Tax deadlines are crucial for both individuals and businesses to stay on top of their financial obligations and avoid penalties from the IRS. In 2021, there are five important tax deadlines that you need to know to ensure that you file your taxes correctly and on time.
1. April 15, 2021 – Individual Income Tax Filing Deadline
The most significant tax deadline for individuals is April 15, 2021, which is the deadline to file your individual income tax return. This deadline also applies to those who filed for a tax extension, which extends the deadline by six months until October 15, 2021.
2. June 15, 2021 – Estimated Tax Payment Deadline
For individuals who are self-employed or have other income sources such as rental income, dividends, or interest, June 15, 2021, is the deadline to make your estimated tax payment. This deadline also applies to those who earn income from a partnership, S-corporation, or trust.
3. July 15, 2021 – Expat Tax Filing Deadline
If you are a U.S. citizen living abroad, you have until July 15, 2021, to file your individual income tax return. This deadline also applies to expats who filed for a tax extension.
4. September 15, 2021 – Corporate Tax Filing Deadline
For businesses that are structured as corporations (C-corporations), the tax filing deadline is September 15, 2021. This deadline also applies to those who filed for a tax extension.
5. October 15, 2021 – Extended Individual Tax Filing Deadline
If you filed for a tax extension on April 15, 2021, you have until October 15, 2021, to file your individual income tax return. This deadline also applies to expats who filed for a tax extension.
It’s essential to keep track of these dates to avoid penalties and interest charges from the IRS. Missing these deadlines could result in a 5% penalty for each month, up to 25% of the total amount of tax due. Additionally, you may also be subject to interest charges on any unpaid amount.
To ensure you stay on top of these deadlines, it’s recommended to use a tax calendar and work with a professional tax preparer or accountant. They can guide you through the tax filing process, help you identify deductions, and ensure that you file your taxes correctly and on time.
In conclusion, staying compliant with tax deadlines is crucial for financial planning and avoiding unwanted penalties. These five important tax deadlines in 2021 are worth noting and keeping track of for both individuals and businesses. Filing taxes on time also ensures you are eligible for tax refunds promptly, and you can avoid accumulating significant debt through penalties and fines.
