Solved: In California, does the $800 annual tax payment, due in Q1, count toward the 1.5% tax liability for S-Corps? Or, is it in addition to the 1.5% tax rate?
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In California, does the $800 annual tax payment, due in Q1, count toward the 1.5% tax liability for S-Corps? Or, is it in addition to the 1.5% tax rate?

As my California S-Corp grows more profitable, I want to understand how this 1.5% CA tax is assessed, and whether it's on top of the $800 annual minimum.  Am I right in concluding that the $800 minimum (when divided by 1.5%) covers the first $53,333 in net income?

If so, then anything over $53,333 gradually increases the liability above $800 by 1.5%; correct?

Thanks!

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Accepted Solutions
New Member

In California, does the $800 annual tax payment, due in Q1, count toward the 1.5% tax liability for S-Corps? Or, is it in addition to the 1.5% tax rate?

Yes, you are correct, the $800 is the minimum tax on income if the percentage times the net income (on Form 100S California S Corporation Franchise or Income Tax) is more than $800, you pay the greater amount.  

View solution in original post

2 Replies
New Member

In California, does the $800 annual tax payment, due in Q1, count toward the 1.5% tax liability for S-Corps? Or, is it in addition to the 1.5% tax rate?

Todd where do I enter the $800 that was paid in TT Business as an estimate to avoid a penalty?
New Member

In California, does the $800 annual tax payment, due in Q1, count toward the 1.5% tax liability for S-Corps? Or, is it in addition to the 1.5% tax rate?

Yes, you are correct, the $800 is the minimum tax on income if the percentage times the net income (on Form 100S California S Corporation Franchise or Income Tax) is more than $800, you pay the greater amount.  

View solution in original post

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