Estimated Tax > Businesses

Estimated Tax - Businesses

Rev. date: 1/1/2011

Rarely does an S corporation make estimated tax payments.

An S Corporation must make installment payments of estimated tax if the total of these taxes is $500 or more:

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Rev. date: 1/1/2011

Partnerships file Form 1065 (PDF), U.S. Partnership Return of Income, to report income and expenses.
The partnership passes the information to the individual partners on Schedule K-1, Form 1065 and therefore rarely pays any tax.
The partners report the information from the K-1 on their individual returns and pay any taxes due on Form 1040.

How To Pay Estimated Tax

There are five ways to pay estimated tax.

Credit an overpayment on your 2009 return to your 2010 estimated tax.
Send in your payment (check or money order) with a payment voucher from Form 1040-ES.
Pay electronically using the Electronic Federal Tax Payment System (EFTPS).
Pay by electronic funds withdrawal (EFW) if you are filing Form 1040 or Form 1040A electronically.
Pay by credit or debit card using a pay-by-phone system or the Internet.
Because partners are not employees of the partnership, no withholding is taken out of their distributions to pay the income and self-employment taxes on their Forms 1040.
The partners may need to pay Estimated Tax Payments using Form 1040-ES.

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