estimated taxes

[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

[taxtime]

1040 for shareholder

[OldJack]

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.

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.

[taxtime]

Old jack is correct.