is ensuring that your tax obligations are met promptly. To assist you in maintaining compliance in the upcoming tax year, we have compiled a list of 2024 tax deadlines tailored for small business owners like yourself.

Business Tax Filing Deadlines

The tax filing deadline for your business depends on its entity type and may differ from the standard April 15 date. Here are the key business tax filing deadlines for 2024:

January 31, 2024: This marks the deadline for distributing W-2s to employees. Additionally, you must send 1099s to freelancers, independent contractors, or other non-employees whom you compensated during the tax year.

March 15, 2024: For partnerships, S corporations, or multi-member LLCs, the deadline to submit business tax returns is March 15, 2024. An exception exists for those using a fiscal year for accounting, in which case the filing deadline is the 15th day of the third month following the close of the tax year. For instance, if your fiscal year spans from June 1, 2023, to May 31, 2024, you should file your tax return by August 15, 2024.

April 15, 2024: Sole proprietors (Schedule C), C corporations, single-member LLCs, and LLCs taxed as corporations must all adhere to the same deadline as individual taxpayers – April 15, 2024. Corporations using a fiscal year typically file by the 15th day of the fourth month following the end of their tax year. However, if the fiscal year concludes on June 30, the filing deadline is September 15, 2024.

2024 Quarterly Estimated Tax Payment Deadlines

There are four estimated tax payment deadlines, with due dates as follows:

• April 15, 2024
• June 15, 2024
• September 15, 2024
• January 15, 2025

Note that you can make an estimated tax payment ahead of schedule. Additionally, if you plan to file your return by February 1 and settle all taxes owed by that date, you may omit the January 15 payment. Ensure you adjust for any weekend or federal holiday, as the due date shifts to the subsequent business day.