Paying Estimated Taxes

If your business is a taxable corporation or you are the owner of the business and the business income is reported on your personal income tax return, you have a responsibility to estimate and pay quarterly income taxes. The IRS requires quarterly estimated payments of income taxes, and your state might require payments as well. Use the tax reports discussed in this chapter to help calculate your quarterly income tax.

Corporate estimated tax payments are due as follows:

• First quarter The 15th day of the 4th month of the fiscal year

• Second quarter The 15th day of the 6th month of the fiscal year

• Third quarter The 15th day of the 9th month of the fiscal year

• Fourth quarter The 15th day of the 12th month of the fiscal year

Individual estimated tax payments are due as follows:

• First quarter April 15th

• Second quarter June 15th

• Third quarter September 15th

• Fourth quarter January 15th

If the 15th of the month in which a tax payment is due falls on a Saturday, Sunday, or federal holiday, the tax payment is due on the next business day.