Per the IRS Instructions for Form 1120-W Estimated Tax for Corporations, page 1: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 make estimated tax payments for certain taxes. S corporations should see the Instructions for Form 1120S, U.S. Income Tax Return for an S Corporation, to figure their estimated tax payments.
- Tax-exempt corporations, tax-exempt trusts, and domestic private foundations must make estimated tax payments for certain taxes. These entities should see the instructions for their tax return, to figure the amount of their estimated tax payments.
For C corporations, per the IRS instructions for Form 1120 U.S. Income Tax Return for an C Corporation, page 5:
Estimated Tax Payments
Generally, the following rules apply to the corporation's payments of estimated tax.
- The corporation must make installment payments of estimated tax if it expects its total tax for the year (less applicable credits) to be $500 or more.
- The installments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year. If any date falls on a Saturday, Sunday, or legal holiday, the installment is due on the next regular business day.
- The corporation must use electronic funds transfer to make installment payments of estimated tax.
- Use Form 1120-W, Estimated Tax for Corporations, as a worksheet to compute estimated tax. See the Instructions for Form 1120-W.
- Penalties may apply if the corporation does not make required estimated tax payment deposits. See Estimated tax penalty, below.
- If the corporation overpaid estimated tax, it may be able to get a quick refund by filing Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax. See the instructions for Schedule J, Part III, line 15, later in the instructions.
If you have determined for your situation you need to set up estimated tax payments, follow the steps below to enter the information in the TaxAct program:
- From within your TaxAct return, click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
- Click 2020 Estimated Tax Payments and the program will proceed with the interview questions for you to enter or review the information regarding your estimated tax payments.
- The screen titled Federal 2020 Estimated Tax - Quarterly Payments will reflect if your entries have resulted in estimated tax payments and, if so, the following screen titled Federal 2020 Estimated Tax - Print 1120-W will provide the option to check a box to force the Form 1120-W to print with the return.
Once you have completed that section of the Q&A, you can e-file them with your return or you may set up payments through the IRS Electronic Federal Tax Payment System (EFTPS).