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Business Taxes | Income Taxes

Business income taxes are generally "pay as you go" that is, you must make estimated tax payments throughout the year, usually at the end of each business quarter (every three months).

Sole proprietorships, partnerships and S corporations must make estimated tax payments if they expect to owe $1,000 or more.
Form to Use: 1040 ES (for instructions, download Pub. 505, Tax Witholding and Estimated Tax)

Corporations must make estimated tax payments if they expect to owe tax of $500 or more.
Form to Use: F-1120

How to Deposit quarterly taxes:

Use deposit coupons, Form 8109. The IRS will send you a deposit coupon book containing these forms 5-6 weeks after you receive your employer identification number (EIN). If you do not receive the coupon book you are still liable to pay taxes. Use form 8109-B if you don't receive your coupon book in time to make a deposit.

If you do not receive your EIN in time to deposit your quarterly taxes, send payment to The Department of the Treasury. Include the amount of payment, your name, address and phone number, and the period (e.g. 3rd quarter 2002) for which the tax is owed. In addition, all businesses except partnerships must file an annual income tax return. (Partnerships must file an information return instead).

Self-Employment Tax

Individuals who work for themselves must pay social security and medicare tax (self-employment tax). This, along with income tax, should be paid each quarter as estimated tax. At the end of the year, you will also need to file an annual tax return.

Use the following forms:

TIP! Compute schedule C and SE first, then fill out your 1040. Figures from the first two forms will be necessary to include in your 1040.

Tax Form Instructions:
Form 1040 (for Form 1040 and schedules A, B, C, D, E, F, J and SE)
Form 1040EZ
Form 1040A


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