John K. McGill, JD, MBA, CPA
Andrew Tucker, JD, CFP
Here’s your comprehensive 2018 tax calendar to help you file tax deposits, payroll taxes, and estimated payments in a timely manner, and to avoid costly penalties.
January
Tuesday
1/16/18—Due to the observation of Martin Luther King Jr. Day
The final quarterly installment of your 2017 estimated individual income tax (including self-employment tax) is due. You have a choice: 1) pay now, or 2) skip this payment, file your Form 1040, and pay the balance by February 1. Make a note of when the payment is due because you will receive no bills from the IRS to jog your memory. If you paid in installments last year, use the preprinted installment vouchers showing your name, address, and Social Security number that are part of the Form 1040 ES worksheet that should have come with your tax return forms. You can obtain these vouchers from your local IRS office.
If you are a monthly depositor, complete Form 8109 (Federal Tax Deposit-Withheld Income and FICA Taxes) and deposit the taxes under the IRS tax deposit rules. Under these rules, if the practice’s total withheld income and FICA taxes for the 12 months ending June 30, 2017, were $50,000 or less, the practice must deposit taxes withheld during a calendar month by the 15th day of the following month. If the total exceeded $50,000, the practice must make semiweekly deposits. Under the semiweekly deposit rules, if a payroll is paid on Wednesday, Thursday, or Friday, the payroll deposit is due by the following Wednesday. If payroll is paid on Saturday, Sunday, Monday, or Tuesday, the payroll deposit is due by the following Friday.
February
Thursday
2/1/18
Today is the deadline for furnishing 2017 Form 1099 information returns (Copy B) to recipients of $10 or more in dividends and interest or $600 or more in rents, legal fees, interest, royalties, commissions, fees, medical-savings-account distributions, prizes, and other compensation to nonemployees. Your IRS Center must receive Copy A of Form 1099 (with the accompanying 1096 transmittal forms) by February 28.
Each employee must be furnished with a W-2 Form showing wages paid and taxes withheld in 2017. That’s Copy B for the employee’s Form 1040 and Copy C for his or her records, as well as copies of the forms for any state or city returns. By February 28 you’re expected to file the original copy of all W-2 forms (Copy A) that you gave to your employees, along with the W-3 Form (Transmittal of Income and Tax Statements) with the Social Security Administration.
Reminder: If you paid more than $1,900 during the 2017 calendar year to a housekeeper, babysitter, or other household employee, you are liable for Social Security taxes and required to file Form 942 (Employer’s Quarterly Tax Return for Household Employees).1 Alternatively, the Social Security taxes (FICA) and Federal Unemployment taxes (FUTA) due on any domestic helper’s wages can be computed and paid on the doctor’s individual tax return (Form 1040) rather than having to file Form 942 each quarter and Form 940 by February 1.
Using Form 940, doctors are required to file an annual federal unemployment tax return by this date for practice salaries paid in 2017. If you made timely deposits in full payment of the tax, this deadline is extended to February 10. Are you liable for FUTA taxes? You are if your wage payments topped $1,500 in any calendar quarter last year, if you employed one or more persons on at least one day of each of 20 or more weeks during the last year, or if you pay a household worker $1,000 or more in a calendar quarter.2
Here’s a memory jogger if you chose not to pay the last installment of your estimated 2017 federal income tax on January 17. File a complete Form 1040 and pay the balance of your actual 2017 income tax and the balance of your 2017 self-employment tax.
File Form 941 to pay the balance of last quarter 2017 contributions to Social Security, plus the balance of Social Security and income taxes withheld from October 1 to December 31. This filing deadline is extended to February 10 if you made deposits on time in full payment of your Social Security tax and withholding liabilities during the preceding quarter. While it may not be an IRS requirement, it’s always a good idea to prepare and keep a reconciliation of the wages, Social Security taxes, and income taxes withheld as shown on the W-2s with the quarterly 941 Forms and your books. Retain Copy D of all W-2s.
Thursday
2/15/18
Deposit taxes due for January (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January 16 note.)
Ask for a new W-4 Form from each employee who claimed total exemption from withholding during the prior year. If no form is received from the employee, begin withholding income tax from the employee’s paycheck effective February 15.
March
Thursday
3/1/18
File Copy A of Form 1099, along with the accompanying 1096 transmittal form, with your IRS Service Center. File Copy A of all W-2 forms given to employees, along with a W-3 transmittal form, with the Social Security Administration.
Thursday
3/15/18
Did you practice as a subchapter S corporation in 2017? An S corporation’s federal income tax return Form 1120S is due two-and-a-half months after the end of its fiscal year. March 15 is the due date if your S corporation’s year ends December 31; otherwise, simply transfer this entry to the proper date. Additionally, you may request an extension to file until September 15.
If you were involved in a partnership, make sure the partnership return (Form 1065) is filed by this date. This date was previously April 15 for calendar taxpayers and is one month earlier than in previous years.3
Deposit taxes due for February (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January 15 note.)
File Form 2553 with the IRS if your corporation wants to be taxed as an S corporation effective January 1, 2018. If Form 2553 is filed after this date, S treatment will become effective January 1, 2018.
April
Monday
4/16/18
File your federal income tax return (Form 1040) if you haven’t already done so or if you have not received an extension to October 17. Pay any balance you owe on your income tax for 2017. Complete Schedule SE and pay any remaining balance of your 2017 self-employment tax if you are unincorporated.
If you practiced as a C corporation, the 1120 corporate return is due by this date. This date was previously March 15 for calendar year taxpayers and is one month later than in previous years.3
Today is the deadline for filing your first quarterly estimated payment to cover your 2018 federal income tax and your self-employment tax liabilities, if unincorporated. Using Form 1040 ES, pay one-fourth of your estimated federal income tax and one-fourth of your estimated 2018 self-employment tax.
Calendar-year corporations pay one-fourth of estimated tax, while fiscal-year corporation payments are due in the 4th, 6th, 9th, and 12th months of the corporation year, using worksheet Form 1120-W.
Deposit taxes due for March (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January16 note.)
File Form 1041, trust or estate income tax return, if your trust or estate year ends December 31. Otherwise, your return is due three-and-a-half months following the close of your year.
Make IRA and health savings account contributions for 2017 by this date or the date you file your 1040 personal income tax return, whichever is earlier.
May
Tuesday
5/1/18
File Form 941 to pay the balance of your first-quarter 2018 contribution to Social Security, plus the balance of Social Security and income taxes withheld from employees’ salaries during the same period. This filing deadline is extended to May 10 if you have made deposits on time and also have made full payment of your Social Security and federal withholding liabilities during the preceding quarter.
Tuesday
5/15/18
Deposit taxes due for April (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January 16 note.)
If you practice as an unincorporated partnership or S corporation and selected a tax year ending at a time other than December 31, file Form 8752 and make the resulting required payment.
June
Friday
6/15/18
For unincorporated doctors, the second installment of your 2018 federal tax is due. Using Form 1040 ES, remit payment of one-fourth of your estimated income tax and one-fourth of your 2018 self-employment tax. If you are unincorporated and your taxable income so far this year has varied by 10% or more from your original estimate, you should adjust your estimated tax payment accordingly. If incorporated, your federal income tax payments should be adjusted through your withholdings.
Calendar-year corporations are to pay one-fourth of their estimated tax by this date. Fiscal-year corporation payments are due in the 4th, 6th, 9th, and 12th months of the corporation year.
Deposit taxes due for May (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January 16 note.)
July
Wednesday
7/18/18
Deposit taxes due for June (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January 16 note.)
August
Wednesday
8/1/18
File Form 941 to pay the balance of your second-quarter 2018 contribution to Social Security, plus the balance of Social Security and income taxes withheld from employees’ salaries during the same period. This filing deadline is extended to August 10 if you made timely deposits in full payment of your Social Security and withholding liabilities during the preceding quarter.
File appropriate Form 5550 with the IRS if your practice sponsored a retirement plan or flexible spending account (cafeteria) plan in 2017 that operated on a calendar year. If your plan used a fiscal year, the return is due on the last day of the seventh month after the plan year ends.
Wednesday
8/15/18
Deposit taxes due for July (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January 16 note.)
September
Monday
9/17/18
If unincorporated, the third installment on 2018 federal tax is due—one-fourth of estimated income tax and one-fourth of 2018 self-employment tax. Adjust your payment if taxable income varies 10% or more from your last estimate.
Calendar-year corporations are to pay one-fourth of their estimated taxes. Fiscal-year corporation payments are due in the 4th, 6th, 9th, and 12th months of the corporation year.
File your federal partnership income tax return (Form 1065) if you requested a six-month extension by March 15.i
Deposit taxes due for August (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January 16 note.)
Now would be a good time to arrange a meeting with your tax advisor to plan year-end strategy.
File 2017 Form 1120 (regular) or Form 1120S (S corporation) return if you practiced in a corporation during 2017 and received an extension to file your federal corporate income tax return and paid any tax due.ii
October
Monday
10/15/18
Deposit taxes due for September (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January 16 note.)
File your federal individual income tax return (Form 1040) if you requested an automatic six-month extension by April 16. Pay the balance owed on your 2018 income and self-employment taxes.
File 2017 Form 5500 if you requested an extension by August 1.
November
Thursday
11/1/18
If you are practicing as a corporation, make sure your total individual income tax withholding for the year, plus any quarterly payments you made, will add up to at least 100% of the taxes you expect to owe for 2018. If your totals fall short, be on the safe side by increasing your withholding for the remainder of the year.
File Form 941 to pay the balance of your third-quarter 2018 Social Security, plus the balance of Social Security and income taxes withheld from employees’ salaries during the same period. This deadline is extended to November 10 if you made deposits on time in the full amount during the preceding quarter.
Ask for a new W-4 Form from each employee whose withholding allowance will change for the next calendar year.
Thursday
11/15/18
Deposit taxes due for October (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January 16 note.)
December
Monday
12/17/18
Calendar-year corporations are to pay one-fourth of their estimated taxes. Fiscal-year corporation estimated payments are due in the fourth, sixth, ninth, and 12th months of the corporation year.
Deposit taxes due for November (Form 8109 is obsolete). Payments are to be made via electronic fund transfers using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. (See January 16 note.)
Author’s note: For further information, see Publication 15 Circular E, Employers Tax Guide, available from the IRS at irs.gov or by calling (800) 829-3676.
References
1. Topic number: 756 - employment taxes for household employees. IRS website. https://www.irs.gov/taxtopics/tc756. Updated September 21, 2017. Accessed December 18, 2017.
2. Topic Number: 759 - Form 940 – employer’s annual federal unemployment (FUTA) tax return – filing and deposit requirements. IRS website. https://www.irs.gov/taxtopics/tc759. Updated September 21, 2017. Accessed December 18, 2017.
3. H.R.3236 - Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. Congress.gov website. https://www.congress.gov/bill/114th-congress/house-bill/3236/text. Accessed December 18, 2017.
notes
i. Previously five-month extensions were increased to six-month extensions under H.R. 3236, but still results in the same effective due date.
ii. Corporations will be allowed a six-month extension, except that calendar-year corporations will get a five-month extension until 2026, resulting in an extension deadline of September 15 in 2018.
John K. McGill, JD, MBA, CPA, and Andrew Tucker, JD, CFP, provide tax and business planning for the dental profession and publish the McGill Advisory newsletter through John K. McGill & Company Inc., a member of the McGill & Hill Group LLC. This is dentists’ one-stop resource for tax and business planning, practice transition, legal, retirement plan administration, CPA, and investment advisory services. Visit mcgillhillgroup.com.
