- 1). Calculate the corporation gross income subject to taxes after the first three months of the fiscal year. Calculate total expenses deductible on the corporation tax return, then subtract them from the gross income to arrive at the corporation's taxable income for the first quarter. Consult the C corporation federal tax table to compute the estimated federal tax due for the first quarter.
- 2). Sign the corporation up for electronic federal tax payments on the Electronic Federal Tax Payment System website. Estimated federal C corporation tax payments can only be made through this online service or by telephone using the toll-free number provided on the website.
- 3). Follow the directions on the website to register the corporation. You will need the corporation's federal employer identification number, the corporation's bank account routing number and the bank account number to complete the registration process. Make the first quarter estimated payment once the registration process is completed. Print the confirmation after making the payment to document the transaction.
- 4). Use year-to-date taxable income to calculate the estimated federal tax due for each subsequent quarter and deduct payments made for prior quarters to determine the estimated tax due for the current quarter. For example, if, at the end of the second quarter, the total year-to-date tax due is $10,000 according to the tax table, and you have paid a $5,000 first-quarter estimate, subtract $5,000 from the total tax due and make a second-quarter electronic estimate payment of $5,000.
- Advertisement -
- Advertisement -