Question: How do partnerships file and pay quarterly estimated tax payments?
- Partnerships file Form 1065, U.S. Return of Partnership Income, to report income and expenses.
- A partnership doesn't pay tax on its income, instead, it "passes through" any profits or losses to its partners. Generally, the partnership must prepare and give partners a copy of Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc.
- The partners report the information from the K-1 on their own returns and pay any taxes due, including estimated taxes.
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 Forms 1040, U.S. Individual Income Tax Return. 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:
- Crediting an overpayment on your 2016 return to your 2017 estimated tax
- Mailing your payment (check or money order) with a payment voucher from Form 1040-ES
- Using Direct Pay
- Using the Electronic Federal Tax Payment System (EFTPS)
- Requesting an electronic funds withdrawal (EFW) if you're filing Form 1040 electronically
- Using a credit or debit card
See Payments for more information.
- Do You Have to Pay Estimated Tax?
- Publication 505, Tax Withholding and Estimated Tax
- Instructions for Form 1065, U.S. Return of Partnership Income
Category: Estimated Tax