Rev. date: 12/21/2012
The federal income tax return is filed annually, but the federal income tax system is a pay-as-you-go
system.
If your business is a sole proprietorship or an unincorporated single member LLC with you as the sole owner, the income is attributable to you personally. If your business is a partnership, an unincorporated multi-member LLC, or an S corporation; the ordinary business income passes through to members and is attributable to him or her on their personal
return.
After deducting any withholding and credits, if you expect to owe more than the amount allowed by law at the end of the
year:
- You should make estimated tax payments on a quarterly basis.
-
Form 1040-ES (PDF),
Estimated Tax for Individuals, will assist you in determining if estimated tax payments are due and how they are
paid.
When you file your income tax return at the end of the year:
- You include the income from the business on your
Form 1040 (PDF),
U.S. Individual Income Tax Return,
Schedule C (Form 1040) (PDF),
Profit or Loss from Business,
Schedule E (Form 1040) (PDF),
Supplemental Income and Loss, and
Schedule SE (Form 1040) (PDF),
Self-Employment Tax.
- If estimated tax payments were made during the year, they will be claimed on the individual income tax return as a
payment.
Generally, all other corporations must make installment payments if they expect its estimated tax for the year to be $500 or more. All corporations, except for most S corporations, will use
Form 1120-W (PDF),
Estimated Tax for Corporations, as a worksheet to figure each required installment of estimated
tax.
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