Estimated Payment Requirements
Whether your business is required to make payments is dependent on your organizational structure and on how you report business income. For additional information, review the Corporate Income Tax Guide.
In general, a C corporation must remit Colorado estimated tax payments if its net Colorado tax liability for the tax year exceeds $5,000. For more information, review the Corporate Income Tax Guide.
Partnerships & S Corporations
Partnerships and S corporations (also referred to as “pass-through entities") may file composite returns on behalf of some or all of their nonresident partners and shareholders. Pass-through entities are not required to make estimated payments, but individual partners and shareholders included in a composite return may be subject to the estimated payment requirements if their individual Colorado income exceeds $1,000.
Pass-through entities may use the Composite Nonresident Estimated Tax Payment Form (DR 0106EP) to remit payments on behalf of any nonresident partner or shareholder included in a composite who is subject to estimated payment requirements. For additional information, review the Corporate Income Tax Guide.
Business Income Reported on Individual Income Tax Returns
Generally, an individual or married couple filing jointly must remit Colorado estimated tax payments if their total Colorado tax liability, less withholding and credits, exceeds $1,000. For more information, visit the Individual Income Tax Estimated Payments web page.
Estimated Payment Due Dates
Estimated tax payments are due in four equal installments on
- April 15 (first calendar quarter)
- June 15 (second calendar quarter)
- September 15 (third calendar quarter)
- January 15 (fourth calendar quarter)
The payments will be due for fiscal year filers on the 15th day of the fourth, sixth, ninth, and twelfth month of the tax year. If the due date falls on a Saturday, Sunday, or state holiday, payment is due on the next business day.
For information on how to make a payment, visit the Business Income Tax Payment web page.
How To Make Estimated Payments
Estimated tax payments must be submitted in the same manner, whether separate, consolidated or combined, and using the same account number that the corporation expects to use when filing the Colorado corporation income tax return. For more information, see publication FYI Income 51.
Partnerships & S Corporations
Estimated tax is the method used to pay tax on income that is not subject to withholding. Individuals who are not residents of Colorado (nonresidents) must pay tax on any Colorado-source income. This is intended for nonresident individuals who are included in a partnership or S corporation composite filing. In most cases, you will pay estimated tax if an individual partner expects to owe more than $1,000 in net tax for the year, after subtracting any withholding or refundable credits they might have. This rule must be calculated for each individual included in the composite return, and not as the composite as a whole. Use the Partnerships and S Corporation Estimated Payment Form (DR 0106EP) to submit your business' estimated payments.
You may also use Revenue Online to submit your partnership or S corporation estimated payments.
In most cases, a C corporation is required to pay an estimated tax if it can reasonably expect the net tax liability will exceed $5,000 for the year. For taxpayers with a short taxable year, please see FYI Income 51 for more information. C corporations use the C Corporation Estimated Payment Form (DR 0112EP).