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Corporation
Quarterly Federal Tax Deposit - C Corp.

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

1120-W Worksheet for Quarterly Taxes

EFTPS Online payment

How often?

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.

23-24.  

  • If you were in business last year and are not a large corporation, enter your tax from last year on line 23a. You must pay the smaller of this year's tax (line 22) or last year's tax (line 23a). Divide it by the number of installment due dates left.
  • If you were not in business last year, skip line 23a and divide your estimated tax by the number of installment due dates left.

Pages 2, 3 If your corporation's income is seasonal, you may complete Schedule A or Part II to reduce your quarterly payment.

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.

Due date

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.

Questions?

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.

State CT Estimated Corporate Income Tax

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.

Forms to use

Montana CT Estimated Corporate Income Tax

How often?

Quarterly payment requirement

Tax rates

6.75% of the corporation's net income; $50 minimum per year.

Federal Income Tax Payments: 1040ES

Pay quarterly estimated income tax payments on your business' net income.

Forms to use

1040-ES Worksheet, coupons and instructions

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

  1. Take your share of the the annualized net income that you calculated with IRS 1040 Schedule SE. and add any other income you (or your spouse if you file jointly) expect to earn this year.
  2. To avoid IRS fines for incorrect estimates, just use the standard deduction. For 2013, this is $12,200 for married filing jointly; $8,950 for head of household and $6,100 for single.
  3. Line 1 minus line 2
  4. Multiply the number of personal exemptions by $3,900
  5. Line 3 minus line 4
  6. Tax. See tax rate schedules on page 2 of the instructions or the information shown above.
  7. Adjustments for alternative minimum tax, which is usually 0, unless you had large write-offs.
  8. Adjustments for alternative minimum tax, which is usually 0, unless you had large write-offs.
  9. Adjustments for credits, which are usually 0, unless last year you had tax credits and they still apply.
  10. Adjustments for credits, which are usually 0, unless last year you had tax credits and they still apply.
  11. Self-employment tax. See Schedule SE to calculate.
  12. Other taxes, which include employment taxes for household employees plus annuity, endowment or IRA taxes.
  13. Add lines 10, 11 and 12 and subtract any earned income credit. Earned income credit is not available to partner/owners of businesses.
    (13-c= Tax due this year.)
  14. Enter the smaller of 90% of line 13c or last year's tax on your 1040 return. Note. If you earned more than $150,000 last year, you should enter 90% of line 13c or 110% of last year's tax.
  15. Income tax that will be withheld during the year through payroll deductions (from other jobs).
  16. Tax that must be paid quarterly this year: Line 14c minus line 15.
  17. Deposit now: Divide line 16 by the number of quarterly due dates remaining before next April 15th, i.e. if you begin business on June 30, you will have two due dates: September 15th and January 15th.

Due dates

April 15, June 15, September 15, January 15.

To pay

Pay electronically

Questions?

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.

Quarterly State Income Tax Payment: ESW

Forms to use

Payment Coupon IT

Estimated tax worksheet

How often?

Quarterly payment requirement

Tax rates

1-12.3% 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.

Paying Federal Taxes Electronically

If you registered for a federal employer ID number, you are automatically enrolled in the online payment system called EFTPS. EFTPS is used:

  • For your business: to pay employment taxes and to pay C-corporation taxes
  • For yourself: to pay 1040ES quarterly estimated taxes or any amount due on your 1040 return.

Forms to use

Pay online using EFTPS

Information about EFTPS

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:

  • Information about your bank account: routing number, bank account numbers, and type of account (checking or savings)
  • To choose to verify your account (it takes 6 days, but is free and prevents errors)
  • To confirm that you consent EFTPS to withdraw funds from your account at your request
  • Your phone number

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.

Questions

Call the customer service unit of the EFTPS at (800) 555-8778 or visit: https://www.eftps.com/eftps/index.jsp