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. Corporations that expect to be subject to estimated tax requirements usually receive a Declaration of Estimated Corporation Income Tax Packet from the Comptroller's Office. The estimated tax packet includes four preprinted forms (Form 500DP) and instructions. Form 500DP contains preprinted taxpayer information and provides for prompt and accurate processing of the declaration payment.

If the corporation does not have the estimated tax packet, Form 500D can be used to remit any payment due. Do not use this form to remit estimated tax for Form 510 or to remit employer withholding tax.

Payments

For tax year 2009, 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.