Estimated Taxes

[RDeWitt]

I have a Partnership (1065) that paid estimated taxes last year and am not sure where to include them on the return. I see that estimated taxes for corporations are filed on a 1020-W but see nothing for 1065. I am tempted to include them on the 1040 under estimated Tax payments. Am I on the right path? Will I ever be glad when this season is over!!!!!! Thanks in advance!

[Roland Slugg]

You don't see the line for entering estimated taxes paid by the partnership? Isn't there a place for them just below where you enter the partnership's standard deduction?

[RDeWitt]

Estimated Taxes

I am sorry but i just cant find it. Help please?

[Lion]

Where did you find Form 1065-ES?

[ttbtaxes]

A partnership doesn't pay taxes so those payments must have been made on behalf of one of the partners. It should be treated as a "withdrawal" or "guaranteed payment" to that partner(s). Make sure the payment doesn't violate the partnership agreement.

[kathyc2]

You need to start by having client verifying to you under what FID the estimates were paid. It will be handled entirely different if payment was made under partnership EIN or partners SSN. If you report it differently than how if was paid you will have a mess to clean up.

[TAXNJ]

Is it really a Partnership?

Based on your earlier comment, “…Help??? I think I bit of more than I can chew….” Are you recognizing that this Partnership return maybe at this point, beyond your scope of expertise?

Based on this post and your earlier post regarding form 1065, in fairness to you and your client, you may want to consider and have a Partnership expert in your firm review your preparation. As you may be experiencing, Partnerships are difficult from both a Tax Accounting and Legal perspective.

[RDeWitt]

Estimated Taxes

Thanks for all the responses.

Yes it is a partnership and the estimated taxes are on self employment of on of the partners. Do they get accounted for on his personal return or on the 1065?

[spanel]

Thanks for all the responses.

Yes it is a partnership and the estimated taxes are on self employment of on of the partners. Do they get accounted for on his personal return or on the 1065?

I agree your probably in to deep if your asking these kind of questions... especially when you looked for an hour for where to put the payroll taxes.

You do NOT put partners estimated taxes paid on the partnership return.

These are payments made by the partners for the partners to be put on the partners returns (1040)

Chris

[kathyc2]

Thanks for all the responses.

Yes it is a partnership and the estimated taxes are on self employment of on of the partners. Do they get accounted for on his personal return or on the 1065?

Were they made on partners SSN? If so, they are reported on his 1040. They are not an expense of the partnership, but rather a draw or guaranteed payment to partner.

[Super Mom]

I would simply show that amount as a guaranteed payment or distribution to that partner on the K-1 (1065) then show the estimated tax on the 1040 for that partner. If you don't do the individual taxes for the partners, be sure you include a note with the K-1 for the tax preparer of that amount that was paid in estimated tax for that partner.

Also, new this year, the LLC (1065) returns were due by 3/15 so you will be looking at penalties if not filed yet unless they got an extension.

[spanel]

I would simply show that amount as a guaranteed payment or distribution to that partner on the K-1 (1065) then show the estimated tax on the 1040 for that partner. If you don't do the individual taxes for the partners, be sure you include a note with the K-1 for the tax preparer of that amount that was paid in estimated tax for that partner.

Also, new this year, the LLC (1065) returns were due by 3/15 so you will be looking at penalties if not filed yet unless they got an extension.

Sounds like he's not even sure who paid these and who they are for.

Chris