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Form 1040 V Payment Voucher

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Form 1040 V Payment Voucher

Form 1040 v payment voucher 2. Form 1040 v payment voucher   Fuel Tax Credits and Refunds Table of Contents Gasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. Form 1040 v payment voucher Providing information. Form 1040 v payment voucher Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. Form 1040 v payment voucher Fuel used between airfield and farm. Form 1040 v payment voucher Fuel not used for farming. Form 1040 v payment voucher Vehicles not considered highway vehicles. Form 1040 v payment voucher Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Federal excise taxes are imposed on certain fuels as discussed in chapter 1. Form 1040 v payment voucher This chapter lists the nontaxable uses of each fuel and defines the nontaxable uses. Form 1040 v payment voucher Information on the refund of second tax is included. Form 1040 v payment voucher This chapter also explains credits and refunds for the biodiesel or renewable diesel mixture credits, and the alternative fuel mixture and alternative fuel credits. Form 1040 v payment voucher Information on how to make a claim for credit or refund is included in this chapter and in the instructions for: Form 720, Form 4136, and Form 8849. Form 1040 v payment voucher Exported taxable fuel. Form 1040 v payment voucher   The claim rates for exported taxable fuel are listed on Schedule C (Form 720), Schedule 1 (Form 8849), and Form 4136. Form 1040 v payment voucher Taxpayers making a claim for exported taxable fuel must include with their records proof of exportation. Form 1040 v payment voucher Proof of exportation includes: A copy of the export bill of lading issued by the delivering carrier, A certificate by the agent or representative of the export carrier showing actual exportation of the fuel, A certificate of lading signed by a customs officer of the foreign country to which the fuel is exported, or A statement of the foreign consignee showing receipt of the fuel. Form 1040 v payment voucher Gasoline and Aviation Gasoline Ultimate Purchasers. Form 1040 v payment voucher   The following are the uses of gasoline (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Form 1040 v payment voucher On a farm for farming purposes (credit only). Form 1040 v payment voucher Off-highway business use. Form 1040 v payment voucher Export. Form 1040 v payment voucher In a boat engaged in commercial fishing. Form 1040 v payment voucher In certain intercity and local buses. Form 1040 v payment voucher In a school bus. Form 1040 v payment voucher Exclusive use by a qualified blood collector organization. Form 1040 v payment voucher In a highway vehicle owned by the United States that is not used on a highway. Form 1040 v payment voucher Exclusive use by a nonprofit educational organization (see Sales by registered ultimate vendors and Credit Card Purchases, later). Form 1040 v payment voucher Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit Card Purchases, later). Form 1040 v payment voucher In an aircraft or vehicle owned by an aircraft museum. Form 1040 v payment voucher   The following are the uses of aviation gasoline for which a credit or refund may be allowable to an ultimate purchaser. Form 1040 v payment voucher On a farm for farming purposes (credit only). Form 1040 v payment voucher Export. Form 1040 v payment voucher In foreign trade. Form 1040 v payment voucher Certain helicopter and fixed-wing air ambulance uses. Form 1040 v payment voucher In commercial aviation (other than foreign trade). Form 1040 v payment voucher Exclusive use by a qualified blood collector organization. Form 1040 v payment voucher Exclusive use by a nonprofit education organization (see Sales by registered ultimate vendors and Credit card purchases, later). Form 1040 v payment voucher Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit and purchases, later). Form 1040 v payment voucher In an aircraft owned by an aircraft museum. Form 1040 v payment voucher In military aircraft. Form 1040 v payment voucher Claims by persons who paid the tax to the government. Form 1040 v payment voucher   Except for sales to nonprofit educational organizations and states and local governments, a credit or refund is allowable to the person that paid the tax to the government if the gasoline was sold to the ultimate purchaser (including an exporter) by either that person or by a retailer and the fuel was exported; used or sold for use as supplies for vessels or aircraft, including military aircraft, commercial fishing, and foreign trade; sold to a qualified blood collector organization; or used or sold for use in the production of Other Fuels. Form 1040 v payment voucher See Filing Claims, later. Form 1040 v payment voucher Sales by registered ultimate vendors. Form 1040 v payment voucher   This is an ultimate vendor that sells gasoline or aviation gasoline to any of the following and that is purchased without the use of a credit card. Form 1040 v payment voucher A state or local government for its exclusive use (including essential government use by an Indian tribal government). Form 1040 v payment voucher A nonprofit educational organization for its exclusive use. Form 1040 v payment voucher   The registered ultimate vendor may make the claim if the ultimate purchaser did not use a credit card and waives its right to the credit or refund by providing the registered ultimate vendor with a certificate. Form 1040 v payment voucher A sample certificate is included as Model Certificate M in the Appendix. Form 1040 v payment voucher The registered ultimate vendor must have the certificate at the time the credit or refund is claimed. Form 1040 v payment voucher   The ultimate vendor must be registered by the IRS. Form 1040 v payment voucher See Registration Requirements, earlier. Form 1040 v payment voucher Credit card purchases. Form 1040 v payment voucher   If gasoline and aviation gasoline are purchased with a credit card issued to a state or local government for its exclusive use (including essential government use by an Indian tribal government), or a nonprofit educational organization for its exclusive use, the person who extended credit to the ultimate purchaser (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the gasoline or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Form 1040 v payment voucher   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Form 1040 v payment voucher How to make the claim. Form 1040 v payment voucher   If the claim is made by the credit card issuer, see Schedule C  (Form 720) or Schedule 8 (Form 8849). Form 1040 v payment voucher Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) For conditions to an allowance of a credit or refund on exported dyed diesel fuel and dyed kerosene, see Exported taxable fuel, earlier. Form 1040 v payment voucher Ultimate purchasers. Form 1040 v payment voucher   The following are nontaxable uses of diesel fuel and kerosene (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Form 1040 v payment voucher On a farm for farming purposes. Form 1040 v payment voucher Off-highway business use. Form 1040 v payment voucher Export. Form 1040 v payment voucher In a qualified local bus. Form 1040 v payment voucher In a school bus. Form 1040 v payment voucher Other than as a fuel in a propulsion engine of a diesel-powered highway vehicle (such as home heating oil). Form 1040 v payment voucher Exclusive use by a qualified blood collector organization. Form 1040 v payment voucher In a highway vehicle owned by the United States that is not used on a highway. Form 1040 v payment voucher Exclusive use by a nonprofit educational organization (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Form 1040 v payment voucher Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Form 1040 v payment voucher In a vehicle owned by an aircraft museum. Form 1040 v payment voucher As a fuel in a propulsion engine of a diesel-powered train. Form 1040 v payment voucher Sales by Registered Ultimate Vendors The following are the sales for which a credit or refund may be allowable to the registered ultimate vendor only. Form 1040 v payment voucher Undyed diesel fuel or undyed kerosene sold for the exclusive use by a state or local government (if credit card rules (defined later) do not apply), Undyed kerosene sold from a blocked pump (defined below), or Undyed diesel fuel or undyed kerosene used in certain intercity and local buses, only if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Form 1040 v payment voucher Registered ultimate vendor (state use). Form 1040 v payment voucher   This is a person that sells undyed diesel fuel or undyed kerosene to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Form 1040 v payment voucher The diesel fuel or kerosene must be purchased by the state without the use of a credit card, issued to the state by the credit card issuer, in order for the ultimate vendor to make the claim. Form 1040 v payment voucher The ultimate vendor must be registered by the IRS. Form 1040 v payment voucher See Registration Requirements, earlier. Form 1040 v payment voucher Registered ultimate vendor (blocked pump). Form 1040 v payment voucher   This is an ultimate vendor that sells undyed kerosene from a blocked pump. Form 1040 v payment voucher   A credit or refund may be allowable to a registered ultimate vendor (blocked pump) if the vendor sold to a buyer undyed kerosene from a blocked pump for use other than as a fuel in a diesel-powered highway vehicle and the vendor had no reason to believe the kerosene would not be used in that manner. Form 1040 v payment voucher Blocked pump. Form 1040 v payment voucher   A blocked pump is a fuel pump that meets all the following requirements. Form 1040 v payment voucher It is used to make retail sales of undyed kerosene for use by the buyer in any nontaxable use. Form 1040 v payment voucher It is at a fixed location. Form 1040 v payment voucher It is identified with a legible and conspicuous notice stating, “UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY. Form 1040 v payment voucher ” It meets either of the following conditions. Form 1040 v payment voucher It cannot reasonably be used to dispense fuel directly into the fuel supply tank of a diesel-powered highway vehicle or train. Form 1040 v payment voucher It is locked by the vendor after each sale and unlocked by the vendor only in response to a buyer's request for undyed kerosene for use other than as a fuel in a diesel-powered highway vehicle or train. Form 1040 v payment voucher Registered ultimate vendor (certain intercity and local buses). Form 1040 v payment voucher   This is an ultimate vendor that sells undyed diesel fuel or undyed kerosene to the ultimate purchaser for use in certain intercity and local buses. Form 1040 v payment voucher   The registered ultimate vendor may make the claim if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Form 1040 v payment voucher A sample waiver is included as Model Waiver N in the Appendix. Form 1040 v payment voucher The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Form 1040 v payment voucher Credit Card Purchases. Form 1040 v payment voucher   If undyed diesel fuel or kerosene is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the diesel fuel or kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Form 1040 v payment voucher   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Form 1040 v payment voucher Diesel-Water Fuel Emulsion A claim for credit or refund may be made for the nontaxable use of a diesel-water fuel emulsion and for undyed diesel fuel used to produce a diesel-water fuel emulsion. Form 1040 v payment voucher The claim rate for nontaxable use of a diesel-water fuel emulsion taxed at $. Form 1040 v payment voucher 198 per gallon is $. Form 1040 v payment voucher 197 (if exported, the claim rate is $. Form 1040 v payment voucher 198). Form 1040 v payment voucher The following are the nontaxable uses for a diesel-water fuel emulsion for which a credit or refund may be allowable to an ultimate purchaser. Form 1040 v payment voucher On a farm for farming purposes. Form 1040 v payment voucher Off-highway business use. Form 1040 v payment voucher Export. Form 1040 v payment voucher In a qualified local bus. Form 1040 v payment voucher In a school bus. Form 1040 v payment voucher Other than as fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway use). Form 1040 v payment voucher Exclusive use by a qualified blood collector organization. Form 1040 v payment voucher In a highway vehicle owned by the United States that is not used on a highway. Form 1040 v payment voucher Exclusive use by a nonprofit educational organization. Form 1040 v payment voucher Exclusive use by a state, political subdivision of a state, or the District of Columbia. Form 1040 v payment voucher In an aircraft or vehicle owned by an aircraft museum. Form 1040 v payment voucher Blender claims. Form 1040 v payment voucher   The claim rate for undyed diesel fuel taxed at $. Form 1040 v payment voucher 244 and used to produce a diesel-water fuel emulsion is $. Form 1040 v payment voucher 046 per gallon of diesel fuel so used. Form 1040 v payment voucher The blender must be registered by the IRS in order to make the claim. Form 1040 v payment voucher The blender must attach a statement to the claim certifying that: The diesel-water fuel emulsion contains at least 14% water, The emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003, Undyed diesel fuel taxed at $. Form 1040 v payment voucher 244 was used to produce the diesel-water fuel emulsion, and The diesel-water fuel emulsion was used or sold for use in the blender's trade or business. Form 1040 v payment voucher Kerosene for Use in Aviation Ultimate purchasers. Form 1040 v payment voucher   Ultimate purchasers of kerosene used in certain aviation uses may make a claim if the rate of tax on their use is less than the rate of tax that was charged on the kerosene. Form 1040 v payment voucher   The ultimate purchaser of the kerosene used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) is eligible to make a claim if the ultimate purchaser certifies that the right to make the claim has not been waived. Form 1040 v payment voucher Generally, the ultimate purchaser is the aircraft operator. Form 1040 v payment voucher   The following are the nontaxable uses of kerosene used in noncommercial aviation for which a credit or refund may be allowable to the ultimate purchaser. Form 1040 v payment voucher On a farm for farming purposes. Form 1040 v payment voucher Certain helicopter and fixed-wing aircraft uses. Form 1040 v payment voucher Exclusive use by a qualified blood collector organization. Form 1040 v payment voucher Exclusive use by a nonprofit educational organization. Form 1040 v payment voucher In an aircraft owned by an aircraft museum. Form 1040 v payment voucher In military aircraft. Form 1040 v payment voucher Kerosene for use partly in commercial aviation and partly in nonexempt, noncommercial aviation. Form 1040 v payment voucher   If the fuel is used partly for use in commercial aviation and partly for use in nonexempt, noncommercial aviation, the operator may identify, either at the time of purchase or after the kerosene has been used, the amount that will be (or has been) used in commercial aviation. Form 1040 v payment voucher At the same time, the operator would either make the claim or waive the right to make the claim for credit or refund of the kerosene for use in commercial and nonexempt, noncommercial aviation. Form 1040 v payment voucher   If the operator does not identify the amount of kerosene that will be (or has been) used in commercial aviation, the operator may provide a certificate to the ultimate vendor similar to Model Certificate Q in the Appendix. Form 1040 v payment voucher For kerosene purchased with the certificate, used in commercial aviation, and taxed at $. Form 1040 v payment voucher 244 per gallon, use of the certificate will be treated as a waiver of the right to claim a credit or refund for the $. Form 1040 v payment voucher 025 per gallon part of the tax. Form 1040 v payment voucher The ultimate vendor may make this claim. Form 1040 v payment voucher The operator may make a claim for the $. Form 1040 v payment voucher 175 tax per gallon of the kerosene, but cannot waive the right to make the claim for the $. Form 1040 v payment voucher 175 tax per gallon. Form 1040 v payment voucher Sales by Registered Ultimate Vendors Kerosene for use in commercial aviation or noncommercial aviation. Form 1040 v payment voucher   The registered ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may make this claim if the ultimate purchaser waives its right to the credit or payment by providing the registered ultimate vendor with a waiver. Form 1040 v payment voucher A sample waiver is included as Model Waiver L in the Appendix. Form 1040 v payment voucher The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Form 1040 v payment voucher   Noncommercial aviation means any use of an aircraft not described as commercial aviation. Form 1040 v payment voucher For the definition of commercial aviation, see Commercial aviation on page 11. Form 1040 v payment voucher Kerosene for use in nonexempt, noncommercial aviation. Form 1040 v payment voucher   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in nonexempt, noncommercial aviation. Form 1040 v payment voucher The ultimate vendor must be registered by the IRS (activity letter UA) and have the required certificate from the ultimate purchaser. Form 1040 v payment voucher A sample certificate is included as Model Certificate Q in the Appendix. Form 1040 v payment voucher The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Form 1040 v payment voucher Kerosene for use in aviation by a state or local government. Form 1040 v payment voucher   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in aviation to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Form 1040 v payment voucher The kerosene for use in aviation must be purchased by the state without the use of a credit card in order for the ultimate vendor to make the claim. Form 1040 v payment voucher The ultimate vendor must be registered by the IRS (activity letter UV) and have the required certificate from the ultimate purchaser. Form 1040 v payment voucher A sample certificate is included as Model Certificate P in the Appendix. Form 1040 v payment voucher The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Form 1040 v payment voucher Credit card purchases. Form 1040 v payment voucher   If taxed kerosene for use in aviation is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Form 1040 v payment voucher   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Form 1040 v payment voucher Other Fuels (Including Alternative Fuels) Credit or refund for nontaxable use of taxed Other Fuels may be allowable to an ultimate purchaser. Form 1040 v payment voucher While tax is generally imposed on delivery, Other Fuels are taxed prior to delivery in the case of certain bulk sales described in chapter 1. Form 1040 v payment voucher The following are the nontaxable uses of Other Fuels for which a credit or refund may be allowable to the ultimate purchaser. Form 1040 v payment voucher On a farm for farming purposes. Form 1040 v payment voucher Off-highway business use. Form 1040 v payment voucher In a boat engaged in commercial fishing. Form 1040 v payment voucher In certain intercity and local buses. Form 1040 v payment voucher In a school bus. Form 1040 v payment voucher In a qualified local bus. Form 1040 v payment voucher Exclusive use by a qualified blood collector organization. Form 1040 v payment voucher Exclusive use by a nonprofit educational organization. Form 1040 v payment voucher Exclusive use by a state, political subdivision of a state, or the District of Columbia. Form 1040 v payment voucher In an aircraft or vehicle owned by an aircraft museum. Form 1040 v payment voucher Use in any boat operated by the United States for its exclusive use or any vessel of war of any foreign nation. Form 1040 v payment voucher See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit, later. Form 1040 v payment voucher Refunds of Second Tax The tax on dyed diesel fuel for inland waterways fuel use applies at the rate listed on Form 720. Form 1040 v payment voucher This is in addition to all other taxes imposed on the sale or use of the fuel. Form 1040 v payment voucher The section 4081(e) refund (discussed below) cannot be claimed. Form 1040 v payment voucher If the tax is paid and reported to the government on more than one taxable event for a taxable fuel under section 4081, the person paying the “second tax” may claim a refund (without interest) of that tax if certain conditions and reporting requirements are met. Form 1040 v payment voucher No credit against any tax is allowed for this tax. Form 1040 v payment voucher For information about taxable events, see the discussions under Gasoline, Diesel Fuel and Kerosene and Kerosene for Use in Aviation in chapter 1. Form 1040 v payment voucher Conditions to allowance of refund. Form 1040 v payment voucher   A claim for refund of the tax is allowed only if all the following conditions are met. Form 1040 v payment voucher A tax on the fuel was paid to the government and not credited or refunded (the “first tax”). Form 1040 v payment voucher After the first tax was imposed, another tax was imposed on the same fuel and was paid to the government (the “second tax”). Form 1040 v payment voucher The person that paid the second tax filed a timely claim for refund containing the information required (see Refund claim, later). Form 1040 v payment voucher The person that paid the first tax has met the reporting requirements, discussed next. Form 1040 v payment voucher Reporting requirements. Form 1040 v payment voucher   Generally, the person that paid the first tax must file a “First Taxpayer's Report” with its Form 720 for the quarter to which the report relates. Form 1040 v payment voucher A model first taxpayer's report is shown in the Appendix as Model Certificate B. Form 1040 v payment voucher The report must contain all information needed to complete the model. Form 1040 v payment voucher   By the due date for filing the Form 720, you must also send a separate copy of the report to the following address. Form 1040 v payment voucher Department of the Treasury Internal Revenue Service  Cincinnati, OH 45999-0555 Write “EXCISE – FIRST TAXPAYER'S REPORT” across the top of that copy. Form 1040 v payment voucher Optional reporting. Form 1040 v payment voucher   A first taxpayer's report is not required for the tax imposed on: Removal at a terminal rack, Nonbulk entries into the United States, and Removals or sales by blenders. Form 1040 v payment voucher However, if the person liable for the tax expects that another tax will be imposed on that fuel, that person should (but is not required to) file a first taxpayer's report. Form 1040 v payment voucher Providing information. Form 1040 v payment voucher   The first taxpayer must give a copy of the report to the buyer of the fuel within the bulk transfer/terminal system or to the owner of the fuel immediately before the first tax was imposed, if the first taxpayer is not the owner at that time. Form 1040 v payment voucher If an optional report is filed, a copy should (but is not required to) be given to the buyer or owner. Form 1040 v payment voucher   A person that receives a copy of the first taxpayer's report and later sells the fuel within the bulk transfer/terminal system must give the copy and a “Statement of Subsequent Seller” to the buyer. Form 1040 v payment voucher If the later sale is outside the bulk transfer/terminal system and that person expects that another tax will be imposed, that person should (but is not required to) give the copy and the statement to the buyer. Form 1040 v payment voucher A model statement of subsequent seller is shown in the Appendix as Model Certificate A. Form 1040 v payment voucher The statement must contain all information necessary to complete the model. Form 1040 v payment voucher   If the first taxpayer's report relates to fuel sold to more than one buyer, copies of that report must be made when the fuel is divided. Form 1040 v payment voucher Each buyer must be given a copy of the report. Form 1040 v payment voucher Refund claim. Form 1040 v payment voucher   You must have filed Form 720 and paid the second tax before you file for a refund of that tax. Form 1040 v payment voucher You must make your claim for refund on Form 8849. Form 1040 v payment voucher Complete Schedule 5 (Form 8849) and attach it to your Form 8849. Form 1040 v payment voucher Do not include this claim with a claim under another tax provision. Form 1040 v payment voucher You must not have included the second tax in the price of the fuel and must not have collected it from the purchaser. Form 1040 v payment voucher You must submit the following information with your claim. Form 1040 v payment voucher A copy of the first taxpayer's report (discussed earlier). Form 1040 v payment voucher A copy of the statement of subsequent seller if the fuel was bought from someone other than the first taxpayer. Form 1040 v payment voucher Definitions of Nontaxable Uses This section provides definitions of the terms used in Table 2-1 for nontaxable uses. Form 1040 v payment voucher If applicable, the type of use number from Table 2-1 is indicated in each heading. Form 1040 v payment voucher Type of use table. Form 1040 v payment voucher   The first column of the table is the number you enter on Form 4136, Form 8849, or Schedule C (Form 720) for that type of use. Form 1040 v payment voucher For type of use 2, the mobile machinery parenthetical applies only to Form 8849 and Form 720. Form 1040 v payment voucher Table 2-1. Form 1040 v payment voucher Type of Use Table No. Form 1040 v payment voucher Type of Use 1 On a farm for farming purposes 2 Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway use) (other than use in mobile machinery) 3 Export 4 In a boat engaged in commercial fishing 5 In certain intercity and local buses 6 In a qualified local bus 7 In a bus transporting students and employees of schools (school buses) 8 For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway business use) 9 In foreign trade 10 Certain helicopter and fixed-wing aircraft uses 11 Exclusive use by a qualified blood collector organization 12 In a highway vehicle owned by the United States that is not used on a highway 13 Exclusive use by a nonprofit educational organization 14 Exclusive use by a state, political subdivision of a state, or the District of Columbia 15 In an aircraft or vehicle owned by an aircraft museum 16 In military aircraft On a farm for farming purposes (No. Form 1040 v payment voucher 1). Form 1040 v payment voucher   On a farm for farming purposes means fuel used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. Form 1040 v payment voucher Farm. Form 1040 v payment voucher   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms; orchards; plantations; ranches; nurseries; ranges; and feed yards for fattening cattle. Form 1040 v payment voucher It also includes structures such as greenhouses used primarily for the raising of agricultural or horticultural commodities. Form 1040 v payment voucher A fish farm is an area where fish are grown or raised — not merely caught or harvested. Form 1040 v payment voucher Farming purposes. Form 1040 v payment voucher   As an owner, tenant, or operator, you use fuel on a farm for farming purposes if you use it in any of the following ways. Form 1040 v payment voucher To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. Form 1040 v payment voucher To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. Form 1040 v payment voucher To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. Form 1040 v payment voucher To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. Form 1040 v payment voucher For this use to qualify, you must have produced more than half the commodity so treated during the tax year. Form 1040 v payment voucher Commodity means a single raw product. Form 1040 v payment voucher For example, apples and peaches are two separate commodities. Form 1040 v payment voucher To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if the planting, etc. Form 1040 v payment voucher , is incidental to your farming operations. Form 1040 v payment voucher Your tree operations will be incidental only if they are minor in nature when compared to the total farming operations. Form 1040 v payment voucher   If any other person, such as a neighbor or custom operator, performs a service for you on your farm for any of the purposes listed in (1) or (2), you are considered to be the ultimate purchaser that used the fuel on a farm for farming purposes. Form 1040 v payment voucher However, see Custom application of fertilizer and pesticide, next. Form 1040 v payment voucher   If doubt exists whether the owner, the tenant, or the operator of the farm bought the fuel, determine who bore the cost of the fuel. Form 1040 v payment voucher For example, if the owner of a farm and the tenant equally share the cost of gasoline that is used on a farm for farming purposes, each can claim a credit for the tax on one-half the fuel used. Form 1040 v payment voucher Custom application of fertilizer and pesticide. Form 1040 v payment voucher   Fuel used on a farm for farming purposes includes fuel used in the application of fertilizer, pesticides, or other substances, including aerial applications. Form 1040 v payment voucher Generally, the applicator is treated as having used the fuel on a farm for farming purposes. Form 1040 v payment voucher For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. Form 1040 v payment voucher For kerosene used in aviation, the ultimate purchaser may make the claim or waive their right to make the claim to the registered ultimate vendor. Form 1040 v payment voucher Fuel used between airfield and farm. Form 1040 v payment voucher   Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as a farming purpose. Form 1040 v payment voucher Fuel not used for farming. Form 1040 v payment voucher   Fuel is not used on a farm for farming purposes if it is used in any of the following ways. Form 1040 v payment voucher Off the farm, such as on the highway or in noncommercial aviation, other than fuel used between the airfield and farm described above, even if the fuel is used in transporting livestock, feed, crops, or equipment. Form 1040 v payment voucher For personal use, such as mowing the lawn. Form 1040 v payment voucher In processing, packaging, freezing, or canning operations. Form 1040 v payment voucher In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. Form 1040 v payment voucher Off-highway business use (No. Form 1040 v payment voucher 2). Form 1040 v payment voucher   Off-highway business use means fuel used in a trade or business or in an income-producing activity other than as a fuel in a highway vehicle registered or required to be registered for use on public highways. Form 1040 v payment voucher The terms “highway vehicle,” “public highway,” and “registered” are defined below. Form 1040 v payment voucher Do not consider any use in a boat as an off-highway business use. Form 1040 v payment voucher   Off-highway business use includes fuels used in any of the following ways. Form 1040 v payment voucher In stationary machines such as generators, compressors, power saws, and similar equipment. Form 1040 v payment voucher For cleaning purposes. Form 1040 v payment voucher In forklift trucks, bulldozers, and earthmovers. Form 1040 v payment voucher   Generally, this use does not include nonbusiness use of fuel, such as use by minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. Form 1040 v payment voucher Example. Form 1040 v payment voucher Caroline owns a landscaping business. Form 1040 v payment voucher She uses power lawn mowers and chain saws in her business. Form 1040 v payment voucher The gasoline used in the power lawn mowers and chain saws qualifies as fuel used in an off-highway business use. Form 1040 v payment voucher The gasoline used in her personal lawn mower at home does not qualify. Form 1040 v payment voucher Highway vehicle. Form 1040 v payment voucher   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. Form 1040 v payment voucher Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. Form 1040 v payment voucher A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. Form 1040 v payment voucher A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). Form 1040 v payment voucher A special kind of cargo, goods, supplies, or materials. Form 1040 v payment voucher Some off-highway task unrelated to highway transportation, except as discussed next. Form 1040 v payment voucher Vehicles not considered highway vehicles. Form 1040 v payment voucher   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the credit or refund of fuel taxes. Form 1040 v payment voucher Specially designed mobile machinery for nontransportation functions. Form 1040 v payment voucher A self-propelled vehicle is not a highway vehicle if all the following apply. Form 1040 v payment voucher The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. Form 1040 v payment voucher The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. Form 1040 v payment voucher The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. Form 1040 v payment voucher The vehicle must have traveled less than 7,500 miles on public highways during the taxable year. Form 1040 v payment voucher Vehicles specially designed for off-highway transportation. Form 1040 v payment voucher A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicle's capability to transport a load over a public highway is substantially limited or impaired. Form 1040 v payment voucher To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. Form 1040 v payment voucher It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. Form 1040 v payment voucher Nontransportation trailers and semitrailers. Form 1040 v payment voucher A trailer or semi-trailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. Form 1040 v payment voucher For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. Form 1040 v payment voucher Public highway. Form 1040 v payment voucher   A public highway includes any road in the United States that is not a private roadway. Form 1040 v payment voucher This includes federal, state, county, and city roads and streets. Form 1040 v payment voucher Registered. Form 1040 v payment voucher   A vehicle is considered registered when it is registered or required to be registered for highway use under the law of any state, the District of Columbia, or any foreign country in which it is operated or situated. Form 1040 v payment voucher Any highway vehicle operated under a dealer's tag, license, or permit is considered registered. Form 1040 v payment voucher A highway vehicle is not considered registered solely because a special permit allows the vehicle to be operated at particular times and under specified conditions. Form 1040 v payment voucher Dual use of propulsion motor. Form 1040 v payment voucher   Off-highway business use does not include any fuel used in the propulsion motor of a registered highway vehicle even though that motor also operates special equipment by means of a power take-off or power transfer. Form 1040 v payment voucher It does not matter if the special equipment is mounted on the vehicle. Form 1040 v payment voucher Example. Form 1040 v payment voucher The motor of a registered concrete-mixer truck operates both the engine and the mixing unit by means of a power take-off. Form 1040 v payment voucher The fuel used in the motor to run the mixer is not off-highway business use. Form 1040 v payment voucher Use in separate motor. Form 1040 v payment voucher   Off-highway business use includes fuel used in a separate motor to operate special equipment, such as a refrigeration unit, pump, generator, or mixing unit. Form 1040 v payment voucher If you draw fuel from the same tank that supplies fuel to the propulsion motor, you must figure the quantity used in the separate motor operating the special equipment. Form 1040 v payment voucher You may make a reasonable estimate based on your operating experience and supported by your records. Form 1040 v payment voucher   You can use devices that measure the miles the vehicle has traveled (such as hubometers) to figure the gallons of fuel used to propel the vehicle. Form 1040 v payment voucher Add to this amount the fuel consumed while idling or warming up the motor before propelling the vehicle. Form 1040 v payment voucher The difference between your total fuel used and the fuel used to propel the vehicle is the fuel used in the separate motor. Form 1040 v payment voucher Example. Form 1040 v payment voucher Hazel owns a refrigerated truck. Form 1040 v payment voucher It has a separate motor for the refrigeration unit. Form 1040 v payment voucher The same tank supplies both motors. Form 1040 v payment voucher Using the truck's hubometer, Hazel figures that 90% of the fuel was used to propel the truck. Form 1040 v payment voucher Therefore, 10% of the fuel is used in an off-highway business use. Form 1040 v payment voucher Fuel lost or destroyed. Form 1040 v payment voucher   You cannot treat fuel lost or destroyed through spillage, fire, or other casualty as fuel used in an off-highway business use. Form 1040 v payment voucher Export (No. Form 1040 v payment voucher 3). Form 1040 v payment voucher   Export means fuel transported from the United States with the intention that the fuel remain in a foreign country or possession of the United States. Form 1040 v payment voucher Fuel is not exported if it is in the fuel supply tank of a vehicle or aircraft. Form 1040 v payment voucher In a boat engaged in commercial fishing (No. Form 1040 v payment voucher 4). Form 1040 v payment voucher   In a boat engaged in commercial fishing means fuel used in taking, catching, processing, or transporting fish, shellfish, or other aquatic life for commercial purposes, such as selling or processing the catch, on a specific trip basis. Form 1040 v payment voucher They include boats used in both fresh and salt water fishing. Form 1040 v payment voucher They do not include boats used for both sport fishing and commercial fishing on the same trip. Form 1040 v payment voucher In certain intercity and local buses (No. Form 1040 v payment voucher 5). Form 1040 v payment voucher   In certain intercity and local buses means fuel used in a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. Form 1040 v payment voucher The bus must be engaged in one of the following activities. Form 1040 v payment voucher Scheduled transportation along regular routes. Form 1040 v payment voucher Nonscheduled operations if the seating capacity of the bus is at least 20 adults, not including the driver. Form 1040 v payment voucher Vans and similar vehicles used for van-pooling or taxi service do not qualify. Form 1040 v payment voucher Available to the general public. Form 1040 v payment voucher   This means you offer service to more than a limited number of persons or organizations. Form 1040 v payment voucher If a bus operator normally provides charter operations through travel agencies but has buses available for chartering by the general public, this service is available to the general public. Form 1040 v payment voucher A bus does not qualify when its operator uses it to provide exclusive services to only one person, group, or organization. Form 1040 v payment voucher Also, intercity bus transportation does not include transporting students and employees of schools or intercity transportation in a qualified local bus. Form 1040 v payment voucher In a qualified local bus (No. Form 1040 v payment voucher 6). Form 1040 v payment voucher   In a qualified local bus means fuel used in a bus meeting all the following requirements. Form 1040 v payment voucher It is engaged in furnishing (for compensation) intracity passenger land transportation available to the general public. Form 1040 v payment voucher It operates along scheduled, regular routes. Form 1040 v payment voucher It has a seating capacity of at least 20 adults (excluding the driver). Form 1040 v payment voucher It is under contract with (or is receiving more than a nominal subsidy from) any state or local government to furnish the transportation. Form 1040 v payment voucher Intracity passenger land transportation. Form 1040 v payment voucher   This is the land transportation of passengers between points located within the same metropolitan area. Form 1040 v payment voucher It includes transportation along routes that cross state, city, or county boundaries if the routes remain within the metropolitan area. Form 1040 v payment voucher Under contract. Form 1040 v payment voucher   A bus is under contract with a state or local government only if the contract imposes a bona fide obligation on the bus operator to furnish the transportation. Form 1040 v payment voucher More than a nominal subsidy. Form 1040 v payment voucher   A subsidy is more than nominal if it is reasonably expected to exceed an amount equal to 3 cents multiplied by the number of gallons of fuel used in buses on subsidized routes. Form 1040 v payment voucher A company that operates its buses along subsidized and unsubsidized intracity routes may consider its buses qualified local buses only when the buses are used on the subsidized intracity routes. Form 1040 v payment voucher In a school bus (No. Form 1040 v payment voucher 7). Form 1040 v payment voucher   In a school bus means fuel used in a bus engaged in the transportation of students or employees of schools. Form 1040 v payment voucher A school is an educational organization with a regular faculty and curriculum and a regularly enrolled body of students who attend the place where the educational activities occur. Form 1040 v payment voucher For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel (No. Form 1040 v payment voucher 8). Form 1040 v payment voucher   Diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train (not including off-highway business use) means undyed diesel fuel and undyed kerosene used: For home heating, lighting, and cooking; In boats; In stationary machines, such as generators and compressors; For cleaning purposes; or In minibikes and snowmobiles. Form 1040 v payment voucher In foreign trade (No. Form 1040 v payment voucher 9). Form 1040 v payment voucher   In foreign trade means fuel used in civil aircraft employed in foreign trade or trade between the United States and any of its possessions. Form 1040 v payment voucher The term trade includes the transportation of persons or property for hire and the making of the necessary preparations for such transportation. Form 1040 v payment voucher In the case of aircraft registered in a foreign country, the country must allow reciprocal benefits for aircraft registered in the United States. Form 1040 v payment voucher Certain helicopter and fixed-wing aircraft uses (No. Form 1040 v payment voucher 10). Form 1040 v payment voucher   Includes: Certain helicopter uses. Form 1040 v payment voucher   Certain helicopter uses means fuel used by a helicopter for any of the following purposes. Form 1040 v payment voucher Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. Form 1040 v payment voucher Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Form 1040 v payment voucher Providing emergency medical transportation. Form 1040 v payment voucher   During a use described in items (1) and (2), the helicopter must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Form 1040 v payment voucher For item (1), treat each flight segment as a separate flight. Form 1040 v payment voucher Fixed-wing aircraft uses. Form 1040 v payment voucher   Fixed-wing aircraft uses means fuel used by a fixed-wing aircraft for any of the following purposes. Form 1040 v payment voucher Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Form 1040 v payment voucher Providing emergency medical transportation. Form 1040 v payment voucher The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Form 1040 v payment voucher During a use described in item (1), the aircraft must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Form 1040 v payment voucher Exclusive use by a qualified blood collector organization (No. Form 1040 v payment voucher 11). Form 1040 v payment voucher   Exclusive use by a qualified blood collector organization means fuel used by the qualified blood collector organization for its exclusive use in the collection, storage, or transportation of blood. Form 1040 v payment voucher Qualified blood collector organization. Form 1040 v payment voucher   A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered by the IRS, and Registered by the Food and Drug Administration to collect blood. Form 1040 v payment voucher In a highway vehicle owned by the United States that is not used on a highway (No. Form 1040 v payment voucher 12). Form 1040 v payment voucher   In a highway vehicle owned by the United States that is not used on a highway means fuel used in a vehicle that was not used on public highways during the period covered by the claim. Form 1040 v payment voucher This use applies whether or not the vehicle is registered or required to be registered for highway use. Form 1040 v payment voucher Exclusive use by a nonprofit educational organization (No. Form 1040 v payment voucher 13). Form 1040 v payment voucher   Exclusive use by a nonprofit educational organization means fuel used by an organization exempt from income tax under section 501(a) that meets both of the following requirements. Form 1040 v payment voucher It has a regular faculty and curriculum. Form 1040 v payment voucher It has a regularly enrolled body of students who attend the place where the instruction normally occurs. Form 1040 v payment voucher   A nonprofit educational organization also includes a school operated by a church or other organization described in section 501(c)(3) if the school meets the above requirements. Form 1040 v payment voucher Exclusive use by a state, political subdivision of a state, or the District of Columbia (No. Form 1040 v payment voucher 14). Form 1040 v payment voucher   Exclusive use by a state, political subdivision of a state, or the District of Columbia means fuel purchased by the state or local government for its exclusive use. Form 1040 v payment voucher A state or local government is any state, any political subdivision thereof, or the District of Columbia. Form 1040 v payment voucher An Indian tribal government is treated as a state only if the fuel is used in an activity that involves the exercise of an essential tribal government function. Form 1040 v payment voucher Gasoline, diesel fuel, and kerosene used by the American Red Cross is considered to be the use of these fuels by a state. Form 1040 v payment voucher In an aircraft or vehicle owned by an aircraft museum (No. Form 1040 v payment voucher 15). Form 1040 v payment voucher   In an aircraft or vehicle owned by an aircraft museum means fuel used in an aircraft or vehicle that is owned by an organization that meets all the following requirements. Form 1040 v payment voucher It is exempt from income tax as an organization described in section 501(c)(3). Form 1040 v payment voucher It is operated as a museum under a state (or District of Columbia) charter. Form 1040 v payment voucher It is operated exclusively for acquiring, exhibiting, and caring for aircraft of the type used for combat or transport in  World War II. Form 1040 v payment voucher   The aircraft or vehicle (such as a ground servicing vehicle for aircraft) must be used exclusively for the purposes described in item (3). Form 1040 v payment voucher In military aircraft (No. Form 1040 v payment voucher 16). Form 1040 v payment voucher   In a military aircraft means fuel used in an aircraft owned by the United States or any foreign nation and constituting a part of its armed forces. Form 1040 v payment voucher In commercial aviation (other than foreign trade). Form 1040 v payment voucher   See Commercial aviation, earlier, for the definition. Form 1040 v payment voucher Use in a train. Form 1040 v payment voucher   Use in a train means fuel used in the propulsion engine of equipment or machinery that rides on rails. Form 1040 v payment voucher This includes use in a locomotive, work train, switching engine, and track maintenance machine. Form 1040 v payment voucher Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit For alternative fuel mixtures produced after December 31, 2011, see How to Claim the Credit below. Form 1040 v payment voucher The section 6426 credit for biodiesel and alternative fuel consists of the biodiesel or renewable diesel mixture credit, alternative fuel credit, and alternative fuel mixture credit. Form 1040 v payment voucher Biodiesel or renewable diesel mixture credit claimant. Form 1040 v payment voucher   Claimant produced a biodiesel mixture by mixing biodiesel with diesel fuel. Form 1040 v payment voucher Claimant produced a renewable diesel mixture by mixing renewable diesel with liquid fuel (other than renewable diesel). Form 1040 v payment voucher   The person that produced and sold or used the mixture in their trade or business is the only person eligible to make this claim. Form 1040 v payment voucher The credit is based on the gallons of biodiesel or renewable diesel in the mixture. Form 1040 v payment voucher Renewable diesel does not include any fuel derived from coprocessing biomass (as defined in section 45K(c)(3)) with a feedstock that is not biomass. Form 1040 v payment voucher Claim requirements. Form 1040 v payment voucher   See the Instructions for Form 720 for the biodiesel or renewable diesel mixture claim requirements. Form 1040 v payment voucher Alternative fuel credit claimant. Form 1040 v payment voucher   For the alternative fuel credit, the registered alternative fueler who (1) sold an alternative fuel at retail delivered it into the fuel supply tank of a motor vehicle or motorboat, (2) sold an alternative fuel, delivered it in bulk taxable use in a motor vehicle or motorboat, and received required statement from the buyer, (3) used an alternative fuel (not sold at retail or in bulk as previously described) motor vehicle or motorboat, or (4) sold an alternative fuel used as a fuel in aviation is the only person eligible to make this claim. Form 1040 v payment voucher Carbon capture requirement. Form 1040 v payment voucher   A credit for Fischer-Tropsch process liquid fuel derived from coal (including peat) can be claimed only if the fuel is derived from coal produced at a gasification facility that separates and sequesters at least 75% of the facility's total carbon dioxide emissions. Form 1040 v payment voucher Alternative fuel credit. Form 1040 v payment voucher   The registered alternative fueler is the person eligible to make the claim. Form 1040 v payment voucher An alternative fueler is the person liable for tax on alternative fuel under the rules for taxable events for Other Fuels (discussed in chapter 1) or would be liable but for an exemption for nontaxable uses. Form 1040 v payment voucher An alternative fueler includes a person who sells for use or uses an alternative fuel in aviation. Form 1040 v payment voucher Alternative fuel mixture credit claimant. Form 1040 v payment voucher   For the alternative fuel mixture credit, the registered alternative fueler that produced and sold or used the mixture as a fuel in their trade or business is the only person eligible to make this claim. Form 1040 v payment voucher The credit is based on the gallons of alternative fuel in the mixture. Form 1040 v payment voucher An alternative fuel mixture is a mixture of alternative fuel and section 4081 taxable fuel (gasoline, diesel fuel, or kerosene). Form 1040 v payment voucher Registration. Form 1040 v payment voucher   You must be registered by the IRS to be eligible to claim the section 6426 fuel credit. Form 1040 v payment voucher See Registration Requirements in chapter 1. Form 1040 v payment voucher Credits for fuel provide incentive for United States production. Form 1040 v payment voucher   The section 6426 fuel credit may not be claimed for alternative fuel that is produced outside the United States for use as a fuel outside the United States. Form 1040 v payment voucher The United States includes any possession of the United States. Form 1040 v payment voucher Credit for fuels derived from paper or pulp production. Form 1040 v payment voucher   Credit for alternative fuels and alternative fuel mixtures for any fuel derived from the production of paper or pulp are not available for fuel sold or used on or after December 31, 2009. Form 1040 v payment voucher How to Claim the Credit Any biodiesel or renewable diesel mixture credit must first be claimed on Schedule C to reduce your taxable fuel liability reported on Form 720. Form 1040 v payment voucher Any excess credit may be claimed on Schedule C (Form 720), Schedule 3 (Form 8849), Form 4136, or Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Form 1040 v payment voucher See Notice 2005-4 and the Instructions for Form 720 for more information. Form 1040 v payment voucher Also see Notice 2013-26 on page 984 of I. Form 1040 v payment voucher R. Form 1040 v payment voucher B. Form 1040 v payment voucher 2013-18 at www. Form 1040 v payment voucher irs. Form 1040 v payment voucher gov/pub/irs-irbs/irb13-18. Form 1040 v payment voucher pdf; and see chapter 2, later. Form 1040 v payment voucher Coordination with income tax credit. Form 1040 v payment voucher   Only one credit may be taken for any amount of biodiesel or renewable diesel. Form 1040 v payment voucher If any amount is claimed (or will be claimed) for any amount of biodiesel or renewable diesel on Form 720, Form 8849, or Form 4136, then a claim cannot be made on Form 8864 for that amount of biodiesel or renewable diesel. Form 1040 v payment voucher   Any alternative fuel credit must first be claimed on Schedule C (Form 720) to reduce your section 4041 taxable fuel liability for alternative fuel and CNG reported on Form 720. Form 1040 v payment voucher Any excess credit may claimed on Schedule C (Form 720), Schedule 3 (Form 8849), or Form 4136. Form 1040 v payment voucher   For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit can be claimed on Schedule C (Form 720), not on Form 4136 or Schedule 3 (Form 8849), and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel fuel and kerosene reported on Form 720. Form 1040 v payment voucher   Calculate the limitation for alternative fuel mixtures separately and enter on Schedule C (Form 720), line 14, only the gallons of mixtures that do not exceed your section 4081 taxable fuel liability. Form 1040 v payment voucher Filing Claims This section tells you how to make a claim for a credit or refund of excise taxes on fuels. Form 1040 v payment voucher This section also covers recordkeeping requirements and when to include the credit or refund in your income. Form 1040 v payment voucher Generally, you will provide all the information needed to claim a credit or refund when you properly complete Form 8849, Form 4136, Schedule C (Form 720), Form 6478, or Form 8864. Form 1040 v payment voucher In some cases, you will have to attach additional information. Form 1040 v payment voucher You need to keep records that support your claim for a credit or refund. Form 1040 v payment voucher Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. Form 1040 v payment voucher Ultimate purchaser. Form 1040 v payment voucher   Ultimate purchasers may make claims for the nontaxable use of fuels on Form 4136, Schedule 1 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Form 1040 v payment voucher If you are an ultimate purchaser, you must keep the following records. Form 1040 v payment voucher The number of gallons purchased and used during the period covered by your claim. Form 1040 v payment voucher The dates of the purchases. Form 1040 v payment voucher The names and addresses of suppliers and amounts purchased from each in the period covered by your claim. Form 1040 v payment voucher The nontaxable use for which you used the fuel. Form 1040 v payment voucher The number of gallons used for each nontaxable use. Form 1040 v payment voucher It is important that your records show separately the number of gallons used for each nontaxable use that qualifies as a claim. Form 1040 v payment voucher If the fuel is exported, you must have proof of exportation. Form 1040 v payment voucher   For more information about keeping records, see Publication 583, Starting a Business and Keeping Records, or chapter 1 of Publication 17, Your Federal Income Tax for Individuals. Form 1040 v payment voucher Exceptions. Form 1040 v payment voucher    Generally, the ultimate purchaser may not claim a credit or refund for undyed diesel fuel, undyed kerosene, or kerosene for use in aviation sold for the exclusive use of a state or local government. Form 1040 v payment voucher However, see Claims by credit card issuers, later, for an exception. Form 1040 v payment voucher The ultimate purchaser may not claim a credit or refund as follows. Form 1040 v payment voucher The ultimate purchaser of gasoline or aviation gasoline used by a state or local government for its exclusive use or by a nonprofit educational organization for its exclusive use may waive its right to make a claim by providing a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate M. Form 1040 v payment voucher A new certificate is required each year or when any information in the current certificate expires. Form 1040 v payment voucher The ultimate purchaser of kerosene for use in commercial aviation or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver L. Form 1040 v payment voucher A new waiver is required each year or when any information in the current waiver expires. Form 1040 v payment voucher The ultimate purchaser of undyed diesel fuel or undyed kerosene used in certain intercity and local buses may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver N. Form 1040 v payment voucher A new waiver is required each year or when any information in the current waiver expires. Form 1040 v payment voucher The ultimate purchaser of kerosene for use in nonexempt, noncommercial aviation must provide a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate Q. Form 1040 v payment voucher A new certificate is required each year or when any information in the current certificate expires. Form 1040 v payment voucher Registered ultimate vendor. Form 1040 v payment voucher   Registered ultimate vendors may make claims for certain sales of fuels on Form 4136, Schedule 2 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Form 1040 v payment voucher If you are a registered ultimate vendor, you must keep certain information pertaining to the sale of the fuel. Form 1040 v payment voucher   To make a claim, you must have sold the fuel at a tax-excluded price, repaid the tax to the buyer, or obtained the buyer's written consent to the allowance of the claim. Form 1040 v payment voucher You are required to have a valid certificate or waiver in your possession in order to make the claim. Form 1040 v payment voucher   In addition, you must have a registration number that has not been revoked or suspended. Form 1040 v payment voucher See Form 637. Form 1040 v payment voucher State use. Form 1040 v payment voucher   To make a claim as an ultimate vendor (state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained below. Form 1040 v payment voucher If you sell undyed diesel fuel, undyed kerosene, or kerosene for use in aviation for use by a state or local government, you must keep the following information. Form 1040 v payment voucher The name and taxpayer identification number of each person (government unit) that bought the fuel. Form 1040 v payment voucher The number of gallons sold to each person. Form 1040 v payment voucher An unexpired certificate from the buyer. Form 1040 v payment voucher See Model Certificate P in the Appendix. Form 1040 v payment voucher The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Form 1040 v payment voucher Nonprofit educational organization and state use. Form 1040 v payment voucher   To make a claim as an ultimate vendor (nonprofit educational organization or state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained later. Form 1040 v payment voucher If you sell gasoline or aviation gasoline to a nonprofit educational organization for its exclusive use or to a state or local government for its exclusive use, you must keep the following information. Form 1040 v payment voucher The name and taxpayer identification number of each person (nonprofit educational organization or government unit) that bought the fuel. Form 1040 v payment voucher The number of gallons sold to each person. Form 1040 v payment voucher An unexpired certificate from the buyer. Form 1040 v payment voucher See Model Certificate M in the Appendix. Form 1040 v payment voucher  The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Form 1040 v payment voucher Blocked pump. Form 1040 v payment voucher   To make a claim as an ultimate vendor (blocked pump), you must have a UP registration number. Form 1040 v payment voucher If you sell undyed kerosene (other than kerosene for use in aviation) from a pump that qualifies as a blocked pump because it is locked by you after each sale and is unlocked by you at the request of the buyer, you must keep the following information for each sale of more than 5 gallons. Form 1040 v payment voucher The date of each sale. Form 1040 v payment voucher The name and address of the buyer. Form 1040 v payment voucher The number of gallons sold to that buyer. Form 1040 v payment voucher Certain intercity and local bus use. Form 1040 v payment voucher   To make a claim as an ultimate vendor of undyed diesel fuel or undyed kerosene used in certain intercity and local buses, you must have a UB registration number. Form 1040 v payment voucher You must keep the following information. Form 1040 v payment voucher The date of each sale. Form 1040 v payment voucher The name and address of the buyer. Form 1040 v payment voucher The number of gallons sold to the buyer. Form 1040 v payment voucher A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Form 1040 v payment voucher See Model Waiver N in the Appendix. Form 1040 v payment voucher Kerosene for use in commercial aviation or noncommercial aviation. Form 1040 v payment voucher   To make a claim as an ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia), you must have a UA registration number. Form 1040 v payment voucher See Kerosene for use in aviation, earlier, for a list of nontaxable uses. Form 1040 v payment voucher You must keep the following information. Form 1040 v payment voucher The date of each sale. Form 1040 v payment voucher The name and address of the buyer. Form 1040 v payment voucher The number of gallons sold to the buyer. Form 1040 v payment voucher A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Form 1040 v payment voucher See Model Waiver L in the Appendix. Form 1040 v payment voucher Kerosene for use in nonexempt, noncommercial aviation. Form 1040 v payment voucher   To make a claim as an ultimate vendor of kerosene for use in nonexempt, noncommercial aviation, you must have a UA registration number. Form 1040 v payment voucher You must keep the following information. Form 1040 v payment voucher The date of each sale. Form 1040 v payment voucher The name and address of the buyer. Form 1040 v payment voucher The number of gallons sold to the buyer. Form 1040 v payment voucher A copy of the certificate signed by the buyer at the time the credit or payment is claimed. Form 1040 v payment voucher See Model Certificate Q in the Appendix. Form 1040 v payment voucher Claims by credit card issuers. Form 1040 v payment voucher   For sales of gasoline, aviation gasoline, diesel fuel, kerosene, or kerosene for use in aviation that are purchased by an exempt user with the use of a credit card, the registered credit card issuer is the only person who can make the claim. Form 1040 v payment voucher An exempt user for this purpose is: For gasoline or aviation gasoline, a state or local government (including essential government use by an Indian tribal government) or a nonprofit educational organization; or For diesel fuel, kerosene, or kerosene for use in aviation, a state or local government (including essential government use by an Indian tribal government). Form 1040 v payment voucher   If gasoline is purchased without the use of a credit card, then the registered ultimate vendor of the gasoline may make the claim for refund or credit. Form 1040 v payment voucher However, if the gasoline is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Form 1040 v payment voucher   If diesel fuel, kerosene, or kerosene for use in aviation is purchased without the use of a credit card, the registered ultimate vendor may make the claim for refund or credit. Form 1040 v payment voucher A state is not allowed to make a claim for these fuels. Form 1040 v payment voucher However, if the diesel fuel or kerosene is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Form 1040 v payment voucher   The claim from the credit card issuer must contain the following information as it applies to the fuel covered in the claim. Form 1040 v payment voucher The total number of gallons. Form 1040 v payment voucher Its registration number. Form 1040 v payment voucher A statement that it has not collected the amount of tax from the ultimate purchaser or has obtained the written consent of the ultimate purchaser to make the claim. Form 1040 v payment voucher A statement that it has repaid or agreed to repay the amount of tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to make the claim, or has otherwise made arrangements which directly or indirectly provide the ultimate vendor with reimbursement of the tax. Form 1040 v payment voucher Has in its possession an unexpired certificate similar to Model Certificate R in the Appendix and has no reason to believe any of the information in the certificate is false. Form 1040 v payment voucher Taxpayer identification number. Form 1040 v payment voucher   To file a claim, you must have a taxpayer identification number. Form 1040 v payment voucher Your taxpayer identification number can be an: Employer identification number (EIN), Social security number (SSN), or Individual taxpayer identification number (ITIN), if you are an alien individual and do not have and are not eligible to get an SSN. Form 1040 v payment voucher   If you normally file only a U. Form 1040 v payment voucher S. Form 1040 v payment voucher individual income tax return (such as Form 1040 or 1040NR), use your SSN or ITIN. Form 1040 v payment voucher You get an SSN by filing Form SS-5, Application for a Social Security Card, with the Social Security Administration. Form 1040 v payment voucher To get an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Form 1040 v payment voucher   If you operate a business, use your EIN. Form 1040 v payment voucher If you do not have an EIN, you may apply for one online. Form 1040 v payment voucher Go to the IRS website at irs. Form 1040 v payment voucher gov/businesses/small and click on the “Employer ID Numbers (EINs)” link. Form 1040 v payment voucher You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Form 1040 v payment voucher Claiming A Refund Generally, you may claim a refund of excise taxes on Form 8849. Form 1040 v payment voucher Complete and attach to Form 8849 the appropriate Form 8849 schedules. Form 1040 v payment voucher The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. Form 1040 v payment voucher If you file Form 720, you can use the Schedule C (Form 720) for your refund claims for the quarter. Form 1040 v payment voucher See the Instructions for Form 720. Form 1040 v payment voucher Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Schedule C (Form 720) or Form 4136. Form 1040 v payment voucher The alternative fuel mixture credit must be claimed on Schedule C (Form 720) against your section 4081 taxable fuel liability for gasoline, diesel, and kerosene and any excess is not allowed. Form 1040 v payment voucher The alternative fuel credit must first be claimed on Schedule C (Form 720) against your section 4041 taxable fuel liability for alternative fuel and CNG. Form 1040 v payment voucher To the extent the alternative fuel credit exceeds this taxable fuel liability, a payment is allowed and may be claimed as a credit on Schedule C (Form 720), or as an income tax credit on Forms 4136, 6478, or 8864, as applicable. Form 1040 v payment voucher Only one claim may be made for any particular amount of alternative fuel. Form 1040 v payment voucher Claiming a Credit on Form 4136 For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit cannot be claimed on Form 4136. Form 1040 v payment voucher See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2, earlier. Form 1040 v payment voucher A credit may be claimed for certain uses and sales of fuels on Form 4136 when you file your income tax return at the end of the year. Form 1040 v payment voucher If you meet certain requirements (discussed earlier), you may be able to make a claim during the year. Form 1040 v payment voucher Credit only. Form 1040 v payment voucher   You can claim the following taxes only as a credit on Form 4136. Form 1040 v payment voucher Tax on fuels used for nontaxable uses if the total for your tax year is less than $750. Form 1040 v payment voucher Tax on fuel you did not include in any claim for refund previously filed for any quarter of your tax year. Form 1040 v payment voucher Tax on fuel you used in mobile machinery (off-highway business use) that traveled less than 7,500 miles on public highways. Form 1040 v payment voucher Do not claim a credit for any amount for which you have filed a refund claim on Form 8849 or credit on Schedule C (Form 720). Form 1040 v payment voucher When to file. Form 1040 v payment voucher   You can claim a fuel tax credit on your income tax return for the year you used the fuel (or sold the fuel in the case of a registered ultimate vendor claim). Form 1040 v payment voucher You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Form 1040 v payment voucher Generally, you must file an amended return by the later of 3 years from the date you filed your original return or within 2 years from the date you paid the income tax. Form 1040 v payment voucher How to claim a credit. Form 1040 v payment voucher   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, or farmers' cooperative association. Form 1040 v payment voucher Individuals. Form 1040 v payment voucher   You claim the credit on the “Credits from” line of Form 1040. Form 1040 v payment voucher Also check box b on that line. Form 1040 v payment voucher If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. Form 1040 v payment voucher Partnerships. Form 1040 v payment voucher   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Form 1040 v payment voucher , showing each partner's share of the number of gallons of each fuel sold or used for a non
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The Form 1040 V Payment Voucher

Form 1040 v payment voucher 4. Form 1040 v payment voucher   Underpayment Penalty for 2013 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: General RuleFarmers and fishermen. Form 1040 v payment voucher Higher income taxpayers. Form 1040 v payment voucher Minimum required for higher income taxpayers. Form 1040 v payment voucher Estate or trust payments of estimated tax. Form 1040 v payment voucher Lowering or eliminating the penalty. Form 1040 v payment voucher ExceptionsLess Than $1,000 Due No Tax Liability Last Year Figuring Your Required Annual Payment (Part I) Short Method for Figuring the Penalty (Part III) Regular Method for Figuring the Penalty (Part IV)Figuring Your Underpayment (Part IV, Section A) Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Annualized Income Installment Method (Schedule AI) Farmers and Fishermen Waiver of PenaltyFarmers and fishermen. Form 1040 v payment voucher Introduction If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have underpaid your estimated tax and may have to pay a penalty. Form 1040 v payment voucher You may understand this chapter better if you can refer to a copy of your latest federal income tax return. Form 1040 v payment voucher No penalty. Form 1040 v payment voucher   Generally, you will not have to pay a penalty for 2013 if any of the following apply. Form 1040 v payment voucher The total of your withholding and timely estimated tax payments was at least as much as your 2012 tax. Form 1040 v payment voucher (See Special rules for certain individuals for higher income taxpayers and farmers and fishermen. Form 1040 v payment voucher ) The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. Form 1040 v payment voucher Your total tax for 2013 (defined later) minus your withholding is less than $1,000. Form 1040 v payment voucher You did not have a tax liability for 2012. Form 1040 v payment voucher You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000. Form 1040 v payment voucher IRS can figure the penalty for you. Form 1040 v payment voucher   If you think you owe the penalty, but you do not want to figure it yourself when you file your tax return, you may not have to. Form 1040 v payment voucher Generally, the IRS will figure the penalty for you and send you a bill. Form 1040 v payment voucher   You only need to figure your penalty in the following three situations. Form 1040 v payment voucher You are requesting a waiver of part, but not all, of the penalty. Form 1040 v payment voucher You are using the annualized income installment method to figure the penalty. Form 1040 v payment voucher You are treating the federal income tax withheld from your income as paid on the dates actually withheld. Form 1040 v payment voucher However, if these situations do not apply to you, and you think you can lower or eliminate your penalty, complete Form 2210 or Form 2210-F and attach it to your return. Form 1040 v payment voucher See Form 2210 , later. Form 1040 v payment voucher Topics - This chapter discusses: The general rule for the underpayment penalty, Special rules for certain individuals, Exceptions to the underpayment penalty, How to figure your underpayment and the amount of your penalty on Form 2210, and How to ask the IRS to waive the penalty. Form 1040 v payment voucher Useful Items - You may want to see: Form (and Instructions) 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen See chapter 5 for information about getting these forms. Form 1040 v payment voucher General Rule In general, you may owe a penalty for 2013 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of: 90% of your 2013 tax, or 100% of your 2012 tax. Form 1040 v payment voucher (Your 2012 tax return must cover a 12-month period. Form 1040 v payment voucher ) Your 2013 tax, for this purpose, is defined under Total tax for 2013 , later. Form 1040 v payment voucher Special rules for certain individuals. Form 1040 v payment voucher   There are special rules for farmers and fishermen and certain higher income taxpayers. Form 1040 v payment voucher Farmers and fishermen. Form 1040 v payment voucher   If at least two-thirds of your gross income for 2012 or 2013 is from farming or fishing, substitute  662/3% for 90% in (1) above. Form 1040 v payment voucher   See Farmers and Fishermen , later. Form 1040 v payment voucher Higher income taxpayers. Form 1040 v payment voucher   If your AGI for 2012 was more than $150,000 ($75,000 if your 2013 filing status is married filing a separate return), substitute 110% for 100% in (2) under General Rule . Form 1040 v payment voucher This rule does not apply to farmers or fishermen. Form 1040 v payment voucher   For 2012, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. Form 1040 v payment voucher Penalty figured separately for each period. Form 1040 v payment voucher   Because the penalty is figured separately for each payment period, you may owe a penalty for an earlier payment period even if you later paid enough to make up the underpayment. Form 1040 v payment voucher This is true even if you are due a refund when you file your income tax return. Form 1040 v payment voucher Example. Form 1040 v payment voucher You did not make estimated tax payments for 2013 because you thought you had enough tax withheld from your wages. Form 1040 v payment voucher Early in January 2014, you made an estimate of your total 2013 tax. Form 1040 v payment voucher Then you realized that your withholding was $2,000 less than the amount needed to avoid a penalty for underpayment of estimated tax. Form 1040 v payment voucher On January 10, you made an estimated tax payment of $3,000, which is the difference between your withholding and your estimate of your total tax. Form 1040 v payment voucher Your final return shows your total tax to be $50 less than your estimate, so you are due a refund. Form 1040 v payment voucher You do not owe a penalty for your payment due January 15, 2014. Form 1040 v payment voucher However, you may owe a penalty through January 10, 2014, the day you made the $3,000 payment, for your underpayments for the earlier payment periods. Form 1040 v payment voucher Minimum required each period. Form 1040 v payment voucher   You will owe a penalty for any 2013 payment period for which your estimated tax payment plus your withholding for the period and overpayments applied from previous periods was less than the smaller of: 22. Form 1040 v payment voucher 5% of your 2013 tax, or 25% of your 2012 tax. Form 1040 v payment voucher (Your 2012 tax return must cover a 12-month period. Form 1040 v payment voucher ) Minimum required for higher income taxpayers. Form 1040 v payment voucher   If you are subject to the rule for higher income taxpayers, discussed above, substitute 27. Form 1040 v payment voucher 5% for 25% in (2) under General Rule . Form 1040 v payment voucher When penalty is charged. Form 1040 v payment voucher   If you miss a payment or you paid less than the minimum required in a period, you may be charged an underpayment penalty from the date the amount was due to the date the payment is made. Form 1040 v payment voucher If a payment is mailed, the date of the U. Form 1040 v payment voucher S. Form 1040 v payment voucher postmark is considered the date of payment. Form 1040 v payment voucher   If a payment is made electronically, the date the payment is shown on your payment account (checking, savings, etc. Form 1040 v payment voucher ) is considered to be the date of payment. Form 1040 v payment voucher Estate or trust payments of estimated tax. Form 1040 v payment voucher   If you have estimated taxes credited to you from an estate or trust (Schedule K-1 (Form 1041)), treat the payment as made by you on January 15, 2014. Form 1040 v payment voucher Amended returns. Form 1040 v payment voucher    If you file an amended return by the due date of your original return, use the tax shown on your amended return to figure your required estimated tax payments. Form 1040 v payment voucher If you file an amended return after the due date of the original return, use the tax shown on the original return. Form 1040 v payment voucher   However, if you and your spouse file a joint return after the due date to replace separate returns you originally filed by the due date, use the tax shown on the joint return to figure your required estimated tax payments. Form 1040 v payment voucher This rule applies only if both original separate returns were filed on time. Form 1040 v payment voucher 2012 separate returns and 2013 joint return. Form 1040 v payment voucher    If you file a joint return with your spouse for 2013, but you filed separate returns for 2012, your 2012 tax is the total of the tax shown on your separate returns. Form 1040 v payment voucher You filed a separate return if you filed as single, head of household, or married filing separately. Form 1040 v payment voucher 2012 joint return and 2013 separate returns. Form 1040 v payment voucher    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, your 2012 tax is your share of the tax on the joint return. Form 1040 v payment voucher You are filing a separate return if you file as single, head of household, or married filing separately. Form 1040 v payment voucher   To figure your share of the taxes on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2012 using the same filing status as for 2013. Form 1040 v payment voucher Then multiply the tax on the joint return by the following fraction. Form 1040 v payment voucher   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. Form 1040 v payment voucher Lisa and Paul filed a joint return for 2012 showing taxable income of $49,000 and a tax of $6,484. Form 1040 v payment voucher Of the $49,000 taxable income, $41,000 was Lisa's and the rest was Paul's. Form 1040 v payment voucher For 2013, they file married filing separately. Form 1040 v payment voucher Lisa figures her share of the tax on the 2012 joint return as follows. Form 1040 v payment voucher 2012 tax on $41,000 based on a separate return $ 6,286 2012 tax on $8,000 based on a  separate return 803 Total $ 7,089 Lisa's percentage of total tax  ($6,286 ÷ $ 7,089) 88. Form 1040 v payment voucher 67% Lisa's part of tax on joint return ($6,484 × 88. Form 1040 v payment voucher 67%) $ 5,749 Form 2210. Form 1040 v payment voucher   In most cases, you do not need to file Form 2210. Form 1040 v payment voucher The IRS will figure the penalty for you and send you a bill. Form 1040 v payment voucher If you want us to figure the penalty for you, leave the penalty line on your return blank. Form 1040 v payment voucher Do not file Form 2210. Form 1040 v payment voucher   To determine if you should file Form 2210, see Part II of Form 2210. Form 1040 v payment voucher If you decide to figure your penalty, complete Part I, Part II, and either Part III or Part IV of the form and the Penalty Worksheet in the Instructions for Form 2210. Form 1040 v payment voucher If you use Form 2210, you cannot file Form 1040EZ. Form 1040 v payment voucher   On Form 1040, enter the amount of your penalty on line 77. Form 1040 v payment voucher If you owe tax on line 76, add the penalty to your tax due and show your total payment on line 76. Form 1040 v payment voucher If you are due a refund, subtract the penalty from the overpayment and enter the result on line 73. Form 1040 v payment voucher   On Form 1040A, enter the amount of your penalty on line 46. Form 1040 v payment voucher If you owe tax on line 45, add the penalty to your tax due and show your total payment on line 45. Form 1040 v payment voucher If you are due a refund, subtract the penalty from the overpayment and enter the result on line 42. Form 1040 v payment voucher Lowering or eliminating the penalty. Form 1040 v payment voucher    You may be able to lower or eliminate your penalty if you file Form 2210. Form 1040 v payment voucher You must file Form 2210 with your return if any of the following applies. Form 1040 v payment voucher You request a waiver. Form 1040 v payment voucher See Waiver of Penalty , later. Form 1040 v payment voucher You use the annualized income installment method. Form 1040 v payment voucher See the explanation of this method under Annualized Income Installment Method (Schedule AI) . Form 1040 v payment voucher You use your actual withholding for each payment period for estimated tax purposes. Form 1040 v payment voucher See Actual withholding method under Figuring Your Underpayment (Part IV, Section A). Form 1040 v payment voucher You base any of your required installments on the tax shown on your 2012 return and you filed or are filing a joint return for either 2012 or 2013, but not for both years. Form 1040 v payment voucher Exceptions Generally, you do not have to pay an underpayment penalty if either: Your total tax is less than $1,000, or You had no tax liability last year. Form 1040 v payment voucher Less Than $1,000 Due You do not owe a penalty if the total tax shown on your return minus the amount you paid through withholding (including excess social security and tier 1 railroad retirement (RRTA) tax withholding) is less than $1,000. Form 1040 v payment voucher Total tax for 2013. Form 1040 v payment voucher   For 2013, your total tax on Form 1040 is the amount on line 61 reduced by the following. Form 1040 v payment voucher    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Form 1040 v payment voucher Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. Form 1040 v payment voucher The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. Form 1040 v payment voucher Any refundable credit amounts listed on lines 64a, 65, 66, 70, and any credit from Form 8885 included on line 71. Form 1040 v payment voucher   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. Form 1040 v payment voucher   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. Form 1040 v payment voucher Note. Form 1040 v payment voucher When figuring the amount on line 60, include household employment taxes only if you had federal income tax withheld from your income or you would owe the penalty even if you did not include those taxes. Form 1040 v payment voucher Paid through withholding. Form 1040 v payment voucher    For 2013, the amount you paid through withholding on Form 1040 is the amount on line 62 plus any excess social security or tier 1 RRTA tax withholding on line 69. Form 1040 v payment voucher Add to that any write-in amount on line 72 identified as “Form 8689. Form 1040 v payment voucher ” On Form 1040A, the amount you paid through withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included on line 41. Form 1040 v payment voucher On Form 1040EZ, it is the amount on line 7. Form 1040 v payment voucher No Tax Liability Last Year You do not owe a penalty if you had no tax liability last year and you were a U. Form 1040 v payment voucher S. Form 1040 v payment voucher citizen or resident for the whole year. Form 1040 v payment voucher For this rule to apply, your tax year must have included all 12 months of the year. Form 1040 v payment voucher You had no tax liability for 2012 if your total tax was zero or you were not required to file an income tax return. Form 1040 v payment voucher Example. Form 1040 v payment voucher Ray, who is single and 22 years old, was unemployed for a few months during 2012. Form 1040 v payment voucher He earned $6,700 in wages before he was laid off, and he received $1,400 in unemployment compensation afterwards. Form 1040 v payment voucher He had no other income. Form 1040 v payment voucher Even though he had gross income of $8,100, he did not have to pay income tax because his gross income was less than the filing requirement for a single person under age 65 ($9,750 for 2012). Form 1040 v payment voucher He filed a return only to have his withheld income tax refunded to him. Form 1040 v payment voucher In 2013, Ray began regular work as an independent contractor. Form 1040 v payment voucher Ray made no estimated tax payments in 2013. Form 1040 v payment voucher Even though he did owe tax at the end of the year, Ray does not owe the underpayment penalty for 2013 because he had no tax liability in 2012. Form 1040 v payment voucher Total tax for 2012. Form 1040 v payment voucher   For 2012, your total tax on Form 1040 is the amount on line 61 reduced by the following. Form 1040 v payment voucher    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Form 1040 v payment voucher Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. Form 1040 v payment voucher The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. Form 1040 v payment voucher Any refundable credit amounts listed on lines 64a, 65, 66, 70, and credits from Forms 8801 (line 27 only), and 8885 included on line 71. Form 1040 v payment voucher   If you filed Form 1040A, your 2012 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. Form 1040 v payment voucher   If you filed Form 1040EZ, your 2012 total tax is the amount on line 11 reduced by the amount on line 8a. Form 1040 v payment voucher Figuring Your Required Annual Payment (Part I) Figure your required annual payment in Part I of Form 2210, following the line-by-line instructions. Form 1040 v payment voucher If you rounded the entries on your tax return to whole dollars, you can round on Form 2210. Form 1040 v payment voucher Example. Form 1040 v payment voucher The tax on Lori Lane's 2012 return was $12,400. Form 1040 v payment voucher Her AGI was not more than $150,000 for either 2012 or 2013. Form 1040 v payment voucher The tax on her 2013 return (Form 1040, line 55) is $13,044. Form 1040 v payment voucher Line 56 (self-employment tax) is $8,902. Form 1040 v payment voucher Her 2013 total tax is $21,946. Form 1040 v payment voucher For 2013, Lori had $1,600 income tax withheld and made four equal estimated tax payments ($1,000 each). Form 1040 v payment voucher 90% of her 2013 tax is $19,751. Form 1040 v payment voucher Because she paid less than her 2012 tax ($12,400) and less than 90% of her 2013 tax ($19,751), and does not meet an exception, Lori knows that she owes a penalty for underpayment of estimated tax. Form 1040 v payment voucher The IRS will figure the penalty for Lori, but she decides to figure it herself on Form 2210 and pay it with her taxes when she files her tax return. Form 1040 v payment voucher Lori's required annual payment is $12,400 (100% of 2012 tax) because that is smaller than 90% of her 2013 tax. Form 1040 v payment voucher Different 2012 filing status. Form 1040 v payment voucher    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, see 2012 joint return and 2013 separate returns , earlier, to figure the amount to enter as your 2012 tax on line 8 of Form 2210. Form 1040 v payment voucher Short Method for Figuring the Penalty (Part III) You may be able to use the short method in Part III of Form 2210 to figure your penalty for underpayment of estimated tax. Form 1040 v payment voucher If you qualify to use this method, it will result in the same penalty amount as the regular method. Form 1040 v payment voucher However, either the annualized income installment method or the actual withholding method, explained later, may result in a smaller penalty. Form 1040 v payment voucher You can use the short method only if you meet one of the following requirements. Form 1040 v payment voucher You made no estimated tax payments for 2013 (it does not matter whether you had income tax withholding). Form 1040 v payment voucher You paid the same amount of estimated tax on each of the four payment due dates. Form 1040 v payment voucher If you do not meet either requirement, figure your penalty using the regular method in Part IV of Form 2210 and the Penalty Worksheet in the instructions. Form 1040 v payment voucher Note. Form 1040 v payment voucher If any payment was made before the due date, you can use the short method, but the penalty may be less if you use the regular method. Form 1040 v payment voucher However, if the payment was only a few days early, the difference is likely to be small. Form 1040 v payment voucher You cannot use the short method if any of the following apply. Form 1040 v payment voucher You made any estimated tax payments late. Form 1040 v payment voucher You checked box C or D in Part II of Form 2210. Form 1040 v payment voucher You are filing Form 1040NR or 1040NR-EZ and you did not receive wages as an employee subject to U. Form 1040 v payment voucher S. Form 1040 v payment voucher income tax withholding. Form 1040 v payment voucher If you use the short method, you cannot use the annualized income installment method to figure your underpayment for each payment period. Form 1040 v payment voucher Also, you cannot use your actual withholding during each period to figure your payments for each period. Form 1040 v payment voucher These methods, which may give you a smaller penalty amount, are explained under Figuring Your Underpayment (Part IV, Section A). Form 1040 v payment voucher Complete Part III of Form 2210 following the line-by-line instructions in the Instructions for Form 2210. Form 1040 v payment voucher Regular Method for Figuring the Penalty (Part IV) You can use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if you paid one or more estimated tax payments earlier than the due date. Form 1040 v payment voucher You must use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if any of the following apply to you. Form 1040 v payment voucher You paid one or more estimated tax payments on a date after the due date. Form 1040 v payment voucher You paid at least one, but less than four, installments of estimated tax. Form 1040 v payment voucher You paid estimated tax payments in un- equal amounts. Form 1040 v payment voucher You use the annualized income installment method to figure your underpayment for each payment period. Form 1040 v payment voucher You use your actual withholding during each payment period to figure your payments. Form 1040 v payment voucher Under the regular method, figure your underpayment for each payment period in Section A, then figure your penalty using the Penalty Worksheet in the Instructions for Form 2210. Form 1040 v payment voucher Enter the results on line 27 of Section B. Form 1040 v payment voucher Figuring Your Underpayment (Part IV, Section A) Figure your underpayment of estimated tax for each payment period in Section A following the line-by-line instructions in the Instructions for Form 2210. Form 1040 v payment voucher Complete lines 20 through 26 of the first column before going to line 20 of the next column. Form 1040 v payment voucher Required installments—line 18. Form 1040 v payment voucher   Your required payment for each payment period (line 18) is usually one-fourth of your required annual payment (Part I, line 9). Form 1040 v payment voucher This method—the regular method—is the one to use if you received your income evenly throughout the year. Form 1040 v payment voucher   However, if you did not receive your income evenly throughout the year, you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Form 1040 v payment voucher First complete Schedule AI (Form 2210), then enter the amounts from line 25 of that schedule on line 18 of Form 2210, Part IV. Form 1040 v payment voucher See Annualized Income Installment Method (Schedule AI), later. Form 1040 v payment voucher Payments made—line 19. Form 1040 v payment voucher   Enter in each column the total of: Your estimated tax paid after the due date for the previous column and by the due date shown at the top of the column, and One-fourth of your withholding. Form 1040 v payment voucher For special rules for figuring your payments, see Form 2210 instructions for line 19. Form 1040 v payment voucher   If you file Form 1040, your withholding is the amount on line 62, plus any excess social security or tier 1 RRTA tax withholding on line 69. Form 1040 v payment voucher If you file Form 1040A, your withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included in line 41. Form 1040 v payment voucher Actual withholding method. Form 1040 v payment voucher    Instead of using one-fourth of your withholding for each quarter, you can choose to use the amounts actually withheld by each due date. Form 1040 v payment voucher You can make this choice separately for the tax withheld from your wages and for all other withholding. Form 1040 v payment voucher This includes any excess social security and tier 1 RRTA tax withheld. Form 1040 v payment voucher   Using your actual withholding may result in a smaller penalty if most of your withholding occurred early in the year. Form 1040 v payment voucher   If you use your actual withholding, you must check box D in Form 2210, Part II. Form 1040 v payment voucher Then complete Form 2210 using the regular method (Part IV) and file it with your return. Form 1040 v payment voucher Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Figure the amount of your penalty for Section B using the Penalty Worksheet in the Form 2210 instructions. Form 1040 v payment voucher The penalty is imposed on each underpayment amount shown on Form 2210, Section A, line 25, for the number of days that it remained unpaid. Form 1040 v payment voucher For 2013, there are four rate periods—April 16 through June 30, July 1 through September 30, October 1 through December 31, and January 1, 2014 through April 15, 2014. Form 1040 v payment voucher A 3% rate applies to all four periods. Form 1040 v payment voucher Payments. Form 1040 v payment voucher    Before completing the Penalty Worksheet, it may be helpful to make a list of the payments you made and income tax withheld after the due date (or the last day payments could be made on time) for the earliest payment period an underpayment occurred. Form 1040 v payment voucher For example, if you had an underpayment for the first payment period, list your payments after April 15, 2013. Form 1040 v payment voucher You can use the table in the Form 2210 instructions to make your list. Form 1040 v payment voucher Follow those instructions for listing income tax withheld and payments made with your return. Form 1040 v payment voucher Use the list to determine when each underpayment was paid. Form 1040 v payment voucher   If you mail your estimated tax payments, use the date of the U. Form 1040 v payment voucher S. Form 1040 v payment voucher postmark as the date of payment. Form 1040 v payment voucher Line 1b. Form 1040 v payment voucher   Apply the payments listed to underpayment balance in the first column until it is fully paid. Form 1040 v payment voucher Apply payments in the order made. Form 1040 v payment voucher Figuring the penalty. Form 1040 v payment voucher   If an underpayment was paid in two or more payments on different dates, you must figure the penalty separately for each payment. Form 1040 v payment voucher On line 3 of the Penalty Worksheet enter the number of days between the due date (line 2) and the date of each payment on line 1b. Form 1040 v payment voucher On line 4 figure the penalty for the amount of each payment applied on line 1b or the amount remaining unpaid. Form 1040 v payment voucher If no payments are applied, figure the penalty on the amount on line 1a. Form 1040 v payment voucher Aid for counting days. Form 1040 v payment voucher    Table 4-1 provides a simple method for counting the number of days between a due date and a payment date. Form 1040 v payment voucher Find the number for the date the payment was due by going across to the column of the month the payment was due and moving down the column to the due date. Form 1040 v payment voucher In the same manner, find the number for the date the payment was made. Form 1040 v payment voucher Subtract the due date “number” from the payment date “number. Form 1040 v payment voucher ”   For example, if a payment was due on June 15 (61), but was not paid until September 1 (139), the payment was 78 (139 – 61) days late. Form 1040 v payment voucher Table 4-1. Form 1040 v payment voucher Calendar To Determine the Number of Days a Payment Is Late Instructions. Form 1040 v payment voucher Use this table with Form 2210 if you are completing Part IV, Section B. Form 1040 v payment voucher First, find the number for the payment due date by going across to the column of the month the payment was due and moving down the column to the due date. Form 1040 v payment voucher Then, in the same manner, find the number for the date the payment was made. Form 1040 v payment voucher Finally, subtract the due date number from the payment date number. Form 1040 v payment voucher The result is the number of days the payment is late. Form 1040 v payment voucher Example. Form 1040 v payment voucher The payment due date is June 15 (61). Form 1040 v payment voucher The payment was made on November 4 (203). Form 1040 v payment voucher The payment is 142 days late (203 – 61). Form 1040 v payment voucher Tax Year 2013 Day of 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 Month April May June July Aug. Form 1040 v payment voucher Sept. Form 1040 v payment voucher Oct. Form 1040 v payment voucher Nov. Form 1040 v payment voucher Dec. Form 1040 v payment voucher Jan. Form 1040 v payment voucher Feb. Form 1040 v payment voucher Mar. Form 1040 v payment voucher Apr. Form 1040 v payment voucher 1   16 47 77 108 139 169 200 230 261 292 320 351 2   17 48 78 109 140 170 201 231 262 293 321 352 3   18 49 79 110 141 171 202 232 263 294 322 353 4   19 50 80 111 142 172 203 233 264 295 323 354 5   20 51 81 112 143 173 204 234 265 296 324 355 6   21 52 82 113 144 174 205 235 266 297 325 356 7   22 53 83 114 145 175 206 236 267 298 326 357 8   23 54 84 115 146 176 207 237 268 299 327 358 9   24 55 85 116 147 177 208 238 269 300 328 359 10   25 56 86 117 148 178 209 239 270 301 329 360 11   26 57 87 118 149 179 210 240 271 302 330 361 12   27 58 88 119 150 180 211 241 272 303 331 362 13   28 59 89 120 151 181 212 242 273 304 332 363 14   29 60 90 121 152 182 213 243 274 305 333 364 15 0 30 61 91 122 153 183 214 244 275 306 334 365 16 1 31 62 92 123 154 184 215 245 276 307 335   17 2 32 63 93 124 155 185 216 246 277 308 336   18 3 33 64 94 125 156 186 217 247 278 309 337   19 4 34 65 95 126 157 187 218 248 279 310 338   20 5 35 66 96 127 158 188 219 249 280 311 339   21 6 36 67 97 128 159 189 220 250 281 312 340   22 7 37 68 98 129 160 190 221 251 282 313 341   23 8 38 69 99 130 161 191 222 252 283 314 342   24 9 39 70 100 131 162 192 223 253 284 315 343   25 10 40 71 101 132 163 193 224 254 285 316 344   26 11 41 72 102 133 164 194 225 255 286 317 345   27 12 42 73 103 134 165 195 226 256 287 318 346   28 13 43 74 104 135 166 196 227 257 288 319 347   29 14 44 75 105 136 167 197 228 258 289   348   30 15 45 76 106 137 168 198 229 259 290   349   31   46   107 138   199   260 291   350   Annualized Income Installment Method (Schedule AI) If you did not receive your income evenly throughout the year (for example, your income from a shop you operated at a marina was much larger in the summer than it was during the rest of the year), you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Form 1040 v payment voucher Under this method, your required installment (Part IV, line 18) for one or more payment periods may be less than one-fourth of your required annual payment. Form 1040 v payment voucher To figure your underpayment using this method, complete Form 2210, Schedule AI. Form 1040 v payment voucher Schedule AI annualizes your tax at the end of each payment period based on your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. Form 1040 v payment voucher If you use the annualized income installment method, you must check box C in Part II of Form 2210. Form 1040 v payment voucher Also, you must attach Form 2210 and Schedule AI to your return. Form 1040 v payment voucher If you use Schedule AI for any payment due date, you must use it for all payment due dates. Form 1040 v payment voucher Completing Schedule AI. Form 1040 v payment voucher   Follow the Form 2210 instructions to complete Schedule AI. Form 1040 v payment voucher For each period shown on Schedule AI, figure your income and deductions based on your method of accounting. Form 1040 v payment voucher If you use the cash method of accounting (used by most people), include all income actually or constructively received during the period and all deductions actually paid during the period. Form 1040 v payment voucher Note. Form 1040 v payment voucher Each period includes amounts from the previous period(s). Form 1040 v payment voucher Period (a) includes items for January 1 through March 31. Form 1040 v payment voucher Period (b) includes items for January 1 through May 31. Form 1040 v payment voucher Period (c) includes items for January 1 through August 31. Form 1040 v payment voucher Period (d) includes items for the entire year. Form 1040 v payment voucher Farmers and Fishermen If you are a farmer or fisherman, the following special rules for underpayment of estimated tax apply to you. Form 1040 v payment voucher The penalty for underpaying your 2013 estimated tax will not apply if you file your return and pay all the tax due by March 3, 2014. Form 1040 v payment voucher If you are a fiscal year taxpayer, the penalty will not apply if you file your return and pay the tax due by the first day of the third month after the end of your tax year. Form 1040 v payment voucher Any penalty you owe for underpaying your 2013 estimated tax will be figured from one payment due date, January 15, 2014. Form 1040 v payment voucher The underpayment penalty for 2013 is figured on the difference between the amount of 2013 withholding plus estimated tax paid by the due date and the smaller of: 662/3% (rather than 90%) of your 2013 tax, or 100% of the tax shown on your 2012 return. Form 1040 v payment voucher Even if these special rules apply to you, you will not owe the penalty if you meet either of the two conditions discussed under Exceptions . Form 1040 v payment voucher See Who Must Pay Estimated Tax in chapter 2 for the definition of a farmer or fisherman who is eligible for these special rules. Form 1040 v payment voucher Form 2210-F. Form 1040 v payment voucher   Use Form 2210-F to figure any underpayment penalty. Form 1040 v payment voucher Do not attach it to your return unless you check a box in Part I. Form 1040 v payment voucher However, if none of the boxes apply to you and you owe a penalty, you do not need to attach Form 2210-F. Form 1040 v payment voucher Enter the amount from line 16 on Form 1040, line 77 and add the penalty to any balance due on your return or subtract it from your refund. Form 1040 v payment voucher Keep your filled-in Form 2210-F for your records. Form 1040 v payment voucher    If none of the boxes on Form 2210-F apply to you and you owe a penalty, the IRS can figure your penalty and send you a bill. Form 1040 v payment voucher Waiver of Penalty The IRS can waive the penalty for underpayment if either of the following applies. Form 1040 v payment voucher You did not make a payment because of a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty. Form 1040 v payment voucher You retired (after reaching age 62) or became disabled in 2012 or 2013 and both the following requirements are met. Form 1040 v payment voucher You had a reasonable cause for not making the payment. Form 1040 v payment voucher Your underpayment was not due to willful neglect. Form 1040 v payment voucher How to request a waiver. Form 1040 v payment voucher   To request a waiver, see the Instructions for Form 2210. Form 1040 v payment voucher Farmers and fishermen. Form 1040 v payment voucher   To request a waiver, see the Instructions for Form 2210-F. Form 1040 v payment voucher Federally declared disaster. Form 1040 v payment voucher   Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster. Form 1040 v payment voucher During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief. Form 1040 v payment voucher Do not file Form 2210 or 2210-F if your underpayment was due to a federally declared disaster. Form 1040 v payment voucher If you still owe a penalty after the automatic waiver is applied, we will send you a bill. Form 1040 v payment voucher   Individuals, estates, and trusts not in a covered disaster area but whose books, records, or tax professionals' offices are in a covered area are also entitled to relief. Form 1040 v payment voucher Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. Form 1040 v payment voucher If you meet either of these eligibility requirements, you must call the IRS disaster hotline at 1-866-562-5227 and identify yourself as eligible for this relief. Form 1040 v payment voucher   Details on the applicable disaster postponement period can be found at IRS. Form 1040 v payment voucher gov. Form 1040 v payment voucher Enter Tax Relief in Disaster Situations. Form 1040 v payment voucher Select the federally declared disaster that affected you. Form 1040 v payment voucher    Worksheet 4-1. Form 1040 v payment voucher 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Note. Form 1040 v payment voucher To figure the annualized entries for lines 2, 3, and 5 below, multiply the expected amount for the period by the  annualization amount on line 2 of Schedule AI for the same period. Form 1040 v payment voucher                   1. Form 1040 v payment voucher Enter line 11 of your Schedule AI, or line 3 from Worksheet 4-2 1. Form 1040 v payment voucher       2. Form 1040 v payment voucher Enter your annualized qualified dividends for the period 2. Form 1040 v payment voucher           3. Form 1040 v payment voucher Are you filing Schedule D?               □ Yes. Form 1040 v payment voucher Enter the smaller of your annualized amount from line 15 or line 16 of Schedule D. Form 1040 v payment voucher If either line 15 or line 16 is blank or a loss, enter -0-. Form 1040 v payment voucher 3. Form 1040 v payment voucher             □ No. Form 1040 v payment voucher Enter your annualized capital gain distributions from Form 1040, line 13             4. Form 1040 v payment voucher Add lines 2 and 3   4. Form 1040 v payment voucher           5. Form 1040 v payment voucher If you are claiming investment interest expense on Form 4952, enter your annualized amount from line 4g of that form. Form 1040 v payment voucher Otherwise, enter -0-   5. Form 1040 v payment voucher           6. Form 1040 v payment voucher Subtract line 5 from line 4. Form 1040 v payment voucher If zero or less, enter -0- 6. Form 1040 v payment voucher       7. Form 1040 v payment voucher Subtract line 6 from line 1. Form 1040 v payment voucher If zero or less, enter -0- 7. Form 1040 v payment voucher       8. Form 1040 v payment voucher Enter: $36,900 if single or married filing separately, $73,800 if married filing jointly or qualifying widow(er), $49,400 if head of household. Form 1040 v payment voucher 8. Form 1040 v payment voucher       9. Form 1040 v payment voucher Enter the smaller of line 1 or line 8 9. Form 1040 v payment voucher       10. Form 1040 v payment voucher Enter the smaller of line 7 or line 9 10. Form 1040 v payment voucher       11. Form 1040 v payment voucher Subtract line 10 from line 9. Form 1040 v payment voucher This amount is taxed at 0% 11. Form 1040 v payment voucher       12. Form 1040 v payment voucher Enter the smaller of line 1 or line 6 12. Form 1040 v payment voucher       13. Form 1040 v payment voucher Enter the amount from line 11 13. Form 1040 v payment voucher       14. Form 1040 v payment voucher Subtract line 13 from line 12 14. Form 1040 v payment voucher       15. Form 1040 v payment voucher Multiply line 14 by 15% (. Form 1040 v payment voucher 15) 15. Form 1040 v payment voucher   16. Form 1040 v payment voucher Figure the tax on the amount on line 7. Form 1040 v payment voucher If the amount on line 7 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Form 1040 v payment voucher If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 16. Form 1040 v payment voucher   17. Form 1040 v payment voucher Add lines 15 and 16 17. Form 1040 v payment voucher   18. Form 1040 v payment voucher Figure the tax on the amount on line 1. Form 1040 v payment voucher If the amount on line 1 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Form 1040 v payment voucher If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 18. Form 1040 v payment voucher   19. Form 1040 v payment voucher Tax on all taxable income. Form 1040 v payment voucher Enter the smaller of line 17 or line 18. Form 1040 v payment voucher Also enter this amount on line 12 of Schedule AI in the appropriate column. Form 1040 v payment voucher However, if you are using this worksheet to figure the tax on the amount on line 3 of Worksheet 4-2, enter the amount from line 19 on Worksheet 4-2, line 4 19. Form 1040 v payment voucher   Worksheet 4-2. Form 1040 v payment voucher 2013 Form 2210, Schedule AI—Line 12 Foreign Earned Income Tax Worksheet Before you begin:If Schedule AI, line 11, is zero for the period, do not complete this worksheet. Form 1040 v payment voucher             1. Form 1040 v payment voucher Enter the amount from line 11 of Schedule AI for the period 1. Form 1040 v payment voucher   2. Form 1040 v payment voucher Enter the annualized amount* of foreign earned income and housing amount excluded or deducted (from  Form 2555, lines 45 and 50, or Form 2555-EZ, line 18) in figuring the amount entered for the period on line 1  of Schedule AI 2. Form 1040 v payment voucher   3. Form 1040 v payment voucher Add lines 1 and 2 3. Form 1040 v payment voucher   4. Form 1040 v payment voucher Tax on the amount on line 3. Form 1040 v payment voucher Use the Tax Table, Tax Computation Worksheet, Form 8615**, Qualified Dividends and Capital Gain Tax Worksheet***, or Schedule D Tax Worksheet***, whichever applies. Form 1040 v payment voucher See the 2013 Instructions for Form 1040, line 44, to find out which tax computation method to use. Form 1040 v payment voucher (Note. Form 1040 v payment voucher You do not have to use the same method for each period on Schedule AI. Form 1040 v payment voucher ) 4. Form 1040 v payment voucher   5. Form 1040 v payment voucher Tax on the amount on line 2. Form 1040 v payment voucher If the amount on line 2 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Form 1040 v payment voucher If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 5. Form 1040 v payment voucher   6. Form 1040 v payment voucher Subtract line 5 from line 4. Form 1040 v payment voucher Enter the result here and on line 12 of Schedule AI. Form 1040 v payment voucher If zero or less,  enter -0- 6. Form 1040 v payment voucher             * To figure the annualized amount for line 2, multiply the exclusion or deduction for the period by the annualization amount on line 2 of Schedule AI for the same period. Form 1040 v payment voucher     ** If you use Form 8615 to figure the tax on line 4 above, enter the amount from line 3 above on line 4 of Form 8615. Form 1040 v payment voucher If the child's parent files Form 2555 or 2555-EZ, enter the amounts from lines 3 and 4 of the parent's Foreign Earned Income Tax Worksheet on lines 6 and 10, respectively, of Form 8615. Form 1040 v payment voucher Complete the rest of Form 8615 according to its instructions. Form 1040 v payment voucher Then complete lines 5 and 6 above. Form 1040 v payment voucher     *** Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet (or Worksheet 4-1 in this chapter) or the Schedule D Tax Worksheet, whichever worksheet you use to figure the tax on line 4 above. Form 1040 v payment voucher Complete that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Form 1040 v payment voucher Next, determine if you have a capital gain excess. Form 1040 v payment voucher     Figuring capital gain excess. Form 1040 v payment voucher To find out if you have a capital gain excess for the appropriate period, subtract line 11 of Schedule AI from line 6 of Worksheet 4-1 or your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). Form 1040 v payment voucher If the result is more than zero, that amount is your capital gain excess. Form 1040 v payment voucher     No capital gain excess. Form 1040 v payment voucher If you do not have a capital gain excess, complete the rest of Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or the Schedule D Tax Worksheet according to the worksheet's instructions. Form 1040 v payment voucher Then complete lines 5 and 6 above. Form 1040 v payment voucher     Capital gain excess. Form 1040 v payment voucher If you have a capital gain excess, complete a second Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Form 1040 v payment voucher Then complete lines 5 and 6 above. Form 1040 v payment voucher     Make the modifications below only for purposes of filling out Worksheet 4-2 above. Form 1040 v payment voucher     a. Form 1040 v payment voucher Reduce (but not below zero) the amount you otherwise would enter on line 3 of your Worksheet 4-1, line 3 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 9 of your Schedule D Tax Worksheet by your capital gain excess. Form 1040 v payment voucher     b. Form 1040 v payment voucher Reduce (but not below zero) the amount you otherwise would enter on line 2 of your Worksheet 4-1, line 2 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (a) above. Form 1040 v payment voucher     c. Form 1040 v payment voucher Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess. Form 1040 v payment voucher     d. Form 1040 v payment voucher Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet in the 2013 Instructions for Schedule D (Form 1040). Form 1040 v payment voucher   Prev  Up  Next   Home   More Online Publications