How can I find my estimated tax amount for business tax returns?
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Last modified 3/7/2024 12:17:54 AM EST
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For corporations, estimated taxes can be calculated using the Worksheet: Form 1120-W. For sole proprietors, the estimated taxes can be calculated using the Worksheet: Form 1040-ES
Typically, you can also calculate the estimated taxes based on the following aspects.
- Previous Year's Tax Liability: If the income and expenses of the business remain the same all the years, you can use the previous year's tax liability as a basis for estimating the current year's tax liability.
- Current Year's Income and Expenses: You can use the current year's income and expenses to determine your business' expected taxable income.
- Tax Law Changes: While calculating your estimated taxes, it's important to consider any recent changes in tax laws that might affect your tax liability. This includes changes in tax rates, deductions, credits, and more.
- Tax Credits and Deductions: Make sure to include any tax credits and deductions that you are eligible for when estimating your business tax liability. For example: Depreciation, and credits for research and development, renewable energy, etc.