Florida F-1120 Corporate Income Tax Return Instructions

The Florida Form F-1120 is the state’s corporate income and franchise tax return, used by corporations to report their annual income and calculate tax owed to the Florida Department of Revenue. The form functions as a declaration of a company’s financial activities within the state for a given tax year. The calculation process starts with federally reported income, which is then adjusted according to Florida-specific tax laws.

Determining Filing Requirements

Any corporation conducting business, earning income, or existing in Florida is required to file a Form F-1120. This includes Limited Liability Companies (LLCs) that have elected to be taxed as a C corporation for federal purposes. The filing requirement is established by “nexus,” a business connection created by activities like having employees, owning property, or making sales in Florida.

S corporations do not use this form; they file Form F-1120S for their pass-through tax status. The F-1120 is exclusively for C corporations and entities taxed as such.

The return is due by the first day of the fifth month following the close of the tax year. For businesses with a calendar year ending December 31, the due date is May 1.

A corporation can obtain an extension by submitting Florida Form F-7004. This provides more time to file the F-1120 but does not extend the payment deadline. To avoid penalties, the company must pay its tentative tax liability by the original due date of the return.

Information and Documentation for Form F-1120

Preparation for filing a Florida Form F-1120 begins with a completed federal corporate income tax return, Form 1120. The state calculation starts with the federal taxable income figure, and a copy of the filed federal return must be attached to the Florida F-1120.

A corporation must also gather financial data for Florida modifications. For additions, this includes records of state and local income taxes deducted on the federal return and interest from bonds issued by states other than Florida.

For subtractions, necessary information includes interest from U.S. government obligations and foreign source income for companies with international operations. These modifications are detailed on Schedule I (additions) and Schedule II (subtractions) of the F-1120.

Corporations operating in multiple states must collect data to apportion their income. A business will need figures for its total sales, property, and payroll both within Florida and everywhere to calculate the final apportionment percentage.

If a corporation intends to claim any Florida-specific tax credits, it must have all the required supporting documentation and approval forms. Each credit has its own set of qualifications and required forms, which must be completed and submitted with the tax return.

Calculating Florida Corporate Income Tax

The calculation of Florida’s corporate income tax starts with the taxable income reported on line 30 of the federal Form 1120. This amount serves as the baseline for determining the state-specific tax liability.

Next, the federal taxable income is adjusted using the additions and subtractions specific to Florida’s tax laws. The result of these adjustments is the “Adjusted Federal Income,” which reflects the corporation’s income as defined by the state.

For companies that operate both inside and outside the state, the income is then apportioned. Florida uses a three-factor formula based on sales (50%), property (25%), and payroll (25%) to determine the percentage of income subject to Florida tax.

After apportioning the income, a $50,000 exemption is subtracted to arrive at the “Florida Net Income.” A 5.5% corporate income tax rate is applied to this net income, and any eligible tax credits are then subtracted to determine the final tax liability.

Filing and Paying the F-1120

Once the Form F-1120 is complete, it must be submitted to the Florida Department of Revenue. The preferred method is electronic filing through approved tax software or the department’s online portal. Taxpayers who are required to file their federal returns electronically must also e-file their Florida return.

Alternatively, a corporation can file a paper return by mail. The completed Form F-1120 and all required attachments should be sent to the address designated for corporate tax returns in the form instructions.

Payment of the tax due can be made through several methods. Electronic Funds Transfer (EFT) is mandatory for businesses that paid $5,000 or more in Florida corporate income tax during the prior fiscal year. Payments can also be made by credit card through third-party service providers, which may charge a convenience fee. If filing by mail, a check can be included with the return, accompanied by a Form F-1120P payment voucher.

Many corporations are also required to make estimated tax payments. If a company anticipates its annual tax liability will exceed $2,500, it must pay its estimated tax in quarterly installments, typically on the same schedule as federal estimated taxes.