This form reports the same non-salary income as 1040ES.
|Forms to use||
||540-ES Worksheet and instructions|
540-ES Payment Coupon
||Quarterly payment requirement|
the business's net taxable income.
Note: You should NOT be deducting
payroll taxes (income tax, unemployment insurance, etc.) on any money that you take
from the business as a business expense.
|How to complete the form||
|Line ||What to enter
|1||Adjusted gross income. Go back to IRS 1040ES and use the
figure you calculated for line 1. |
|2||To simplify this form, just use the standard deduction. You may overpay
slightly. If you do, you will receive a refund when you file the annual return.
- Single or married filing separately: $3,906
- All others: $7,812
|3||Total income: line 1 minus line 2.|
|4||Annual tax on line 3: Use the tax tables found here.|
|5||For nonresidents (or partial year residents) only.|
||$108 times the number of adults plus $333 times the number of your dependents.
|8||Line 4 minus line 6.|
|9-17||Unless you had tax credits on last year's tax return (for
joint custody, dependent parent, head of household, etc.) or had installment interest
income, skip lines 9 to 17.|
|18||Total tax due: assuming that you had no credits, the same as line 7.|
|19||Amount to avoid penalties. Enter either 90% of line 15 or 100% of last year's tax, whichever is less.
Farmers, fishermen and people with income over $169,740, see the form for special instructions.|
|20||Income tax that will be withheld during the year through payroll deductions on other jobs.|
|21||Total tax that must be deposited with Form 540-ES this year (line 20 minus line 19).|
|22||Divide line 21 by the number of quarterly due dates before
next April 15th. For example, if it is June 2,
divide by 3 (June 15, September 15, and January 15). Pay this amount this quarter.|
||April 15, June 15, September 15, January 15.
||There are three payment options for shareholders:
- Pay online. To do this, each shareholder must first obtain a customer service number online. You will need your social security
number and your gross wages (for California) from last year's tax return.
- Pay using a credit card at Official Payments Corporation at (800) 272-9829. For questions call (877) 754-4413 or visit
- Pay by check and 540-ES voucher to:
Franchise Tax Board
Shareholders should keep the worksheet for their records.
PO Box 942867
Sacramento, CA 94267-0031
||Call the California Franchise Tax Board (800) 852-5711. For forms, go to
or call (800) 338-0505.