Form 1120-W Estimated Tax for Corporations

Form 1120-W, Estimated Tax For Corporations, is a worksheet used to calculate required installments of estimated tax. It isn’t sent to the IRS but is retained by the corporation.

Who Must Make Estimated Tax Payments

• Corporations generally must make estimated tax payments if they expect their estimated tax (income tax less credits) to be $500 or more.
• S Corporations must also make estimated tax payments if the total of these three taxes is $500 or more:
  1. the tax on built-in gains
  2. the excess net passive income tax
  3. the investment credit recapture tax
  
  S Corporations should see the Instructions for Form 1120S, U.S. Income Tax Return for an S Corporation, to figure their estimated tax payments.

When To Make Estimated Tax Payments

The installments are generally due by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. If any due date falls on a Saturday, Sunday, or legal holiday, the installment is due on the next regular business day.

Electronic Deposit Requirement

Corporations must make all federal tax deposits by electronic funds transfer. This includes installment payments of estimated tax. For more information on the Electronic Federal Tax Payment System (EFTPS), click here.

To access Form 1120-W, from the Main Menu of the Corporation Income Tax Return (Form 1120) select:

• Miscellaneous
• Form 1120-W – Estimated Tax Worksheet – You will be prompted to enter the amount of tax shown on the corporation’s current tax return. If a return was not filed for the current tax year showing a liability for at least some amount of tax or the current tax year was for less than 12 months, do not complete this line.
• Select Calculated Tax – Enter the estimated amount of taxable income that would reasonably be expected for the next year. The program will calculate the rest of this menu automatically. Exit the menu.
• Enter any tax credits, recapture taxes, and credit for federal tax paid on fuels. (If the amount is greater than $500, required installments will be calculated by the program.)

Additional Information:

Instructions for Form 1120-W