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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.
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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.
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| Forms to use | |
1120-W Worksheet for Quarterly Taxes
EFTPS Online payment |
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| How often? | |
Quarterly deposit requirement |
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| How to complete the form | |
| Steps | 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.
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| Pages 2, 3 | If your corporation's income is seasonal, you may complete
Schedule A or Part II to reduce
your quarterly payment.
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| 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.
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| 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).
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| How to pay | |
You must pay electronically using EFTPS.
Keep the worksheet (1120-W) to use next quarter. |
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| 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.
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