Business owners looking to make the PTE Election need to remember that there are required estimated tax payments. In order to be deducted in the taxable year, the estimated payments must be made within the taxable year. If the entity’s taxable income for the preceding tax year is over $150,000, then the estimated tax payments need to be made. The estimates must be made online on the AZDOR portal AZTaxes.gov.
Partnerships and S Corporations making the PTE election are required to make their estimated payments by the 15th day of the 4th, 6th, and 9th months of the taxable year. The final payment is due by the 15th day of the 1st month following the close of the taxable year. If the payment due date falls on a weekend or legal holiday, the payment is considered timely if made on the next business day. However, the 4th quarter payment should be made by the last day of the year (12/31 for calendar year taxpayers) in order to be deducted within that current year.