Second Qtr Estimated Taxes Due June 15
JUNE 10, 2022
Here’s your 2nd quarterly reminder that your federal estimated tax payment is June 15th! June 15th, is the deadline for family childcare providers to file their federal estimated tax payment for the second quarter of the year.
The second quarter payment includes the months of April and May. Third quarter payments include the months of June, July, and August, while the last or fourth quarter payment includes the months of September, October, November and December. (Note: the tax quarters for estimated taxes are not equal!)
If you are a daycare provider to determine your business profit, you will need to add up your income for April and May (parent childcare payments, and if applicable any Child and Adult Care Food Program (CACFP) reimbursements received and then subtract your business expenses for these months. Note: You will owe federal income taxes plus Social Security taxes (15.3%) on all your profits made.
It is important to note here that most childcare providers do not need to file estimated taxes (IRS Form 1040 ES Estimated Tax for Individuals) because their spouse usually will have enough withheld in taxes during the year to cover them. However, if you are single or have a spouse who is unemployed or self-employed, you likely will need to file the quarterly taxes.
If you are unsure if you have paid in enough taxes for the months of April and May, it’s worth making a payment so you pay in enough throughout the year. Your goal is to have paid in at least 90% of the taxes you owe for each quarter to avoid paying a penalty, and the good news is that if you pay in too much you will get a refund at end of year.
So how do you know how much you will owe in taxes? If you were in business last year, use that information as a guide. If this is your first year in business, use 20% of your gross income (parents daycare fees paid + any Food Program income) for April and May as a conservative guess of how much taxes you will owe. For more help, on this subject check out this information at your business friend website on “How to Estimate Your Taxes in Your First Year of Business.”
You should also check your records to see if you will owe any state income taxes. If so, make a state estimated tax payment by June 15th as well. To ensure you don’t miss future filing dates set a reminder on your calendar for future tax deadlines: third quarter estimated tax payments will be due September 15 and fourth quarter payments on January 17, 2023.
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