How do you pay taxes as a sole proprietor

A sole proprietor pays quarterly taxes based on income generated for the quarter. End of the year, he or she needs to file a form Schedule C on the form 1040 for individuals.

There will be penalties assessed at the time of tax filing if taxes are not paid by these due dates.

The quarterly general deadlines for estimating and paying taxes is as follows :

Payment Period

January 1 – March 31 Q1

Due Date April 15

April 1 – May 31

Due Date June 15

June 1 – August 31

Due Date September 15

September 1 – December 31

Due Date January 15* of the following year.

 

** Based on the response we posted to a question on quora.


Posted In: Tax

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