C-Corporations must pay corporate income tax deposits on their net income. The tax is paid quarterly online using the EFTPS system.
S-corporations do NOT pay this tax or use these forms.
Some corporations avoid corporate taxes - and this form - by paying all their profits in salaries and bonuses. If you do this, remember to pay employment taxes on salaries and bonuses.
Forms to use
Quarterly deposit requirement
How to complete the form
Steps and what to do
1. Estimate the corporation's year-to-date net income. If you are unsure what makes up net income, look at the front page of IRS 1120.
Estimate the corporation's net income for the remainder of the year.
Add the two and put the total on line 1 of 1120-W.
2-11. Multiply the first $50,000 of line 1 by 15%; the next $25,000 by 25%; and the next amount up to $9,925,000 by 34% and any remaining amount by 35%.
12-14. These lines are for excess tax if you are a personal service corporation or had net taxable income over $100,000.
15-22. Subtract any expected tax credits to calculate total estimated tax on line 22.
Under $500 in tax?
If your total year's tax is under $500, you do not have to make quarterly payments. If it is more than $500, you must pay 100% of your tax through quarterly estimated tax payments. In future years, small corporations may pay 100% of last year's tax. Large corporations can use last year's tax to estimate their first quarter's payment only.
April 15, June 15, September 15, December 15.
Any tax due on your annual tax return is due March 15 of the following year (the same date as the annual tax return).
How to pay
You must pay electronically using EFTPS.
Keep the worksheet (1120-W) to use next quarter.
Call the IRS information hotline (800) 829-4933. For information about electronic payment, call the IRS EFTPS Customer Service Unit at (800) 555-4477 or visit https://www.eftps.com/eftps/index.jsp.
Usually only C-corporations use form CT to pay quarterly estimated tax. S corporations use this form to pay estimated tax if they have passive income or have taxable gains.
Pay quarterly estimated income tax payments on your business' net income.
Forms to use
Amount due 15% to 39.6% on your share of the business' net income (plus your other personal income).
|Single||Married||Hd Hsld Mar||Mar/Fil Sep|
|10% on first $ net income||9,226||18,450||13,150||9,225|
|15% on next income up to:||37,450||74,900||50,200||37,450|
|25% on next income up to:||90,750||151,200||129,600||77,600|
|28% on next income up to:||189,300||230,450||209,850||115,225|
|33% on next income up to:||411,500||411,500||411,500||205,750|
|then 35% to 39.6%|
To avoid penalties
To avoid penalties, you must pay 90% of this year's tax or 100% of last year's tax in normal employment withholding or estimated tax (this form). There are special requirements if your household income was over $169,740 or you are a fisherman. Please see 1040ES instructions.
How you should complete the form.
Lines and what to enter
April 15, June 15, September 15, January 15.
Call the IRS information hotline (800) 829-1040. For forms, call (800) 829-3676 or obtain them online at http://apps.irs.gov/app/picklist/list/formsPublications.html.
Forms to use
Quarterly payment requirement
3.44%-7.65% of the business's net income. Note: You should NOT be deducting payroll taxes (income tax, unemployment insurance, etc.) on any money that you take from the business as a business expense.
If you registered for a federal employer ID number, you are automatically enrolled in the online payment system called EFTPS. EFTPS is used:
Forms to use
Receive PIN by mail
You should have receive your EFTPS PIN by mail after you registered for a federal employer ID number to receive a federal employer ID number.
Activate your registration and get your password
Call (800) 982-3256. You will be asked:
You will receive a confirmation number and temporary password (online you will be prompted to choose a new one).
To make a payment
Go to: https://www.eftps.com/eftps/index.jsp. Enter your Social Security number (or federal identification number of the employer), your PIN and Internet Password.
Payments by credit card?
The IRS accepts payments by credit card. Click here for more information.
Call the customer service unit of the EFTPS at (800) 555-8778 or visit: https://www.eftps.com/eftps/index.jsp