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Sometimes, an S corporation must make estimated tax payments.

Generally, an S corporation must make installment payments of estimated tax for the following taxes if the total of these taxes is $500 or more:

  • Tax on built-in gains,
  • Excess net passive-income tax,
  • Investment credit recapture tax.

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How Partners Pay Estimated Tax

Because partners aren't employees of the partnership, partnerships don't withhold tax from their distributions to pay the partners' income and self-employment taxes shown on their Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors (PDF). The partners may need to pay estimated tax payments using Form 1040-ES, Estimated Tax for Individuals.

As a partner, you can pay the estimated tax by:

See Payments for more information.

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