Estimated Corporation Tax

Every corporation that reasonably expects its Maryland taxable income to develop a tax in excess of $1,000 for the tax year or period must make estimated income tax payments with Form 500D-Maryland Declaration of Estimated Corporation Income Tax.

If the corporation is required to make multiple payments it will use Form 500D for each of the additional payments. The Comptroller of Maryland has discontinued the use of Form 500DP.

Do not use this form to remit estimated tax for Form 510 or to remit employer withholding tax.

Payments

For tax year 2012, the total Maryland estimated tax payments must be at least 90 percent of the tax developed for the current tax year or 110 percent of the tax developed for the prior tax year. At least 25 percent of the total estimated tax must be remitted by each of the four installment due dates.

The annualization method for calculating estimated tax is not permitted for corporations. In the case of a short tax period the total estimated tax payment required is the same as for a regular tax year: 90 percent of the tax developed for the current (short) tax year or 110 percent of the tax developed for the prior tax year. The minimum estimated tax for each of the installment due dates is the total estimated tax required divided by the number of installment due dates occurring during the short tax year.