Generally, a corporation must make installment payments if it expects its estimated tax for the year to be $500 or more. If the corporation does not pay the installment when it is due,  the Company may be subjected to an underpayment penalty.

When to pay estimated tax?

Installment payments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the corporation's tax year.  Therefore, if a Corporation's tax year ends on December 31st, then the installments are due on April 15th, June 15th, September 15th, and December 15th.

If any due date falls on a Saturday, Sunday, or legal holiday, the installment is due on the next business day.

Estimated tax paymenst are generally calculated on one of two methods.  Method one is the 25% of current year and Method two is the 25% of the prior year income tax.  Also available is the annualized income installment method, as well as the adjusted seasonal installment method.  In addition, certain limitation exist for large corporations.

Please contact us if you need assistance in calculating your current income tax estimate deposit.