What are Grouse Corporation's minimum required estimated tax payments for 2023?
April 17, 2023:
June 15, 2023: $
September 15, 2023: $
December 15, 2023: $
Total: $
Understanding Grouse Corporation's Estimated Tax Payments for 2023
Grouse Corporation, a calendar year C corporation, had varying taxable incomes in the years leading up to 2023. For 2020, 2021, and 2022, the taxable incomes were $1,400,000, $1,200,000, and $700,000 respectively. In 2023, Grouse Corporation reported a taxable income of $1,600,000.
To determine the minimum required estimated tax payments for 2023, we need to follow the IRS guidelines for corporations. Usually, corporations are obligated to make estimated tax payments if their expected tax liability for the year exceeds $500. These payments are generally due in installments throughout the year.
In the case of Grouse Corporation with a taxable income of $1,600,000 for 2023, we need to calculate the estimated tax payments based on the taxable incomes from the previous three years. The percentages for the estimated tax payments are divided among the quarterly installments throughout the year.
The estimated tax payments for Grouse Corporation for 2023 are as follows:
April 17, 2023: $100,000
June 15, 2023: $100,000
September 15, 2023: $200,000
December 15, 2023: $200,000
Total: $600,000
Therefore, Grouse Corporation's minimum required estimated tax payments for 2023 amount to $600,000, to be paid in equal installments on the specified due dates.
Since the Grouse Corporation's estimated tax for 2023 is $1,600,000, they would need to make quarterly estimated tax payments. Assuming a tax rate of 21%, their total tax bill would amount to $336,000, which would be divided into quarterly payments of $84,000. These payments are due on April 17, June 15, September 15, and December 15 of 2023.