Pay Federal Income Taxes via ES1040 instead of Withholding

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
ssgbloghead
Posts: 53
Joined: Thu Jan 09, 2014 10:00 pm

Pay Federal Income Taxes via ES1040 instead of Withholding

Post by ssgbloghead »

Background info:

S-corp owned by Husband+wife.
Husband and Wife are the only employees of the S corp.
Wife also has another low paying regular job which pays every 15 days.
My S corp makes just one payroll run on Dec 31. 

Here are expected 1040 numbers for 2021.
Taxable Wages = 245k (out of which 230k was paid on Dec 31)
Dividends = 75k
Schedule K = 15k
Capital gain = 0
Total Taxable income = 300k
Approx. Tax = 60k
Estimated Tax payments made so far = 80k

Questions

Q1) My calculations show that I need to hold approx 40k in federal income tax from my Dec 31, 2021 payroll. Can I withhold just $0 since I have already paid more than needed?

Q2) The numbers will remain the same in 2022.  How can I pay via Estimated taxes instead of Withholding?  (My reasons for wanting to do this may complicate the discussions but if you think it is necessary, I can elaborate provided you promise not to laugh).  

Please note I do and will file all FICA taxes and quarterly/annual returns.

Edit: Added clarifications
Post Reply