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2011 1040x

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2011 1040x

2011 1040x Publication 971 - Introductory Material Table of Contents What's New IntroductionOrdering forms and publications. 2011 1040x Questions about innocent spouse relief. 2011 1040x Useful Items - You may want to see: What's New Expanded filing deadline for equitable relief. 2011 1040x  The period of time in which you may request equitable relief has been expanded. 2011 1040x See How To Request Relief later. 2011 1040x More information. 2011 1040x   For more information about the latest developments on Publication 971, go to www. 2011 1040x irs. 2011 1040x gov/pub971. 2011 1040x Introduction When you file a joint income tax return, the law makes both you and your spouse responsible for the entire tax liability. 2011 1040x This is called joint and several liability. 2011 1040x Joint and several liability applies not only to the tax liability you show on the return but also to any additional tax liability the IRS determines to be due, even if the additional tax is due to income, deductions, or credits of your spouse or former spouse. 2011 1040x You remain jointly and severally liable for the taxes, and the IRS still can collect from you, even if you later divorce and the divorce decree states that your former spouse will be solely responsible for the tax. 2011 1040x In some cases, a spouse (or former spouse) will be relieved of the tax, interest, and penalties on a joint tax return. 2011 1040x Three types of relief are available to married persons who filed joint returns. 2011 1040x Innocent spouse relief. 2011 1040x Separation of liability relief. 2011 1040x Equitable relief. 2011 1040x Married persons who did not file joint returns, but who live in community property states, may also qualify for relief. 2011 1040x See Community Property Laws , later. 2011 1040x This publication explains these types of relief, who may qualify for them, and how to get them. 2011 1040x You can also use the Innocent Spouse Tax Relief Eligibility Explorer at IRS. 2011 1040x gov by entering “Innocent Spouse” in the search box. 2011 1040x What this publication does not cover. 2011 1040x   This publication does not discuss injured spouse relief. 2011 1040x You are an injured spouse if your share of the overpayment shown on your joint return was, or is expected to be, applied (offset) against your spouse's legally enforceable past-due federal taxes, state income taxes, state unemployment compensation debts, child or spousal support payments, or a federal nontax debt, such as a student loan. 2011 1040x If you are an injured spouse, you may be entitled to receive a refund of your share of the overpayment. 2011 1040x For more information, see Form 8379, Injured Spouse Allocation. 2011 1040x Comments and suggestions. 2011 1040x   We welcome your comments about this publication and your suggestions for future editions. 2011 1040x   You can write to us at the following address:  Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. 2011 1040x NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2011 1040x Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2011 1040x   You can email us at taxforms@irs. 2011 1040x gov. 2011 1040x Please put “Publications Comment” on the subject line. 2011 1040x You can also send us comments from www. 2011 1040x irs. 2011 1040x gov/formspubs/, select “Comment on Tax Forms and Publications” under “Information about. 2011 1040x ”   Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products. 2011 1040x Ordering forms and publications. 2011 1040x   Visit www. 2011 1040x irs. 2011 1040x gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. 2011 1040x  Internal Revenue Service 1201 N. 2011 1040x Mitsubishi Motorway Bloomington, IL 61705-6613 Questions about innocent spouse relief. 2011 1040x The IRS can help you with your request for innocent spouse relief. 2011 1040x If you are working with an IRS employee, you can ask that employee, or you can call 866-897-4270. 2011 1040x Useful Items - You may want to see: Publications 504 Divorced or Separated Individuals 555 Community Property 556 Examination of Returns, Appeal Rights, and Claims for Refund 594 The IRS Collection Process Forms (and Instructions) 8857 Request for Innocent Spouse Relief Prev  Up  Next   Home   More Online Publications
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The 2011 1040x

2011 1040x 2. 2011 1040x   Estimated Tax for 2014 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated TaxGeneral Rule Married Taxpayers Special Rules Aliens Estates and Trusts How To Figure Estimated Tax2014 Estimated Tax Worksheet When To Pay Estimated TaxWhen To Start Farmers and Fishermen How To Figure Each PaymentRegular Installment Method Annualized Income Installment Method Estimated Tax Payments Not Required How To Pay Estimated TaxCredit an Overpayment Pay Online Pay by Phone Pay by Check or Money Order Using the Estimated Tax Payment Voucher Introduction Estimated tax is the method used to pay tax on income that is not subject to withholding. 2011 1040x This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. 2011 1040x You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. 2011 1040x Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. 2011 1040x If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. 2011 1040x If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax , later), you may be charged a penalty even if you are due a refund when you file your tax return. 2011 1040x For information on when the penalty applies, see chapter 4. 2011 1040x It would be helpful for you to have a copy of your 2013 tax return and an estimate of your 2014 income nearby while reading this chapter. 2011 1040x Topics - This chapter discusses: Who must pay estimated tax, How to figure estimated tax (including illustrated examples), When to pay estimated tax, How to figure each payment, and How to pay estimated tax. 2011 1040x Useful Items - You may want to see: Form (and Instructions) 1040-ES Estimated Tax for Individuals See chapter 5 for information about how to get this publication and form. 2011 1040x Worksheets. 2011 1040x   You may need to use several of the blank worksheets included in this chapter. 2011 1040x See Worksheets for Chapter 2, later, to locate what you need. 2011 1040x Who Does Not Have To Pay Estimated Tax If you receive salaries and wages, you may be able to avoid paying estimated tax by asking your employer to take more tax out of your earnings. 2011 1040x To do this, file a new Form W-4 with your employer. 2011 1040x See chapter 1. 2011 1040x Estimated tax not required. 2011 1040x   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. 2011 1040x You had no tax liability for 2013. 2011 1040x You were a U. 2011 1040x S. 2011 1040x citizen or resident alien for the whole year. 2011 1040x Your 2013 tax year covered a 12-month period. 2011 1040x   You had no tax liability for 2013 if your total tax (defined later under Total tax for 2013—line 14b ) was zero or you did not have to file an income tax return. 2011 1040x Please click here for the text description of the image. 2011 1040x Figure 2-A: Do You Have To Pay Estimated Tax? Who Must Pay Estimated Tax If you owed additional tax for 2013, you may have to pay estimated tax for 2014. 2011 1040x You can use the following general rule as a guide during the year to see if you will have enough withholding, or should increase your withholding or make estimated tax payments. 2011 1040x General Rule In most cases, you must pay estimated tax for 2014 if both of the following apply. 2011 1040x You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. 2011 1040x You expect your withholding and refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. 2011 1040x Your 2013 tax return must cover all 12 months. 2011 1040x Note. 2011 1040x The percentages in (2a) or (2b) above may be different if you are a farmer, fisherman, or higher income taxpayer. 2011 1040x See Special Rules , later. 2011 1040x If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet for a more accurate calculation. 2011 1040x Figure 2-A takes you through the general rule. 2011 1040x You may find this helpful in determining if you must pay estimated tax. 2011 1040x If all your income will be subject to income tax withholding, you probably do not need to pay estimated tax. 2011 1040x Example 1. 2011 1040x Jane Smart uses Figure 2-A and the following information to figure whether she should pay estimated tax for 2014. 2011 1040x She files as head of household claiming her dependent son, takes the standard deduction, and expects no refundable credits for 2014. 2011 1040x Expected adjusted gross income (AGI) for 2014 $82,800 AGI for 2013 $73,700 Total tax on 2013 return (Form 1040,  line 61) $  8,746 Total 2014 estimated tax (line 13c of the 2014 Estimated Tax Worksheet) $11,015 Tax expected to be withheld in 2014 $10,000 Jane's answer to Figure 2-A, box 1, is YES; she expects to owe at least $1,000 for 2014 after subtracting her withholding from her expected total tax ($11,015 − $10,000 = $1,015). 2011 1040x Her answer to box 2a is YES; she expects her income tax withholding ($10,000) to be at least 90% of the tax to be shown on her 2014 return ($11,015 × 90% = $9,913. 2011 1040x 50). 2011 1040x Jane does not need to pay estimated tax. 2011 1040x Example 2. 2011 1040x The facts are the same as in Example 1, except that Jane expects only $8,700 tax to be withheld in 2014. 2011 1040x Because that is less than $9,913. 2011 1040x 50, her answer to box 2a is NO. 2011 1040x Jane's answer to box 2b is also NO; she does not expect her income tax withholding ($8,700) to be at least 100% of the total tax shown on her 2013 return ($8,746). 2011 1040x Jane must increase her withholding or pay estimated tax for 2014. 2011 1040x Example 3. 2011 1040x The facts are the same as in Example 2, except that the total tax shown on Jane's 2013 return was $8,600. 2011 1040x Because she expects to have more than $8,600 withheld in 2014 ($8,700), her answer to box 2b is YES. 2011 1040x Jane does not need to pay estimated tax for 2014. 2011 1040x Married Taxpayers If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. 2011 1040x You and your spouse can make joint estimated tax payments even if you are not living together. 2011 1040x However, you and your spouse cannot make joint estimated tax payments if: You are legally separated under a decree of divorce or separate maintenance, You and your spouse have different tax years, Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes). 2011 1040x See Choosing Resident Alien Status in Publication 519, or Individuals of the same sex and opposite sex who are in registered domestic partnerships, civil unions, or other similar formal relationships that are not marriages under state law cannot make joint estimated tax payments. 2011 1040x These individuals can take credit only for the estimated tax payments that he or she made. 2011 1040x If you and your spouse cannot make joint estimated tax payments, apply these rules to your separate estimated income. 2011 1040x Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. 2011 1040x 2013 separate returns and 2014 joint return. 2011 1040x   If you plan to file a joint return with your spouse for 2014, but you filed separate returns for 2013, your 2013 tax is the total of the tax shown on your separate returns. 2011 1040x You filed a separate return if you filed as single, head of household, or married filing separately. 2011 1040x 2013 joint return and 2014 separate returns. 2011 1040x   If you plan to file a separate return for 2014, but you filed a joint return for 2013, your 2013 tax is your share of the tax on the joint return. 2011 1040x You file a separate return if you file as single, head of household, or married filing separately. 2011 1040x   To figure your share of the tax on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2013 using the same filing status for 2014. 2011 1040x Then multiply the tax on the joint return by the following fraction. 2011 1040x      The tax you would have paid had you filed a separate return   The total tax you and your spouse would have paid had you filed separate returns Example. 2011 1040x Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. 2011 1040x Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. 2011 1040x For 2014, they plan to file married filing separately. 2011 1040x Joe figures his share of the tax on the 2013 joint return as follows: Tax on $40,100 based on separate return $5,960 Tax on $8,400 based on separate return 843 Total $6,803 Joe's percentage of total ($5,960 ÷ $6,803) 87. 2011 1040x 6% Joe's share of tax on joint return  ($6,386 × 87. 2011 1040x 6%) $5,594 Special Rules There are special rules for farmers, fishermen, and certain higher income taxpayers. 2011 1040x Farmers and Fishermen If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under General Rule , earlier. 2011 1040x Gross income. 2011 1040x   Your gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. 2011 1040x To determine whether two-thirds of your gross income for 2013 was from farming or fishing, use as your gross income the total of the income (not loss) amounts. 2011 1040x Joint returns. 2011 1040x   On a joint return, you must add your spouse's gross income to your gross income to determine if at least two-thirds of your total gross income is from farming or fishing. 2011 1040x Gross income from farming. 2011 1040x   This is income from cultivating the soil or raising agricultural commodities. 2011 1040x It includes the following amounts. 2011 1040x Income from operating a stock, dairy, poultry, bee, fruit, or truck farm. 2011 1040x Income from a plantation, ranch, nursery, range, orchard, or oyster bed. 2011 1040x Crop shares for the use of your land. 2011 1040x Gains from sales of draft, breeding, dairy, or sporting livestock. 2011 1040x   For 2013, gross income from farming is the total of the following amounts. 2011 1040x Schedule F (Form 1040), Profit or Loss From Farming, line 9. 2011 1040x Form 4835, Farm Rental Income and Expenses, line 7. 2011 1040x Your share of the gross farming income from a partnership, S corporation, estate or trust, from: Schedule K-1 (Form 1065), Schedule K-1 (Form 1120S), or Schedule K-1 (Form 1041). 2011 1040x Your gains from sales of draft, breeding, dairy, or sporting livestock shown on Form 4797, Sales of Business Property. 2011 1040x   Wages you receive as a farm employee and wages you receive from a farm corporation are not gross income from farming. 2011 1040x Gross income from fishing. 2011 1040x   This is income from catching, taking, harvesting, cultivating, or farming any kind of fish, shellfish (for example, clams and mussels), crustaceans (for example, lobsters, crabs, and shrimp), sponges, seaweeds, or other aquatic forms of animal and vegetable life. 2011 1040x   Gross income from fishing includes the following amounts. 2011 1040x Schedule C (Form 1040), Profit or Loss From Business. 2011 1040x Income for services as an officer or crew member of a vessel while the vessel is engaged in fishing. 2011 1040x Your share of the gross fishing income from a partnership, S corporation, estate or trust, from: Schedule K-1 (Form 1065), Schedule K-1 (Form 1120S), or Schedule K-1 (Form 1041). 2011 1040x Certain taxable interest and punitive damage awards received in connection with the Exxon Valdez litigation. 2011 1040x Income for services normally performed in connection with fishing. 2011 1040x Services normally performed in connection with fishing include: Shore service as an officer or crew member of a vessel engaged in fishing, and Services that are necessary for the immediate preservation of the catch, such as cleaning, icing, and packing the catch. 2011 1040x Higher Income Taxpayers If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing a separate return), substitute 110% for 100% in (2b) under General Rule , earlier. 2011 1040x For 2013, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. 2011 1040x Note. 2011 1040x This rule does not apply to farmers and fishermen. 2011 1040x Aliens Resident and nonresident aliens also may have to pay estimated tax. 2011 1040x Resident aliens should follow the rules in this publication, unless noted otherwise. 2011 1040x Nonresident aliens should get Form 1040-ES (NR), U. 2011 1040x S. 2011 1040x Estimated Tax for Nonresident Alien Individuals. 2011 1040x You are an alien if you are not a citizen or national of the United States. 2011 1040x You are a resident alien if you either have a green card or meet the substantial presence test. 2011 1040x For more information about withholding, the substantial presence test, and Form 1040-ES (NR), see Publication 519. 2011 1040x Estates and Trusts Estates and trusts also must pay estimated tax. 2011 1040x However, estates (and certain grantor trusts that receive the residue of the decedent's estate under the decedent's will) are exempt from paying estimated tax for the first 2 years after the decedent's death. 2011 1040x Estates and trusts must use Form 1041-ES, Estimated Income Tax for Estates and Trusts, to figure and pay estimated tax. 2011 1040x How To Figure Estimated Tax To figure your estimated tax, you must figure your expected AGI, taxable income, taxes, deductions, and credits for the year. 2011 1040x When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. 2011 1040x Use your 2013 federal tax return as a guide. 2011 1040x You can use Form 1040-ES to figure your estimated tax. 2011 1040x Nonresident aliens use Form 1040-ES (NR) to figure estimated tax. 2011 1040x You must make adjustments both for changes in your own situation and for recent changes in the tax law. 2011 1040x Some of these changes are discussed under What's New for 2014 , earlier. 2011 1040x For information about these and other changes in the law, visit the IRS website at IRS. 2011 1040x gov. 2011 1040x The instructions for Form 1040-ES include a worksheet to help you figure your estimated tax. 2011 1040x Keep the worksheet for your records. 2011 1040x 2014 Estimated Tax Worksheet Use Worksheet 2-1 to help guide you through the information about completing the 2014 Estimated Tax Worksheet. 2011 1040x You can also find a copy of the worksheet in the Instructions for Form 1040-ES. 2011 1040x Expected AGI—Line 1 Your expected AGI for 2014 (line 1) is your expected total income minus your expected adjustments to income. 2011 1040x Total income. 2011 1040x   Include in your total income all the income you expect to receive during the year, even income that is subject to withholding. 2011 1040x However, do not include income that is tax exempt. 2011 1040x   Total income includes all income and loss for 2014 that, if you had received it in 2013, would have been included on your 2013 tax return in the total on line 22 of Form 1040, line 15 of Form 1040A, or line 4 of Form 1040EZ. 2011 1040x Social security and railroad retirement benefits. 2011 1040x If you expect to receive social security or tier 1 railroad retirement benefits during 2014, use Worksheet 2-2 to figure the amount of expected taxable benefits you should include on line 1. 2011 1040x Adjustments to income. 2011 1040x   Be sure to subtract from your expected total income all of the adjustments you expect to take on your 2014 tax return. 2011 1040x Self-employed. 2011 1040x If you expect to have income from self-employment, use Worksheet 2-3 to figure your expected self-employment tax and your allowable deduction for self-employment tax. 2011 1040x Include the amount from Worksheet 2-3 in your expected adjustments to income. 2011 1040x If you file a joint return and both you and your spouse have net earnings from self-employment, each of you must complete a separate worksheet. 2011 1040x Expected Taxable Income— Lines 2–5 Reduce your expected AGI for 2014 (line 1) by either your expected itemized deductions or your standard deduction and by your exemptions (lines 2 through 5). 2011 1040x Itemized deductions—line 2. 2011 1040x   If you expect to claim itemized deductions on your 2014 tax return, enter the estimated amount on line 2. 2011 1040x   Itemized deductions are the deductions that can be claimed on Schedule A (Form 1040). 2011 1040x    For 2014, your total itemized deductions may be reduced if your AGI is more than the amount shown next for your filing status. 2011 1040x Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than this amount, use Worksheet 2-5 to figure the amount to enter on line 2. 2011 1040x Standard deduction—line 2. 2011 1040x   If you expect to claim the standard deduction on your 2014 tax return, enter the amount on line 2. 2011 1040x Use Worksheet 2-4 to figure your standard deduction. 2011 1040x No standard deduction. 2011 1040x   The standard deduction for some individuals is zero. 2011 1040x Your standard deduction will be zero if you: File a separate return and your spouse itemizes deductions, Are a dual-status alien, or File a return for a period of less than 12 months because you change your accounting period. 2011 1040x Exemptions—line 4. 2011 1040x   After you have subtracted either your expected itemized deductions or your standard deduction from your expected AGI, reduce the amount remaining by $3,950 for each exemption you expect to take on your 2014 tax return. 2011 1040x If another person (such as your parent) can claim an exemption for you on his or her tax return, you cannot claim your own personal exemption. 2011 1040x This is true even if the other person will not claim your exemption or the exemption will be reduced or eliminated under the phaseout rule. 2011 1040x    For 2014, your deduction for personal exemption is reduced if your AGI is more than the amount shown next for your filing status. 2011 1040x Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than this amount, use Worksheet 2-6 to figure the amount to enter on line 4. 2011 1040x Expected Taxes and Credits— Lines 6–13c After you have figured your expected taxable income (line 5), follow the steps next to figure your expected taxes, credits, and total tax for 2014. 2011 1040x Most people will have entries for only a few of these steps. 2011 1040x However, you should check every step to be sure you do not overlook anything. 2011 1040x Step 1. 2011 1040x   Figure your expected income tax (line 6). 2011 1040x Generally, you will use the 2014 Tax Rate Schedules, later, to figure your expected income tax. 2011 1040x   However, see below for situations where you must use a different method to compute your estimated tax. 2011 1040x Tax on child's investment income. 2011 1040x   You must use a special method to figure tax on the income of the following children who have more than $2,000 of investment income. 2011 1040x Children under age 18 at the end of 2014. 2011 1040x The following children if their earned income is not more than half their support. 2011 1040x Children age 18 at the end of 2014. 2011 1040x Children who are full-time students over age 18 and under age 24 at the end of 2014. 2011 1040x See Publication 929, Tax Rules for Children and Dependents. 2011 1040x Although the ages and dollar amounts in the publication may be different in the 2014 revision, this reference will give you basic information for figuring the tax. 2011 1040x Tax on net capital gain. 2011 1040x   The regular income tax rates for individuals do not apply to a net capital gain. 2011 1040x Instead, your net capital gain is taxed at a lower maximum rate. 2011 1040x   The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. 2011 1040x Tax on capital gain and qualified dividends. 2011 1040x If the amount on line 1 includes a net capital gain or qualified dividends, use Worksheet 2-7 to figure your tax. 2011 1040x Note. 2011 1040x For 2014, your capital gains and dividends rate will depend on your income. 2011 1040x Tax if excluding foreign earned income or excluding or deducting foreign housing. 2011 1040x If you expect to claim the foreign earned income exclusion or the housing exclusion or deduction on Form 2555 or Form 2555-EZ, use Worksheet 2-8 to figure your estimated tax. 2011 1040x Step 2. 2011 1040x   Total your expected taxes (line 8). 2011 1040x Include on line 8 the sum of the following. 2011 1040x Your tax on line 6. 2011 1040x Your expected alternative minimum tax (AMT) from Form 6251, or included on Form 1040A. 2011 1040x Your expected additional taxes from Form 8814, Parents' Election To Report Child's Interest and Dividends, and Form 4972, Tax on Lump-Sum Distributions. 2011 1040x Any recapture of education credits. 2011 1040x Step 3. 2011 1040x   Subtract your expected credits (line 9). 2011 1040x If you are using your 2013 return as a guide and filed Form 1040, your total credits for 2013 were shown on line 54. 2011 1040x If you filed Form 1040A, your total credits for 2013 were on line 34. 2011 1040x   If your credits on line 9 are more than your taxes on line 8, enter “-0-” on line 10 and go to Step 4. 2011 1040x Step 4. 2011 1040x   Add your expected self-employment tax (line 11). 2011 1040x You already should have figured your self-employment tax (see Self-employed under Expected AGI—Line 1, earlier). 2011 1040x Step 5. 2011 1040x   Add your expected other taxes (line 12). 2011 1040x   Other taxes include the following. 2011 1040x Additional tax on early distributions from: An IRA or other qualified retirement plan, A tax-sheltered annuity, or A modified endowment contract entered into after June 20, 1988. 2011 1040x Household employment taxes if: You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income, or You would be required to make estimated tax payments even if you did not include household employment taxes when figuring your estimated tax. 2011 1040x Amounts written on Form 1040 on the line for “other taxes” (line 60 on the 2013 Form 1040). 2011 1040x But, do not include recapture of a federal mortgage subsidy; tax on excess golden parachute payments; look-back interest due under section 167(g) or 460(b) of the Internal Revenue Code; excise tax on insider stock compensation from an expatriated corporation; uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance; or additional tax on advance payments of health coverage tax credit when not eligible. 2011 1040x Repayment of the first-time homebuyer credit. 2011 1040x See Form 5405. 2011 1040x Additional Medicare Tax. 2011 1040x A 0. 2011 1040x 9% Additional Medicare Tax applies to your combined Medicare wages and self-employment income and/or your RRTA compensation that exceeds the amount listed in the following chart, based on your filing status. 2011 1040x Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $200,000 Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. 2011 1040x A self-employment loss should not be considered for purposes of this tax. 2011 1040x RRTA compensation should be separately compared to the threshold. 2011 1040x Your employer is responsible for withholding the 0. 2011 1040x 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2014. 2011 1040x You should consider this withholding, if applicable, in determining whether you need to make an estimated payment. 2011 1040x For more information on Additional Medicare Tax, go to IRS. 2011 1040x gov and enter “Additional Medicare Tax” in the search box. 2011 1040x Net Investment Income Tax (NIIT). 2011 1040x The NIIT is 3. 2011 1040x 8% of the lesser of your net investment income or the excess of your modified adjusted gross income over the amount listed in the following chart, based on your filing status. 2011 1040x Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $250,000 For more information on Net Investment Income Tax, go to IRS. 2011 1040x gov and enter “Net Investment Income Tax” in the search box. 2011 1040x Step 6. 2011 1040x   Subtract your refundable credit (line 13b). 2011 1040x   To figure your expected fuel tax credit, do not include fuel tax for the first three quarters of the year that you expect to have refunded to you. 2011 1040x   The result of steps 1 through 6 is your total estimated tax for 2014 (line 13c). 2011 1040x Required Annual Payment— Line 14c On lines 14a through 14c, figure the total amount you must pay for 2014, through withholding and estimated tax payments, to avoid paying a penalty. 2011 1040x General rule. 2011 1040x   The total amount you must pay is the smaller of: 90% of your total expected tax for 2014, or 100% of the total tax shown on your 2013 return. 2011 1040x Your 2013 tax return must cover all 12 months. 2011 1040x Special rules. 2011 1040x   There are special rules for higher income taxpayers and for farmers and fishermen. 2011 1040x Higher income taxpayers. 2011 1040x   If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. 2011 1040x This rule does not apply to farmers and fishermen. 2011 1040x For 2013, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. 2011 1040x Example. 2011 1040x   Jeremy Martin's total tax on his 2013 return was $42,581, and his expected tax for 2014 is $71,253. 2011 1040x His 2013 AGI was $180,000. 2011 1040x Because Jeremy had more than $150,000 of AGI in 2013, he figures his required annual payment as follows. 2011 1040x He determines that 90% of his expected tax for 2014 is $64,128 (. 2011 1040x 90 × $71,253). 2011 1040x Next, he determines that 110% of the tax shown on his 2013 return is $46,839 (1. 2011 1040x 10 x $42,581). 2011 1040x Finally, he determines that his required annual payment is $46,839, the smaller of the two. 2011 1040x Farmers and fishermen. 2011 1040x   If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, your required annual payment is the smaller of: 662/3% (. 2011 1040x 6667) of your total tax for 2014, or 100% of the total tax shown on your 2013 return. 2011 1040x (Your 2013 tax return must cover all 12 months. 2011 1040x )   For definitions of “gross income from farming” and “gross income from fishing,” see Farmers and Fishermen , under Special Rules discussed earlier. 2011 1040x Total tax for 2013—line 14b. 2011 1040x   Your 2013 total tax, if you filed Form 1040, is the amount on line 61 reduced by the following. 2011 1040x Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). 2011 1040x The following amounts from Form 5329 included on line 58. 2011 1040x Any tax on excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts. 2011 1040x Any tax on excess accumulations in qualified retirement plans. 2011 1040x The following write-ins on line 60. 2011 1040x Excise tax on excess golden parachute payments (identified as “EPP”). 2011 1040x Excise tax on insider stock compensation from an expatriated corporation (identified as “ISC”). 2011 1040x Look-back interest due under section 167(g) (identified as “From Form 8866”). 2011 1040x Look-back interest due under section 460(b) (identified as “From Form 8697”). 2011 1040x Recapture of federal mortgage subsidy (identified as “FMSR”). 2011 1040x Additional tax on advance payments of health coverage tax credit when not eligible (identified as “HCTC”). 2011 1040x Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance (identified as “UT”). 2011 1040x Any refundable credit amounts. 2011 1040x   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits. 2011 1040x   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. 2011 1040x Total Estimated Tax Payments Needed—Line 16a Use lines 15 and 16a to figure the total estimated tax you may be required to pay for 2014. 2011 1040x Subtract your expected withholding from your required annual payment (line 14c). 2011 1040x You usually must pay this difference in four equal installments. 2011 1040x See When To Pay Estimated Tax and How To Figure Each Payment . 2011 1040x You do not have to pay estimated tax if: Line 14c minus line 15 is zero or less, or Line 13c minus line 15 is less than $1,000. 2011 1040x Withholding—line 15. 2011 1040x   Your expected withholding for 2014 (line 15) includes the income tax you expect to be withheld from all sources (wages, pensions and annuities, etc. 2011 1040x ). 2011 1040x It includes excess social security, and tier 1 railroad retirement tax you expect to be withheld from your wages and compensation. 2011 1040x For this purpose, you will have excess social security or tier 1 railroad retirement tax withholding for 2014 only if your wages and compensation from two or more employers are more than $117,000. 2011 1040x See Excess Social Security or Railroad Retirement Tax Withholding in chapter 3. 2011 1040x   It also includes Additional Medicare Tax you expect to be withheld from your wages or compensation. 2011 1040x Your employer is responsible for withholding the 0. 2011 1040x 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. 2011 1040x When To Pay Estimated Tax For estimated tax purposes, the year is divided into four payment periods. 2011 1040x Each period has a specific payment due date. 2011 1040x If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return. 2011 1040x If a payment is mailed, the date of the U. 2011 1040x S. 2011 1040x postmark is considered the date of payment. 2011 1040x The payment periods and due dates for estimated tax payments are shown next. 2011 1040x For exceptions to the dates listed, see Saturday, Sunday, holiday rule below. 2011 1040x For the period: Due date: Jan. 2011 1040x 11 – March 31 April 15 April 1 – May 31 June 16 June 1 – August 31 September 15 Sept. 2011 1040x 1 – Dec. 2011 1040x 31 January 15  next year2 1If your tax year does not begin on January 1,  see Fiscal year taxpayers . 2011 1040x 2See January payment . 2011 1040x Saturday, Sunday, holiday rule. 2011 1040x   If the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or a holiday. 2011 1040x January payment. 2011 1040x   If you file your 2014 Form 1040 or Form 1040A by February 2, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015. 2011 1040x Example. 2011 1040x Janet Adams does not pay any estimated tax for 2014. 2011 1040x She files her 2014 income tax return and pays the balance due shown on her return on January 26, 2015. 2011 1040x Janet's estimated tax for the fourth payment period is considered to have been paid on time. 2011 1040x However, she may owe a penalty for not making the first three estimated tax payments, if required. 2011 1040x Any penalty for not making those payments will be figured up to January 26, 2015. 2011 1040x Fiscal year taxpayers. 2011 1040x   If your tax year does not start on January 1, your payment due dates are: The 15th day of the 4th month of your fiscal year, The 15th day of the 6th month of your fiscal year, The 15th day of the 9th month of your fiscal year, and The 15th day of the 1st month after the end of your fiscal year. 2011 1040x   You do not have to make the last payment listed above if you file your income tax return by the last day of the first month after the end of your fiscal year and pay all the tax you owe with your return. 2011 1040x When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. 2011 1040x If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. 2011 1040x You have several options when paying estimated taxes. 2011 1040x You can: apply an overpayment from the previous tax year, pay all your estimated tax by the due date of your first payment, or pay it in installments. 2011 1040x If you choose to pay in installments, make your first payment by the due date for the first payment period. 2011 1040x Make your remaining installment payments by the due dates for the later periods. 2011 1040x To avoid any estimated tax penalties, all installments must be paid by their due date and for the required amount. 2011 1040x No income subject to estimated tax during first period. 2011 1040x   If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. 2011 1040x You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. 2011 1040x Table 2-1 shows the dates for making installment payments. 2011 1040x    Table 2-1. 2011 1040x Due Dates for Estimated Tax Installment Payments If you first have income on which you must pay estimated tax: Make a payment  by:* Make later  installments  by:* Before April 1 April 15 June 16     Sept. 2011 1040x 15     Jan. 2011 1040x 15 next year April 1–May 31 June 16 Sept. 2011 1040x 15     Jan. 2011 1040x 15 next year June 1–Aug. 2011 1040x 31 Sept. 2011 1040x 15 Jan. 2011 1040x 15 next year After Aug. 2011 1040x 31 Jan. 2011 1040x 15 next year (None) *See January payment and Saturday, Sunday, holiday rule . 2011 1040x How much to pay to avoid penalty. 2011 1040x   To determine how much you should pay by each payment due date, see How To Figure Each Payment , later. 2011 1040x Farmers and Fishermen If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, you have only one payment due date for your 2014 estimated tax, January 15, 2015. 2011 1040x The due dates for the first three payment periods, discussed under When To Pay Estimated Tax , earlier, do not apply to you. 2011 1040x If you file your 2014 Form 1040 by March 2, 2015, and pay all the tax you owe at that time, you do not need to make an estimated tax payment. 2011 1040x Fiscal year farmers and fishermen. 2011 1040x   If you are a farmer or fisherman, but your tax year does not start on January 1, you can either: Pay all your estimated tax by the 15th day after the end of your tax year, or File your return and pay all the tax you owe by the 1st day of the 3rd month after the end of your tax year. 2011 1040x How To Figure Each Payment After you have figured your total estimated tax, figure how much you must pay by the due date of each payment period. 2011 1040x You should pay enough by each due date to avoid a penalty for that period. 2011 1040x If you do not pay enough during any payment period, you may be charged a penalty even if you are due a refund when you file your tax return. 2011 1040x The penalty is discussed in chapter 4. 2011 1040x Regular Installment Method If your first estimated tax payment is due April 15, 2014, you can figure your required payment for each period by dividing your annual estimated tax due (line 16a of the 2014 Estimated Tax Worksheet (Worksheet 2-1)) by 4. 2011 1040x Enter this amount on line 17. 2011 1040x However, use this method only if your income is basically the same throughout the year. 2011 1040x Change in estimated tax. 2011 1040x   After you make an estimated tax payment, changes in your income, adjustments, deductions, credits, or exemptions may make it necessary for you to refigure your estimated tax. 2011 1040x Pay the unpaid balance of your amended estimated tax by the next payment due date after the change or in installments by that date and the due dates for the remaining payment periods. 2011 1040x If you do not receive your income evenly throughout the year, your required estimated tax payments may not be the same for each period. 2011 1040x See Annualized Income Installment Method . 2011 1040x Amended estimated tax. 2011 1040x If you refigure your estimated tax during the year, or if your first estimated tax payment is due after April 15, 2014, figure your required payment for each remaining payment period using Worksheet 2-14. 2011 1040x Example. 2011 1040x Early in 2014, Mira Roberts figures that her estimated tax due is $1,800. 2011 1040x She makes estimated tax payments on April 15 and June 16 of $450 each ($1,800 ÷ 4). 2011 1040x On July 10, she sells investment property at a gain. 2011 1040x Her refigured estimated tax is $4,100. 2011 1040x Her required estimated tax payment for the third payment period is $2,175, as shown in her filled-in Worksheet 2-14. 2011 1040x If Mira's estimated tax does not change again, her required estimated tax payment for the fourth payment period will be $1,025. 2011 1040x Worksheet 2-14. 2011 1040x Amended Estimated Tax Worksheet—Illustrated               1. 2011 1040x Amended total estimated tax due 1. 2011 1040x $4,100 2. 2011 1040x Multiply line 1 by:           50% (. 2011 1040x 50) if next payment is due June 16, 2014           75% (. 2011 1040x 75) if next payment is due September 15,  2014           100% (1. 2011 1040x 00) if next payment is due January 15,  2015 2. 2011 1040x 3,075     3. 2011 1040x Estimated tax payments for all previous periods 3. 2011 1040x 900     4. 2011 1040x Next required payment: Subtract line 3 from line 2 and enter the result (but not less than zero) here and on your payment voucher for your next required payment 4. 2011 1040x $2,175       Note. 2011 1040x If the payment on line 4 is due January 15, 2015, stop here. 2011 1040x Otherwise, go to line 5. 2011 1040x         5. 2011 1040x Add lines 3 and 4 5. 2011 1040x 3,075 6. 2011 1040x Subtract line 5 from line 1 and enter the result (but not less than zero) 6. 2011 1040x 1,025 7. 2011 1040x Each following required payment: If the payment on line 4 is due June 16, 2014, enter one-half of the amount on line 6 here and on the payment vouchers for your payments due September 15, 2014, and January 15, 2015. 2011 1040x If the amount on line 4 is due September 15, 2014, enter the amount from line 6 here and on the payment voucher for your payment due January 15, 2015 7. 2011 1040x $1,025 Worksheet 2-14. 2011 1040x Amended Estimated Tax Worksheet—Blank               1. 2011 1040x Amended total estimated tax due 1. 2011 1040x   2. 2011 1040x Multiply line 1 by:           50% (. 2011 1040x 50) if next payment is due June 16, 2014           75% (. 2011 1040x 75) if next payment is due September 15,  2014           100% (1. 2011 1040x 00) if next payment is due January 15,  2015 2. 2011 1040x       3. 2011 1040x Estimated tax payments for all previous periods 3. 2011 1040x       4. 2011 1040x Next required payment: Subtract line 3 from line 2 and enter the result (but not less than zero) here and on your payment voucher for your next required payment 4. 2011 1040x         Note. 2011 1040x If the payment on line 4 is due January 15, 2015, stop here. 2011 1040x Otherwise, go to line 5. 2011 1040x         5. 2011 1040x Add lines 3 and 4 5. 2011 1040x   6. 2011 1040x Subtract line 5 from line 1 and enter the result (but not less than zero) 6. 2011 1040x   7. 2011 1040x Each following required payment: If the payment on line 4 is due June 16, 2014, enter one-half of the amount on line 6 here and on the payment vouchers for your payments due September 15, 2014, and January 15, 2015. 2011 1040x If the amount on line 4 is due September 15, 2014, enter the amount from line 6 here and on the payment voucher for your payment due January 15, 2015 7. 2011 1040x   Underpayment penalty. 2011 1040x   The penalty is figured separately for each payment period. 2011 1040x If you figure your payments using the regular installment method and later refigure your payments because of an increase in income, you may be charged a penalty for underpayment of estimated tax for the period(s) before you changed your payments. 2011 1040x To see how you may be able to avoid or reduce this penalty, see Annualized Income Installment Method (Schedule AI) in chapter 4. 2011 1040x Annualized Income Installment Method If you do not receive your income evenly throughout the year (for example, your income from a repair shop you operate is much larger in the summer than it is during the rest of the year), your required estimated tax payment for one or more periods may be less than the amount figured using the regular installment method. 2011 1040x The annualized income installment method annualizes your tax at the end of each period based on a reasonable estimate of your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. 2011 1040x To see whether you can pay less for any period, complete the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9). 2011 1040x You first must complete the 2014 Estimated Tax Worksheet (Worksheet 2-1) through line 16b. 2011 1040x Use the result you figure on line 32 of Worksheet 2-9 to make your estimated tax payments and complete your payment vouchers. 2011 1040x Note. 2011 1040x If you use the annualized income installment method to figure your estimated tax payments, you must file Form 2210 with your 2014 tax return. 2011 1040x See Annualized Income Installment Method (Schedule AI) in chapter 4 for more information. 2011 1040x Instructions for the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9) Use Worksheet 2-9 to help you follow these instructions. 2011 1040x The purpose of this worksheet is to determine your estimated tax liability as your income accumulates throughout the year, rather than dividing your entire year's estimated tax liability by four as if your income was earned equally throughout the year. 2011 1040x The top of the worksheet shows the dates for each payment period. 2011 1040x The periods build; that is, each period includes all previous periods. 2011 1040x After the end of each payment period, complete the corresponding worksheet column to figure the payment due for that period. 2011 1040x Line 1. 2011 1040x   Enter your AGI for the period. 2011 1040x This is your gross income for the period, including your share of partnership or S corporation income or loss, minus your adjustments to income for that period. 2011 1040x See Expected AGI—Line 1 , earlier. 2011 1040x Self-employment income. 2011 1040x   If you had self-employment income, first complete Section B of this worksheet. 2011 1040x Use the amounts on line 43 when figuring your expected AGI to enter in each column of Section A, line 1. 2011 1040x Line 4. 2011 1040x   Be sure to consider all deduction limits figured on Schedule A (Form 1040), such as reducing your medical expenses by 10% (7. 2011 1040x 5% if either you or your spouse was born before January 2, 1950) or reducing certain miscellaneous deductions by 2% of your AGI. 2011 1040x Figure your deduction limits using your expected AGI in the corresponding column of line 1 (2014 Annualized Estimated Tax Worksheet (Worksheet 2-9)). 2011 1040x Line 6. 2011 1040x   Multiply line 4 by line 5 and enter the result on line 6 unless line 3 is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately. 2011 1040x In that case, use Worksheet 2-10 to figure the amount to enter on line 6. 2011 1040x Complete Worksheet 2–10 for each period, as necessary. 2011 1040x Line 7. 2011 1040x   If you will not itemize your deductions, use Worksheet 2-4 to figure your standard deduction. 2011 1040x Line 10. 2011 1040x   Multiply $3,950 by your total expected exemptions and enter the result on line 10 unless line 3 is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately. 2011 1040x   In that case, use Worksheet 2-11 to figure the amount to enter on line 10. 2011 1040x Line 12. 2011 1040x   Generally, you will use the Tax Rate Schedules to figure the tax on your annualized income. 2011 1040x However, see below for situations where you must use a different method to compute your estimated tax. 2011 1040x Tax on child's investment income. 2011 1040x   You must use a special method to figure tax on the income of the following children who have more than $2,000 of investment income. 2011 1040x Children under age 18 at the end of 2014. 2011 1040x The following children if their earned income is not more than half their support. 2011 1040x Children age 18 at the end of 2014. 2011 1040x Children who are full-time students over age 18 and under age 24 at the end of 2014. 2011 1040x See Publication 929. 2011 1040x Tax on net capital gain. 2011 1040x   The regular income tax rates for individuals do not apply to a net capital gain. 2011 1040x Instead, your net capital gain is taxed at a lower maximum rate. 2011 1040x   The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. 2011 1040x Tax on qualified dividends and capital gains. 2011 1040x   For 2014, your capital gain and dividends rate will depend on your income. 2011 1040x Tax on capital gain or qualified dividends. 2011 1040x If the amount on line 1 includes a net capital gain or qualified dividends, use Worksheet 2-12 to figure the amount to enter on line 12. 2011 1040x Tax if excluding foreign earned income or excluding or deducting foreign housing. 2011 1040x If you expect to claim the foreign earned income exclusion or the housing exclusion or deduction on Form 2555 or Form 2555-EZ, use Worksheet 2-13 to figure the amount to enter on line 12. 2011 1040x Line 13. 2011 1040x   If you file Form 1040, add the tax from Forms 8814, 4972, and 6251 for the period. 2011 1040x If you file Form 1040A, add the amount from the Alternative Minimum Tax Worksheet found in the instructions. 2011 1040x Also include any recapture of an education credit for each period. 2011 1040x You may owe this tax if you claimed an education credit in an earlier year and you received either tax-free educational assistance or a refund of qualifying expenses for the same student after filing your 2013 return. 2011 1040x   Use the 2013 forms or worksheets to see if you will owe any of the taxes discussed above. 2011 1040x Figure the tax based on your income and deductions during the period shown in the column headings. 2011 1040x Multiply this amount by the annualization amounts shown for each column on line 2 of the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9). 2011 1040x Enter the result on line 13 of this worksheet. 2011 1040x Line 15. 2011 1040x   Include all the nonrefundable credits you expect to claim because of events that will occur during the period. 2011 1040x Note. 2011 1040x When figuring your credits for each period, annualize any item of income or deduction to figure each credit. 2011 1040x For example, if you need to use your AGI to figure a credit, use line 3 of Worksheet 2-9 to figure the credit for each column. 2011 1040x Line 18. 2011 1040x   Add your expected other taxes. 2011 1040x   Other taxes include the following. 2011 1040x Additional tax on early distributions from: An IRA or other qualified retirement plan, A tax-sheltered annuity, or A modified endowment contract entered into after June 20, 1988. 2011 1040x Household employment taxes if: You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income, or You would be required to make estimated tax payments even if you did not include household employment taxes when figuring your estimated tax. 2011 1040x Amounts on Form 1040 written on the line for “other taxes” (line 60 on the 2013 Form 1040). 2011 1040x But do not include recapture of a federal mortgage subsidy; tax on excess golden parachute payments; look-back interest due under section 167(g) or 460(b) of the Internal Revenue Code; excise tax on insider stock compensation from an expatriated corporation; uncollected social security, Medicare, or RRTA tax on tips or group-term life insurance; or additional tax on advance payments of health coverage tax credit when not eligible. 2011 1040x Repayment of the first-time homebuyer credit if the home will cease to be your main home in 2014. 2011 1040x See Form 5405 for exceptions. 2011 1040x Additional Medicare Tax. 2011 1040x A 0. 2011 1040x 9% Additional Medicare Tax applies to your combined Medicare wages and self-employment income and/or your RRTA compensation that exceeds the amount listed in the following chart, based on your filing status. 2011 1040x Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $200,000 Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. 2011 1040x A self-employment loss should not be considered for purposes of this tax. 2011 1040x RRTA compensation should be separately compared to the threshold. 2011 1040x Your employer is responsible for withholding the 0. 2011 1040x 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays you in excess of $200,000 in 2014. 2011 1040x You should consider this withholding, if applicable, in determining whether you need to make an estimated payment. 2011 1040x For more information on Additional Medicare Tax, go to IRS. 2011 1040x gov and enter “Additional Medicare Tax” in the search box. 2011 1040x Net Investment Income Tax (NIIT). 2011 1040x The NIIT is 3. 2011 1040x 8% of the lesser of your net investment income or the excess of your modified adjusted gross income over a specified threshold amount. 2011 1040x Threshold amounts: Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $250,000 For more information on Net Investment Income Tax, go to IRS. 2011 1040x gov and enter “Net Investment Income Tax” in the search box. 2011 1040x Line 20. 2011 1040x   Include all the refundable credits (other than withholding credits) you can claim because of events that occurred during the period. 2011 1040x Note. 2011 1040x When figuring your refundable credits for each period, annualize any item of income or deduction used to figure each credit. 2011 1040x Line 29. 2011 1040x   If line 28 is smaller than line 25 and you are not certain of the estimate of your 2014 tax, you can avoid a penalty by entering the amount from line 25 on line 29. 2011 1040x Line 31. 2011 1040x   For each period, include estimated tax payments made and any excess social security and railroad retirement tax. 2011 1040x   Also include estimated federal income tax withholding. 2011 1040x One-fourth of your estimated withholding is considered withheld on the due date of each payment period. 2011 1040x To figure the amount to include on line 31 for each period, multiply your total expected withholding for 2014 by: 25% (. 2011 1040x 25) for the first period, 50% (. 2011 1040x 50) for the second period, 75% (. 2011 1040x 75) for the third period, and 100% (1. 2011 1040x 00) for the fourth period. 2011 1040x   However, you may choose to include your withholding according to the actual dates on which the amounts will be withheld. 2011 1040x For each period, include withholding made from the beginning of the period up to and including the payment due date. 2011 1040x You can make this choice separately for the taxes withheld from your wages and all other withholding. 2011 1040x For an explanation of what to include in withholding, see Total Estimated Tax Payments Needed—Line 16a , earlier. 2011 1040x Nonresident aliens. 2011 1040x   If you will file Form 1040NR and you do not receive wages as an employee subject to U. 2011 1040x S. 2011 1040x income tax withholding, the instructions for the worksheet are modified as follows. 2011 1040x Skip column (a). 2011 1040x On line 1, enter your income for the period that is effectively connected with a U. 2011 1040x S. 2011 1040x trade or business. 2011 1040x On line 21, increase your entry by the amount determined by multiplying your income for the period that is not effectively connected with a U. 2011 1040x S. 2011 1040x trade or business by the following. 2011 1040x 72% for column (b). 2011 1040x 45% for column (c). 2011 1040x 30% for column (d). 2011 1040x However, if you can use a treaty rate lower than 30%, use the percentages determined by multiplying your treaty rate by 2. 2011 1040x 4, 1. 2011 1040x 5, and 1, respectively. 2011 1040x On line 26, enter one-half of the amount from line 16c of the Form 1040-ES (NR) 2014 Estimated Tax Worksheet in column (b), and one-fourth in columns (c) and (d) of Worksheet 2-9. 2011 1040x On lines 24 and 27, skip column (b). 2011 1040x On line 31, if you do not use the actual withholding method, include one-half of your total expected withholding in column (b) and one-fourth in columns (c) and (d). 2011 1040x See Publication 519 for more information. 2011 1040x Estimated Tax Payments Not Required You do not have to pay estimated tax if your withholding in each payment period is at least as much as: One-fourth of your required annual payment, or Your required annualized income installment for that period. 2011 1040x You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you will owe with your return under $1,000. 2011 1040x How To Pay Estimated Tax There are several ways to pay estimated tax. 2011 1040x Credit an overpayment on your 2013 return to your 2014 estimated tax. 2011 1040x Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. 2011 1040x Send in your payment (check or money order) with a payment voucher from Form 1040-ES. 2011 1040x Credit an Overpayment If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2013, you can apply part or all of it to your estimated tax for 2014. 2011 1040x On Form 1040, or Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. 2011 1040x Take the amount you have credited into account when figuring your estimated tax payments. 2011 1040x If you timely file your 2013 return, treat the credit as a payment made on April 15, 2014. 2011 1040x If you are a beneficiary of an estate or trust, and the trustee elects to credit 2014 trust payments of estimated tax to you, you can treat the amount credited as paid by you on January 15, 2015. 2011 1040x If you choose to have an overpayment of tax credited to your estimated tax, you cannot have any of that amount refunded to you until you file your tax return for the following year. 2011 1040x You also cannot use that overpayment in any other way. 2011 1040x Example. 2011 1040x When Kathleen finished filling out her 2013 tax return, she saw that she had overpaid her taxes by $750. 2011 1040x Kathleen knew she would owe additional tax in 2014. 2011 1040x She credited $600 of the overpayment to her 2014 estimated tax and had the remaining $150 refunded to her. 2011 1040x In September, she amended her 2013 return by filing Form 1040X, Amended U. 2011 1040x S. 2011 1040x Individual Income Tax Return. 2011 1040x It turned out that she owed $250 more in tax than she had thought. 2011 1040x This reduced her 2013 overpayment from $750 to $500. 2011 1040x Because the $750 had already been applied to her 2014 estimated tax or refunded to her, the IRS billed her for the additional $250 she owed, plus penalties and interest. 2011 1040x Kathleen could not use any of the $600 she had credited to her 2014 estimated tax to pay this bill. 2011 1040x Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. 2011 1040x You can make your estimated tax payments online when you e-file or at any time during the year. 2011 1040x You can pay using either of the following electronic payment methods. 2011 1040x Direct transfer from your bank account. 2011 1040x Credit or debit card. 2011 1040x To pay your taxes online or for more information, go to www. 2011 1040x irs. 2011 1040x gov/e-pay. 2011 1040x Pay by Phone Paying by phone is another safe and secure method of paying electronically. 2011 1040x Use one of the following methods. 2011 1040x Direct transfer from your bank account. 2011 1040x Credit or debit card. 2011 1040x To pay by direct transfer from your bank account, call EFTPS Customer Service at 1-800-555-4477 (English), 1-800-244-4829 (Espanol), or TTY/TDD 1-800-733-4829. 2011 1040x To pay using a credit or debit card, you can call one of the following service providers. 2011 1040x There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. 2011 1040x WorldPay 1-888-9-PAY-TAXTM (1-888-972-9829) www. 2011 1040x payUSAtax. 2011 1040x com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. 2011 1040x officialpayments. 2011 1040x com Link2GOV Corporation 1-888-PAY-1040TM (1-888-729-1040) www. 2011 1040x PAY1040. 2011 1040x com For the latest details on how to pay by phone, go to www. 2011 1040x irs. 2011 1040x gov/e-pay. 2011 1040x Pay by Check or Money Order Using the Estimated Tax Payment Voucher Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. 2011 1040x If you use your own envelopes (and not the window envelope that comes with the 1040-ES package), make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live. 2011 1040x Do not use the address shown in the Form 1040 or Form 1040A instructions. 2011 1040x If you did not pay estimated tax last year, get a copy of Form 1040-ES from the IRS (see chapter 5). 2011 1040x Follow the instructions to make sure you use the vouchers correctly. 2011 1040x Joint estimated tax payments. 2011 1040x    If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return. 2011 1040x Change of address. 2011 1040x    You must notify the IRS if you are making estimated tax payments and you changed your address during the year. 2011 1040x Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. 2011 1040x Worksheets for Chapter 2 Use the following worksheets and tables to figure your correct estimated tax. 2011 1040x IF you need. 2011 1040x . 2011 1040x . 2011 1040x THEN use. 2011 1040x . 2011 1040x . 2011 1040x 2014 Tax Rate Schedules   the 2014 Estimated Tax Worksheet Worksheet 2-1 to estimate your taxable social security and railroad retirement benefits—line 1 of ES Worksheet (or Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-2 to estimate your self-employment (SE) tax and your deduction for SE tax—lines 1 and 11 of ES Worksheet (lines 1 and 17 of Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-3 to estimate your standard deduction—line 2 of ES Worksheet (line 7 of Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-4 to reduce your itemized deductions because your estimated AGI is more than $152,525—line 2 of ES Worksheet Worksheet 2-5 to reduce your exemption amount because your estimated AGI is more than $152,525—line 4 of ES Worksheet Worksheet 2-6 to estimate your income tax if line 1 of your ES Worksheet includes a net capital gain or qualified dividends—line 6 of ES Worksheet Worksheet 2-7 to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing exclusion or deduction on Form 2555 or Form 2555-EZ—line 6 of ES Worksheet Worksheet 2-8 the 2014 Annualized Estimated Tax Worksheet (Annualized ES Worksheet) Worksheet 2-9 to reduce your itemized deductions because your estimated annualized AGI is more than $152,525—line 6 of Annualized ES Worksheet Worksheet 2-10 to reduce your exemption amount because your estimated annualized AGI is more than $152,525—line 10 of Annualized ES Worksheet Worksheet 2-11 to estimate your income tax if line 1 of your Annualized ES Worksheet includes a net capital gain or qualified dividends—line 12 of Annualized ES Worksheet Worksheet 2-12 to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing exclusion or deduction on Form 2555 or Form 2555-EZ—line 12 of Annualized ES Worksheet Worksheet 2-13 to refigure (amend) your estimated tax during the year Worksheet 2-14 2014 Tax Rate Schedules Do not use these Tax Rate Schedules to figure your 2013 taxes. 2011 1040x Use them only to figure your 2014 estimated taxes. 2011 1040x Schedule X—Use if your 2014 filing status is  Single Schedule Z—Use if your 2014 filing status is Head of household If line 5 is: The tax is:     If line 5 is: The tax is:     Over— But not  over—         of the  amount  over— Over— But not  over—         of the  amount  over— $0 $9,075     10. 2011 1040x 0%   $0 $0 $12,950     10. 2011 1040x 0%   $0 9,075 36,900 $907. 2011 1040x 50 + 15. 2011 1040x 0%   9,075 12,950 49,400 $1,295. 2011 1040x 00 + 15. 2011 1040x 0%   12,950 36,900 89,350 5,081. 2011 1040x 25 + 25. 2011 1040x 0%   36,900 49,400 127,550 6,762. 2011 1040x 50 + 25. 2011 1040x 0%   49,400 89,350 186,350 18,193. 2011 1040x 75 + 28. 2011 1040x 0%   89,350 127,550 206,600 26,300. 2011 1040x 00 + 28. 2011 1040x 0%   127,550 186,350 405,100 45,353. 2011 1040x 75 + 33. 2011 1040x 0%   186,350 206,600 405,100 48,434. 2011 1040x 00 + 33. 2011 1040x 0%   206,600 405,100 406,750 117,541. 2011 1040x 25 + 35. 2011 1040x 0%   405,100 405,100 432,200 113,939. 2011 1040x 00 + 35. 2011 1040x 0%   405,100 406,750 - - - - - - 118,118. 2011 1040x 75 + 39. 2011 1040x 6%   406,750 432,200 - - - - - - 123,424. 2011 1040x 00 + 39. 2011 1040x 6%   432,200 Schedule Y-1—Use if your 2014 filing status is Married filing jointly or Qualifying widow(er) Schedule Y-2—Use if your 2014 filing status is  Married filing separately If line 5 is: The tax is:     If line 5 is: The tax is:     Over— But not  over—         of the  amount  over— Over— But not  over—         of the  amount  over— $0 $18,150     10. 2011 1040x 0%   $0 $0 $9,075     10. 2011 1040x 0%   $0 18,150 73,800 $1,815. 2011 1040x 00 + 15. 2011 1040x 0%   18,150 9,075 36,900 $907. 2011 1040x 50 + 15. 2011 1040x 0%   9,075 73,800 148,850 10,162. 2011 1040x 50 + 25. 2011 1040x 0%   73,800 36,900 74,425 5,081. 2011 1040x 25 + 25. 2011 1040x 0%   36,900 148,850 226,850 28,925. 2011 1040x 00 + 28. 2011 1040x 0%   148,850 74,425 113,425 14,462. 2011 1040x 50 + 28. 2011 1040x 0%   74,425 226,850 405,100 50,765. 2011 1040x 00 + 33. 2011 1040x 0%   226,850 113,425 202,550 25,382. 2011 1040x 50 + 33. 2011 1040x 0%   113,425 405,100 457,600 109,587. 2011 1040x 50 + 35. 2011 1040x 0%   405,100 202,550 228,800 54,793. 2011 1040x 75 + 35. 2011 1040x 0%   202,550 457,600 - - - - - - 127,962. 2011 1040x 50 + 39. 2011 1040x 6%   457,600 228,800 - - - - - - 63,981. 2011 1040x 25 + 39. 2011 1040x 6%   228,800                             Worksheet 2-1. 2011 1040x 2014 Estimated Tax Worksheet When this worksheet refers you to instructions, you can find those instructions in the Instructions for 2014 Form 1040-ES. 2011 1040x 1 Adjusted gross income you expect in 2014 (see instructions) 1     2 If you plan to itemize deductions, enter the estimated total of your itemized deductions. 2011 1040x  Caution: If line 1 is over $152,525, your deduction may be reduced. 2011 1040x See Worksheet 2-5. 2011 1040x If you do not plan to itemize deductions, enter your standard deduction. 2011 1040x 2     3 Subtract line 2 from line 1 3     4 Exemptions. 2011 1040x Multiply $3,950 by the number of personal exemptions. 2011 1040x  Caution: If line 1 is over $152,525, the amount of your personal exemptions may be limited. 2011 1040x See Worksheet 2-6. 2011 1040x 4     5 Subtract line 4 from line 3 5     6 Tax. 2011 1040x Figure your tax on the amount on line 5 by using the 2014 Tax Rate Schedules Caution: If you will have qualified dividends or a net capital gain, or expect to exclude or deduct foreign earned income or housing, see Worksheets 2-7 and 2-8 to figure the tax 6     7 Alternative minimum tax from Form 6251 or included on Form 1040A, line 28 7     8 Add lines 6 and 7. 2011 1040x Add to this amount any other taxes you expect to include in the total on Form 1040, line 44 8     9 Credits (see instructions). 2011 1040x Do not include any income tax withholding on this line 9     10 Subtract line 9 from line 8. 2011 1040x If zero or less, enter -0- 10     11 Self-employment tax (see instructions) 11     12 Other taxes including, if applicable, Additional Medicare Tax and/or NIIT (see instructions) 12     13a Add lines 10 through 12 13a     b Earned income credit, additional child tax credit, fuel tax credit, and refundable American opportunity credit 13b     c Total 2014 estimated tax. 2011 1040x Subtract line 13b from line 13a. 2011 1040x If zero or less, enter -0- ▶ 13c     14a Multiply line 13c by 90% (662/3% for farmers and fishermen) 14a           b Required annual payment based on prior year's tax (see instructions) 14b           c Required annual payment to avoid a penalty. 2011 1040x Enter the smaller of line 14a or 14b ▶ 14c        Caution: Generally, if you do not prepay (through income tax withholding and estimated tax payments) at least the amount on line 14c, you may owe a penalty for not paying enough estimated tax. 2011 1040x To avoid a penalty, make sure your estimate on line 13c is as accurate as possible. 2011 1040x Even if you pay the required annual payment, you may still owe tax when you file your return. 2011 1040x If you prefer, you can pay the amount shown on line 13c. 2011 1040x                         15 Income tax withheld and estimated to be withheld during 2014 (including income tax withholding on pensions, annuities, certain deferred income, etc. 2011 1040x ) 15     16a Subtract line 15 from line 14c 16a             Is the result zero or less? □ Yes. 2011 1040x Stop here. 2011 1040x You are not required to make estimated tax payments. 2011 1040x  □ No. 2011 1040x Go to line 16b. 2011 1040x             b Subtract line 15 from line 13c 16b             Is the result less than $1,000? □ Yes. 2011 1040x Stop here. 2011 1040x You are not required to make estimated tax payments. 2011 1040x  □ No. 2011 1040x Go to line 17 to figure your required payment. 2011 1040x                         17 If the first payment you are required to make is due April 15, 2014, enter ¼ of line 16a (minus any 2013 overpayment that you are applying to this installment) here, and on your estimated tax payment voucher(s) if you are paying by check or money order 17     Worksheet 2-2. 2011 1040x 2014 Estimated Tax Worksheet—Line 1 Estimated Taxable Social Security and Railroad Retirement Benefits Note. 2011 1040x If you are using this worksheet to estimate your taxable social security or railroad retirement benefits for Worksheet 2-9, 2014 Annualized Estimated Tax Worksheet, multiply the expected amount of benefits for each period by the annualization amount shown on Worksheet 2-9, line 2, for the same period before entering it on line 1 below. 2011 1040x     1. 2011 1040x Enter your expected social security and railroad retirement benefits 1. 2011 1040x   2. 2011 1040x Enter one-half of line 1 2. 2011 1040x   3. 2011 1040x Enter your expected total income. 2011 1040x Do not include any social security and railroad retirement benefits, nontaxable interest income, nontaxable IRA distributions, or nontaxable pension distributions 3. 2011 1040x   4. 2011 1040x Enter your expected nontaxable interest income 4. 2011 1040x   5. 2011 1040x Enter (as a positive amount) the total of any expected exclusions or deductions for: U. 2011 1040x S. 2011 1040x savings bond interest used for higher education expenses (Form 8815) Employer-provided adoption benefits (Form 8839) Foreign earned income or housing (Form 2555 or 2555-EZ) Income by bona fide residents of American Samoa (Form 4563) or Puerto Rico 5. 2011 1040x   6. 2011 1040x Add lines 2, 3, 4, and 5 6. 2011 1040x   7. 2011 1040x Enter your expected adjustments to income. 2011 1040x Do not include any student loan interest deduction 7. 2011 1040x   8. 2011 1040x Subtract line 7 from line 6. 2011 1040x If zero or less, stop here. 2011 1040x  Note. 2011 1040x Do not include any social security or railroad retirement benefits in the amount on line 1 of your 2014 Estimated Tax Worksheet (Worksheet 2-1) (or Annualized Estimated Tax Worksheet (Worksheet 2-9)) 8. 2011 1040x   9. 2011 1040x Enter $25,000 ($32,000 if you expect to file married filing jointly; $0 if you expect to file married filing separately and expect to live with your spouse at any time during the year) 9. 2011 1040x   10. 2011 1040x Subtract line 9 from line 8. 2011 1040x If zero or less, stop here. 2011 1040x  Note. 2011 1040x Do not include any social security or railroad retirement benefits in the amount on line 1 of your Worksheet 2-1 (or Annualized Estimated Tax Worksheet (Worksheet 2-9)) 10. 2011 1040x   11. 2011 1040x Enter $9,000 ($12,000 if you expect to file married filing jointly; $0 if you expect to file married filing separately and expect to live with your spouse at any time during the year) 11. 2011 1040x   12. 2011 1040x Subtract line 11 from line 10. 2011 1040x If zero or less, enter -0- 12. 2011 1040x   13. 2011 1040x Enter the smaller of line 10 or line 11 13. 2011 1040x   14. 2011 1040x Enter one-half of line 13 14. 2011 1040x   15