Question

Self-employed taxpayers must have paid all taxes owing by April 30th of the following year.T/F

Answer 1

The statement regarding self-employed taxpayers needing to pay all taxes by April 30th is false. The federal tax filing deadline is typically April 15th, and self-employed individuals may also be required to make estimated tax payments quarterly.

Step-by-step explanation:

The claim that self-employed taxpayers must have paid all taxes owing by April 30th of the following year is false. In the United States, the deadline for filing individual tax returns is typically April 15th, though this can be extended if the date falls on a weekend or holiday. Additionally, self-employed individuals may have to pay estimated taxes quarterly if they expect to owe a certain amount. This system allows for payments to be made throughout the year, rather than a single payment by April 30th. However, it's important to ensure that all dues are settled by the final tax filing deadline to avoid penalties.

Business owners, including those in the '1099' or 'gig' economy, must stay compliant with income tax, employment tax, social security insurance, and possible excise and payroll taxes. These taxes are essential as they fund public services from roads, to bridges, to schools, and public safety functions. Knowing when and how much to pay is crucial for taxpayers to avoid underpayment penalties.

Answer 2

The correct deadline for self-employed individuals to pay any outstanding tax balance in the U.S. is April 15th, not April 30th. This includes both the finalization of the previous year's taxes and any estimated tax payments for the current year, with the last payment typically due by January 15th.

Step-by-step explanation:

The statement regarding self-employed taxpayers needing to have all their taxes paid by April 30th of the following year is not fully accurate if we consider U.S. tax policy. In the United States, the due date for filing income taxes is typically April 15th, unless that day falls on a weekend or a holiday, in which case the deadline may be extended. The 1040EZ tax form, as one of the simplest tax forms, must be filed by this date. Those who are self-employed may have to pay estimated taxes quarterly throughout the year, with the final payment often due on January 15th of the following year. However, they must also settle any outstanding tax balance by the April 15th deadline. For business owners, it is important to remember that they must comply with various tax requirements including income tax, employment taxes, unemployment compensation, social security insurance, and excise taxes. Independent contractors within the '1099' or 'gig' economy must also fulfill their tax obligations. While taxes for employment are paid throughout the year, some adjustments and finalizations are made upon tax return filings.