IA 1120S Estimated Tax for S Corporations Instructions

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IA 1120S Estimated Tax for S Corporations Instructions Who Must File and Pay This form should be used to determine estimated tax payments for S corporations who elect to be subject to Iow a Pass -through Entity T ax ( PTET) or have built-in gains or excess passive loss income subject to tax. Every S corporation 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 Corporations, S Corporations, Financial Institutions, and Partnerships (45-0 06). First return taxpayers are subject to this penalty. Installments must be made electronically when total corporate tax liability for the tax year prior to the tax year just completed exceeds $80,000. Note: This form is only for S corporations. Corporations should use IA 1120 Corporation Estimated Income Worksheet (45-0 10). S corporations that are financial institutions subject to the franchise tax should also use the Franchise Estimated Worksheet (43-005). 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. Iow a 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 S C orporation 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 S corporation income 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 installments 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 i s l ess 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.

S Corporation Estimated Income Worksheet Keep for your records 1. Federal Schedule K income (Federal Schedule K, lines 1-10) ......................... 1. $ __________________ 2. Section 179 deduction from federal Schedule K, line 11 .................................. 2. $ __________________ 3. Other deductions from federal Schedule K, line 12 (do not include informational amounts) ............................................................ 3. $ __________________ 4. Net federal Schedule K income, Subtract lines 2 and 3 from 1 ........................ 4. $ __________________ 5. Iowa additions from IA 1120S, Schedule A ...................................................... 5. $ __________________ 6. Iowa reductions from IA 1120S, Schedule A .................................................... 6. $ __________________ 7. Net Iowa modifications. Subtract line 6 from line 5 .......................................... 7. $ __________________ 8. All-source S corporation distributive items for Iowa tax purposes. Add lines 4 and 7 .............................................................................................. 8. $ __________________ 9. Nonbusiness income from IA 1120S, 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 S corporation distributive items. Add lines 12 and 13 ............... 14. $ __________________ 15. PTET (if you are making a PTET election) a. Computed PTET. Multiply line 14 by 3.8% .............................................. 15a. $ __________________ b. Franchise tax credit. Enter amount from your IA 1120F, line 14 ............ 15b. $ __________________ c. Net PTET. Subtract line 15b from line 15a .............................................. 15c. $ __________________ 16. Built-in Gains or Passive Investment Income Tax a. Net recognized built-in gains and excess net passive income ................ 16a. $ __________________ b. Built-in gains/passive income apportioned to Iowa. Multiply line 16a by line 11 ....................................................................... 16b. $ __________________ c. Iowa net operating loss carryforward from C corporation years .............. 16c. $ __________________ d. Built-in gains/passive income subject to Iowa tax. Subtract line 16c from line 16b ................................................................ 16d. $ __________________ e. Computed tax on built-in gains/passive income. Use Tax Rates below ............................................................................... 16e. $ __________________ f. Remaining credit carryforward from C corporation years ........................ 16f. $ __________________ g. Tax after credits. Subtract line 16f from line 16e ..................................... 16g. $ __________________ 17. Total tax. Add lines 15c and 16g ................................................................... 17. $ __________________ 18. Total PTET/Composite credits available to S corporation ............................. 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 ................................... $ ___________ Tax Rates - If income shown on line 16d is: For tax years beginning on or after January 1, 2024: • $0 - $100,000: Multiply line 16d by 5.5% • Over $100,000: Multiply line 16d by 7.1% and subtract $1,600

S Corporation Estimated Income Worksheet Keep for your records 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.