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E File Tax Return 2011

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E File Tax Return 2011

E file tax return 2011 12. E file tax return 2011   Business Deduction for Work-Related Education Table of Contents What's New Introduction Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. E file tax return 2011 Transportation Expenses Travel Expenses No Double Benefit Allowed How To Treat ReimbursementsAccountable Plans Nonaccountable Plans Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping Illustrated Example What's New Standard mileage rate. E file tax return 2011  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013, is 56. E file tax return 2011 5 cents per mile. E file tax return 2011 For more information, see Transportation Expenses under What Expenses Can Be Deducted, later. E file tax return 2011 Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. E file tax return 2011 To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee, File Schedule C (Form 1040), Profit or Loss From Business, Schedule C-EZ (Form 1040), Net Profit From Business, or Schedule F (Form 1040), Profit or Loss From Farming if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education , later. E file tax return 2011 What is the tax benefit of taking a business deduction for work-related education. E file tax return 2011   If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. E file tax return 2011 Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. E file tax return 2011 An itemized deduction reduces the amount of your income subject to tax. E file tax return 2011   If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. E file tax return 2011 This reduces the amount of your income subject to both income tax and self-employment tax. E file tax return 2011   Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits. E file tax return 2011 You may qualify for these other benefits even if you do not meet the requirements listed above. E file tax return 2011   Also, your work-related education expenses may qualify you to claim more than one tax benefit. E file tax return 2011 Generally, you may claim any number of benefits as long as you use different expenses to figure each one. E file tax return 2011 Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. E file tax return 2011 This is education that meets at least one of the following two tests. E file tax return 2011 The education is required by your employer or the law to keep your present salary, status, or job. E file tax return 2011 The required education must serve a bona fide business purpose of your employer. E file tax return 2011 The education maintains or improves skills needed in your present work. E file tax return 2011 However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. E file tax return 2011 You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. E file tax return 2011 Use Figure 12-1, Does Your Work-Related Education Qualify as a quick check to see if your education qualifies. E file tax return 2011 Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. E file tax return 2011 This additional education is qualifying work-related education if all three of the following requirements are met. E file tax return 2011 It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. E file tax return 2011 When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. E file tax return 2011 See Education To Maintain or Improve Skills , later. E file tax return 2011 Example. E file tax return 2011 You are a teacher who has satisfied the minimum requirements for teaching. E file tax return 2011 Your employer requires you to take an additional college course each year to keep your teaching job. E file tax return 2011 If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. E file tax return 2011 This image is too large to be displayed in the current screen. E file tax return 2011 Please click the link to view the image. E file tax return 2011 Figure 12-1 Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. E file tax return 2011 This could include refresher courses, courses on current developments, and academic or vocational courses. E file tax return 2011 Example. E file tax return 2011 You repair televisions, radios, and stereo systems for XYZ Store. E file tax return 2011 To keep up with the latest changes, you take special courses in radio and stereo service. E file tax return 2011 These courses maintain and improve skills required in your work. E file tax return 2011 Maintaining skills vs. E file tax return 2011 qualifying for new job. E file tax return 2011   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. E file tax return 2011 Education during temporary absence. E file tax return 2011   If you stop working for a year or less in order to get education to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. E file tax return 2011 Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. E file tax return 2011 Example. E file tax return 2011 You quit your biology research job to become a full-time biology graduate student for 1 year. E file tax return 2011 If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. E file tax return 2011 Education during indefinite absence. E file tax return 2011   If you stop work for more than a year, your absence from your job is considered indefinite. E file tax return 2011 Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. E file tax return 2011 Therefore, it is not qualifying work-related education. E file tax return 2011 Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. E file tax return 2011 The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. E file tax return 2011 Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. E file tax return 2011 This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. E file tax return 2011 You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. E file tax return 2011 Example 1. E file tax return 2011 You are a full-time engineering student. E file tax return 2011 Although you have not received your degree or certification, you work part time as an engineer for a firm that will employ you as a full-time engineer after you finish college. E file tax return 2011 Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. E file tax return 2011 The education is not qualifying work-related education. E file tax return 2011 Example 2. E file tax return 2011 You are an accountant and you have met the minimum educational requirements of your employer. E file tax return 2011 Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. E file tax return 2011 These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. E file tax return 2011 Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. E file tax return 2011 The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. E file tax return 2011 If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. E file tax return 2011 The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. E file tax return 2011 You generally will be considered a faculty member when one or more of the following occurs. E file tax return 2011 You have tenure. E file tax return 2011 Your years of service count toward obtaining tenure. E file tax return 2011 You have a vote in faculty decisions. E file tax return 2011 Your school makes contributions for you to a retirement plan other than social security or a similar program. E file tax return 2011 Example 1. E file tax return 2011 The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. E file tax return 2011 In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. E file tax return 2011 If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. E file tax return 2011 However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. E file tax return 2011 Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. E file tax return 2011 If you have all the required education except the fifth year, you have met the minimum educational requirements. E file tax return 2011 The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. E file tax return 2011 Example 2. E file tax return 2011 Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. E file tax return 2011 The additional four education courses can be qualifying work-related education. E file tax return 2011 Although you do not have all the required courses, you have already met the minimum educational requirements. E file tax return 2011 Example 3. E file tax return 2011 Assume the same facts as in Example 1 except that you are hired with only 3 years of college. E file tax return 2011 The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. E file tax return 2011 They are needed to meet the minimum educational requirements for employment as a teacher. E file tax return 2011 Example 4. E file tax return 2011 You have a bachelor's degree and you work as a temporary instructor at a university. E file tax return 2011 At the same time, you take graduate courses toward an advanced degree. E file tax return 2011 The rules of the university state that you can become a faculty member only if you get a graduate degree. E file tax return 2011 Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. E file tax return 2011 You have not met the minimum educational requirements to qualify you as a faculty member. E file tax return 2011 The graduate courses are not qualifying work-related education. E file tax return 2011 Certification in a new state. E file tax return 2011   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. E file tax return 2011 This is true even if you must get additional education to be certified in another state. E file tax return 2011 Any additional education you need is qualifying work-related education. E file tax return 2011 You have already met the minimum requirements for teaching. E file tax return 2011 Teaching in another state is not a new trade or business. E file tax return 2011 Example. E file tax return 2011 You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. E file tax return 2011 You move to State B and are promptly hired as a teacher. E file tax return 2011 You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. E file tax return 2011 These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. E file tax return 2011 Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. E file tax return 2011 This is true even if you do not plan to enter that trade or business. E file tax return 2011 If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. E file tax return 2011 Example 1. E file tax return 2011 You are an accountant. E file tax return 2011 Your employer requires you to get a law degree at your own expense. E file tax return 2011 You register at a law school for the regular curriculum that leads to a law degree. E file tax return 2011 Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. E file tax return 2011 Example 2. E file tax return 2011 You are a general practitioner of medicine. E file tax return 2011 You take a 2-week course to review developments in several specialized fields of medicine. E file tax return 2011 The course does not qualify you for a new profession. E file tax return 2011 It is qualifying work- related education because it maintains or improves skills required in your present profession. E file tax return 2011 Example 3. E file tax return 2011 While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. E file tax return 2011 The program will lead to qualifying you to practice psychoanalysis. E file tax return 2011 The psychoanalytic training does not qualify you for a new profession. E file tax return 2011 It is qualifying work-related education because it maintains or improves skills required in your present profession. E file tax return 2011 Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. E file tax return 2011 They are part of a program of study that can qualify you for a new profession. E file tax return 2011 Teaching and Related Duties All teaching and related duties are considered the same general kind of work. E file tax return 2011 A change in duties in any of the following ways is not considered a change to a new business. E file tax return 2011 Elementary school teacher to secondary school teacher. E file tax return 2011 Teacher of one subject, such as biology, to teacher of another subject, such as art. E file tax return 2011 Classroom teacher to guidance counselor. E file tax return 2011 Classroom teacher to school administrator. E file tax return 2011 What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education you can generally deduct your education expenses as business expenses. E file tax return 2011 If you are not self-employed, you can deduct business expenses only if you itemize your deductions. E file tax return 2011 You cannot deduct expenses related to tax-exempt and excluded income. E file tax return 2011 Deductible expenses. E file tax return 2011   The following education expenses can be deducted. E file tax return 2011 Tuition, books, supplies, lab fees, and similar items. E file tax return 2011 Certain transportation and travel costs. E file tax return 2011 Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. E file tax return 2011 Nondeductible expenses. E file tax return 2011   You cannot deduct personal or capital expenses. E file tax return 2011 For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. E file tax return 2011 This amount is a personal expense. E file tax return 2011 Unclaimed reimbursement. E file tax return 2011   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. E file tax return 2011 Example. E file tax return 2011 Your employer agrees to pay your education expenses if you file a voucher showing your expenses. E file tax return 2011 You do not file a voucher and you do not get reimbursed. E file tax return 2011 Because you did not file a voucher, you cannot deduct the expenses on your tax return. E file tax return 2011 Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. E file tax return 2011 If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. E file tax return 2011 Temporary basis. E file tax return 2011   You go to school on a temporary basis if either of the following situations applies to you. E file tax return 2011 Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. E file tax return 2011 Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. E file tax return 2011 Your attendance is temporary up to the date you determine it will last more than 1 year. E file tax return 2011 If you are in either situation (1) or (2) above, your attendance is not temporary if facts and circumstances indicate otherwise. E file tax return 2011 Attendance not on a temporary basis. E file tax return 2011   You do not go to school on a temporary basis if either of the following situations apply to you. E file tax return 2011 Your attendance at school is realistically expected to last more than 1 year. E file tax return 2011 It does not matter how long you actually attend. E file tax return 2011 Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. E file tax return 2011 Your attendance is not temporary after the date you determine it will last more than 1 year. E file tax return 2011 Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. E file tax return 2011 This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. E file tax return 2011 Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. E file tax return 2011 Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. E file tax return 2011 Example 1. E file tax return 2011 You regularly work in a nearby town, and go directly from work to home. E file tax return 2011 You also attend school every work night for 3 months to take a course that improves your job skills. E file tax return 2011 Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. E file tax return 2011 This is true regardless of the distance traveled. E file tax return 2011 Example 2. E file tax return 2011 Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. E file tax return 2011 You can deduct your transportation expenses from your regular work site to school and then home. E file tax return 2011 Example 3. E file tax return 2011 Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. E file tax return 2011 Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. E file tax return 2011 Example 4. E file tax return 2011 Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. E file tax return 2011 Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. E file tax return 2011 If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. E file tax return 2011 If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. E file tax return 2011 Using your car. E file tax return 2011    If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. E file tax return 2011 The standard mileage rate for miles driven from January 1, 2013 through December 31, 2013, is 56. E file tax return 2011 5 cents per mile. E file tax return 2011 Whichever method you use, you can also deduct parking fees and tolls. E file tax return 2011 See Publication 463, chapter 4, for information on deducting your actual expenses of using a car. E file tax return 2011 Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. E file tax return 2011 Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. E file tax return 2011 For more information, see chapter 1 of Publication 463. E file tax return 2011 You cannot deduct expenses for personal activities such as sightseeing, visiting, or entertaining. E file tax return 2011 Mainly personal travel. E file tax return 2011   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. E file tax return 2011 You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. E file tax return 2011   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. E file tax return 2011 An important factor is the comparison of time spent on personal activities with time spent on educational activities. E file tax return 2011 If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. E file tax return 2011 Example 1. E file tax return 2011 John works in Newark, New Jersey. E file tax return 2011 He traveled to Chicago to take a deductible 1-week course at the request of his employer. E file tax return 2011 His main reason for going to Chicago was to take the course. E file tax return 2011 While there, he took a sightseeing trip, entertained some friends, and took a side trip to Pleasantville for a day. E file tax return 2011 Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. E file tax return 2011 He cannot deduct his transportation expenses of going to Pleasantville. E file tax return 2011 He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. E file tax return 2011 Example 2. E file tax return 2011 Sue works in Boston. E file tax return 2011 She went to a university in Michigan to take a course for work. E file tax return 2011 The course is qualifying work-related education. E file tax return 2011 She took one course, which is one-fourth of a full course load of study. E file tax return 2011 She spent the rest of the time on personal activities. E file tax return 2011 Her reasons for taking the course in Michigan were all personal. E file tax return 2011 Sue's trip is mainly personal because three-fourths of her time is considered personal time. E file tax return 2011 She cannot deduct the cost of her round-trip train ticket to Michigan. E file tax return 2011 She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. E file tax return 2011 Example 3. E file tax return 2011 Dave works in Nashville and recently traveled to California to take a 2-week seminar. E file tax return 2011 The seminar is qualifying work-related education. E file tax return 2011 While there, he spent an extra 8 weeks on personal activities. E file tax return 2011 The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. E file tax return 2011 Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. E file tax return 2011 He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. E file tax return 2011 Cruises and conventions. E file tax return 2011   Certain cruises and conventions offer seminars or courses as part of their itinerary. E file tax return 2011 Even if the seminars or courses are work related, your deduction for travel may be limited. E file tax return 2011 This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. E file tax return 2011   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. E file tax return 2011 50% limit on meals. E file tax return 2011   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. E file tax return 2011 If you were reimbursed for the meals, see How To Treat Reimbursements , later. E file tax return 2011   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. E file tax return 2011 Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. E file tax return 2011 Example. E file tax return 2011 You are a French language teacher. E file tax return 2011 While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. E file tax return 2011 You chose your itinerary and most of your activities to improve your French language skills. E file tax return 2011 You cannot deduct your travel expenses as education expenses. E file tax return 2011 This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. E file tax return 2011 No Double Benefit Allowed You cannot do either of the following. E file tax return 2011 Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, as a tuition and fees deduction. E file tax return 2011 Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. E file tax return 2011 See Adjustments to Qualifying Work-Related Education Expenses, next. E file tax return 2011 Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. E file tax return 2011 You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. E file tax return 2011 Tax-free educational assistance. E file tax return 2011   This includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). E file tax return 2011 Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. E file tax return 2011 Amounts that do not reduce qualifying work-related education expenses. E file tax return 2011   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. E file tax return 2011 Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. E file tax return 2011 How To Treat Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. E file tax return 2011 There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. E file tax return 2011 You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. E file tax return 2011 Note. E file tax return 2011 The following rules about reimbursement arrangements also apply to expense allowances received from your employer. E file tax return 2011 Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. E file tax return 2011 Your expenses must have a business connection. E file tax return 2011 This means your expenses must be deductible under the rules for qualifying work-related education explained earlier. E file tax return 2011 You must adequately account to your employer for your expenses within a reasonable period of time. E file tax return 2011 You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time. E file tax return 2011 If you are reimbursed under an accountable plan, your employer should not include any reimbursement in your income in box 1 of your Form W-2. E file tax return 2011 If your employer included reimbursements in box 1 of your Form W-2 and you meet all three rules for accountable plans, ask your employer for a corrected Form W-2. E file tax return 2011 Accountable plan rules not met. E file tax return 2011   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules for accountable plans. E file tax return 2011 Those expenses that fail to meet the three rules are treated as having been reimbursed under a Nonaccountable Plan (discussed later). E file tax return 2011 Expenses equal reimbursement. E file tax return 2011   Under an accountable plan, if your expenses equal your reimbursement, you do not complete Form 2106 or 2106-EZ. E file tax return 2011 Because your expenses and reimbursements are equal, you do not have a deduction. E file tax return 2011 Excess expenses. E file tax return 2011   If your expenses are more than your reimbursement, you can deduct your excess expenses. E file tax return 2011 This is discussed later, under Deducting Business Expenses . E file tax return 2011 Allocating your reimbursements for meals. E file tax return 2011   Because your excess meal expenses are subject to the 50% limit, you must figure them separately from your other expenses. E file tax return 2011 If your employer paid you a single amount to cover both meals and other expenses, you must allocate the reimbursement so that you can figure your excess meal expenses separately. E file tax return 2011 Make the allocation as follows. E file tax return 2011 Divide your meal expenses by your total expenses. E file tax return 2011 Multiply your total reimbursement by the result from (1). E file tax return 2011 This is the allocated reimbursement for your meal expenses. E file tax return 2011 Subtract the amount figured in (2) from your total reimbursement. E file tax return 2011 The difference is the allocated reimbursement for your other expenses of qualifying work-related education. E file tax return 2011 Example. E file tax return 2011 Your employer paid you an expense allowance of $2,000 under an accountable plan. E file tax return 2011 The allowance was to cover all of your expenses of traveling away from home to take a 2-week training course for work. E file tax return 2011 There was no indication of how much of the reimbursement was for each type of expense. E file tax return 2011 Your actual expenses equal $2,500 ($425 for meals + $700 lodging + $150 transportation expenses + $1,225 for books and tuition). E file tax return 2011 Using the steps listed above, allocate the reimbursement between the $425 meal expenses and the $2,075 other expenses. E file tax return 2011   1. E file tax return 2011 $425 meal expenses  $2,500 total expenses = . E file tax return 2011 17   2. E file tax return 2011 $2,000 (reimbursement)×. E file tax return 2011 17     =$340 (allocated reimbursement for meal expenses)   3. E file tax return 2011 $2,000 (reimbursement)−$340 (meals)     = $1,660 (allocated reimbursement for other qualifying work-related education expenses) Your excess meal expenses are $85 ($425 − $340) and your excess other expenses are $415 ($2,075 − $1,660). E file tax return 2011 After you apply the 50% limit to your meals, you have a deduction for work-related education expenses of $458 (($85 × 50%) + $415). E file tax return 2011 Nonaccountable Plans Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2. E file tax return 2011 You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement. E file tax return 2011 This is discussed later under Deducting Business Expenses . E file tax return 2011 An illustrated example of a nonaccountable plan, using Form 2106-EZ, is shown at the end of this chapter. E file tax return 2011 Reimbursements for nondeductible expenses. E file tax return 2011   Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. E file tax return 2011 You must include them in your income. E file tax return 2011 For example, you must include in your income reimbursements your employer gave you for expenses of education that: You need to meet the minimum educational requirements for your job, or Is part of a program of study that can qualify you for a new trade or business. E file tax return 2011   For more information on accountable and nonaccountable plans, see chapter 6 of Publication 463. E file tax return 2011 Deducting Business Expenses Self-employed persons and employees report their business expenses differently. E file tax return 2011 The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. E file tax return 2011 Self-Employed Persons If you are self-employed, you must report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040)). E file tax return 2011 If your education expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. E file tax return 2011 See the instructions for the form you file for information on how to complete it. E file tax return 2011 Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. E file tax return 2011 If either (1) or (2) applies, you can deduct the total qualifying cost. E file tax return 2011 If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. E file tax return 2011 In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. E file tax return 2011 (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. E file tax return 2011 ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. E file tax return 2011 Form 2106 or 2106-EZ. E file tax return 2011   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or 2106-EZ. E file tax return 2011 Form not required. E file tax return 2011   Do not complete either Form 2106 or 2106-EZ if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are not claiming travel, transportation, meal, or entertainment expenses. E file tax return 2011   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. E file tax return 2011 (Special rules for expenses of certain Performing Artists and Fee-Basis Officials and for Impairment-Related Work Expenses are explained later. E file tax return 2011 ) Using Form 2106-EZ. E file tax return 2011   This form is shorter and easier to use than Form 2106. E file tax return 2011 Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. E file tax return 2011   If you do not meet both of these requirements, use Form 2106. E file tax return 2011 Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. E file tax return 2011 Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24, or Form 1040NR, line 35. E file tax return 2011 You do not have to itemize your deductions on Schedule A (Form 1040 or 1040NR), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. E file tax return 2011 You must complete Form 2106 or 2106-EZ to figure your deduction even if you meet the requirements described earlier under Form not required . E file tax return 2011 For more information on qualified performing artists, see chapter 6 of Publication 463. E file tax return 2011 Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. E file tax return 2011 They are not subject to the 2%-of-adjusted-gross-income limit. E file tax return 2011 To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . E file tax return 2011 For more information on impairment-related work expenses, see chapter 6 of Publication 463. E file tax return 2011 Recordkeeping You must keep records as proof of any deduction claimed on your tax return. E file tax return 2011 Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. E file tax return 2011 If you are an employee who is reimbursed for expenses and you give your records and documentation to your employer, you do not have to keep duplicate copies of this information. E file tax return 2011 However, you should keep your records for a 3-year period if: You claim deductions for expenses that are more than your reimbursement, Your employer does not use adequate accounting procedures to verify expense accounts, You are related to your employer, or Your expenses are reimbursed under a nonaccountable plan. E file tax return 2011 Examples of records to keep. E file tax return 2011   If any of the above cases apply to you, you must be able to prove that your expenses are deductible. E file tax return 2011 You should keep adequate records or have sufficient evidence that will support your expenses. E file tax return 2011 Estimates or approximations do not qualify as proof of an expense. E file tax return 2011 Some examples of what can be used to help prove your expenses are: Documents, such as transcripts, course descriptions, catalogs, etc. E file tax return 2011 , showing periods of enrollment in educational institutions, principal subjects studied, and descriptions of educational activity. E file tax return 2011 Canceled checks and receipts to verify amounts you spent for: Tuition and books, Meals and lodging while away from home overnight for educational purposes, Travel and transportation, and Other education expenses. E file tax return 2011 Statements from your employer explaining whether the education was necessary for you to keep your job, salary, or status; how the education helped maintain or improve skills needed in your job; how much reimbursement you received; and, if you are a teacher, the type of certificate and subjects taught. E file tax return 2011 Complete information about any scholarship or fellowship grants, including amounts you received during the year. E file tax return 2011 Illustrated Example Victor Jones teaches math at a private high school in North Carolina. E file tax return 2011 He was selected to attend a 3-week math seminar at a university in California. E file tax return 2011 The seminar will improve his skills in his current job and is qualifying work-related education. E file tax return 2011 He was reimbursed for his expenses under his employer's nonaccountable plan, so his reimbursement of $2,100 is included in the wages shown in box 1 of his Form W-2. E file tax return 2011 Victor will file Form 1040. E file tax return 2011 His actual expenses for the seminar are as follows:   Lodging   $1,050     Meals   526     Airfare   550     Taxi fares   50     Tuition and books   400     Total Expenses   $2,576   Victor files Form 2106-EZ with his tax return. E file tax return 2011 He shows his expenses for the seminar in Part I of the form. E file tax return 2011 He enters $1,650 ($1,050 + $550 + $50) on line 3 to account for his lodging, airfare, and taxi fares. E file tax return 2011 He enters $400 on line 4 for his tuition and books. E file tax return 2011 On the line provided for total meals and entertainment expenses, Victor enters $526 for meal expenses. E file tax return 2011 He multiplies that amount by 50% and enters the result, $263, on line 5. E file tax return 2011 On line 6, Victor totals the amounts from lines 3 through 5. E file tax return 2011 He carries the total, $2,313, to Schedule A (Form 1040), line 21. E file tax return 2011 Since he does not claim any vehicle expenses, Victor leaves Part II blank. E file tax return 2011 His filled-in form is shown on the next page. E file tax return 2011 This image is too large to be displayed in the current screen. E file tax return 2011 Please click the link to view the image. E file tax return 2011 Form 2106-EZ for V. E file tax return 2011 Jones Prev  Up  Next   Home   More Online Publications
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The E File Tax Return 2011

E file tax return 2011 2. E file tax return 2011   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. E file tax return 2011 This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 For information on when the penalty applies, see chapter 4. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 Worksheets. E file tax return 2011   You may need to use several of the blank worksheets included in this chapter. E file tax return 2011 See Worksheets for Chapter 2, later, to locate what you need. E file tax return 2011 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. E file tax return 2011 To do this, file a new Form W-4 with your employer. E file tax return 2011 See chapter 1. E file tax return 2011 Estimated tax not required. E file tax return 2011   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. E file tax return 2011 You had no tax liability for 2013. E file tax return 2011 You were a U. E file tax return 2011 S. E file tax return 2011 citizen or resident alien for the whole year. E file tax return 2011 Your 2013 tax year covered a 12-month period. E file tax return 2011   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. E file tax return 2011 Please click here for the text description of the image. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 General Rule In most cases, you must pay estimated tax for 2014 if both of the following apply. E file tax return 2011 You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. E file tax return 2011 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. E file tax return 2011 Your 2013 tax return must cover all 12 months. E file tax return 2011 Note. E file tax return 2011 The percentages in (2a) or (2b) above may be different if you are a farmer, fisherman, or higher income taxpayer. E file tax return 2011 See Special Rules , later. E file tax return 2011 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. E file tax return 2011 Figure 2-A takes you through the general rule. E file tax return 2011 You may find this helpful in determining if you must pay estimated tax. E file tax return 2011 If all your income will be subject to income tax withholding, you probably do not need to pay estimated tax. E file tax return 2011 Example 1. E file tax return 2011 Jane Smart uses Figure 2-A and the following information to figure whether she should pay estimated tax for 2014. E file tax return 2011 She files as head of household claiming her dependent son, takes the standard deduction, and expects no refundable credits for 2014. E file tax return 2011 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). E file tax return 2011 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. E file tax return 2011 50). E file tax return 2011 Jane does not need to pay estimated tax. E file tax return 2011 Example 2. E file tax return 2011 The facts are the same as in Example 1, except that Jane expects only $8,700 tax to be withheld in 2014. E file tax return 2011 Because that is less than $9,913. E file tax return 2011 50, her answer to box 2a is NO. E file tax return 2011 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). E file tax return 2011 Jane must increase her withholding or pay estimated tax for 2014. E file tax return 2011 Example 3. E file tax return 2011 The facts are the same as in Example 2, except that the total tax shown on Jane's 2013 return was $8,600. E file tax return 2011 Because she expects to have more than $8,600 withheld in 2014 ($8,700), her answer to box 2b is YES. E file tax return 2011 Jane does not need to pay estimated tax for 2014. E file tax return 2011 Married Taxpayers If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. E file tax return 2011 You and your spouse can make joint estimated tax payments even if you are not living together. E file tax return 2011 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). E file tax return 2011 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. E file tax return 2011 These individuals can take credit only for the estimated tax payments that he or she made. E file tax return 2011 If you and your spouse cannot make joint estimated tax payments, apply these rules to your separate estimated income. E file tax return 2011 Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. E file tax return 2011 2013 separate returns and 2014 joint return. E file tax return 2011   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. E file tax return 2011 You filed a separate return if you filed as single, head of household, or married filing separately. E file tax return 2011 2013 joint return and 2014 separate returns. E file tax return 2011   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. E file tax return 2011 You file a separate return if you file as single, head of household, or married filing separately. E file tax return 2011   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. E file tax return 2011 Then multiply the tax on the joint return by the following fraction. E file tax return 2011      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. E file tax return 2011 Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. E file tax return 2011 Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. E file tax return 2011 For 2014, they plan to file married filing separately. E file tax return 2011 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. E file tax return 2011 6% Joe's share of tax on joint return  ($6,386 × 87. E file tax return 2011 6%) $5,594 Special Rules There are special rules for farmers, fishermen, and certain higher income taxpayers. E file tax return 2011 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. E file tax return 2011 Gross income. E file tax return 2011   Your gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. E file tax return 2011 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. E file tax return 2011 Joint returns. E file tax return 2011   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. E file tax return 2011 Gross income from farming. E file tax return 2011   This is income from cultivating the soil or raising agricultural commodities. E file tax return 2011 It includes the following amounts. E file tax return 2011 Income from operating a stock, dairy, poultry, bee, fruit, or truck farm. E file tax return 2011 Income from a plantation, ranch, nursery, range, orchard, or oyster bed. E file tax return 2011 Crop shares for the use of your land. E file tax return 2011 Gains from sales of draft, breeding, dairy, or sporting livestock. E file tax return 2011   For 2013, gross income from farming is the total of the following amounts. E file tax return 2011 Schedule F (Form 1040), Profit or Loss From Farming, line 9. E file tax return 2011 Form 4835, Farm Rental Income and Expenses, line 7. E file tax return 2011 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). E file tax return 2011 Your gains from sales of draft, breeding, dairy, or sporting livestock shown on Form 4797, Sales of Business Property. E file tax return 2011   Wages you receive as a farm employee and wages you receive from a farm corporation are not gross income from farming. E file tax return 2011 Gross income from fishing. E file tax return 2011   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. E file tax return 2011   Gross income from fishing includes the following amounts. E file tax return 2011 Schedule C (Form 1040), Profit or Loss From Business. E file tax return 2011 Income for services as an officer or crew member of a vessel while the vessel is engaged in fishing. E file tax return 2011 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). E file tax return 2011 Certain taxable interest and punitive damage awards received in connection with the Exxon Valdez litigation. E file tax return 2011 Income for services normally performed in connection with fishing. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 For 2013, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. E file tax return 2011 Note. E file tax return 2011 This rule does not apply to farmers and fishermen. E file tax return 2011 Aliens Resident and nonresident aliens also may have to pay estimated tax. E file tax return 2011 Resident aliens should follow the rules in this publication, unless noted otherwise. E file tax return 2011 Nonresident aliens should get Form 1040-ES (NR), U. E file tax return 2011 S. E file tax return 2011 Estimated Tax for Nonresident Alien Individuals. E file tax return 2011 You are an alien if you are not a citizen or national of the United States. E file tax return 2011 You are a resident alien if you either have a green card or meet the substantial presence test. E file tax return 2011 For more information about withholding, the substantial presence test, and Form 1040-ES (NR), see Publication 519. E file tax return 2011 Estates and Trusts Estates and trusts also must pay estimated tax. E file tax return 2011 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. E file tax return 2011 Estates and trusts must use Form 1041-ES, Estimated Income Tax for Estates and Trusts, to figure and pay estimated tax. E file tax return 2011 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. E file tax return 2011 When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. E file tax return 2011 Use your 2013 federal tax return as a guide. E file tax return 2011 You can use Form 1040-ES to figure your estimated tax. E file tax return 2011 Nonresident aliens use Form 1040-ES (NR) to figure estimated tax. E file tax return 2011 You must make adjustments both for changes in your own situation and for recent changes in the tax law. E file tax return 2011 Some of these changes are discussed under What's New for 2014 , earlier. E file tax return 2011 For information about these and other changes in the law, visit the IRS website at IRS. E file tax return 2011 gov. E file tax return 2011 The instructions for Form 1040-ES include a worksheet to help you figure your estimated tax. E file tax return 2011 Keep the worksheet for your records. E file tax return 2011 2014 Estimated Tax Worksheet Use Worksheet 2-1 to help guide you through the information about completing the 2014 Estimated Tax Worksheet. E file tax return 2011 You can also find a copy of the worksheet in the Instructions for Form 1040-ES. E file tax return 2011 Expected AGI—Line 1 Your expected AGI for 2014 (line 1) is your expected total income minus your expected adjustments to income. E file tax return 2011 Total income. E file tax return 2011   Include in your total income all the income you expect to receive during the year, even income that is subject to withholding. E file tax return 2011 However, do not include income that is tax exempt. E file tax return 2011   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. E file tax return 2011 Social security and railroad retirement benefits. E file tax return 2011 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. E file tax return 2011 Adjustments to income. E file tax return 2011   Be sure to subtract from your expected total income all of the adjustments you expect to take on your 2014 tax return. E file tax return 2011 Self-employed. E file tax return 2011 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. E file tax return 2011 Include the amount from Worksheet 2-3 in your expected adjustments to income. E file tax return 2011 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. E file tax return 2011 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). E file tax return 2011 Itemized deductions—line 2. E file tax return 2011   If you expect to claim itemized deductions on your 2014 tax return, enter the estimated amount on line 2. E file tax return 2011   Itemized deductions are the deductions that can be claimed on Schedule A (Form 1040). E file tax return 2011    For 2014, your total itemized deductions may be reduced if your AGI is more than the amount shown next for your filing status. E file tax return 2011 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. E file tax return 2011 Standard deduction—line 2. E file tax return 2011   If you expect to claim the standard deduction on your 2014 tax return, enter the amount on line 2. E file tax return 2011 Use Worksheet 2-4 to figure your standard deduction. E file tax return 2011 No standard deduction. E file tax return 2011   The standard deduction for some individuals is zero. E file tax return 2011 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. E file tax return 2011 Exemptions—line 4. E file tax return 2011   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. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011    For 2014, your deduction for personal exemption is reduced if your AGI is more than the amount shown next for your filing status. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 Most people will have entries for only a few of these steps. E file tax return 2011 However, you should check every step to be sure you do not overlook anything. E file tax return 2011 Step 1. E file tax return 2011   Figure your expected income tax (line 6). E file tax return 2011 Generally, you will use the 2014 Tax Rate Schedules, later, to figure your expected income tax. E file tax return 2011   However, see below for situations where you must use a different method to compute your estimated tax. E file tax return 2011 Tax on child's investment income. E file tax return 2011   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. E file tax return 2011 Children under age 18 at the end of 2014. E file tax return 2011 The following children if their earned income is not more than half their support. E file tax return 2011 Children age 18 at the end of 2014. E file tax return 2011 Children who are full-time students over age 18 and under age 24 at the end of 2014. E file tax return 2011 See Publication 929, Tax Rules for Children and Dependents. E file tax return 2011 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. E file tax return 2011 Tax on net capital gain. E file tax return 2011   The regular income tax rates for individuals do not apply to a net capital gain. E file tax return 2011 Instead, your net capital gain is taxed at a lower maximum rate. E file tax return 2011   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. E file tax return 2011 Tax on capital gain and qualified dividends. E file tax return 2011 If the amount on line 1 includes a net capital gain or qualified dividends, use Worksheet 2-7 to figure your tax. E file tax return 2011 Note. E file tax return 2011 For 2014, your capital gains and dividends rate will depend on your income. E file tax return 2011 Tax if excluding foreign earned income or excluding or deducting foreign housing. E file tax return 2011 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. E file tax return 2011 Step 2. E file tax return 2011   Total your expected taxes (line 8). E file tax return 2011 Include on line 8 the sum of the following. E file tax return 2011 Your tax on line 6. E file tax return 2011 Your expected alternative minimum tax (AMT) from Form 6251, or included on Form 1040A. E file tax return 2011 Your expected additional taxes from Form 8814, Parents' Election To Report Child's Interest and Dividends, and Form 4972, Tax on Lump-Sum Distributions. E file tax return 2011 Any recapture of education credits. E file tax return 2011 Step 3. E file tax return 2011   Subtract your expected credits (line 9). E file tax return 2011 If you are using your 2013 return as a guide and filed Form 1040, your total credits for 2013 were shown on line 54. E file tax return 2011 If you filed Form 1040A, your total credits for 2013 were on line 34. E file tax return 2011   If your credits on line 9 are more than your taxes on line 8, enter “-0-” on line 10 and go to Step 4. E file tax return 2011 Step 4. E file tax return 2011   Add your expected self-employment tax (line 11). E file tax return 2011 You already should have figured your self-employment tax (see Self-employed under Expected AGI—Line 1, earlier). E file tax return 2011 Step 5. E file tax return 2011   Add your expected other taxes (line 12). E file tax return 2011   Other taxes include the following. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 Amounts written on Form 1040 on the line for “other taxes” (line 60 on the 2013 Form 1040). E file tax return 2011 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. E file tax return 2011 Repayment of the first-time homebuyer credit. E file tax return 2011 See Form 5405. E file tax return 2011 Additional Medicare Tax. E file tax return 2011 A 0. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 A self-employment loss should not be considered for purposes of this tax. E file tax return 2011 RRTA compensation should be separately compared to the threshold. E file tax return 2011 Your employer is responsible for withholding the 0. E file tax return 2011 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2014. E file tax return 2011 You should consider this withholding, if applicable, in determining whether you need to make an estimated payment. E file tax return 2011 For more information on Additional Medicare Tax, go to IRS. E file tax return 2011 gov and enter “Additional Medicare Tax” in the search box. E file tax return 2011 Net Investment Income Tax (NIIT). E file tax return 2011 The NIIT is 3. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 gov and enter “Net Investment Income Tax” in the search box. E file tax return 2011 Step 6. E file tax return 2011   Subtract your refundable credit (line 13b). E file tax return 2011   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. E file tax return 2011   The result of steps 1 through 6 is your total estimated tax for 2014 (line 13c). E file tax return 2011 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. E file tax return 2011 General rule. E file tax return 2011   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. E file tax return 2011 Your 2013 tax return must cover all 12 months. E file tax return 2011 Special rules. E file tax return 2011   There are special rules for higher income taxpayers and for farmers and fishermen. E file tax return 2011 Higher income taxpayers. E file tax return 2011   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. E file tax return 2011 This rule does not apply to farmers and fishermen. E file tax return 2011 For 2013, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. E file tax return 2011 Example. E file tax return 2011   Jeremy Martin's total tax on his 2013 return was $42,581, and his expected tax for 2014 is $71,253. E file tax return 2011 His 2013 AGI was $180,000. E file tax return 2011 Because Jeremy had more than $150,000 of AGI in 2013, he figures his required annual payment as follows. E file tax return 2011 He determines that 90% of his expected tax for 2014 is $64,128 (. E file tax return 2011 90 × $71,253). E file tax return 2011 Next, he determines that 110% of the tax shown on his 2013 return is $46,839 (1. E file tax return 2011 10 x $42,581). E file tax return 2011 Finally, he determines that his required annual payment is $46,839, the smaller of the two. E file tax return 2011 Farmers and fishermen. E file tax return 2011   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% (. E file tax return 2011 6667) of your total tax for 2014, or 100% of the total tax shown on your 2013 return. E file tax return 2011 (Your 2013 tax return must cover all 12 months. E file tax return 2011 )   For definitions of “gross income from farming” and “gross income from fishing,” see Farmers and Fishermen , under Special Rules discussed earlier. E file tax return 2011 Total tax for 2013—line 14b. E file tax return 2011   Your 2013 total tax, if you filed Form 1040, is the amount on line 61 reduced by the following. E file tax return 2011 Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). E file tax return 2011 The following amounts from Form 5329 included on line 58. E file tax return 2011 Any tax on excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts. E file tax return 2011 Any tax on excess accumulations in qualified retirement plans. E file tax return 2011 The following write-ins on line 60. E file tax return 2011 Excise tax on excess golden parachute payments (identified as “EPP”). E file tax return 2011 Excise tax on insider stock compensation from an expatriated corporation (identified as “ISC”). E file tax return 2011 Look-back interest due under section 167(g) (identified as “From Form 8866”). E file tax return 2011 Look-back interest due under section 460(b) (identified as “From Form 8697”). E file tax return 2011 Recapture of federal mortgage subsidy (identified as “FMSR”). E file tax return 2011 Additional tax on advance payments of health coverage tax credit when not eligible (identified as “HCTC”). E file tax return 2011 Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance (identified as “UT”). E file tax return 2011 Any refundable credit amounts. E file tax return 2011   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits. E file tax return 2011   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. E file tax return 2011 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. E file tax return 2011 Subtract your expected withholding from your required annual payment (line 14c). E file tax return 2011 You usually must pay this difference in four equal installments. E file tax return 2011 See When To Pay Estimated Tax and How To Figure Each Payment . E file tax return 2011 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. E file tax return 2011 Withholding—line 15. E file tax return 2011   Your expected withholding for 2014 (line 15) includes the income tax you expect to be withheld from all sources (wages, pensions and annuities, etc. E file tax return 2011 ). E file tax return 2011 It includes excess social security, and tier 1 railroad retirement tax you expect to be withheld from your wages and compensation. E file tax return 2011 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. E file tax return 2011 See Excess Social Security or Railroad Retirement Tax Withholding in chapter 3. E file tax return 2011   It also includes Additional Medicare Tax you expect to be withheld from your wages or compensation. E file tax return 2011 Your employer is responsible for withholding the 0. E file tax return 2011 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. E file tax return 2011 When To Pay Estimated Tax For estimated tax purposes, the year is divided into four payment periods. E file tax return 2011 Each period has a specific payment due date. E file tax return 2011 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. E file tax return 2011 If a payment is mailed, the date of the U. E file tax return 2011 S. E file tax return 2011 postmark is considered the date of payment. E file tax return 2011 The payment periods and due dates for estimated tax payments are shown next. E file tax return 2011 For exceptions to the dates listed, see Saturday, Sunday, holiday rule below. E file tax return 2011 For the period: Due date: Jan. E file tax return 2011 11 – March 31 April 15 April 1 – May 31 June 16 June 1 – August 31 September 15 Sept. E file tax return 2011 1 – Dec. E file tax return 2011 31 January 15  next year2 1If your tax year does not begin on January 1,  see Fiscal year taxpayers . E file tax return 2011 2See January payment . E file tax return 2011 Saturday, Sunday, holiday rule. E file tax return 2011   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. E file tax return 2011 January payment. E file tax return 2011   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. E file tax return 2011 Example. E file tax return 2011 Janet Adams does not pay any estimated tax for 2014. E file tax return 2011 She files her 2014 income tax return and pays the balance due shown on her return on January 26, 2015. E file tax return 2011 Janet's estimated tax for the fourth payment period is considered to have been paid on time. E file tax return 2011 However, she may owe a penalty for not making the first three estimated tax payments, if required. E file tax return 2011 Any penalty for not making those payments will be figured up to January 26, 2015. E file tax return 2011 Fiscal year taxpayers. E file tax return 2011   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. E file tax return 2011   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. E file tax return 2011 When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. E file tax return 2011 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. E file tax return 2011 You have several options when paying estimated taxes. E file tax return 2011 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. E file tax return 2011 If you choose to pay in installments, make your first payment by the due date for the first payment period. E file tax return 2011 Make your remaining installment payments by the due dates for the later periods. E file tax return 2011 To avoid any estimated tax penalties, all installments must be paid by their due date and for the required amount. E file tax return 2011 No income subject to estimated tax during first period. E file tax return 2011   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. E file tax return 2011 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. E file tax return 2011 Table 2-1 shows the dates for making installment payments. E file tax return 2011    Table 2-1. E file tax return 2011 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. E file tax return 2011 15     Jan. E file tax return 2011 15 next year April 1–May 31 June 16 Sept. E file tax return 2011 15     Jan. E file tax return 2011 15 next year June 1–Aug. E file tax return 2011 31 Sept. E file tax return 2011 15 Jan. E file tax return 2011 15 next year After Aug. E file tax return 2011 31 Jan. E file tax return 2011 15 next year (None) *See January payment and Saturday, Sunday, holiday rule . E file tax return 2011 How much to pay to avoid penalty. E file tax return 2011   To determine how much you should pay by each payment due date, see How To Figure Each Payment , later. E file tax return 2011 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. E file tax return 2011 The due dates for the first three payment periods, discussed under When To Pay Estimated Tax , earlier, do not apply to you. E file tax return 2011 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. E file tax return 2011 Fiscal year farmers and fishermen. E file tax return 2011   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. E file tax return 2011 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. E file tax return 2011 You should pay enough by each due date to avoid a penalty for that period. E file tax return 2011 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. E file tax return 2011 The penalty is discussed in chapter 4. E file tax return 2011 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. E file tax return 2011 Enter this amount on line 17. E file tax return 2011 However, use this method only if your income is basically the same throughout the year. E file tax return 2011 Change in estimated tax. E file tax return 2011   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. E file tax return 2011 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. E file tax return 2011 If you do not receive your income evenly throughout the year, your required estimated tax payments may not be the same for each period. E file tax return 2011 See Annualized Income Installment Method . E file tax return 2011 Amended estimated tax. E file tax return 2011 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. E file tax return 2011 Example. E file tax return 2011 Early in 2014, Mira Roberts figures that her estimated tax due is $1,800. E file tax return 2011 She makes estimated tax payments on April 15 and June 16 of $450 each ($1,800 ÷ 4). E file tax return 2011 On July 10, she sells investment property at a gain. E file tax return 2011 Her refigured estimated tax is $4,100. E file tax return 2011 Her required estimated tax payment for the third payment period is $2,175, as shown in her filled-in Worksheet 2-14. E file tax return 2011 If Mira's estimated tax does not change again, her required estimated tax payment for the fourth payment period will be $1,025. E file tax return 2011 Worksheet 2-14. E file tax return 2011 Amended Estimated Tax Worksheet—Illustrated               1. E file tax return 2011 Amended total estimated tax due 1. E file tax return 2011 $4,100 2. E file tax return 2011 Multiply line 1 by:           50% (. E file tax return 2011 50) if next payment is due June 16, 2014           75% (. E file tax return 2011 75) if next payment is due September 15,  2014           100% (1. E file tax return 2011 00) if next payment is due January 15,  2015 2. E file tax return 2011 3,075     3. E file tax return 2011 Estimated tax payments for all previous periods 3. E file tax return 2011 900     4. E file tax return 2011 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. E file tax return 2011 $2,175       Note. E file tax return 2011 If the payment on line 4 is due January 15, 2015, stop here. E file tax return 2011 Otherwise, go to line 5. E file tax return 2011         5. E file tax return 2011 Add lines 3 and 4 5. E file tax return 2011 3,075 6. E file tax return 2011 Subtract line 5 from line 1 and enter the result (but not less than zero) 6. E file tax return 2011 1,025 7. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 $1,025 Worksheet 2-14. E file tax return 2011 Amended Estimated Tax Worksheet—Blank               1. E file tax return 2011 Amended total estimated tax due 1. E file tax return 2011   2. E file tax return 2011 Multiply line 1 by:           50% (. E file tax return 2011 50) if next payment is due June 16, 2014           75% (. E file tax return 2011 75) if next payment is due September 15,  2014           100% (1. E file tax return 2011 00) if next payment is due January 15,  2015 2. E file tax return 2011       3. E file tax return 2011 Estimated tax payments for all previous periods 3. E file tax return 2011       4. E file tax return 2011 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. E file tax return 2011         Note. E file tax return 2011 If the payment on line 4 is due January 15, 2015, stop here. E file tax return 2011 Otherwise, go to line 5. E file tax return 2011         5. E file tax return 2011 Add lines 3 and 4 5. E file tax return 2011   6. E file tax return 2011 Subtract line 5 from line 1 and enter the result (but not less than zero) 6. E file tax return 2011   7. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011   Underpayment penalty. E file tax return 2011   The penalty is figured separately for each payment period. E file tax return 2011 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. E file tax return 2011 To see how you may be able to avoid or reduce this penalty, see Annualized Income Installment Method (Schedule AI) in chapter 4. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 To see whether you can pay less for any period, complete the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9). E file tax return 2011 You first must complete the 2014 Estimated Tax Worksheet (Worksheet 2-1) through line 16b. E file tax return 2011 Use the result you figure on line 32 of Worksheet 2-9 to make your estimated tax payments and complete your payment vouchers. E file tax return 2011 Note. E file tax return 2011 If you use the annualized income installment method to figure your estimated tax payments, you must file Form 2210 with your 2014 tax return. E file tax return 2011 See Annualized Income Installment Method (Schedule AI) in chapter 4 for more information. E file tax return 2011 Instructions for the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9) Use Worksheet 2-9 to help you follow these instructions. E file tax return 2011 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. E file tax return 2011 The top of the worksheet shows the dates for each payment period. E file tax return 2011 The periods build; that is, each period includes all previous periods. E file tax return 2011 After the end of each payment period, complete the corresponding worksheet column to figure the payment due for that period. E file tax return 2011 Line 1. E file tax return 2011   Enter your AGI for the period. E file tax return 2011 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. E file tax return 2011 See Expected AGI—Line 1 , earlier. E file tax return 2011 Self-employment income. E file tax return 2011   If you had self-employment income, first complete Section B of this worksheet. E file tax return 2011 Use the amounts on line 43 when figuring your expected AGI to enter in each column of Section A, line 1. E file tax return 2011 Line 4. E file tax return 2011   Be sure to consider all deduction limits figured on Schedule A (Form 1040), such as reducing your medical expenses by 10% (7. E file tax return 2011 5% if either you or your spouse was born before January 2, 1950) or reducing certain miscellaneous deductions by 2% of your AGI. E file tax return 2011 Figure your deduction limits using your expected AGI in the corresponding column of line 1 (2014 Annualized Estimated Tax Worksheet (Worksheet 2-9)). E file tax return 2011 Line 6. E file tax return 2011   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. E file tax return 2011 In that case, use Worksheet 2-10 to figure the amount to enter on line 6. E file tax return 2011 Complete Worksheet 2–10 for each period, as necessary. E file tax return 2011 Line 7. E file tax return 2011   If you will not itemize your deductions, use Worksheet 2-4 to figure your standard deduction. E file tax return 2011 Line 10. E file tax return 2011   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. E file tax return 2011   In that case, use Worksheet 2-11 to figure the amount to enter on line 10. E file tax return 2011 Line 12. E file tax return 2011   Generally, you will use the Tax Rate Schedules to figure the tax on your annualized income. E file tax return 2011 However, see below for situations where you must use a different method to compute your estimated tax. E file tax return 2011 Tax on child's investment income. E file tax return 2011   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. E file tax return 2011 Children under age 18 at the end of 2014. E file tax return 2011 The following children if their earned income is not more than half their support. E file tax return 2011 Children age 18 at the end of 2014. E file tax return 2011 Children who are full-time students over age 18 and under age 24 at the end of 2014. E file tax return 2011 See Publication 929. E file tax return 2011 Tax on net capital gain. E file tax return 2011   The regular income tax rates for individuals do not apply to a net capital gain. E file tax return 2011 Instead, your net capital gain is taxed at a lower maximum rate. E file tax return 2011   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. E file tax return 2011 Tax on qualified dividends and capital gains. E file tax return 2011   For 2014, your capital gain and dividends rate will depend on your income. E file tax return 2011 Tax on capital gain or qualified dividends. E file tax return 2011 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. E file tax return 2011 Tax if excluding foreign earned income or excluding or deducting foreign housing. E file tax return 2011 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. E file tax return 2011 Line 13. E file tax return 2011   If you file Form 1040, add the tax from Forms 8814, 4972, and 6251 for the period. E file tax return 2011 If you file Form 1040A, add the amount from the Alternative Minimum Tax Worksheet found in the instructions. E file tax return 2011 Also include any recapture of an education credit for each period. E file tax return 2011 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. E file tax return 2011   Use the 2013 forms or worksheets to see if you will owe any of the taxes discussed above. E file tax return 2011 Figure the tax based on your income and deductions during the period shown in the column headings. E file tax return 2011 Multiply this amount by the annualization amounts shown for each column on line 2 of the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9). E file tax return 2011 Enter the result on line 13 of this worksheet. E file tax return 2011 Line 15. E file tax return 2011   Include all the nonrefundable credits you expect to claim because of events that will occur during the period. E file tax return 2011 Note. E file tax return 2011 When figuring your credits for each period, annualize any item of income or deduction to figure each credit. E file tax return 2011 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. E file tax return 2011 Line 18. E file tax return 2011   Add your expected other taxes. E file tax return 2011   Other taxes include the following. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 Amounts on Form 1040 written on the line for “other taxes” (line 60 on the 2013 Form 1040). E file tax return 2011 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. E file tax return 2011 Repayment of the first-time homebuyer credit if the home will cease to be your main home in 2014. E file tax return 2011 See Form 5405 for exceptions. E file tax return 2011 Additional Medicare Tax. E file tax return 2011 A 0. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 A self-employment loss should not be considered for purposes of this tax. E file tax return 2011 RRTA compensation should be separately compared to the threshold. E file tax return 2011 Your employer is responsible for withholding the 0. E file tax return 2011 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays you in excess of $200,000 in 2014. E file tax return 2011 You should consider this withholding, if applicable, in determining whether you need to make an estimated payment. E file tax return 2011 For more information on Additional Medicare Tax, go to IRS. E file tax return 2011 gov and enter “Additional Medicare Tax” in the search box. E file tax return 2011 Net Investment Income Tax (NIIT). E file tax return 2011 The NIIT is 3. E file tax return 2011 8% of the lesser of your net investment income or the excess of your modified adjusted gross income over a specified threshold amount. E file tax return 2011 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. E file tax return 2011 gov and enter “Net Investment Income Tax” in the search box. E file tax return 2011 Line 20. E file tax return 2011   Include all the refundable credits (other than withholding credits) you can claim because of events that occurred during the period. E file tax return 2011 Note. E file tax return 2011 When figuring your refundable credits for each period, annualize any item of income or deduction used to figure each credit. E file tax return 2011 Line 29. E file tax return 2011   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. E file tax return 2011 Line 31. E file tax return 2011   For each period, include estimated tax payments made and any excess social security and railroad retirement tax. E file tax return 2011   Also include estimated federal income tax withholding. E file tax return 2011 One-fourth of your estimated withholding is considered withheld on the due date of each payment period. E file tax return 2011 To figure the amount to include on line 31 for each period, multiply your total expected withholding for 2014 by: 25% (. E file tax return 2011 25) for the first period, 50% (. E file tax return 2011 50) for the second period, 75% (. E file tax return 2011 75) for the third period, and 100% (1. E file tax return 2011 00) for the fourth period. E file tax return 2011   However, you may choose to include your withholding according to the actual dates on which the amounts will be withheld. E file tax return 2011 For each period, include withholding made from the beginning of the period up to and including the payment due date. E file tax return 2011 You can make this choice separately for the taxes withheld from your wages and all other withholding. E file tax return 2011 For an explanation of what to include in withholding, see Total Estimated Tax Payments Needed—Line 16a , earlier. E file tax return 2011 Nonresident aliens. E file tax return 2011   If you will file Form 1040NR and you do not receive wages as an employee subject to U. E file tax return 2011 S. E file tax return 2011 income tax withholding, the instructions for the worksheet are modified as follows. E file tax return 2011 Skip column (a). E file tax return 2011 On line 1, enter your income for the period that is effectively connected with a U. E file tax return 2011 S. E file tax return 2011 trade or business. E file tax return 2011 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. E file tax return 2011 S. E file tax return 2011 trade or business by the following. E file tax return 2011 72% for column (b). E file tax return 2011 45% for column (c). E file tax return 2011 30% for column (d). E file tax return 2011 However, if you can use a treaty rate lower than 30%, use the percentages determined by multiplying your treaty rate by 2. E file tax return 2011 4, 1. E file tax return 2011 5, and 1, respectively. E file tax return 2011 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. E file tax return 2011 On lines 24 and 27, skip column (b). E file tax return 2011 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). E file tax return 2011 See Publication 519 for more information. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 How To Pay Estimated Tax There are several ways to pay estimated tax. E file tax return 2011 Credit an overpayment on your 2013 return to your 2014 estimated tax. E file tax return 2011 Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. E file tax return 2011 Send in your payment (check or money order) with a payment voucher from Form 1040-ES. E file tax return 2011 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. E file tax return 2011 On Form 1040, or Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. E file tax return 2011 Take the amount you have credited into account when figuring your estimated tax payments. E file tax return 2011 If you timely file your 2013 return, treat the credit as a payment made on April 15, 2014. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 You also cannot use that overpayment in any other way. E file tax return 2011 Example. E file tax return 2011 When Kathleen finished filling out her 2013 tax return, she saw that she had overpaid her taxes by $750. E file tax return 2011 Kathleen knew she would owe additional tax in 2014. E file tax return 2011 She credited $600 of the overpayment to her 2014 estimated tax and had the remaining $150 refunded to her. E file tax return 2011 In September, she amended her 2013 return by filing Form 1040X, Amended U. E file tax return 2011 S. E file tax return 2011 Individual Income Tax Return. E file tax return 2011 It turned out that she owed $250 more in tax than she had thought. E file tax return 2011 This reduced her 2013 overpayment from $750 to $500. E file tax return 2011 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. E file tax return 2011 Kathleen could not use any of the $600 she had credited to her 2014 estimated tax to pay this bill. E file tax return 2011 Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. E file tax return 2011 You can make your estimated tax payments online when you e-file or at any time during the year. E file tax return 2011 You can pay using either of the following electronic payment methods. E file tax return 2011 Direct transfer from your bank account. E file tax return 2011 Credit or debit card. E file tax return 2011 To pay your taxes online or for more information, go to www. E file tax return 2011 irs. E file tax return 2011 gov/e-pay. E file tax return 2011 Pay by Phone Paying by phone is another safe and secure method of paying electronically. E file tax return 2011 Use one of the following methods. E file tax return 2011 Direct transfer from your bank account. E file tax return 2011 Credit or debit card. E file tax return 2011 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. E file tax return 2011 To pay using a credit or debit card, you can call one of the following service providers. E file tax return 2011 There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. E file tax return 2011 WorldPay 1-888-9-PAY-TAXTM (1-888-972-9829) www. E file tax return 2011 payUSAtax. E file tax return 2011 com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. E file tax return 2011 officialpayments. E file tax return 2011 com Link2GOV Corporation 1-888-PAY-1040TM (1-888-729-1040) www. E file tax return 2011 PAY1040. E file tax return 2011 com For the latest details on how to pay by phone, go to www. E file tax return 2011 irs. E file tax return 2011 gov/e-pay. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 Do not use the address shown in the Form 1040 or Form 1040A instructions. E file tax return 2011 If you did not pay estimated tax last year, get a copy of Form 1040-ES from the IRS (see chapter 5). E file tax return 2011 Follow the instructions to make sure you use the vouchers correctly. E file tax return 2011 Joint estimated tax payments. E file tax return 2011    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. E file tax return 2011 Change of address. E file tax return 2011    You must notify the IRS if you are making estimated tax payments and you changed your address during the year. E file tax return 2011 Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. E file tax return 2011 Worksheets for Chapter 2 Use the following worksheets and tables to figure your correct estimated tax. E file tax return 2011 IF you need. E file tax return 2011 . E file tax return 2011 . E file tax return 2011 THEN use. E file tax return 2011 . E file tax return 2011 . E file tax return 2011 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. E file tax return 2011 Use them only to figure your 2014 estimated taxes. E file tax return 2011 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. E file tax return 2011 0%   $0 $0 $12,950     10. E file tax return 2011 0%   $0 9,075 36,900 $907. E file tax return 2011 50 + 15. E file tax return 2011 0%   9,075 12,950 49,400 $1,295. E file tax return 2011 00 + 15. E file tax return 2011 0%   12,950 36,900 89,350 5,081. E file tax return 2011 25 + 25. E file tax return 2011 0%   36,900 49,400 127,550 6,762. E file tax return 2011 50 + 25. E file tax return 2011 0%   49,400 89,350 186,350 18,193. E file tax return 2011 75 + 28. E file tax return 2011 0%   89,350 127,550 206,600 26,300. E file tax return 2011 00 + 28. E file tax return 2011 0%   127,550 186,350 405,100 45,353. E file tax return 2011 75 + 33. E file tax return 2011 0%   186,350 206,600 405,100 48,434. E file tax return 2011 00 + 33. E file tax return 2011 0%   206,600 405,100 406,750 117,541. E file tax return 2011 25 + 35. E file tax return 2011 0%   405,100 405,100 432,200 113,939. E file tax return 2011 00 + 35. E file tax return 2011 0%   405,100 406,750 - - - - - - 118,118. E file tax return 2011 75 + 39. E file tax return 2011 6%   406,750 432,200 - - - - - - 123,424. E file tax return 2011 00 + 39. E file tax return 2011 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. E file tax return 2011 0%   $0 $0 $9,075     10. E file tax return 2011 0%   $0 18,150 73,800 $1,815. E file tax return 2011 00 + 15. E file tax return 2011 0%   18,150 9,075 36,900 $907. E file tax return 2011 50 + 15. E file tax return 2011 0%   9,075 73,800 148,850 10,162. E file tax return 2011 50 + 25. E file tax return 2011 0%   73,800 36,900 74,425 5,081. E file tax return 2011 25 + 25. E file tax return 2011 0%   36,900 148,850 226,850 28,925. E file tax return 2011 00 + 28. E file tax return 2011 0%   148,850 74,425 113,425 14,462. E file tax return 2011 50 + 28. E file tax return 2011 0%   74,425 226,850 405,100 50,765. E file tax return 2011 00 + 33. E file tax return 2011 0%   226,850 113,425 202,550 25,382. E file tax return 2011 50 + 33. E file tax return 2011 0%   113,425 405,100 457,600 109,587. E file tax return 2011 50 + 35. E file tax return 2011 0%   405,100 202,550 228,800 54,793. E file tax return 2011 75 + 35. E file tax return 2011 0%   202,550 457,600 - - - - - - 127,962. E file tax return 2011 50 + 39. E file tax return 2011 6%   457,600 228,800 - - - - - - 63,981. E file tax return 2011 25 + 39. E file tax return 2011 6%   228,800                             Worksheet 2-1. E file tax return 2011 2014 Estimated Tax Worksheet When this worksheet refers you to instructions, you can find those instructions in the Instructions for 2014 Form 1040-ES. E file tax return 2011 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. E file tax return 2011  Caution: If line 1 is over $152,525, your deduction may be reduced. E file tax return 2011 See Worksheet 2-5. E file tax return 2011 If you do not plan to itemize deductions, enter your standard deduction. E file tax return 2011 2     3 Subtract line 2 from line 1 3     4 Exemptions. E file tax return 2011 Multiply $3,950 by the number of personal exemptions. E file tax return 2011  Caution: If line 1 is over $152,525, the amount of your personal exemptions may be limited. E file tax return 2011 See Worksheet 2-6. E file tax return 2011 4     5 Subtract line 4 from line 3 5     6 Tax. E file tax return 2011 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. E file tax return 2011 Add to this amount any other taxes you expect to include in the total on Form 1040, line 44 8     9 Credits (see instructions). E file tax return 2011 Do not include any income tax withholding on this line 9     10 Subtract line 9 from line 8. E file tax return 2011 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. E file tax return 2011 Subtract line 13b from line 13a. E file tax return 2011 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. E file tax return 2011 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. E file tax return 2011 To avoid a penalty, make sure your estimate on line 13c is as accurate as possible. E file tax return 2011 Even if you pay the required annual payment, you may still owe tax when you file your return. E file tax return 2011 If you prefer, you can pay the amount shown on line 13c. E file tax return 2011                         15 Income tax withheld and estimated to be withheld during 2014 (including income tax withholding on pensions, annuities, certain deferred income, etc. E file tax return 2011 ) 15     16a Subtract line 15 from line 14c 16a             Is the result zero or less? □ Yes. E file tax return 2011 Stop here. E file tax return 2011 You are not required to make estimated tax payments. E file tax return 2011  □ No. E file tax return 2011 Go to line 16b. E file tax return 2011             b Subtract line 15 from line 13c 16b             Is the result less than $1,000? □ Yes. E file tax return 2011 Stop here. E file tax return 2011 You are not required to make estimated tax payments. E file tax return 2011  □ No. E file tax return 2011 Go to line 17 to figure your required payment. E file tax return 2011                         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. E file tax return 2011 2014 Estimated Tax Worksheet—Line 1 Estimated Taxable Social Security and Railroad Retirement Benefits Note. E file tax return 2011 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. E file tax return 2011     1. E file tax return 2011 Enter your expected social security and railroad retirement benefits 1. E file tax return 2011   2. E file tax return 2011 Enter one-half of line 1 2. E file tax return 2011   3. E file tax return 2011 Enter your expected total income. E file tax return 2011 Do not include any social security and railroad retirement benefits, nontaxable interest income, nontaxable IRA distributions, or nontaxable pension distributions 3. E file tax return 2011   4. E file tax return 2011 Enter your expected nontaxable interest income 4. E file tax return 2011   5. E file tax return 2011 Enter (as a positive amount) the total of any expected exclusions or deductions for: U. E file tax return 2011 S. E file tax return 2011 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. E file tax return 2011   6. E file tax return 2011 Add lines 2, 3, 4, and 5 6. E file tax return 2011   7. E file tax return 2011 Enter your expected adjustments to income. E file tax return 2011 Do not include any student loan interest deduction 7. E file tax return 2011   8. E file tax return 2011 Subtract line 7 from line 6. E file tax return 2011 If zero or less, stop here. E file tax return 2011  Note. E file tax return 2011 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. E file tax return 2011   9. E file tax return 2011 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. E file tax return 2011   10. E file tax return 2011 Subtract line 9 from line 8. E file tax return 2011 If zero or less, stop here. E file tax return 2011  Note. E file tax return 2011 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. E file tax return 2011   11. E file tax return 2011 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. E file tax return 2011   12. E file tax return 2011 Subtract line 11 from line 10. E file tax return 2011 If zero or less, enter -0- 12. E file tax return 2011   13. E file tax return 2011 Enter the smaller of line 10 or line 11 13. E file tax return 2011   14. E file tax return 2011 Enter one-half of line 13 14. E file tax return 2011   15