Making Estimated Tax Payments


Typically, each of your quarterly estimated payments will be equal to at least 25% of the lesser of 100% of the estimated income tax for the current year or 100% of the tax shown on the corporation's tax return for the preceding year (unless no tax return was filed in the preceding year, or if that tax return was for fewer than 12 months). Use Form 8109, available from the IRS (call 1-800-TAX-FORM or contact your local IRS office) to accompany your tax deposits. Note: Some corporations are required to use the Electronic Federal Tax Payment System to make tax deposits electronically. Contact the IRS or your accountant for more information on how to make deposits.

Click the Write Checks icon on the Home page to open a new check.

TIMESAVER

Pressing Ctrl+W will also take you to the Write Checks window.

Enter the date of the payment.

Enter the payee. This will probably be the name of your bank. Check with your accountant for instructions on how your tax payments should be presented.

Enter the amount.

Enter the account name where the payment will be recorded (see the previous sidebar "Accounting for Income Taxes").

Enter a description.

Save and print the payment.

See Also

See "Scheduling Recurring Transactions" on page 186 for information on how you can save time by scheduling and automating your quarterly tax payments.


Did You Know?

Choose either your income tax liability or your income tax expense account for recording the tax payment. If the tax liability has already been recorded, this payment should be assigned to the liability account. If you haven't recorded the tax liability, record the payment to the income tax expense account.


Did You Know?

Different estimated tax payment rules apply depending on the type of business. The information presented in this task describes estimated tax information for taxable corporations. Different rules apply for individuals and other types of organizations. Check with your tax professional to ensure you are paying the correct amount of estimated tax.





Show Me. QuickBooks 2006
Show Me QuickBooks 2006
ISBN: 0789735229
EAN: 2147483647
Year: 2005
Pages: 328
Authors: Gail Perry

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