Important Fiscal Dates For H2 2020
Written by Ben Robinson
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In the fast-paced world of business ownership, losing money because of business mistakes is a death knell. Luckily, it’s not too hard to avoid if you stay vigilant and follow the tips below.
RELATED: What the Paycheck Protection Flexibility Act 2020 Means
Key Dates for the Fiscal Year 2020 – Add These Dates to Your Diary
July 10, 2020 - Employees Who Receive Tips
For anyone receiving more than $20 tips in June 2020, they must be declared.
The IRS requires you to report all tips from the previous month over $20 to your employer, using form 4070. Note that the form doesn’t go to the IRS, you pass it to your employer who uses it to calculate how much payroll tax to hold back from your paycheck.
All tips should be reported on the 10th of each month after that. If the 10th falls on a weekend or holiday, you can report them the next business day.
TIP – Tax software can help anyone to organize their finances and keep track of tips. Do this daily and keep records of what you actually net in cash and card. For example, if you receive $50 in tips but give $10 to the busboy, you’d net $40.
July 15, 2020 (was June 15, 2020) - 2nd Quarter 2020 Estimated Tax Payment Due
Your 2020 estimated tax payment is due at the same time as your 1st quarter payment. This is due to the extension of the payment deadlines because of the coronavirus pandemic. If you are self-employed or have other second-quarter incomes that require you to pay quarterly estimated taxes, make sure this date postmarks your payment.
August 10, 2020 - Employees Who Receive Tips
For anyone receiving more than $20 tips in July 2020, they must be declared. See above for details.
September 10, 2020 - Employees Who Receive Tips
For anyone receiving more than $20 tips in August 2020, they must be declared. See above for details.
September 15, 2020 - 3rd Quarter 2020 Estimated Tax Payment Due
Third-quarter estimated tax payments are due. If you are self-employed or have other third-quarter income that requires you to pay quarterly estimated taxes, make sure your third quarter payment is postmarked by Sept. 15, 2020 tax deadline.
September 15, 2020 - Partnership Returns (IRS Form 1065) Extended Deadline
These are due March 16, 2020, but the extended deadline is Sept. 15, 2020, if an extension was requested on corporate, trust income, or partnership tax returns for the year 2019. This is the final deadline for filing.
October 1, 2020 – Deadline for Self-Employed to Set Up SIMPLE IRA
If you’re self-employed or a small business owner, this is the deadline to set up a SIMPLE (Savings Incentive Match Plan for Employees Individual Retirement Account) IRA for 2020. These Individual Retirement Accounts are for small businesses and their employees and are designed to be easier and cheaper to maintain than their more corporate counterparts.
October 10, 2020 - Employees Who Receive Tips
For anyone receiving more than $20 tips in September 2020, they must be declared. See above for details.
October 15, 2020 - 2019 Federal Tax Return Extension
The Internal Revenue Service has extended the 2019 federal tax return due date of July 15, 2020, to October 15, 2020. The extension gives taxpayers until Oct. 15 to file, but taxes owed are due by July 15. The July 15 due to date generally applies to all taxpayers who have an income tax filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020.
Individual taxpayers who need additional time to file beyond the July 15 deadline can request a filing extension to Oct. 15 by:
- Filing Form 4868 through their tax professional, tax software, or using Free File on IRS.gov.
- Submitting an electronic payment with Direct Pay, Electronic Federal Tax Payment System, or by debit, credit card, or digital wallet options and selecting Form 4868 or extension as the payment type. The automatic extension of time to file will process when taxpayers pay all or part of their taxes, electronically, by the July 15 due date.
Businesses that need additional time to file income tax returns must file Form 7004.
November 10, 2020 - Employees Who Receive Tips
For anyone receiving more than $20 tips in October 2020, they must be declared. See above for details.
December 10, 2020 - Employees Who Receive Tips
For anyone receiving more than $20 tips in November 2020, they must be declared. See above for details.
December 31, 2020 – Final Day for Adjustments
Last day to make any tax adjustments for the year.
January 2021
Let’s take a brief glimpse at January 2021, so you’re ready for the start of next year too.
- January 1, 2021 – Start of the 2021 tax year
- January 10, 2021 – Employees who receive tips
For anyone receiving more than $20 tips in December 2020, they must be declared. See above for details.
- January 15, 2021 – 4th Quarter 2019 Estimated Tax Payment Due
- January 31, 2021 – Final installment for the year 2020.
If you didn’t pay your last estimated tax installment by January 15, you might choose to file your income tax return (Form 1040 or Form 1040-SR) for 2020 by January 31.
Are there more fiscal dates 2020 that you think are important? Let us know in the comments section below.
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