When Are Taxes Due? 2021 Filing & Extension Deadlines

Published: 12/21/20

The time has come when you finally are preparing to gift wrap your Christmas presents but on the other side of the road, businesses can be seen preparing their tax files. As the due date will be soon upon, business owners are not sitting idle. In fact, they are preparing for the big day April 15, the Tax day. Although unexpectedly the COVID-19 is the reason deadlines are shifted for the year, however, the standard schedule (fixed dates) is followed.

Now that Tax Due in 2021 is nearing you need to learn about how to file, which form to fill, where to submit, and so on. This article will be your guide to help you transition the tax dues.

But first, ask the right questions.

When is Tax Day 2021?

The official day to file your 2020 taxes is April 15, 2021, as designated by the US government. However considering the current circumstances (due to pandemic), the government extended the filing date till July 15, 2021.

But looking at the ongoing situation for now the currently scheduled date is the standard date.

What is the due date for paying tax in 2021?

For a self-employed individual, your tax is distributed to be paid four times a year, then on one day. This is known as Estimated Tax Payments. The expected due date is scheduled from April 15, June 15, September 15, and January 15 (2022).

What will be the Penalty for Late Payment?

In case you submit the tax after the due date, the penalty will be implemented. You will have to pay 0.5% unpaid taxes (additional) for every month until the original tax bill is paid i.e. 25% of the maximum value of the total tax bill. 

How to File an Extension?

So, you may require more time to pay the taxes in that case you have the facility to file for an extension. Before the deadline, April 15, you will have to submit Form 4868, known as the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return Form.

When filing Form 4868, also pay the estimated amount you owe, to avoid any penalties and interest. Once the extension is approved you get the extension of six months. But remember to file for an extension before the due date of filing to qualify.

When are the Estimated Taxes due 2021?

When you are paying estimated taxes you will follow a different schedule. For instance, if you are self-employed, earn from the top or other contractor jobs you will pay quarterly estimated taxes.

Following are the details of every tax deadline in 2021.

January 15, 2021

The fourth estimated quarterly of the previous year is due at this date. As long as your 2020 tax return is filed by January 3, 2021, you can pay the remaining balance. For the details, you need to go through the Form 1040-ES.

February 1, 2021

• Form W-2

In the case you have your business and employees as well, you will need to file two copies of Form W-2 for each one.

Submit the Form W-2 to the IRS. The other copies need to be sent to the employee.

• Form 1099-NEC Copy A filing Deadline

In case you are an independent contractor, you will need the new 1099-NEC form which is also due on a similar date i.e. February 1, 2021.

Things you need to remember:

• Copy A to be filed with the IRS
• Copy B to given to the contractor

March 1, 2021

This due date is for filing the Form 1099-MISC Form. When you submit an e-file or in case miss the paper filing deadline, you will file on March 31, 2021.

To be eligible to do so, you need to deliver:

• Copy A to the IRS
• Copy B to your recipient

March 15, 2021

When it’s time to file an S corporation tax return or Partnership return you will need to fill the Form 1120-S and Form 1065.

However, taxes are not paid on the income of S corporations and Partnerships. Taxes are paid on the individual incomes of the shareholders of partners.  Hence, for S corp and partnership tax returns this date is the deadline to file an extension.

March 31, 2021

If payments of at least $600 are to be made to the individual of LLC for the rent paid, legal settlements or prize or winnings, then you will require a 1099-MISC FORM.

This date is applicable only for electronic filing.

To be eligible to do so, you need to deliver:

• Copy A to the IRS
• Copy B to your recipient

April 15, 2021

This is the first tax due in 2021 estimated for the quarterly tax payment.

Fill the Form 1040-ES, for quarterly tax due. There are two set dates, one for the self-employed and one for the farmer/ fisherman.

• April 15 – first-quarter payment
• June 15 – second-quarter payment
• September 15 – third-quarter payment
• January 15 – fourth-quarter payment

In case, you earn from the tips then you have a monthly payment on the following dates.

• Jan. 11
• Feb. 10
• March 10
• April 12
• May 10
• June 10
• July 12
• Aug. 10
• Sept. 10
• Oct. 12
• Nov. 10
• Dec. 10

In case everything remains undisturbed then the above-mentioned dates are to be followed. In case you don’t pay the taxes due in 2021 you again have the risk of being charged a penalty. So the caveat is to pay the estimated tax by January 15 however you still need to file your 202 income tax early, so you won’t be charged for it.

When to File for Taxes due in 2021?

You can begin by doing so on January 1, 2021. You can expect the tax refund in 3-4 weeks after filing your return. But the dates again can vary because of the current unprecedented times.

Take care of your taxes in a timely manner, you can outsource services to help you through the process so that you can manage your tasks accordingly.