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What Is The Deadline To File S Corp Taxes For 2024?
S corporations are unique because they blend the benefits of a corporation with the tax advantages of a partnership. One key requirement for S corporations is filing taxes by the S Corp tax filing deadline.
Table of contents
Key Takeaways:
- The deadline to file S Corp taxes for 2024 is March 15th, 2025.
- Even if S Corp shareholders get an S Corp tax filing extension, they still have to pay taxes by the March deadline.
- S Corp tax deductions can help lower taxable income.
When is the S Corp tax filing deadline?
The tax filing deadline for S Corps is an important date to keep in mind. Typically, S Corps must file their tax returns by March 15th of each year. This is a bit earlier than the April deadline most individuals are familiar with, so it’s important to mark your calendar. If March 15 falls on a non-working day, the deadlines move to the next business day.
The specific form to file is Form 1120-S, which is kind of like Schedule C but for S Corps. If you’re not ready by March 15th, you can request an automatic six-month extension by filing Form 7004. This will push your deadline to September 15th.
However, it's essential to remember that this extension is for filing the paperwork, not for paying any taxes owed. Those payments are still due by March 15th to avoid interest and penalties.
If your S Corporation has employees, you might need to file Form 940, the annual Federal Unemployment Tax Return. You must file this if you pay $1,500 or more in wages in any quarter or have at least one employee working part of a day in 20 or more weeks.
Form 940 reports wages for unemployment taxes, which the corporation sends to the IRS. The filing deadline is January 31 each year, but if you pay the tax on time, you can file by February 10.
Deadlines for personal quarterly tax payments
To meet the deadline for S Corp tax filing in 2024, you also need to make quarterly estimated tax payments. Keeping track of these payments is essential for S Corps to avoid penalties and interest. These payments are made four times a year to cover income taxes that aren't withheld, helping you avoid a big bill at the end of the year.
For the 2024 tax year, the deadlines for quarterly tax payments are:
- First Quarter: Gather all financial records for your S Corp, including income, expenses and payroll information. For example, if you run a small coffee shop, this means collecting receipts for supplies, payroll records for your baristas and sales records.
- Second Quarter: This is the main tax form for S Corps where you'll report the business’s income, deductions and credits. For instance, if your coffee shop earned $200,000 and spent $150,000 on expenses, you’ll report this here.
- Third Quarter: Each shareholder, including yourself, gets a Schedule K-1. This form shows their share of the S Corp profits. If you own 50% of the coffee shop and a friend owns the other 50%, both of you will get a K-1 showing your respective shares.
- Fourth Quarter: Submit this form to the IRS by March 15th. If you need more time, you can file for an extension using Form 7004.
Can I file for an S Corp extension?
As a business owner, it’s easy to get overwhelmed with all your day-to-day tasks. As a result, you might find yourself unprepared for tax day. If you feel like you’re going to miss the filing deadline, you can apply for an S Corp extension which will give you six extra months to get your paperwork in.
Form 7004 (Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns) is what you’ll use to apply for the extension. You can e-file the extension, just like other tax returns. If you don’t file the extension, the IRS will hit you with the late filing penalty.
What happens if I miss the S Corp tax filing deadline?
Let’s talk about Schedule K-1, an important tax form for anyone trying to file by the S Corp tax filing deadline. Schedule K-1 is part of Form 1120-S, which shareholders use to report income. When you file Form 1120-S, you'll also fill out Schedule K-1. This step is important because it helps both you and the IRS determine how much of the business’ income each shareholder is responsible for.
If you miss the filing deadline, you’ll get a late K-1 penalty. Let’s say you run a small web development business structured as an S Corp. You got busy with a big project and forgot to file your taxes by March 15th.
The IRS will charge a late K-1 penalty of $220 per month (as of 2023), or part of a month for each shareholder, for up to 12 months. This penalty amount is subject to change every year. If you have three shareholders and you miss the deadline by two months, you could end up with a penalty of $1,320 (3 shareholders x $220 x 2 months).
These penalties are just for late filing. If your S Corp owes taxes and you haven't paid by the deadline, you’ll also accrue interest on the unpaid tax amount. The IRS calculates interest daily, which means the longer you delay, the more you’ll owe.
S Corp tax deductions
Another thing business owners can do to prepare for the S Corp tax filing deadline is to write off business expenses. The IRS allows ordinary and necessary business expenses to be claimed as deductions. A 1099 tax calculator can help find all relevant deductions in your line of work.
These write-offs can lower taxable income, which can lower self-employment taxes. As S Corps are pass-through entities, the owners have to pay federal taxes on their portion of the business profits. Pass-through taxation essentially shifts the burden of taxes from the business entity to its beneficiaries.
Here are 10 common business tax deductions you can claim before the deadline to file S Corp taxes in 2024:
- Employee Benefits: Costs for health insurance, retirement plans and other employee benefits are deductible.
- Utilities: Expenses for electricity, water, internet and other utilities used for business purposes are deductible.
- Office Supplies: Items like paper, folders, pens and printer ink are deductible.
- Business Insurance: Premiums for business insurance policies, such as liability or property insurance are deductible.
- Advertising and Marketing: Money spent on advertising, like online ads or promotional materials is deductible.
- Depreciation: The cost of business equipment and property can be deducted over time through depreciation.
- Professional Services: Fees paid to consultants, accountants or attorneys for advice or services related to starting or running your business are deductible.
- Travel Expenses: Business-related travel costs, including airfare, hotel stays and meals are deductible.
- Rent: If your S Corp rents office space, the rent payments are deductible.
- Organizational Costs: Startup expenses related to organizing your corporation, like drafting bylaws or holding initial meetings are deductible.
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