41EST: Payment of Estimated Business Income Tax Instructions with Worksheet 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Idaho Form 41EST instructions and worksheet help corporations calculate their 2024 estimated business income tax payments. The worksheet compares anticipated current-year tax with prior-year tax to determine the amount of each payment.
Who files this form
A corporation must make Idaho estimated tax payments if both apply:
- It is required to make estimated tax payments to the IRS.
- It expects an Idaho income tax liability of $500 or more.
Payments are not required if the corporation was not required to file an Idaho return for the previous tax year.
For S corporations, estimated payments apply to Idaho tax on net recognized built-in gains and excess net passive income. They are not required for tax on income reported for individual shareholders.
When it's due
For tax year 2024, calendar-year taxpayers must make estimated payments by:
- April 15, 2024
- June 15, 2024
- September 15, 2024
- December 15, 2024
If a due date falls on a Saturday, Sunday, or legal holiday, payment is due on the next regular business day.
For fiscal-year taxpayers using the 2024 form, payments are due by the 15th day of the 4th, 6th, 9th, and 12th months of the tax year.
For a short tax year covered by the 2024 form, if the year ends before any remaining due dates, a final estimated payment is due by the 15th day of the last month. No estimated payment is required if the short tax year is less than four months, or if the payment requirements are not met before the first day of its last month.
What you'll need
Have these forms and figures ready to complete the worksheet:
- Your 2023 Idaho return, including total tax and the adjustments listed on worksheet line 9.
- Your anticipated 2024 Idaho taxable income, income tax credits, and any tax from recapture of business income tax credits.
- For a combined report, the number of corporations required to file for income tax purposes.
- Your personalized Form 41EST payment vouchers, if received. If you do not have a preprinted form, use Form 41ES from tax.idaho.gov.
The worksheet refers to Form 44, Part II, for a complete list of business income tax credit recaptures. Use Form 41ESR when filing your return to determine any estimated tax underpayments and interest due.
How to file
Use the Form 41EST worksheet to calculate each estimated payment:
- Multiply anticipated Idaho taxable income by 5.695%.
- Add the permanent building fund tax and any tax from recapture of business income tax credits. Subtract anticipated income tax credits.
- If the result on line 7 is less than $500, stop. Estimated payments are not required.
- Multiply line 7 by 90%. Compare that amount with the adjusted 2023 tax amount on line 9.
- Multiply the smaller amount by 25% and enter the result in the “Payment” box on Form 41EST.
Use the personalized voucher for the correct filing period. If preprinted information is wrong, draw a line through it and enter the correct information. Check the mailing address change box if your mailing address changed. If you do not have a preprinted form, use Form 41ES available at tax.idaho.gov.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Including excluded taxes or refunds in the calculation. Do not include fuels tax, sales/use tax, fuels tax refunds, tax from recapture of the qualified investment exemption (QIE), or the Tax Reimbursement Incentive credit reported on the income tax returns.
- Not updating remaining payments. If payments are based on 90% of current-year income tax and that estimate changes, recompute the remaining payments using the revised amount.
- Using the wrong voucher or leaving incorrect details unchanged. Use the voucher for the correct filing period, correct preprinted errors, and check the address change box when needed.
- Underpaying an installment. Interest applies to the difference between the required payment and the amount actually paid.
Questions people ask
What happens if I pay too much estimated tax?
Excess payments will be refunded after you file the completed return. You may instead apply all or part to next year’s estimated tax by designating the amount on Idaho Form 41 or Form 41S. Overpayments are applied to prior-year tax liabilities before refunds or carryovers are allowed.
What interest applies if I underpay?
The interest rate for 2024 is 6%. Interest runs from the estimated payment due date until the required amount is paid or until the return’s due date. Use Form 41ESR to determine underpayments and interest when filing your return.
Can I use the annualized income method?
Yes, if you base your federal estimated payments on annualized income, you may use the same method for Idaho. Apply 22.5%, 45%, 67.5%, and 90% for the first through fourth installments to the full-year tax on annualized income for the period, then subtract prior installments.
What if the corporation’s subchapter S status was revoked?
A corporation making estimated payments in the year after revocation uses $20 as the tax amount required to be reported on the prior-year return.