Accounting News and Notes

Duluth/Suwanee/ Johns Creek CPA: Estimated Payments to the IRS and State of Georgia for Personal Income Taxes

IRS Form 1040 and Form 500 to Georgia/state should be used to account for and record and reflect all estimated tax amounts from the year when you are filing your year-end taxes. You can also include any overpayment or tax refund monies you applied from the prior year you had credited to your current year’s form there as well. Estimated Tax Payments to the IRS are reported and paid via Form 1040-ES and to the state of Georgia using Form 500-ES for your personal income taxes. You cannot file Form 1040EZ if you had any estimated tax payments.

If you are a beneficiary of some sort of estate or trust you will receive a Schedule K-1, otherwise known as the Form 1041 from the fiduciary. If you paid federal estimated taxes on the estate or trust you have to report and claim these amounts on Schedule E of Form 1040.

Name Changes

If your estimated taxes were claimed under your former name and you recently have changed your name, attach a form notifying the IRS or Georgia of these changes covering:

• The dates when you made the payments

• The amount of each payment

• The IRS or Georgia address where you sent the payments

• Your name under which you made the payments along with your new name

• Your social security number through which you made the payments

Notifying the Internal Revenue Service and Georgia should also take care of any payments made by you and your spouse jointly as well as payments made separately. You will want to make all corrections first to your Social Security Administration office before preparing your Form 1040 to the IRS or Form 500 to Georgia. Doing this first will help you to move through the filing process without any delays for processing. You can call your local Social Security Administration at 1-800-772-1213 or to read more about how to contact the Social Security Offices see http://www.ssa.gov/pgm/reach.htm

Married Filing Separate Returns
You are only allowed to take credit for your own estimated tax payments if you and your spouse filed separately.

We work with all of our S Corporation owners and LLC’s that have for tax purposes converted over to an S Corporation for tax purposes to adjust their withholdings so that active employee owners do not also have to make estimated tax payments to either IRS or GA. We do this by working with the business owner to gain a projection of the year’s profits so that their federal and state estimated payments can be increased accordingly.
To read more about IRS tax rules on estimated tax payments you can do so at http://www.irs.gov/pub/irs-pdf/f1040es.pdf

www.HisCPA.com   A Faith Based CPA Firm Serving Duluth, Gwinnett. Johns Creek, Norcross, Alpharetta, Suwanee, Buford, Lawrenceville, Snellville, Lilburn, Decatur, Tucker, Roswell, Atlanta & Beyond

Related posts:

1. Estimated Taxes for Corporate and Personal Taxpayers
2. Duluth/Lawrenceville/Snellville CPA: Allocation and Reporting of Estimated Taxes
3. Credit for Withholding and Estimated Taxes
4. Atlanta/Cumming/Johns Creek CPA: Determining Your Federal and State Withholdings
5. Gwinnett, Johns Creek, Alpharetta CPA: How Can I Know If I Owe Estimated Taxes?

This entry was posted on Sunday, January 22nd, 2012 at 8:29 am and is filed under Business Loans & Money Management, Corporate & Personal Income Taxes.
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