Yes that mystical day in American society April 17th or “Tax Day” is coming. (Yes, due to weekends and holidays, we have an extra two days past the usual April 15th deadline this year!) You may ask what taxes are actually due on April 17th? Individual and partnership tax returns are due. Individual returns are the one that most people are aware of, because last year the IRS processed a little over 145 million individual returns.
Sole proprietors, self employed individuals and freelancers all file a Schedule C which is NOT a separate tax return, but is part of the standard individual tax return or Form 1040. When you file a Schedule C, you will generally also have to file a Schedule SE which will calculate your self employment tax for the year. The self employment taxes are added to your income taxes to come up with the total tax you owe for the year.
If you just can’t get all your tax information together by April 17th, you can request an automatic extension of time to file. To request an extension you have to mail a Form 4868. Even though an extension gives you six months (until October 15th) to file your return, it does not extend the time to pay your taxes. Along with an extension, you need to estimate how much your total tax bill will be and include a payment to the IRS if you have not already paid in enough in tax deposits, either through withholding or quarterly estimated tax payments.
Partnerships do file a separate tax return which is known as a Form 1065. Partnerships do NOT pay in any tax. All the tax liability from partnership earnings are passed through to the individual partners or owners. A partnership can also request an extension of time time to file its tax return, but the extension is only for five months.
A few other tax items that are due on April 15th each year (April 17th this year) include estimated tax deposits for the first quarter of the current year and payroll tax deposits for March.