It’s the question few business owners enjoy asking: When are business taxes due for the 2022 tax year?
The business tax deadline to file federal tax returns for most small businesses will be April 17, 2023.
(Usually, taxes are due on April 15, but the deadline moved likely because April 15, 2023, is a Saturday.)
Hold up, though — that's the big one. There are several tax deadlines to be aware of or are different if you’re not a sole proprietor. We’ll cover:
- What is the business tax deadline in 2023?
- State business tax deadlines
- When to make quarterly estimated tax payments
- Payroll or employment tax deadlines
- Business tax extension due dates
- Preparing your taxes
- Common self-employed and business deductions
- Related tax resources
What is the business tax deadline in 2023?
The federal income tax deadline for the calendar year 2022 is April 17, 2023.
This date is for sole proprietors who file Schedule C and personal tax returns (IRS Form 1040). (It’s also the deadline for C-corporations, but that’s a little less common.) So if you’re a self-employed individual, independent contractor, or gig worker, this date applies to you.
When is tax day? April 17, 2023
If you have a partnership (including LLCs) or an S-corporation, your deadline is March 15, 2023.
State business tax deadlines
It’s important to keep in mind that federal tax deadlines do not always fall on the same day as state tax deadlines.
Check with your state’s tax agency or consult with a licensed tax professional to learn more about your requirements.
Each state calculates its tax rates a bit differently. Generally, if your business is incorporated, you file corporate tax returns.
You pay personal income tax if you are a sole proprietorship or limited liability company (LLC). Learn more about business entities for your small business.
When to make quarterly estimated tax payments
Many small businesses don’t wait until April to pay taxes. It is common for contractors to make quarterly tax payments to avoid a high tax bill with annual filings.
In 2023, the payments for sole proprietors, S-corporations or C-corporations quarterly taxes are due on:
- April 18: payment for 1st quarter 2023 estimated business tax due
- June 15: payment for 2nd quarter 2023 estimated business tax due
- September 15: payment for 3rd quarter 2023 estimated business tax due
- January 15, 2024: payment for 4th quarter 2023 estimated business tax due
Remember that since there is no self-employed tax withholding, those in business for themselves often pay nearly 30% of revenue to the IRS.
Businesses can fill out Form 1040-ES to make quarterly payments. That helps you calculate what you owe for business income tax, Social Security, and Medicare.
Payroll or employment tax deadlines
Payroll is much more than cutting a check — you also have to pay employment taxes. Luckily, many small business owners use accounting software to calculate what’s owed and remit payments.
There are three types of payroll taxes with different deadlines:
- Federal Unemployment Taxes (FUTA)
- Federal income taxes
- Federal Insurance Contributions Act (FICA)
Federal Unemployment Taxes (FUTA)
FUTA is a tax employers pay that funds unemployment programs. These taxes should not be withheld from employee wages.
Usually, FUTA is due quarterly, but it also depends on your tax liability for the current quarter.
| Tax liability | Payment cycle | When to pay FUTA |
|---|---|---|
| More than $500 annually |
Quarterly payment |
Last day of the month after the end of the quarter. (See next table) |
|
Less than $500 annually |
One-time payment |
January 31 |
|
Less than $500 quarterly |
None |
Carry it forward to the next quarter or until your cumulative FUTA tax liability is more than $500. |
FUTA quarterly business tax deadlines:
| Quarter | Quarter end date | FUTA tax due |
|---|---|---|
|
Quarter 1 (January-March) |
March 31 |
April 30 |
|
Quarter 2 (April-June) |
June 30 |
July 31 |
|
Quarter 3 (July-September) |
September 30 |
October 31 |
|
Quarter 4 (October-December) |
December 31 |
January 31 |
Federal income taxes and FICA tax
Federal Insurance Contribution Act (FICA) taxes go towards supporting federal Medicare and Social Security programs. FICA is a tax that’s split between employers and employees, so you’ll need to withhold your employee’s share.
What’s convenient is that federal withholding taxes and FICA are due at the same time. However, that due date depends on your business; the IRS will tell you when to pay taxes.
You’ll follow either a semiweekly or monthly deposit schedule. FYI, you don’t get to choose the schedule; it’s based on a lookback period. Generally:
- If your business paid $50,000 or less in employment taxes: Monthly schedule. Payments are due by the 15th day of the following month.
- If your business pays more than $50,000 in employment taxes: Semiweekly schedule based on your payday.
- If your payday is on Wednesday, Thursday, and/or Friday, you must deposit these taxes by the following Wednesday.
- If your payday is on Saturday, Sunday, Monday, and/or Tuesday, you must deposit these taxes by the following Friday.
Business tax extension due dates
Businesses unable to meet filing dates in 2023 can apply for an additional extension through Form 7004. Taxpayers requesting an extension need to file by the extended business tax deadline of October 13, 2023.
If you were affected by a recent natural disaster like a hurricane or wildfire, you might qualify for an additional extension of the business tax deadline, according to the IRS.
Preparing your taxes
To make sure you don't miss important business tax deadlines, it’s a good idea to work with a licensed accountant. A tax preparer ensures your taxes are complete and accurate. They may also know all the potential tax deductions specific to your business, so you can reduce the amount you owe as much as possible.
Your accountant can also help you to store and track your business receipts, in addition to a detailed record and description that shows the reason for the expense. In the event of an audit, you'll need to prove that your deductions are legitimate. Good bookkeeping helps ensure you don't lose out on a potential write-off that could work in your favor at tax time.
To keep your small business on track, you have to think about important protections like business insurance and financial planning.
Don’t wait until the business tax deadline to do everything. Start the process early so you'll have the maximum opportunity to claim deductions and avoid penalties and interest.
Common self-employed and business deductions
There are several deductions self-employed workers, and independent contractors can claim. Generally, you can deduct ordinary and necessary expenses to run your business. Here are a few examples of small business tax deductions:
Transportation. If you own or rent a business vehicle, you can claim those costs. You may also claim the expenses related to the business use of your personal vehicle.
Utilities. Your overhead costs, including commercial rent, electricity and telecommunications, may qualify as business expenses.
Insurance. You can claim the cost of your business insurance as a tax deduction. The insurance tax deduction applies as long as the coverage is for your business or trade.
Retirement accounts. If you establish savings or retirement plans out of your business for yourself or your employees, you may be able to deduct this as a business expense.
Because of the diverse nature of the economy, there are several business tax write-offs. Keep track of everything you spend to run your company — there's a good chance those expenses may be deductible. Consult with a tax professional to make sure you remain in compliance.
Learn more about 16 amazing tax deductions for independent contractors.
Related tax resources for small businesses and self-employed workers
How to file self-employment taxes — step by step
Tips for filing small business taxes for the first time
Self-employed tax withholding explained
IRS website for business taxes
How NEXT Insurance helps small business owners
NEXT provides an easy online option for small business owners and self-employed professionals to purchase business insurance. (Business insurance can be a tax write-off; consult with a licensed tax professional to see if you qualify.)
We provide customized insurance packages for more than 1,100 types of small businesses. You can get a quote, purchase coverage and get your certificate of Insurance in less than 10 minutes.
