The world of tax compliance is complex and ever-evolving. Trying to adhere to the regulations of the various local and federal laws can be downright confusing. This article provides a comprehensive guide on everything you need to consider with regards to quarterly taxes due for those based in Chicago.

Whether you’re a small business owner, an executive at a large corporation, or a freelance contractor, understanding when quarterly taxes are due is a must for anyone looking to comply with the laws of the Internal Revenue System (IRS). With the help of business lawyers experienced in local tax regulations, you will be able to accurately determine when taxes for each taxation period are due.

Where such tax consultants can provide assistance is in correctly identifying what your tax obligations are and the due date for those taxes. Each taxation period is associated with a set of taxes that need to be paid by the due date. Let’s quickly look at the top 5 tips and tricks that you should consider when ascertaining when are quarterly taxes due.

1. Be Aware of the Different Taxation Periods

It’s vital to be aware of the different taxation periods and the respective due dates for each. Taxes can be paid on a monthly, quarterly, and year-end basis. While each has its own features and transaction dates, the due dates also differ.

The most common is the quarterly period, where taxes have to be paid every three months. This period refers to 1 April to 30 June, 1 July to 30 September, 1 October to 31 December, and 1 January to 31 March. The due date for taxes in this period is 15 April, 15 July, 15 October, and 15 January, respectively.

2. Understand the Types of Taxes Due

The types of taxes due in each taxation period is dependent on what you’ve earned during the period. Depending on how you’re being taxed, you may have to pay income tax, Social Security Tax, and Medicare tax during the quarterly period.

The amount you have to pay depends on what type of income you’ve earned, such as wages, self-employment, or investments income. Contributions to tax-deferred retirement plans, such as 401(k) and IRAs, do not need to be paid during the quarterly period as these are generally paid before the year-end.

3. Check for State-Specific Tax Obligations

Aside from federal taxes there may be state-specific tax obligations that have to be fulfilled. Depending on what you do and where you live, you may be subject to additional taxes beyond the federal rates.

For those residing in Chicago, the tax rates for the Illinois state income tax are lower than the federal income tax rates. Also, certain cities in Illinois also have their own tax brackets which may require additional taxes.

4. Determine the Penalty for Late Payments

If you fail to meet the due date for quarterly taxes, you may have to pay a penalty. Generally, the amount of the penalty depends on how late the taxes have been paid. This is why it’s important to clearly identify and map out the exact due dates to ensure taxes are paid off on time.

5. Utilize Online Resources

We are living in the 21st Century, and there are many reliable sources that can be leveraged to ensure that Taxes are correctly executed and managed. From leveraging calculators to better understand the tax deductions to filing returns online, utilizing resources from the web can not only help to streamline the process of paying taxes on time but also ensure that you are compliant with all the regulations.

Topics:

Tax Obligations,

Quarterly Taxes,

Tax Regulations