IA 1065 Estimated Tax for Partnerships Instructions

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IA 1065 Estimated Tax for Partnerships Instructions Who Must File and Pay This form should be used to determine estimated tax payments for partnerships who elect to be subject to Iowa Pass -through Entity Tax (PTET). Every partnership with more than $1,000 in tax due after credits must file and pay estimated tax. Failure to make estimated payments may result in a penalty for underpayment of estimated tax. See IA 2220 Underpayment of Estimated Tax (45-006). Installments must be made electronically when total income tax liability for the tax year prior to the tax year just completed exceeds $80,000. Payments of Estimated Tax Dates for paying estimated tax in equal installments are: ● The last day of the fourth month of the calendar or fiscal year.

● The last day of the sixth month of the calendar or fiscal year.

● The last day of the ninth month of the calendar or fiscal year. ● The last day of the twelfth month of the calendar or fiscal year. Iowa Code section 422.86 provides information for determining whether and when quarterly installments are due. Note: If a period or due date ends on a weekend or holiday as defined in Iowa Code section 421.9A, substitute the next regular business day. Overpayment Credit for Iowa Corporation Income Tax Return If you had an overpayment on your prior-period Iowa tax return and timely elected to apply it as a credit to your estimated income tax for the current period, the amount will be automatically posted from your prior - period Iowa tax return to your estimated tax account. Note: If you elect on your Iowa partnership incom e tax return to have your overpayment refunded, the refund will be processed automatically; it is not necessary to file a separate claim for refund. Use the Estimated Tax Payment Schedule to Record and Apply Your Credit If the credit equals or exceeds the estimated tax liability for the first installment, the balance of the estimated tax can be paid in full or in equal installments beginning with installment two. Do not send installment if your current -period estimate is paid in full, either by overpayment credit from your prior-period income tax return or by estimated payments already submitted. How to Complete Worksheet and Installments 1. Fill out the worksheet on the second page of these instructions. If the tax after credits on line 1 9 is less than $1,000, you do not have to file and pay estimated tax. 2. Enter the amount from line 22 into column B of the Estimated Tax Payment Schedule. Enter any applicable overpayment in column C. Subtract column C from the amount in column B and enter the difference in column D Payment options include Modernized e-File (MeF), govconnect.iowa.gov, ACH Credit, or payment by check. Visit the Department's website (revenue.iowa.gov) for payment information. Do not send cash. Submit a voucher if making a payment by check. Vouchers are available on GovConnect.Iowa.gov. Mail installments to: PO Box 10466 Des Moines Iowa 50306-0466 Make checks payable to "Iowa Department of Revenue." How to Amend Your Estimated Tax You may find after having filed and paid one or more installments that your estimated Iowa income tax has substantially changed. If this happens: 1. Re-compute the estimated tax payments remaining in your tax year. 2. Update the Estimated Tax Payment Schedule for the quarters remaining.

Partnership Estimated Income Worksheet Keep for your records

1. Federal Schedule K income (Federal Schedule K, lines 1-11) ................... 1. $ __________________ 2. Section 179 deduction from federal Schedule K, line 12 ............................ 2. $ __________________ 3. Other deductions from federal Schedule K, line 13 (do not include excess business interest expense or informational amounts) .................... 3. $ __________________ 4. Net federal Schedule K income, Subtract lines 2 and 3 from 1 .................. 4. $ __________________ 5. Iowa additions from IA 1065, Schedule A ................................................... 5. $ __________________ 6. Iowa reductions from IA 1065, Schedule A ................................................. 6. $ __________________ 7. Net Iowa modifications. Subtract line 6 from line 5 ..................................... 7. $ __________________ 8. All-source partnership distributive items for Iowa tax purposes. Add lines 4 and 7 ........................................................................................ 8. $ _________________ 9. Nonbusiness income from IA 1065, Schedule D, line 17 ........................... 9. $ __________________ 10. Income subject to apportionment. Subtract line 9 from line 8 .................. 10. $ __________________ 11. Business Activity Ratio from Schedule E ................................................. 11. ________________ % 12. Income apportioned to Iowa. Multiply line 10 by line 11 .......................... 12. $ __________________ 13. Nonbusiness income allocable to Iowa from Schedule D, line 8 ............. 13. $ __________________ 14. Iowa-source partnership distributive items. Add lines 12 and 13 ............ 14. $ __________________ 15. PTET (if you are making a PTET election). Multiply line 14 by 3.8% ...... 15. $ __________________ 16. Franchise tax credit. Enter amount from your IA 1120F, line 14 ............. 16. $ __________________ 17. Net PTET. Subtract line 16 from line 15 .................................................. 17. $ __________________ 18. Total PTET/Composite credits available to partnership ........................... 18. $ __________________ 19. Tax after credits. Subtract line 18 from line 17 ........................................ 19. $ __________________ 20. Payments previously made for current period estimated tax ................... 20. $ __________________ 21. Unpaid balance. Subtract line 20 from line 19 ......................................... 21. $ __________________ 22. Computation of installment. If first installment is to be filed on: ● last day of the 4th month, enter 1/4 of line 21, or .......................... $ ___________ ● last day of the 6th month, enter 1/3 of line 21, or .......................... $ ___________ ● last day of the 9th month, enter 1/2 of line 21, or .......................... $ ___________ ● last day of the 12th month, enter all of line 21 .............................. $ ___________ Estimated Tax Payment Schedule A Date

B Computed installment (line 22) C Prior period overpayment D Amount to be paid (column B less column C) 1. 2. 3. 4.