Idaho Worksheet for Determining Estimated Payment Amount

Worksheet for Determining Estimated Payment Amount
Form 41EST Instruction, Worksheet for Determining Estimated Payment Amount
Form 41EST — Instructions
Payment of Estimated Business Income Tax
Who Must Make Estimated Tax Payments. A
corporation must make estimated tax payments
to the Tax Commission if it’s required to make
estimated tax payments to the Internal Revenue
Service and owes Idaho income tax of $500 or
more. Estimated tax payments aren’t required if the
corporation wasn’t required to file an Idaho return
the previous tax year.
If you received personalized payment vouchers
(Form 41EST), use the appropriate voucher
for each filing period. If any of the preprinted
information is incorrect, draw a line through it and
enter the correct information. Check the box on the
voucher if there’s a change in your mailing address.
If you don’t have a preprinted form, use the
Form 41ES available at tax.idaho.gov.
Estimated Tax Payments. Each estimated tax
payment must be 25% of the lesser of the tax
required to be reported on the corporation’s return
for the prior year, or 90% of the income tax required
to be paid on the current year’s return. Don’t include
fuels tax, sales/use tax, fuels tax refunds, tax from
the recapture of qualified investment exemption
(QIE) or Tax Reimbursement Incentive Act credit
reported on the income tax returns.
For corporations, the tax required to be reported is
defined as Idaho taxable income multiplied by the
appropriate tax rate, plus the permanent building
fund tax, plus tax from recapture of business income
tax credits, minus allowable income tax credits. A
corporation making estimated tax payments in a year
following the revocation of subchapter S status will
use $20 as the tax amount required to be reported
on the prior year’s return.
For S corporations, estimated tax payments are
computed on the Idaho tax due to net recognized
built-in gains and excess net passive income.
Estimated tax payments aren’t required on the tax due
on income being reported for individual shareholders.
Computation of Estimated Tax Payments. The
Form 41EST worksheet allows you to compare the
income tax on last year’s return with the anticipated
income tax for the current year. Use the smaller
of the two amounts to determine the estimated
tax payment for each period. If your estimated tax
payments are based on 90% of the income tax
required to be paid on the current year’s return and
the anticipated income tax for the current year is
revised, use the revised amount to recompute any
remaining estimated tax payments.
EIN00035

12-30-2022

Due Dates. For calendar year taxpayers, estimated
tax payments are due by the 15th day of April, June,
September, and December. For fiscal year taxpayers,
estimated tax payments are due by the 15th day of the
4th, 6th, 9th, and 12th months of the tax year.
The due dates for the federal and Idaho estimated tax
payments are the same. If the due date is on a Saturday,
Sunday or legal holiday, the payment is due on the next
regular business day.
Underpayment of Estimated Tax. Interest is due on
the difference between the amount of estimated tax
payment required to be made on each voucher and the
amount of estimated tax payment actually made. Interest
is computed from the due date of the estimated payment
until the required amount is paid or until the due date of
the return. The interest rate for 2022 is 3%. The interest
rate for 2023 is 5%.
Use Form 41ESR to determine the amount of any
underpayments of tax and interest due when you file your
return.
Overpayment of Estimated Tax. Excess estimated tax
payments will be refunded after you file the completed
return. You may apply all or part of the excess to next
year’s estimated tax by designating the amount on the
Idaho Form 41 or the Idaho Form 41S.
Overpayments will be applied to any prior year tax
liabilities before carryovers or refunds are allowed.
You will be notified if your overpayment is applied to
an existing liability or is used to reduce your refund or
carryover.
Annualized Income and Estimated Tax Payments.
If your estimated payments are based on annualized
income for federal purposes, you may use the same
method for making Idaho estimated tax payments.
The estimated tax due for the installment period is
calculated by multiplying the applicable percentage
(22.5%, 45%, 67.5%, and 90% for the 1st, 2nd, 3rd, and
4th installments, respectively) by the full year’s tax on the
annualized income for the period and deducting any prior
installments.
Short Tax Year. If the short tax year ends before any
remaining due dates, you must make a final estimated
tax payment by the 15th day of the last month of the
short tax year. No estimated tax payment is required
if the short tax year is less than four months or if the
requirements to make an estimated tax payment aren’t
met before the first day of the last month in the short
tax year.
Page 1 of 2

Form 41EST — Worksheet (continued)
Use the worksheet below to determine your corporate estimated tax payments.
1. Anticipated Idaho taxable income this year .................................................................... 1
2. Income tax on anticipated Idaho taxable income. Multiply line 1 by 6% ........................

2

3. Permanent building fund tax ($10 or, if a combined report, multiply $10
by the number of corporations required to file for income tax purposes) ....................... 3
4. Tax from recapture of business income tax credits. See Form 44, Part II,
for a complete list ........................................................................................................... 4
5. Total income tax. Add lines 2 through 4 .......................................................................... 5
6. Anticipated income tax credits ........................................................................................ 6
7. Estimated income taxes payable on this year’s return. Line 5 minus line 6 ................... 7
 If the amount is less than $500, stop here.
You aren’t required to make estimated tax payments.

8. Multiply line 7 by 90% ..................................................................................................... 8
9. Idaho total tax less the total of any fuels tax, sales/use tax, tax from recapture
of QIE and Tax Reimbursement Incentive credit from the 2021 return ........................... 9
10. Estimated tax payments. Multiply the smaller of lines 8 or 9 by 25%.
This is the amount of each estimated tax payment. Enter this amount in the
“Payment Due” box of your Form 41EST ...................................................................... 10

Contact us:

In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660
Hearing impaired (TDD) (800) 377-3529
tax.idaho.gov/contact
EIN00035

12-30-2022 

Page 2 of 2