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    estimated taxes

    S corp-estimated taxes

    Since S-corp is a flow-through entity, would the tax payments be applied to the 1040 for shareholder or 1120S?

    TB

    #2
    1040 for shareholder

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      #3
      Originally posted by tracyb
      S corp-estimated taxes

      Since S-corp is a flow-through entity, would the tax payments be applied to the 1040 for shareholder or 1120S?

      TB
      If the S-corp made the actual payments using the electronic deposit method as they do for payroll type deposits, then they are for the S-corp taxes and not for the individual shareholder (1040) An S-corp only pays taxes on built-in-gains from being a C-corp, investment credit recapture, or certain passive activities. Tax deposits in the name of the S-Corp would not be allocated to the shareholders.

      Originally posted by Instructions for form 1120S, page 4:
      Estimated Tax Payments:
      Generally, the corporation must make
      installment payments of estimated tax
      for the following taxes if the total of
      these taxes is $500 or more: (a) the tax
      on built-in gains, (b) the excess net
      passive income tax, and (c) the
      investment credit recapture tax.

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        #4
        Old jack is correct.

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