Business income taxes are generally "pay as you go" that is, you must
make estimated tax payments throughout the year, usually at the end
of each business quarter (every three months).
Sole proprietorships, partnerships and S corporations must make estimated
tax payments if they expect to owe $1,000 or more.
Form to Use: 1040
ES (for instructions, download Pub.
505, Tax Witholding and Estimated Tax)
Corporations must make estimated tax payments if they expect to owe
tax of $500 or more.
Form to Use: F-1120
How to Deposit quarterly taxes:
Use deposit coupons, Form 8109. The IRS will send you a deposit coupon
book containing these forms 5-6 weeks after you receive your employer
identification number (EIN). If you do not receive the coupon
book you are still liable to pay taxes. Use form 8109-B if you don't
receive your coupon book in time to make a deposit.
If you do not receive your EIN in time to deposit your quarterly taxes,
send payment to The Department of the Treasury. Include the amount of
payment, your name, address and phone number, and the period (e.g. 3rd
quarter 2002) for which the tax is owed. In addition, all businesses
except partnerships must file an annual income tax return. (Partnerships
must file an information return instead).
Self-Employment Tax
Individuals who work for themselves must pay social security and medicare
tax (self-employment tax). This, along with income tax, should be paid
each quarter as estimated tax. At the end of the year, you will also
need to file an annual tax return.
Use the following forms:
TIP! Compute
schedule C and SE first, then fill out your 1040. Figures from the first
two forms will be necessary to include in your 1040.
Tax Form Instructions:
Form 1040
(for Form 1040 and schedules A, B, C, D, E, F, J and SE)
Form 1040EZ
Form 1040A
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