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Q：
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Which corporations are required to pay estimated tax?
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A：
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Corporations expecting a federal income tax liability of $500 or more for the current year (Including C Corps and LLCs that elect to be taxed as C Corps)
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Corporations expecting a loss for the current year but that had a tax liability in the prior year.
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An S Corporation must make estimated tax payments if the combined total of the following taxes is $500 or more Built-in Gains Tax, Excess Net Passive Income Tax and Investment Credit Recapture Tax.
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Q：
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When are corporate estimated tax payments due?
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A：
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Estimated tax is generally paid in four installments during the tax year. In general, estimated tax installments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the corporation’s tax year. If an estimated tax due date falls on weekend or federal holiday, the due date is automatically extended to the next business day.
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Q：
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Does filing an extension also extend the estimated tax payment deadlines?
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A：
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No. Even if a corporation obtains an extension to file its income tax return, the due dates for estimated tax payments remain unchanged.
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Q：
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Which corporations are required to pay estimated tax?
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A：
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Based on the current year's projected tax liability, Each installment equals 25% of the estimated annual income tax based on annualized taxable income.
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Based on the prior year's tax liability (Safe Harbor Method). Each installment equals 25% of the total tax shown on the prior year's income tax return.
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Q：
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What is the relationship between estimated tax payments and the annual income tax return?
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A：
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Estimated tax payments are not an additional tax. They are simply advance payments of the corporation's income tax liability. When the annual income tax return is filed, if the actual tax liability exceeds the estimated tax payments made, the corporation must pay the difference; If the actual tax liability is less than the estimated tax payments made, the corporation may claim a refund or apply the overpayment to future tax liabilities.
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FAQ
