Preparing Your Tax Return(s) and Information Returns

Business Taxes

Estimated Taxes

Generally, sole proprietors, partners, and shareholders of an S corporation pay tax on income by making regular payments of estimated tax during the year. If you expect to owe taxes, including self-employment tax, of $1,000 or more when you file your return, you generally have to make estimated tax payments. Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax. If you are not required to make estimated tax payments, you may pay any tax due when you file your return. For information on estimated tax, see Publication 505.

Corporations. A corporation must deposit the taxes it owes, including estimated tax payments and any balance due shown on its tax return. Use Form 1120-W as a worksheet to figure each required installment of estimated tax.

Important References:

Publication 583 Starting a Business and Keeping Records
Publication 505 Tax Withholding and Estimated Tax
Form 1040-ES Estimated Tax for Individuals
Form 1040 U.S. Individual Income Tax Return
Instructions for Form 1040
Form 1120 U.S. Corporation Income Tax Return
Form 1120-W          (Worksheet) Estimated Tax for Corporations
Publication 542       Corporations