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1040 Es Tax Forms

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1040 Es Tax Forms

1040 es tax forms 2. 1040 es tax forms   Estimated Tax for 2014 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated TaxGeneral Rule Married Taxpayers Special Rules Aliens Estates and Trusts How To Figure Estimated Tax2014 Estimated Tax Worksheet When To Pay Estimated TaxWhen To Start Farmers and Fishermen How To Figure Each PaymentRegular Installment Method Annualized Income Installment Method Estimated Tax Payments Not Required How To Pay Estimated TaxCredit an Overpayment Pay Online Pay by Phone Pay by Check or Money Order Using the Estimated Tax Payment Voucher Introduction Estimated tax is the method used to pay tax on income that is not subject to withholding. 1040 es tax forms This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. 1040 es tax forms You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. 1040 es tax forms Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. 1040 es tax forms If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. 1040 es tax forms If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax , later), you may be charged a penalty even if you are due a refund when you file your tax return. 1040 es tax forms For information on when the penalty applies, see chapter 4. 1040 es tax forms It would be helpful for you to have a copy of your 2013 tax return and an estimate of your 2014 income nearby while reading this chapter. 1040 es tax forms Topics - This chapter discusses: Who must pay estimated tax, How to figure estimated tax (including illustrated examples), When to pay estimated tax, How to figure each payment, and How to pay estimated tax. 1040 es tax forms Useful Items - You may want to see: Form (and Instructions) 1040-ES Estimated Tax for Individuals See chapter 5 for information about how to get this publication and form. 1040 es tax forms Worksheets. 1040 es tax forms   You may need to use several of the blank worksheets included in this chapter. 1040 es tax forms See Worksheets for Chapter 2, later, to locate what you need. 1040 es tax forms Who Does Not Have To Pay Estimated Tax If you receive salaries and wages, you may be able to avoid paying estimated tax by asking your employer to take more tax out of your earnings. 1040 es tax forms To do this, file a new Form W-4 with your employer. 1040 es tax forms See chapter 1. 1040 es tax forms Estimated tax not required. 1040 es tax forms   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. 1040 es tax forms You had no tax liability for 2013. 1040 es tax forms You were a U. 1040 es tax forms S. 1040 es tax forms citizen or resident alien for the whole year. 1040 es tax forms Your 2013 tax year covered a 12-month period. 1040 es tax forms   You had no tax liability for 2013 if your total tax (defined later under Total tax for 2013—line 14b ) was zero or you did not have to file an income tax return. 1040 es tax forms Please click here for the text description of the image. 1040 es tax forms Figure 2-A: Do You Have To Pay Estimated Tax? Who Must Pay Estimated Tax If you owed additional tax for 2013, you may have to pay estimated tax for 2014. 1040 es tax forms You can use the following general rule as a guide during the year to see if you will have enough withholding, or should increase your withholding or make estimated tax payments. 1040 es tax forms General Rule In most cases, you must pay estimated tax for 2014 if both of the following apply. 1040 es tax forms You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. 1040 es tax forms You expect your withholding and refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. 1040 es tax forms Your 2013 tax return must cover all 12 months. 1040 es tax forms Note. 1040 es tax forms The percentages in (2a) or (2b) above may be different if you are a farmer, fisherman, or higher income taxpayer. 1040 es tax forms See Special Rules , later. 1040 es tax forms If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet for a more accurate calculation. 1040 es tax forms Figure 2-A takes you through the general rule. 1040 es tax forms You may find this helpful in determining if you must pay estimated tax. 1040 es tax forms If all your income will be subject to income tax withholding, you probably do not need to pay estimated tax. 1040 es tax forms Example 1. 1040 es tax forms Jane Smart uses Figure 2-A and the following information to figure whether she should pay estimated tax for 2014. 1040 es tax forms She files as head of household claiming her dependent son, takes the standard deduction, and expects no refundable credits for 2014. 1040 es tax forms Expected adjusted gross income (AGI) for 2014 $82,800 AGI for 2013 $73,700 Total tax on 2013 return (Form 1040,  line 61) $  8,746 Total 2014 estimated tax (line 13c of the 2014 Estimated Tax Worksheet) $11,015 Tax expected to be withheld in 2014 $10,000 Jane's answer to Figure 2-A, box 1, is YES; she expects to owe at least $1,000 for 2014 after subtracting her withholding from her expected total tax ($11,015 − $10,000 = $1,015). 1040 es tax forms Her answer to box 2a is YES; she expects her income tax withholding ($10,000) to be at least 90% of the tax to be shown on her 2014 return ($11,015 × 90% = $9,913. 1040 es tax forms 50). 1040 es tax forms Jane does not need to pay estimated tax. 1040 es tax forms Example 2. 1040 es tax forms The facts are the same as in Example 1, except that Jane expects only $8,700 tax to be withheld in 2014. 1040 es tax forms Because that is less than $9,913. 1040 es tax forms 50, her answer to box 2a is NO. 1040 es tax forms Jane's answer to box 2b is also NO; she does not expect her income tax withholding ($8,700) to be at least 100% of the total tax shown on her 2013 return ($8,746). 1040 es tax forms Jane must increase her withholding or pay estimated tax for 2014. 1040 es tax forms Example 3. 1040 es tax forms The facts are the same as in Example 2, except that the total tax shown on Jane's 2013 return was $8,600. 1040 es tax forms Because she expects to have more than $8,600 withheld in 2014 ($8,700), her answer to box 2b is YES. 1040 es tax forms Jane does not need to pay estimated tax for 2014. 1040 es tax forms Married Taxpayers If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. 1040 es tax forms You and your spouse can make joint estimated tax payments even if you are not living together. 1040 es tax forms However, you and your spouse cannot make joint estimated tax payments if: You are legally separated under a decree of divorce or separate maintenance, You and your spouse have different tax years, Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes). 1040 es tax forms See Choosing Resident Alien Status in Publication 519, or Individuals of the same sex and opposite sex who are in registered domestic partnerships, civil unions, or other similar formal relationships that are not marriages under state law cannot make joint estimated tax payments. 1040 es tax forms These individuals can take credit only for the estimated tax payments that he or she made. 1040 es tax forms If you and your spouse cannot make joint estimated tax payments, apply these rules to your separate estimated income. 1040 es tax forms Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. 1040 es tax forms 2013 separate returns and 2014 joint return. 1040 es tax forms   If you plan to file a joint return with your spouse for 2014, but you filed separate returns for 2013, your 2013 tax is the total of the tax shown on your separate returns. 1040 es tax forms You filed a separate return if you filed as single, head of household, or married filing separately. 1040 es tax forms 2013 joint return and 2014 separate returns. 1040 es tax forms   If you plan to file a separate return for 2014, but you filed a joint return for 2013, your 2013 tax is your share of the tax on the joint return. 1040 es tax forms You file a separate return if you file as single, head of household, or married filing separately. 1040 es tax forms   To figure your share of the tax on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2013 using the same filing status for 2014. 1040 es tax forms Then multiply the tax on the joint return by the following fraction. 1040 es tax forms      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. 1040 es tax forms Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. 1040 es tax forms Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. 1040 es tax forms For 2014, they plan to file married filing separately. 1040 es tax forms Joe figures his share of the tax on the 2013 joint return as follows: Tax on $40,100 based on separate return $5,960 Tax on $8,400 based on separate return 843 Total $6,803 Joe's percentage of total ($5,960 ÷ $6,803) 87. 1040 es tax forms 6% Joe's share of tax on joint return  ($6,386 × 87. 1040 es tax forms 6%) $5,594 Special Rules There are special rules for farmers, fishermen, and certain higher income taxpayers. 1040 es tax forms Farmers and Fishermen If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under General Rule , earlier. 1040 es tax forms Gross income. 1040 es tax forms   Your gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. 1040 es tax forms To determine whether two-thirds of your gross income for 2013 was from farming or fishing, use as your gross income the total of the income (not loss) amounts. 1040 es tax forms Joint returns. 1040 es tax forms   On a joint return, you must add your spouse's gross income to your gross income to determine if at least two-thirds of your total gross income is from farming or fishing. 1040 es tax forms Gross income from farming. 1040 es tax forms   This is income from cultivating the soil or raising agricultural commodities. 1040 es tax forms It includes the following amounts. 1040 es tax forms Income from operating a stock, dairy, poultry, bee, fruit, or truck farm. 1040 es tax forms Income from a plantation, ranch, nursery, range, orchard, or oyster bed. 1040 es tax forms Crop shares for the use of your land. 1040 es tax forms Gains from sales of draft, breeding, dairy, or sporting livestock. 1040 es tax forms   For 2013, gross income from farming is the total of the following amounts. 1040 es tax forms Schedule F (Form 1040), Profit or Loss From Farming, line 9. 1040 es tax forms Form 4835, Farm Rental Income and Expenses, line 7. 1040 es tax forms Your share of the gross farming income from a partnership, S corporation, estate or trust, from: Schedule K-1 (Form 1065), Schedule K-1 (Form 1120S), or Schedule K-1 (Form 1041). 1040 es tax forms Your gains from sales of draft, breeding, dairy, or sporting livestock shown on Form 4797, Sales of Business Property. 1040 es tax forms   Wages you receive as a farm employee and wages you receive from a farm corporation are not gross income from farming. 1040 es tax forms Gross income from fishing. 1040 es tax forms   This is income from catching, taking, harvesting, cultivating, or farming any kind of fish, shellfish (for example, clams and mussels), crustaceans (for example, lobsters, crabs, and shrimp), sponges, seaweeds, or other aquatic forms of animal and vegetable life. 1040 es tax forms   Gross income from fishing includes the following amounts. 1040 es tax forms Schedule C (Form 1040), Profit or Loss From Business. 1040 es tax forms Income for services as an officer or crew member of a vessel while the vessel is engaged in fishing. 1040 es tax forms Your share of the gross fishing income from a partnership, S corporation, estate or trust, from: Schedule K-1 (Form 1065), Schedule K-1 (Form 1120S), or Schedule K-1 (Form 1041). 1040 es tax forms Certain taxable interest and punitive damage awards received in connection with the Exxon Valdez litigation. 1040 es tax forms Income for services normally performed in connection with fishing. 1040 es tax forms Services normally performed in connection with fishing include: Shore service as an officer or crew member of a vessel engaged in fishing, and Services that are necessary for the immediate preservation of the catch, such as cleaning, icing, and packing the catch. 1040 es tax forms Higher Income Taxpayers If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing a separate return), substitute 110% for 100% in (2b) under General Rule , earlier. 1040 es tax forms For 2013, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. 1040 es tax forms Note. 1040 es tax forms This rule does not apply to farmers and fishermen. 1040 es tax forms Aliens Resident and nonresident aliens also may have to pay estimated tax. 1040 es tax forms Resident aliens should follow the rules in this publication, unless noted otherwise. 1040 es tax forms Nonresident aliens should get Form 1040-ES (NR), U. 1040 es tax forms S. 1040 es tax forms Estimated Tax for Nonresident Alien Individuals. 1040 es tax forms You are an alien if you are not a citizen or national of the United States. 1040 es tax forms You are a resident alien if you either have a green card or meet the substantial presence test. 1040 es tax forms For more information about withholding, the substantial presence test, and Form 1040-ES (NR), see Publication 519. 1040 es tax forms Estates and Trusts Estates and trusts also must pay estimated tax. 1040 es tax forms However, estates (and certain grantor trusts that receive the residue of the decedent's estate under the decedent's will) are exempt from paying estimated tax for the first 2 years after the decedent's death. 1040 es tax forms Estates and trusts must use Form 1041-ES, Estimated Income Tax for Estates and Trusts, to figure and pay estimated tax. 1040 es tax forms How To Figure Estimated Tax To figure your estimated tax, you must figure your expected AGI, taxable income, taxes, deductions, and credits for the year. 1040 es tax forms When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. 1040 es tax forms Use your 2013 federal tax return as a guide. 1040 es tax forms You can use Form 1040-ES to figure your estimated tax. 1040 es tax forms Nonresident aliens use Form 1040-ES (NR) to figure estimated tax. 1040 es tax forms You must make adjustments both for changes in your own situation and for recent changes in the tax law. 1040 es tax forms Some of these changes are discussed under What's New for 2014 , earlier. 1040 es tax forms For information about these and other changes in the law, visit the IRS website at IRS. 1040 es tax forms gov. 1040 es tax forms The instructions for Form 1040-ES include a worksheet to help you figure your estimated tax. 1040 es tax forms Keep the worksheet for your records. 1040 es tax forms 2014 Estimated Tax Worksheet Use Worksheet 2-1 to help guide you through the information about completing the 2014 Estimated Tax Worksheet. 1040 es tax forms You can also find a copy of the worksheet in the Instructions for Form 1040-ES. 1040 es tax forms Expected AGI—Line 1 Your expected AGI for 2014 (line 1) is your expected total income minus your expected adjustments to income. 1040 es tax forms Total income. 1040 es tax forms   Include in your total income all the income you expect to receive during the year, even income that is subject to withholding. 1040 es tax forms However, do not include income that is tax exempt. 1040 es tax forms   Total income includes all income and loss for 2014 that, if you had received it in 2013, would have been included on your 2013 tax return in the total on line 22 of Form 1040, line 15 of Form 1040A, or line 4 of Form 1040EZ. 1040 es tax forms Social security and railroad retirement benefits. 1040 es tax forms If you expect to receive social security or tier 1 railroad retirement benefits during 2014, use Worksheet 2-2 to figure the amount of expected taxable benefits you should include on line 1. 1040 es tax forms Adjustments to income. 1040 es tax forms   Be sure to subtract from your expected total income all of the adjustments you expect to take on your 2014 tax return. 1040 es tax forms Self-employed. 1040 es tax forms If you expect to have income from self-employment, use Worksheet 2-3 to figure your expected self-employment tax and your allowable deduction for self-employment tax. 1040 es tax forms Include the amount from Worksheet 2-3 in your expected adjustments to income. 1040 es tax forms If you file a joint return and both you and your spouse have net earnings from self-employment, each of you must complete a separate worksheet. 1040 es tax forms Expected Taxable Income— Lines 2–5 Reduce your expected AGI for 2014 (line 1) by either your expected itemized deductions or your standard deduction and by your exemptions (lines 2 through 5). 1040 es tax forms Itemized deductions—line 2. 1040 es tax forms   If you expect to claim itemized deductions on your 2014 tax return, enter the estimated amount on line 2. 1040 es tax forms   Itemized deductions are the deductions that can be claimed on Schedule A (Form 1040). 1040 es tax forms    For 2014, your total itemized deductions may be reduced if your AGI is more than the amount shown next for your filing status. 1040 es tax forms Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than this amount, use Worksheet 2-5 to figure the amount to enter on line 2. 1040 es tax forms Standard deduction—line 2. 1040 es tax forms   If you expect to claim the standard deduction on your 2014 tax return, enter the amount on line 2. 1040 es tax forms Use Worksheet 2-4 to figure your standard deduction. 1040 es tax forms No standard deduction. 1040 es tax forms   The standard deduction for some individuals is zero. 1040 es tax forms Your standard deduction will be zero if you: File a separate return and your spouse itemizes deductions, Are a dual-status alien, or File a return for a period of less than 12 months because you change your accounting period. 1040 es tax forms Exemptions—line 4. 1040 es tax forms   After you have subtracted either your expected itemized deductions or your standard deduction from your expected AGI, reduce the amount remaining by $3,950 for each exemption you expect to take on your 2014 tax return. 1040 es tax forms If another person (such as your parent) can claim an exemption for you on his or her tax return, you cannot claim your own personal exemption. 1040 es tax forms This is true even if the other person will not claim your exemption or the exemption will be reduced or eliminated under the phaseout rule. 1040 es tax forms    For 2014, your deduction for personal exemption is reduced if your AGI is more than the amount shown next for your filing status. 1040 es tax forms Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than this amount, use Worksheet 2-6 to figure the amount to enter on line 4. 1040 es tax forms Expected Taxes and Credits— Lines 6–13c After you have figured your expected taxable income (line 5), follow the steps next to figure your expected taxes, credits, and total tax for 2014. 1040 es tax forms Most people will have entries for only a few of these steps. 1040 es tax forms However, you should check every step to be sure you do not overlook anything. 1040 es tax forms Step 1. 1040 es tax forms   Figure your expected income tax (line 6). 1040 es tax forms Generally, you will use the 2014 Tax Rate Schedules, later, to figure your expected income tax. 1040 es tax forms   However, see below for situations where you must use a different method to compute your estimated tax. 1040 es tax forms Tax on child's investment income. 1040 es tax forms   You must use a special method to figure tax on the income of the following children who have more than $2,000 of investment income. 1040 es tax forms Children under age 18 at the end of 2014. 1040 es tax forms The following children if their earned income is not more than half their support. 1040 es tax forms Children age 18 at the end of 2014. 1040 es tax forms Children who are full-time students over age 18 and under age 24 at the end of 2014. 1040 es tax forms See Publication 929, Tax Rules for Children and Dependents. 1040 es tax forms Although the ages and dollar amounts in the publication may be different in the 2014 revision, this reference will give you basic information for figuring the tax. 1040 es tax forms Tax on net capital gain. 1040 es tax forms   The regular income tax rates for individuals do not apply to a net capital gain. 1040 es tax forms Instead, your net capital gain is taxed at a lower maximum rate. 1040 es tax forms   The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. 1040 es tax forms Tax on capital gain and qualified dividends. 1040 es tax forms If the amount on line 1 includes a net capital gain or qualified dividends, use Worksheet 2-7 to figure your tax. 1040 es tax forms Note. 1040 es tax forms For 2014, your capital gains and dividends rate will depend on your income. 1040 es tax forms Tax if excluding foreign earned income or excluding or deducting foreign housing. 1040 es tax forms If you expect to claim the foreign earned income exclusion or the housing exclusion or deduction on Form 2555 or Form 2555-EZ, use Worksheet 2-8 to figure your estimated tax. 1040 es tax forms Step 2. 1040 es tax forms   Total your expected taxes (line 8). 1040 es tax forms Include on line 8 the sum of the following. 1040 es tax forms Your tax on line 6. 1040 es tax forms Your expected alternative minimum tax (AMT) from Form 6251, or included on Form 1040A. 1040 es tax forms Your expected additional taxes from Form 8814, Parents' Election To Report Child's Interest and Dividends, and Form 4972, Tax on Lump-Sum Distributions. 1040 es tax forms Any recapture of education credits. 1040 es tax forms Step 3. 1040 es tax forms   Subtract your expected credits (line 9). 1040 es tax forms If you are using your 2013 return as a guide and filed Form 1040, your total credits for 2013 were shown on line 54. 1040 es tax forms If you filed Form 1040A, your total credits for 2013 were on line 34. 1040 es tax forms   If your credits on line 9 are more than your taxes on line 8, enter “-0-” on line 10 and go to Step 4. 1040 es tax forms Step 4. 1040 es tax forms   Add your expected self-employment tax (line 11). 1040 es tax forms You already should have figured your self-employment tax (see Self-employed under Expected AGI—Line 1, earlier). 1040 es tax forms Step 5. 1040 es tax forms   Add your expected other taxes (line 12). 1040 es tax forms   Other taxes include the following. 1040 es tax forms Additional tax on early distributions from: An IRA or other qualified retirement plan, A tax-sheltered annuity, or A modified endowment contract entered into after June 20, 1988. 1040 es tax forms Household employment taxes if: You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income, or You would be required to make estimated tax payments even if you did not include household employment taxes when figuring your estimated tax. 1040 es tax forms Amounts written on Form 1040 on the line for “other taxes” (line 60 on the 2013 Form 1040). 1040 es tax forms But, do not include recapture of a federal mortgage subsidy; tax on excess golden parachute payments; look-back interest due under section 167(g) or 460(b) of the Internal Revenue Code; excise tax on insider stock compensation from an expatriated corporation; uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance; or additional tax on advance payments of health coverage tax credit when not eligible. 1040 es tax forms Repayment of the first-time homebuyer credit. 1040 es tax forms See Form 5405. 1040 es tax forms Additional Medicare Tax. 1040 es tax forms A 0. 1040 es tax forms 9% Additional Medicare Tax applies to your combined Medicare wages and self-employment income and/or your RRTA compensation that exceeds the amount listed in the following chart, based on your filing status. 1040 es tax forms Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $200,000 Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. 1040 es tax forms A self-employment loss should not be considered for purposes of this tax. 1040 es tax forms RRTA compensation should be separately compared to the threshold. 1040 es tax forms Your employer is responsible for withholding the 0. 1040 es tax forms 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2014. 1040 es tax forms You should consider this withholding, if applicable, in determining whether you need to make an estimated payment. 1040 es tax forms For more information on Additional Medicare Tax, go to IRS. 1040 es tax forms gov and enter “Additional Medicare Tax” in the search box. 1040 es tax forms Net Investment Income Tax (NIIT). 1040 es tax forms The NIIT is 3. 1040 es tax forms 8% of the lesser of your net investment income or the excess of your modified adjusted gross income over the amount listed in the following chart, based on your filing status. 1040 es tax forms Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $250,000 For more information on Net Investment Income Tax, go to IRS. 1040 es tax forms gov and enter “Net Investment Income Tax” in the search box. 1040 es tax forms Step 6. 1040 es tax forms   Subtract your refundable credit (line 13b). 1040 es tax forms   To figure your expected fuel tax credit, do not include fuel tax for the first three quarters of the year that you expect to have refunded to you. 1040 es tax forms   The result of steps 1 through 6 is your total estimated tax for 2014 (line 13c). 1040 es tax forms Required Annual Payment— Line 14c On lines 14a through 14c, figure the total amount you must pay for 2014, through withholding and estimated tax payments, to avoid paying a penalty. 1040 es tax forms General rule. 1040 es tax forms   The total amount you must pay is the smaller of: 90% of your total expected tax for 2014, or 100% of the total tax shown on your 2013 return. 1040 es tax forms Your 2013 tax return must cover all 12 months. 1040 es tax forms Special rules. 1040 es tax forms   There are special rules for higher income taxpayers and for farmers and fishermen. 1040 es tax forms Higher income taxpayers. 1040 es tax forms   If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. 1040 es tax forms This rule does not apply to farmers and fishermen. 1040 es tax forms For 2013, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. 1040 es tax forms Example. 1040 es tax forms   Jeremy Martin's total tax on his 2013 return was $42,581, and his expected tax for 2014 is $71,253. 1040 es tax forms His 2013 AGI was $180,000. 1040 es tax forms Because Jeremy had more than $150,000 of AGI in 2013, he figures his required annual payment as follows. 1040 es tax forms He determines that 90% of his expected tax for 2014 is $64,128 (. 1040 es tax forms 90 × $71,253). 1040 es tax forms Next, he determines that 110% of the tax shown on his 2013 return is $46,839 (1. 1040 es tax forms 10 x $42,581). 1040 es tax forms Finally, he determines that his required annual payment is $46,839, the smaller of the two. 1040 es tax forms Farmers and fishermen. 1040 es tax forms   If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, your required annual payment is the smaller of: 662/3% (. 1040 es tax forms 6667) of your total tax for 2014, or 100% of the total tax shown on your 2013 return. 1040 es tax forms (Your 2013 tax return must cover all 12 months. 1040 es tax forms )   For definitions of “gross income from farming” and “gross income from fishing,” see Farmers and Fishermen , under Special Rules discussed earlier. 1040 es tax forms Total tax for 2013—line 14b. 1040 es tax forms   Your 2013 total tax, if you filed Form 1040, is the amount on line 61 reduced by the following. 1040 es tax forms Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). 1040 es tax forms The following amounts from Form 5329 included on line 58. 1040 es tax forms Any tax on excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts. 1040 es tax forms Any tax on excess accumulations in qualified retirement plans. 1040 es tax forms The following write-ins on line 60. 1040 es tax forms Excise tax on excess golden parachute payments (identified as “EPP”). 1040 es tax forms Excise tax on insider stock compensation from an expatriated corporation (identified as “ISC”). 1040 es tax forms Look-back interest due under section 167(g) (identified as “From Form 8866”). 1040 es tax forms Look-back interest due under section 460(b) (identified as “From Form 8697”). 1040 es tax forms Recapture of federal mortgage subsidy (identified as “FMSR”). 1040 es tax forms Additional tax on advance payments of health coverage tax credit when not eligible (identified as “HCTC”). 1040 es tax forms Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance (identified as “UT”). 1040 es tax forms Any refundable credit amounts. 1040 es tax forms   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits. 1040 es tax forms   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. 1040 es tax forms Total Estimated Tax Payments Needed—Line 16a Use lines 15 and 16a to figure the total estimated tax you may be required to pay for 2014. 1040 es tax forms Subtract your expected withholding from your required annual payment (line 14c). 1040 es tax forms You usually must pay this difference in four equal installments. 1040 es tax forms See When To Pay Estimated Tax and How To Figure Each Payment . 1040 es tax forms You do not have to pay estimated tax if: Line 14c minus line 15 is zero or less, or Line 13c minus line 15 is less than $1,000. 1040 es tax forms Withholding—line 15. 1040 es tax forms   Your expected withholding for 2014 (line 15) includes the income tax you expect to be withheld from all sources (wages, pensions and annuities, etc. 1040 es tax forms ). 1040 es tax forms It includes excess social security, and tier 1 railroad retirement tax you expect to be withheld from your wages and compensation. 1040 es tax forms For this purpose, you will have excess social security or tier 1 railroad retirement tax withholding for 2014 only if your wages and compensation from two or more employers are more than $117,000. 1040 es tax forms See Excess Social Security or Railroad Retirement Tax Withholding in chapter 3. 1040 es tax forms   It also includes Additional Medicare Tax you expect to be withheld from your wages or compensation. 1040 es tax forms Your employer is responsible for withholding the 0. 1040 es tax forms 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. 1040 es tax forms When To Pay Estimated Tax For estimated tax purposes, the year is divided into four payment periods. 1040 es tax forms Each period has a specific payment due date. 1040 es tax forms If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return. 1040 es tax forms If a payment is mailed, the date of the U. 1040 es tax forms S. 1040 es tax forms postmark is considered the date of payment. 1040 es tax forms The payment periods and due dates for estimated tax payments are shown next. 1040 es tax forms For exceptions to the dates listed, see Saturday, Sunday, holiday rule below. 1040 es tax forms For the period: Due date: Jan. 1040 es tax forms 11 – March 31 April 15 April 1 – May 31 June 16 June 1 – August 31 September 15 Sept. 1040 es tax forms 1 – Dec. 1040 es tax forms 31 January 15  next year2 1If your tax year does not begin on January 1,  see Fiscal year taxpayers . 1040 es tax forms 2See January payment . 1040 es tax forms Saturday, Sunday, holiday rule. 1040 es tax forms   If the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or a holiday. 1040 es tax forms January payment. 1040 es tax forms   If you file your 2014 Form 1040 or Form 1040A by February 2, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015. 1040 es tax forms Example. 1040 es tax forms Janet Adams does not pay any estimated tax for 2014. 1040 es tax forms She files her 2014 income tax return and pays the balance due shown on her return on January 26, 2015. 1040 es tax forms Janet's estimated tax for the fourth payment period is considered to have been paid on time. 1040 es tax forms However, she may owe a penalty for not making the first three estimated tax payments, if required. 1040 es tax forms Any penalty for not making those payments will be figured up to January 26, 2015. 1040 es tax forms Fiscal year taxpayers. 1040 es tax forms   If your tax year does not start on January 1, your payment due dates are: The 15th day of the 4th month of your fiscal year, The 15th day of the 6th month of your fiscal year, The 15th day of the 9th month of your fiscal year, and The 15th day of the 1st month after the end of your fiscal year. 1040 es tax forms   You do not have to make the last payment listed above if you file your income tax return by the last day of the first month after the end of your fiscal year and pay all the tax you owe with your return. 1040 es tax forms When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. 1040 es tax forms If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. 1040 es tax forms You have several options when paying estimated taxes. 1040 es tax forms You can: apply an overpayment from the previous tax year, pay all your estimated tax by the due date of your first payment, or pay it in installments. 1040 es tax forms If you choose to pay in installments, make your first payment by the due date for the first payment period. 1040 es tax forms Make your remaining installment payments by the due dates for the later periods. 1040 es tax forms To avoid any estimated tax penalties, all installments must be paid by their due date and for the required amount. 1040 es tax forms No income subject to estimated tax during first period. 1040 es tax forms   If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. 1040 es tax forms You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. 1040 es tax forms Table 2-1 shows the dates for making installment payments. 1040 es tax forms    Table 2-1. 1040 es tax forms Due Dates for Estimated Tax Installment Payments If you first have income on which you must pay estimated tax: Make a payment  by:* Make later  installments  by:* Before April 1 April 15 June 16     Sept. 1040 es tax forms 15     Jan. 1040 es tax forms 15 next year April 1–May 31 June 16 Sept. 1040 es tax forms 15     Jan. 1040 es tax forms 15 next year June 1–Aug. 1040 es tax forms 31 Sept. 1040 es tax forms 15 Jan. 1040 es tax forms 15 next year After Aug. 1040 es tax forms 31 Jan. 1040 es tax forms 15 next year (None) *See January payment and Saturday, Sunday, holiday rule . 1040 es tax forms How much to pay to avoid penalty. 1040 es tax forms   To determine how much you should pay by each payment due date, see How To Figure Each Payment , later. 1040 es tax forms Farmers and Fishermen If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, you have only one payment due date for your 2014 estimated tax, January 15, 2015. 1040 es tax forms The due dates for the first three payment periods, discussed under When To Pay Estimated Tax , earlier, do not apply to you. 1040 es tax forms If you file your 2014 Form 1040 by March 2, 2015, and pay all the tax you owe at that time, you do not need to make an estimated tax payment. 1040 es tax forms Fiscal year farmers and fishermen. 1040 es tax forms   If you are a farmer or fisherman, but your tax year does not start on January 1, you can either: Pay all your estimated tax by the 15th day after the end of your tax year, or File your return and pay all the tax you owe by the 1st day of the 3rd month after the end of your tax year. 1040 es tax forms How To Figure Each Payment After you have figured your total estimated tax, figure how much you must pay by the due date of each payment period. 1040 es tax forms You should pay enough by each due date to avoid a penalty for that period. 1040 es tax forms If you do not pay enough during any payment period, you may be charged a penalty even if you are due a refund when you file your tax return. 1040 es tax forms The penalty is discussed in chapter 4. 1040 es tax forms Regular Installment Method If your first estimated tax payment is due April 15, 2014, you can figure your required payment for each period by dividing your annual estimated tax due (line 16a of the 2014 Estimated Tax Worksheet (Worksheet 2-1)) by 4. 1040 es tax forms Enter this amount on line 17. 1040 es tax forms However, use this method only if your income is basically the same throughout the year. 1040 es tax forms Change in estimated tax. 1040 es tax forms   After you make an estimated tax payment, changes in your income, adjustments, deductions, credits, or exemptions may make it necessary for you to refigure your estimated tax. 1040 es tax forms Pay the unpaid balance of your amended estimated tax by the next payment due date after the change or in installments by that date and the due dates for the remaining payment periods. 1040 es tax forms If you do not receive your income evenly throughout the year, your required estimated tax payments may not be the same for each period. 1040 es tax forms See Annualized Income Installment Method . 1040 es tax forms Amended estimated tax. 1040 es tax forms If you refigure your estimated tax during the year, or if your first estimated tax payment is due after April 15, 2014, figure your required payment for each remaining payment period using Worksheet 2-14. 1040 es tax forms Example. 1040 es tax forms Early in 2014, Mira Roberts figures that her estimated tax due is $1,800. 1040 es tax forms She makes estimated tax payments on April 15 and June 16 of $450 each ($1,800 ÷ 4). 1040 es tax forms On July 10, she sells investment property at a gain. 1040 es tax forms Her refigured estimated tax is $4,100. 1040 es tax forms Her required estimated tax payment for the third payment period is $2,175, as shown in her filled-in Worksheet 2-14. 1040 es tax forms If Mira's estimated tax does not change again, her required estimated tax payment for the fourth payment period will be $1,025. 1040 es tax forms Worksheet 2-14. 1040 es tax forms Amended Estimated Tax Worksheet—Illustrated               1. 1040 es tax forms Amended total estimated tax due 1. 1040 es tax forms $4,100 2. 1040 es tax forms Multiply line 1 by:           50% (. 1040 es tax forms 50) if next payment is due June 16, 2014           75% (. 1040 es tax forms 75) if next payment is due September 15,  2014           100% (1. 1040 es tax forms 00) if next payment is due January 15,  2015 2. 1040 es tax forms 3,075     3. 1040 es tax forms Estimated tax payments for all previous periods 3. 1040 es tax forms 900     4. 1040 es tax forms Next required payment: Subtract line 3 from line 2 and enter the result (but not less than zero) here and on your payment voucher for your next required payment 4. 1040 es tax forms $2,175       Note. 1040 es tax forms If the payment on line 4 is due January 15, 2015, stop here. 1040 es tax forms Otherwise, go to line 5. 1040 es tax forms         5. 1040 es tax forms Add lines 3 and 4 5. 1040 es tax forms 3,075 6. 1040 es tax forms Subtract line 5 from line 1 and enter the result (but not less than zero) 6. 1040 es tax forms 1,025 7. 1040 es tax forms Each following required payment: If the payment on line 4 is due June 16, 2014, enter one-half of the amount on line 6 here and on the payment vouchers for your payments due September 15, 2014, and January 15, 2015. 1040 es tax forms If the amount on line 4 is due September 15, 2014, enter the amount from line 6 here and on the payment voucher for your payment due January 15, 2015 7. 1040 es tax forms $1,025 Worksheet 2-14. 1040 es tax forms Amended Estimated Tax Worksheet—Blank               1. 1040 es tax forms Amended total estimated tax due 1. 1040 es tax forms   2. 1040 es tax forms Multiply line 1 by:           50% (. 1040 es tax forms 50) if next payment is due June 16, 2014           75% (. 1040 es tax forms 75) if next payment is due September 15,  2014           100% (1. 1040 es tax forms 00) if next payment is due January 15,  2015 2. 1040 es tax forms       3. 1040 es tax forms Estimated tax payments for all previous periods 3. 1040 es tax forms       4. 1040 es tax forms Next required payment: Subtract line 3 from line 2 and enter the result (but not less than zero) here and on your payment voucher for your next required payment 4. 1040 es tax forms         Note. 1040 es tax forms If the payment on line 4 is due January 15, 2015, stop here. 1040 es tax forms Otherwise, go to line 5. 1040 es tax forms         5. 1040 es tax forms Add lines 3 and 4 5. 1040 es tax forms   6. 1040 es tax forms Subtract line 5 from line 1 and enter the result (but not less than zero) 6. 1040 es tax forms   7. 1040 es tax forms Each following required payment: If the payment on line 4 is due June 16, 2014, enter one-half of the amount on line 6 here and on the payment vouchers for your payments due September 15, 2014, and January 15, 2015. 1040 es tax forms If the amount on line 4 is due September 15, 2014, enter the amount from line 6 here and on the payment voucher for your payment due January 15, 2015 7. 1040 es tax forms   Underpayment penalty. 1040 es tax forms   The penalty is figured separately for each payment period. 1040 es tax forms If you figure your payments using the regular installment method and later refigure your payments because of an increase in income, you may be charged a penalty for underpayment of estimated tax for the period(s) before you changed your payments. 1040 es tax forms To see how you may be able to avoid or reduce this penalty, see Annualized Income Installment Method (Schedule AI) in chapter 4. 1040 es tax forms Annualized Income Installment Method If you do not receive your income evenly throughout the year (for example, your income from a repair shop you operate is much larger in the summer than it is during the rest of the year), your required estimated tax payment for one or more periods may be less than the amount figured using the regular installment method. 1040 es tax forms The annualized income installment method annualizes your tax at the end of each period based on a reasonable estimate of your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. 1040 es tax forms To see whether you can pay less for any period, complete the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9). 1040 es tax forms You first must complete the 2014 Estimated Tax Worksheet (Worksheet 2-1) through line 16b. 1040 es tax forms Use the result you figure on line 32 of Worksheet 2-9 to make your estimated tax payments and complete your payment vouchers. 1040 es tax forms Note. 1040 es tax forms If you use the annualized income installment method to figure your estimated tax payments, you must file Form 2210 with your 2014 tax return. 1040 es tax forms See Annualized Income Installment Method (Schedule AI) in chapter 4 for more information. 1040 es tax forms Instructions for the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9) Use Worksheet 2-9 to help you follow these instructions. 1040 es tax forms The purpose of this worksheet is to determine your estimated tax liability as your income accumulates throughout the year, rather than dividing your entire year's estimated tax liability by four as if your income was earned equally throughout the year. 1040 es tax forms The top of the worksheet shows the dates for each payment period. 1040 es tax forms The periods build; that is, each period includes all previous periods. 1040 es tax forms After the end of each payment period, complete the corresponding worksheet column to figure the payment due for that period. 1040 es tax forms Line 1. 1040 es tax forms   Enter your AGI for the period. 1040 es tax forms This is your gross income for the period, including your share of partnership or S corporation income or loss, minus your adjustments to income for that period. 1040 es tax forms See Expected AGI—Line 1 , earlier. 1040 es tax forms Self-employment income. 1040 es tax forms   If you had self-employment income, first complete Section B of this worksheet. 1040 es tax forms Use the amounts on line 43 when figuring your expected AGI to enter in each column of Section A, line 1. 1040 es tax forms Line 4. 1040 es tax forms   Be sure to consider all deduction limits figured on Schedule A (Form 1040), such as reducing your medical expenses by 10% (7. 1040 es tax forms 5% if either you or your spouse was born before January 2, 1950) or reducing certain miscellaneous deductions by 2% of your AGI. 1040 es tax forms Figure your deduction limits using your expected AGI in the corresponding column of line 1 (2014 Annualized Estimated Tax Worksheet (Worksheet 2-9)). 1040 es tax forms Line 6. 1040 es tax forms   Multiply line 4 by line 5 and enter the result on line 6 unless line 3 is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately. 1040 es tax forms In that case, use Worksheet 2-10 to figure the amount to enter on line 6. 1040 es tax forms Complete Worksheet 2–10 for each period, as necessary. 1040 es tax forms Line 7. 1040 es tax forms   If you will not itemize your deductions, use Worksheet 2-4 to figure your standard deduction. 1040 es tax forms Line 10. 1040 es tax forms   Multiply $3,950 by your total expected exemptions and enter the result on line 10 unless line 3 is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately. 1040 es tax forms   In that case, use Worksheet 2-11 to figure the amount to enter on line 10. 1040 es tax forms Line 12. 1040 es tax forms   Generally, you will use the Tax Rate Schedules to figure the tax on your annualized income. 1040 es tax forms However, see below for situations where you must use a different method to compute your estimated tax. 1040 es tax forms Tax on child's investment income. 1040 es tax forms   You must use a special method to figure tax on the income of the following children who have more than $2,000 of investment income. 1040 es tax forms Children under age 18 at the end of 2014. 1040 es tax forms The following children if their earned income is not more than half their support. 1040 es tax forms Children age 18 at the end of 2014. 1040 es tax forms Children who are full-time students over age 18 and under age 24 at the end of 2014. 1040 es tax forms See Publication 929. 1040 es tax forms Tax on net capital gain. 1040 es tax forms   The regular income tax rates for individuals do not apply to a net capital gain. 1040 es tax forms Instead, your net capital gain is taxed at a lower maximum rate. 1040 es tax forms   The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. 1040 es tax forms Tax on qualified dividends and capital gains. 1040 es tax forms   For 2014, your capital gain and dividends rate will depend on your income. 1040 es tax forms Tax on capital gain or qualified dividends. 1040 es tax forms If the amount on line 1 includes a net capital gain or qualified dividends, use Worksheet 2-12 to figure the amount to enter on line 12. 1040 es tax forms Tax if excluding foreign earned income or excluding or deducting foreign housing. 1040 es tax forms If you expect to claim the foreign earned income exclusion or the housing exclusion or deduction on Form 2555 or Form 2555-EZ, use Worksheet 2-13 to figure the amount to enter on line 12. 1040 es tax forms Line 13. 1040 es tax forms   If you file Form 1040, add the tax from Forms 8814, 4972, and 6251 for the period. 1040 es tax forms If you file Form 1040A, add the amount from the Alternative Minimum Tax Worksheet found in the instructions. 1040 es tax forms Also include any recapture of an education credit for each period. 1040 es tax forms You may owe this tax if you claimed an education credit in an earlier year and you received either tax-free educational assistance or a refund of qualifying expenses for the same student after filing your 2013 return. 1040 es tax forms   Use the 2013 forms or worksheets to see if you will owe any of the taxes discussed above. 1040 es tax forms Figure the tax based on your income and deductions during the period shown in the column headings. 1040 es tax forms Multiply this amount by the annualization amounts shown for each column on line 2 of the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9). 1040 es tax forms Enter the result on line 13 of this worksheet. 1040 es tax forms Line 15. 1040 es tax forms   Include all the nonrefundable credits you expect to claim because of events that will occur during the period. 1040 es tax forms Note. 1040 es tax forms When figuring your credits for each period, annualize any item of income or deduction to figure each credit. 1040 es tax forms For example, if you need to use your AGI to figure a credit, use line 3 of Worksheet 2-9 to figure the credit for each column. 1040 es tax forms Line 18. 1040 es tax forms   Add your expected other taxes. 1040 es tax forms   Other taxes include the following. 1040 es tax forms Additional tax on early distributions from: An IRA or other qualified retirement plan, A tax-sheltered annuity, or A modified endowment contract entered into after June 20, 1988. 1040 es tax forms Household employment taxes if: You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income, or You would be required to make estimated tax payments even if you did not include household employment taxes when figuring your estimated tax. 1040 es tax forms Amounts on Form 1040 written on the line for “other taxes” (line 60 on the 2013 Form 1040). 1040 es tax forms But do not include recapture of a federal mortgage subsidy; tax on excess golden parachute payments; look-back interest due under section 167(g) or 460(b) of the Internal Revenue Code; excise tax on insider stock compensation from an expatriated corporation; uncollected social security, Medicare, or RRTA tax on tips or group-term life insurance; or additional tax on advance payments of health coverage tax credit when not eligible. 1040 es tax forms Repayment of the first-time homebuyer credit if the home will cease to be your main home in 2014. 1040 es tax forms See Form 5405 for exceptions. 1040 es tax forms Additional Medicare Tax. 1040 es tax forms A 0. 1040 es tax forms 9% Additional Medicare Tax applies to your combined Medicare wages and self-employment income and/or your RRTA compensation that exceeds the amount listed in the following chart, based on your filing status. 1040 es tax forms Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $200,000 Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. 1040 es tax forms A self-employment loss should not be considered for purposes of this tax. 1040 es tax forms RRTA compensation should be separately compared to the threshold. 1040 es tax forms Your employer is responsible for withholding the 0. 1040 es tax forms 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays you in excess of $200,000 in 2014. 1040 es tax forms You should consider this withholding, if applicable, in determining whether you need to make an estimated payment. 1040 es tax forms For more information on Additional Medicare Tax, go to IRS. 1040 es tax forms gov and enter “Additional Medicare Tax” in the search box. 1040 es tax forms Net Investment Income Tax (NIIT). 1040 es tax forms The NIIT is 3. 1040 es tax forms 8% of the lesser of your net investment income or the excess of your modified adjusted gross income over a specified threshold amount. 1040 es tax forms Threshold amounts: Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $250,000 For more information on Net Investment Income Tax, go to IRS. 1040 es tax forms gov and enter “Net Investment Income Tax” in the search box. 1040 es tax forms Line 20. 1040 es tax forms   Include all the refundable credits (other than withholding credits) you can claim because of events that occurred during the period. 1040 es tax forms Note. 1040 es tax forms When figuring your refundable credits for each period, annualize any item of income or deduction used to figure each credit. 1040 es tax forms Line 29. 1040 es tax forms   If line 28 is smaller than line 25 and you are not certain of the estimate of your 2014 tax, you can avoid a penalty by entering the amount from line 25 on line 29. 1040 es tax forms Line 31. 1040 es tax forms   For each period, include estimated tax payments made and any excess social security and railroad retirement tax. 1040 es tax forms   Also include estimated federal income tax withholding. 1040 es tax forms One-fourth of your estimated withholding is considered withheld on the due date of each payment period. 1040 es tax forms To figure the amount to include on line 31 for each period, multiply your total expected withholding for 2014 by: 25% (. 1040 es tax forms 25) for the first period, 50% (. 1040 es tax forms 50) for the second period, 75% (. 1040 es tax forms 75) for the third period, and 100% (1. 1040 es tax forms 00) for the fourth period. 1040 es tax forms   However, you may choose to include your withholding according to the actual dates on which the amounts will be withheld. 1040 es tax forms For each period, include withholding made from the beginning of the period up to and including the payment due date. 1040 es tax forms You can make this choice separately for the taxes withheld from your wages and all other withholding. 1040 es tax forms For an explanation of what to include in withholding, see Total Estimated Tax Payments Needed—Line 16a , earlier. 1040 es tax forms Nonresident aliens. 1040 es tax forms   If you will file Form 1040NR and you do not receive wages as an employee subject to U. 1040 es tax forms S. 1040 es tax forms income tax withholding, the instructions for the worksheet are modified as follows. 1040 es tax forms Skip column (a). 1040 es tax forms On line 1, enter your income for the period that is effectively connected with a U. 1040 es tax forms S. 1040 es tax forms trade or business. 1040 es tax forms On line 21, increase your entry by the amount determined by multiplying your income for the period that is not effectively connected with a U. 1040 es tax forms S. 1040 es tax forms trade or business by the following. 1040 es tax forms 72% for column (b). 1040 es tax forms 45% for column (c). 1040 es tax forms 30% for column (d). 1040 es tax forms However, if you can use a treaty rate lower than 30%, use the percentages determined by multiplying your treaty rate by 2. 1040 es tax forms 4, 1. 1040 es tax forms 5, and 1, respectively. 1040 es tax forms On line 26, enter one-half of the amount from line 16c of the Form 1040-ES (NR) 2014 Estimated Tax Worksheet in column (b), and one-fourth in columns (c) and (d) of Worksheet 2-9. 1040 es tax forms On lines 24 and 27, skip column (b). 1040 es tax forms On line 31, if you do not use the actual withholding method, include one-half of your total expected withholding in column (b) and one-fourth in columns (c) and (d). 1040 es tax forms See Publication 519 for more information. 1040 es tax forms Estimated Tax Payments Not Required You do not have to pay estimated tax if your withholding in each payment period is at least as much as: One-fourth of your required annual payment, or Your required annualized income installment for that period. 1040 es tax forms You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you will owe with your return under $1,000. 1040 es tax forms How To Pay Estimated Tax There are several ways to pay estimated tax. 1040 es tax forms Credit an overpayment on your 2013 return to your 2014 estimated tax. 1040 es tax forms Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. 1040 es tax forms Send in your payment (check or money order) with a payment voucher from Form 1040-ES. 1040 es tax forms Credit an Overpayment If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2013, you can apply part or all of it to your estimated tax for 2014. 1040 es tax forms On Form 1040, or Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. 1040 es tax forms Take the amount you have credited into account when figuring your estimated tax payments. 1040 es tax forms If you timely file your 2013 return, treat the credit as a payment made on April 15, 2014. 1040 es tax forms If you are a beneficiary of an estate or trust, and the trustee elects to credit 2014 trust payments of estimated tax to you, you can treat the amount credited as paid by you on January 15, 2015. 1040 es tax forms If you choose to have an overpayment of tax credited to your estimated tax, you cannot have any of that amount refunded to you until you file your tax return for the following year. 1040 es tax forms You also cannot use that overpayment in any other way. 1040 es tax forms Example. 1040 es tax forms When Kathleen finished filling out her 2013 tax return, she saw that she had overpaid her taxes by $750. 1040 es tax forms Kathleen knew she would owe additional tax in 2014. 1040 es tax forms She credited $600 of the overpayment to her 2014 estimated tax and had the remaining $150 refunded to her. 1040 es tax forms In September, she amended her 2013 return by filing Form 1040X, Amended U. 1040 es tax forms S. 1040 es tax forms Individual Income Tax Return. 1040 es tax forms It turned out that she owed $250 more in tax than she had thought. 1040 es tax forms This reduced her 2013 overpayment from $750 to $500. 1040 es tax forms Because the $750 had already been applied to her 2014 estimated tax or refunded to her, the IRS billed her for the additional $250 she owed, plus penalties and interest. 1040 es tax forms Kathleen could not use any of the $600 she had credited to her 2014 estimated tax to pay this bill. 1040 es tax forms Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. 1040 es tax forms You can make your estimated tax payments online when you e-file or at any time during the year. 1040 es tax forms You can pay using either of the following electronic payment methods. 1040 es tax forms Direct transfer from your bank account. 1040 es tax forms Credit or debit card. 1040 es tax forms To pay your taxes online or for more information, go to www. 1040 es tax forms irs. 1040 es tax forms gov/e-pay. 1040 es tax forms Pay by Phone Paying by phone is another safe and secure method of paying electronically. 1040 es tax forms Use one of the following methods. 1040 es tax forms Direct transfer from your bank account. 1040 es tax forms Credit or debit card. 1040 es tax forms To pay by direct transfer from your bank account, call EFTPS Customer Service at 1-800-555-4477 (English), 1-800-244-4829 (Espanol), or TTY/TDD 1-800-733-4829. 1040 es tax forms To pay using a credit or debit card, you can call one of the following service providers. 1040 es tax forms There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. 1040 es tax forms WorldPay 1-888-9-PAY-TAXTM (1-888-972-9829) www. 1040 es tax forms payUSAtax. 1040 es tax forms com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. 1040 es tax forms officialpayments. 1040 es tax forms com Link2GOV Corporation 1-888-PAY-1040TM (1-888-729-1040) www. 1040 es tax forms PAY1040. 1040 es tax forms com For the latest details on how to pay by phone, go to www. 1040 es tax forms irs. 1040 es tax forms gov/e-pay. 1040 es tax forms Pay by Check or Money Order Using the Estimated Tax Payment Voucher Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. 1040 es tax forms If you use your own envelopes (and not the window envelope that comes with the 1040-ES package), make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live. 1040 es tax forms Do not use the address shown in the Form 1040 or Form 1040A instructions. 1040 es tax forms If you did not pay estimated tax last year, get a copy of Form 1040-ES from the IRS (see chapter 5). 1040 es tax forms Follow the instructions to make sure you use the vouchers correctly. 1040 es tax forms Joint estimated tax payments. 1040 es tax forms    If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return. 1040 es tax forms Change of address. 1040 es tax forms    You must notify the IRS if you are making estimated tax payments and you changed your address during the year. 1040 es tax forms Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. 1040 es tax forms Worksheets for Chapter 2 Use the following worksheets and tables to figure your correct estimated tax. 1040 es tax forms IF you need. 1040 es tax forms . 1040 es tax forms . 1040 es tax forms THEN use. 1040 es tax forms . 1040 es tax forms . 1040 es tax forms 2014 Tax Rate Schedules   the 2014 Estimated Tax Worksheet Worksheet 2-1 to estimate your taxable social security and railroad retirement benefits—line 1 of ES Worksheet (or Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-2 to estimate your self-employment (SE) tax and your deduction for SE tax—lines 1 and 11 of ES Worksheet (lines 1 and 17 of Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-3 to estimate your standard deduction—line 2 of ES Worksheet (line 7 of Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-4 to reduce your itemized deductions because your estimated AGI is more than $152,525—line 2 of ES Worksheet Worksheet 2-5 to reduce your exemption amount because your estimated AGI is more than $152,525—line 4 of ES Worksheet Worksheet 2-6 to estimate your income tax if line 1 of your ES Worksheet includes a net capital gain or qualified dividends—line 6 of ES Worksheet Worksheet 2-7 to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing exclusion or deduction on Form 2555 or Form 2555-EZ—line 6 of ES Worksheet Worksheet 2-8 the 2014 Annualized Estimated Tax Worksheet (Annualized ES Worksheet) Worksheet 2-9 to reduce your itemized deductions because your estimated annualized AGI is more than $152,525—line 6 of Annualized ES Worksheet Worksheet 2-10 to reduce your exemption amount because your estimated annualized AGI is more than $152,525—line 10 of Annualized ES Worksheet Worksheet 2-11 to estimate your income tax if line 1 of your Annualized ES Worksheet includes a net capital gain or qualified dividends—line 12 of Annualized ES Worksheet Worksheet 2-12 to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing exclusion or deduction on Form 2555 or Form 2555-EZ—line 12 of Annualized ES Worksheet Worksheet 2-13 to refigure (amend) your estimated tax during the year Worksheet 2-14 2014 Tax Rate Schedules Do not use these Tax Rate Schedules to figure your 2013 taxes. 1040 es tax forms Use them only to figure your 2014 estimated taxes. 1040 es tax forms Schedule X—Use if your 2014 filing status is  Single Schedule Z—Use if your 2014 filing status is Head of household If line 5 is: The tax is:     If line 5 is: The tax is:     Over— But not  over—         of the  amount  over— Over— But not  over—         of the  amount  over— $0 $9,075     10. 1040 es tax forms 0%   $0 $0 $12,950     10. 1040 es tax forms 0%   $0 9,075 36,900 $907. 1040 es tax forms 50 + 15. 1040 es tax forms 0%   9,075 12,950 49,400 $1,295. 1040 es tax forms 00 + 15. 1040 es tax forms 0%   12,950 36,900 89,350 5,081. 1040 es tax forms 25 + 25. 1040 es tax forms 0%   36,900 49,400 127,550 6,762. 1040 es tax forms 50 + 25. 1040 es tax forms 0%   49,400 89,350 186,350 18,193. 1040 es tax forms 75 + 28. 1040 es tax forms 0%   89,350 127,550 206,600 26,300. 1040 es tax forms 00 + 28. 1040 es tax forms 0%   127,550 186,350 405,100 45,353. 1040 es tax forms 75 + 33. 1040 es tax forms 0%   186,350 206,600 405,100 48,434. 1040 es tax forms 00 + 33. 1040 es tax forms 0%   206,600 405,100 406,750 117,541. 1040 es tax forms 25 + 35. 1040 es tax forms 0%   405,100 405,100 432,200 113,939. 1040 es tax forms 00 + 35. 1040 es tax forms 0%   405,100 406,750 - - - - - - 118,118. 1040 es tax forms 75 + 39. 1040 es tax forms 6%   406,750 432,200 - - - - - - 123,424. 1040 es tax forms 00 + 39. 1040 es tax forms 6%   432,200 Schedule Y-1—Use if your 2014 filing status is Married filing jointly or Qualifying widow(er) Schedule Y-2—Use if your 2014 filing status is  Married filing separately If line 5 is: The tax is:     If line 5 is: The tax is:     Over— But not  over—         of the  amount  over— Over— But not  over—         of the  amount  over— $0 $18,150     10. 1040 es tax forms 0%   $0 $0 $9,075     10. 1040 es tax forms 0%   $0 18,150 73,800 $1,815. 1040 es tax forms 00 + 15. 1040 es tax forms 0%   18,150 9,075 36,900 $907. 1040 es tax forms 50 + 15. 1040 es tax forms 0%   9,075 73,800 148,850 10,162. 1040 es tax forms 50 + 25. 1040 es tax forms 0%   73,800 36,900 74,425 5,081. 1040 es tax forms 25 + 25. 1040 es tax forms 0%   36,900 148,850 226,850 28,925. 1040 es tax forms 00 + 28. 1040 es tax forms 0%   148,850 74,425 113,425 14,462. 1040 es tax forms 50 + 28. 1040 es tax forms 0%   74,425 226,850 405,100 50,765. 1040 es tax forms 00 + 33. 1040 es tax forms 0%   226,850 113,425 202,550 25,382. 1040 es tax forms 50 + 33. 1040 es tax forms 0%   113,425 405,100 457,600 109,587. 1040 es tax forms 50 + 35. 1040 es tax forms 0%   405,100 202,550 228,800 54,793. 1040 es tax forms 75 + 35. 1040 es tax forms 0%   202,550 457,600 - - - - - - 127,962. 1040 es tax forms 50 + 39. 1040 es tax forms 6%   457,600 228,800 - - - - - - 63,981. 1040 es tax forms 25 + 39. 1040 es tax forms 6%   228,800                             Worksheet 2-1. 1040 es tax forms 2014 Estimated Tax Worksheet When this worksheet refers you to instructions, you can find those instructions in the Instructions for 2014 Form 1040-ES. 1040 es tax forms 1 Adjusted gross income you expect in 2014 (see instructions) 1     2 If you plan to itemize deductions, enter the estimated total of your itemized deductions. 1040 es tax forms  Caution: If line 1 is over $152,525, your deduction may be reduced. 1040 es tax forms See Worksheet 2-5. 1040 es tax forms If you do not plan to itemize deductions, enter your standard deduction. 1040 es tax forms 2     3 Subtract line 2 from line 1 3     4 Exemptions. 1040 es tax forms Multiply $3,950 by the number of personal exemptions. 1040 es tax forms  Caution: If line 1 is over $152,525, the amount of your personal exemptions may be limited. 1040 es tax forms See Worksheet 2-6. 1040 es tax forms 4     5 Subtract line 4 from line 3 5     6 Tax. 1040 es tax forms Figure your tax on the amount on line 5 by using the 2014 Tax Rate Schedules Caution: If you will have qualified dividends or a net capital gain, or expect to exclude or deduct foreign earned income or housing, see Worksheets 2-7 and 2-8 to figure the tax 6     7 Alternative minimum tax from Form 6251 or included on Form 1040A, line 28 7     8 Add lines 6 and 7. 1040 es tax forms Add to this amount any other taxes you expect to include in the total on Form 1040, line 44 8     9 Credits (see instructions). 1040 es tax forms Do not include any income tax withholding on this line 9     10 Subtract line 9 from line 8. 1040 es tax forms If zero or less, enter -0- 10     11 Self-employment tax (see instructions) 11     12 Other taxes including, if applicable, Additional Medicare Tax and/or NIIT (see instructions) 12     13a Add lines 10 through 12 13a     b Earned income credit, additional child tax credit, fuel tax credit, and refundable American opportunity credit 13b     c Total 2014 estimated tax. 1040 es tax forms Subtract line 13b from line 13a. 1040 es tax forms If zero or less, enter -0- ▶ 13c     14a Multiply line 13c by 90% (662/3% for farmers and fishermen) 14a           b Required annual payment based on prior year's tax (see instructions) 14b           c Required annual payment to avoid a penalty. 1040 es tax forms Enter the smaller of line 14a or 14b ▶ 14c        Caution: Generally, if you do not prepay (through income tax withholding and estimated tax payments) at least the amount on line 14c, you may owe a penalty for not paying enough estimated tax. 1040 es tax forms To avoid a penalty, make sure your estimate on line 13c is as accurate as possible. 1040 es tax forms Even if you pay the required annual payment, you may still owe tax when you file your return. 1040 es tax forms If you prefer, you can pay the amount shown on line 13c. 1040 es tax forms                         15 Income tax withheld and estimated to be withheld during 2014 (including income tax withholding on pensions, annuities, certain deferred income, etc. 1040 es tax forms ) 15     16a Subtract line 15 from line 14c 16a             Is the result zero or less? □ Yes. 1040 es tax forms Stop here. 1040 es tax forms You are not required to make estimated tax payments. 1040 es tax forms  □ No. 1040 es tax forms Go to line 16b. 1040 es tax forms             b Subtract line 15 from line 13c 16b             Is the result less than $1,000? □ Yes. 1040 es tax forms Stop here. 1040 es tax forms You are not required to make estimated tax payments. 1040 es tax forms  □ No. 1040 es tax forms Go to line 17 to figure your required payment. 1040 es tax forms                         17 If the first payment you are required to make is due April 15, 2014, enter ¼ of line 16a (minus any 2013 overpayment that you are applying to this installment) here, and on your estimated tax payment voucher(s) if you are paying by check or money order 17     Worksheet 2-2. 1040 es tax forms 2014 Estimated Tax Worksheet—Line 1 Estimated Taxable Social Security and Railroad Retirement Benefits Note. 1040 es tax forms If you are using this worksheet to estimate your taxable social security or railroad retirement benefits for Worksheet 2-9, 2014 Annualized Estimated Tax Worksheet, multiply the expected amount of benefits for each period by the annualization amount shown on Worksheet 2-9, line 2, for the same period before entering it on line 1 below. 1040 es tax forms     1. 1040 es tax forms Enter your expected social security and railroad retirement benefits 1. 1040 es tax forms   2. 1040 es tax forms Enter one-half of line 1 2. 1040 es tax forms   3. 1040 es tax forms Enter your expected total income. 1040 es tax forms Do not include any social security and railroad retirement benefits, nontaxable interest income, nontaxable IRA distributions, or nontaxable pension distributions 3. 1040 es tax forms   4. 1040 es tax forms Enter your expected nontaxable interest income 4. 1040 es tax forms   5. 1040 es tax forms Enter (as a positive amount) the total of any expected exclusions or deductions for: U. 1040 es tax forms S. 1040 es tax forms savings bond interest used for higher education expenses (Form 8815) Employer-provided adoption benefits (Form 8839) Foreign earned income or housing (Form 2555 or 2555-EZ) Income by bona fide residents of American Samoa (Form 4563) or Puerto Rico 5. 1040 es tax forms   6. 1040 es tax forms Add lines 2, 3, 4, and 5 6. 1040 es tax forms   7. 1040 es tax forms Enter your expected adjustments to income. 1040 es tax forms Do not include any student loan interest deduction 7. 1040 es tax forms   8. 1040 es tax forms Subtract line 7 from line 6. 1040 es tax forms If zero or less, stop here. 1040 es tax forms  Note. 1040 es tax forms Do not include any social security or railroad retirement benefits in the amount on line 1 of your 2014 Estimated Tax Worksheet (Worksheet 2-1) (or Annualized Estimated Tax Worksheet (Worksheet 2-9)) 8. 1040 es tax forms   9. 1040 es tax forms Enter $25,000 ($32,000 if you expect to file married filing jointly; $0 if you expect to file married filing separately and expect to live with your spouse at any time during the year) 9. 1040 es tax forms   10. 1040 es tax forms Subtract line 9 from line 8. 1040 es tax forms If zero or less, stop here. 1040 es tax forms  Note. 1040 es tax forms Do not include any social security or railroad retirement benefits in the amount on line 1 of your Worksheet 2-1 (or Annualized Estimated Tax Worksheet (Worksheet 2-9)) 10. 1040 es tax forms   11. 1040 es tax forms Enter $9,000 ($12,000 if you expect to file married filing jointly; $0 if you expect to file married filing separately and expect to live with your spouse at any time during the year) 11. 1040 es tax forms   12. 1040 es tax forms Subtract line 11 from line 10. 1040 es tax forms If zero or less, enter -0- 12. 1040 es tax forms   13. 1040 es tax forms Enter the smaller of line 10 or line 11 13. 1040 es tax forms   14. 1040 es tax forms Enter one-half of line 13 14. 1040 es tax forms   15
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1040 es tax forms 5. 1040 es tax forms   Credits Table of Contents Credit for the Elderly or the DisabledCan You Take the Credit? Figuring the Credit Child and Dependent Care Credit Earned Income Credit (EIC)Do You Qualify for the Earned Income Credit (EIC)? Figuring the EIC This chapter briefly discusses the credit for the elderly or disabled, the child and dependent care credit, and the earned income credit. 1040 es tax forms You may be able to reduce your federal income tax by claiming one or more of these credits. 1040 es tax forms Credit for the Elderly or the Disabled This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. 1040 es tax forms For more information, see Publication 524, Credit for the Elderly or the Disabled. 1040 es tax forms You can take the credit only if you file Form 1040 or Form 1040A. 1040 es tax forms You cannot take the credit if you file Form 1040EZ or Form 1040NR. 1040 es tax forms Can You Take the Credit? You can take the credit for the elderly or the disabled if you meet both of the following requirements. 1040 es tax forms You are a qualified individual. 1040 es tax forms Your income is not more than certain limits. 1040 es tax forms  You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit. 1040 es tax forms   Qualified Individual You are a qualified individual for this credit if you are a U. 1040 es tax forms S. 1040 es tax forms citizen or resident alien, and either of the following applies. 1040 es tax forms You were age 65 or older at the end of 2013. 1040 es tax forms You were under age 65 at the end of 2013 and all three of the following statements are true. 1040 es tax forms You retired on permanent and total disability (explained later). 1040 es tax forms You received taxable disability income for 2013. 1040 es tax forms On January 1, 2013, you had not reached mandatory retirement age (defined later under Disability income ). 1040 es tax forms Age 65. 1040 es tax forms You are considered to be age 65 on the day before your 65th birthday. 1040 es tax forms Therefore, you are considered to be age 65 at the end of 2013 if you were born before January 2, 1949. 1040 es tax forms Figure 5-A. 1040 es tax forms Are You a Qualified Individual? This image is too large to be displayed in the current screen. 1040 es tax forms Please click the link to view the image. 1040 es tax forms Figure 5-A, Are you a qualified individual? U. 1040 es tax forms S. 1040 es tax forms citizen or resident alien. 1040 es tax forms   You must be a U. 1040 es tax forms S. 1040 es tax forms citizen or resident alien (or be treated as a resident alien) to take the credit. 1040 es tax forms Generally, you cannot take the credit if you were a nonresident alien at any time during the tax year. 1040 es tax forms Exceptions. 1040 es tax forms   You may be able to take the credit if you are a nonresident alien who is married to a U. 1040 es tax forms S. 1040 es tax forms citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U. 1040 es tax forms S. 1040 es tax forms resident alien. 1040 es tax forms If you make that choice, both you and your spouse are taxed on your worldwide income. 1040 es tax forms   If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U. 1040 es tax forms S. 1040 es tax forms citizen or resident alien at the end of the year, you may be able to choose to be treated as a U. 1040 es tax forms S. 1040 es tax forms resident alien for the entire year. 1040 es tax forms In that case, you may be allowed to take the credit. 1040 es tax forms   For information on these choices, see chapter 1 of Publication 519, U. 1040 es tax forms S. 1040 es tax forms Tax Guide for Aliens. 1040 es tax forms Married persons. 1040 es tax forms   Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. 1040 es tax forms However, if you and your spouse did not live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit. 1040 es tax forms Head of household. 1040 es tax forms   You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. 1040 es tax forms See Publication 524 and Publication 501. 1040 es tax forms Under age 65. 1040 es tax forms   If you are under age 65 at the end of 2013, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income ). 1040 es tax forms You are considered to be under age 65 at the end of 2013 if you were born after January 1, 1949. 1040 es tax forms You are retired on permanent and total disability if: You were permanently and totally disabled when you retired, and You retired on disability before the end of the tax year. 1040 es tax forms   Even if you do not retire formally, you may be considered retired on disability when you have stopped working because of your disability. 1040 es tax forms If you retired on disability before 1977 and were not permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977. 1040 es tax forms Permanent and total disability. 1040 es tax forms   You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. 1040 es tax forms A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. 1040 es tax forms See Physician's statement , later. 1040 es tax forms Substantial gainful activity. 1040 es tax forms   Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit. 1040 es tax forms   Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity. 1040 es tax forms   Substantial gainful activity is not work you do to take care of yourself or your home. 1040 es tax forms It is not unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. 1040 es tax forms However, doing this kind of work may show that you are able to engage in substantial gainful activity. 1040 es tax forms    Figure 5-B. 1040 es tax forms Income Limits IF your filing status is. 1040 es tax forms . 1040 es tax forms . 1040 es tax forms THEN even if you qualify (see Figure 5-A), you CANNOT take the credit if: Your adjusted gross income (AGI)* is equal to or more than. 1040 es tax forms . 1040 es tax forms . 1040 es tax forms OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than. 1040 es tax forms . 1040 es tax forms . 1040 es tax forms single, head of household, or qualifying widow(er) with dependent child $17,500 $5,000 married filing jointly and only one spouse qualifies in Figure 5-A $20,000 $5,000 married filing jointly and both spouses qualify in Figure 5-A $25,000 $7,500 married filing separately and you lived apart from your spouse for all of 2013 $12,500 $3,750 *AGI is the amount on Form 1040A, line 22, or Form 1040, line 38      The fact that you have not worked for some time is not, of itself, conclusive evidence that you cannot engage in substantial gainful activity. 1040 es tax forms Physician's statement. 1040 es tax forms   If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. 1040 es tax forms   You do not have to file this statement with your tax return, but you must keep it for your records. 1040 es tax forms The Instructions for Schedule R (Form 1040A or 1040) include a statement your physician can complete and that you can keep for your records. 1040 es tax forms Veterans. 1040 es tax forms   If the Department of Veterans Affairs (VA) certifies that you are permanently and totally disabled, you can substitute VA Form 21-0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. 1040 es tax forms VA Form 21-0172 must be signed by a person authorized by the VA to do so. 1040 es tax forms You can get this form from your local VA regional office. 1040 es tax forms Physician's statement obtained in earlier year. 1040 es tax forms   If you got a physician's statement in an earlier year and, due to your continued disabled condition, you were unable to engage in any substantial gainful activity during 2013, you may not need to get another physician's statement for 2013. 1040 es tax forms For a detailed explanation of the conditions you must meet, see the instructions for Schedule R (Form 1040A or 1040), Part II. 1040 es tax forms If you meet the required conditions, you must check the box on Schedule R (Form 1040A or 1040), Part II, line 2. 1040 es tax forms   If you checked Schedule R (Form 1040A or 1040), Part I, box 4, 5, or 6, print in the space above the box in Part II, line 2, the first name(s) of the spouse(s) for whom the box is checked. 1040 es tax forms Disability income. 1040 es tax forms   If you are under age 65, you must also have taxable disability income to qualify for the credit. 1040 es tax forms   Disability income must meet the following two requirements. 1040 es tax forms It must be paid under your employer's accident or health plan or pension plan. 1040 es tax forms It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability. 1040 es tax forms Payments that are not disability income. 1040 es tax forms   Any payment you receive from a plan that does not provide for disability retirement is not disability income. 1040 es tax forms Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and is not disability income. 1040 es tax forms   For purposes of the credit for the elderly or the disabled, disability income does not include amounts you receive after you reach mandatory retirement age. 1040 es tax forms Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled. 1040 es tax forms Figuring the Credit You can figure the credit yourself, or the IRS will figure it for you. 1040 es tax forms Figuring the credit yourself. 1040 es tax forms   If you figure the credit yourself, fill out the front of Schedule R (Form 1040A or 1040). 1040 es tax forms Next, fill out Schedule R (Form 1040A or 1040), Part III. 1040 es tax forms Credit figured for you. 1040 es tax forms   If you can take the credit and you want the IRS to figure the credit for you, see Publication 524 or the Instructions for Schedule R (Form 1040A or 1040). 1040 es tax forms If you want the IRS to figure your tax, see chapter 30 of Publication 17, Your Federal Income Tax. 1040 es tax forms Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. 1040 es tax forms The credit can be up to 35% of your expenses. 1040 es tax forms To qualify, you must pay these expenses so you can work or look for work. 1040 es tax forms If you claim this credit, you must include on your return the name and taxpayer identification number (generally the social security number) of each qualifying person for whom care is provided. 1040 es tax forms If the correct information is not shown, the credit may be reduced or disallowed. 1040 es tax forms You also must show on your return the name, address, and the taxpayer identification number of the person(s) or organization(s) that provided the care. 1040 es tax forms For more information, see Publication 503, Child and Dependent Care Expenses. 1040 es tax forms Earned Income Credit (EIC) The earned income credit (EIC) is a refundable tax credit for certain people who work and have earned income under $51,567. 1040 es tax forms The EIC is available to persons with or without a qualifying child. 1040 es tax forms Credit has no effect on certain welfare benefits. 1040 es tax forms   Any refund you receive because of the EIC cannot be counted as income when determining whether you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. 1040 es tax forms These programs include the following. 1040 es tax forms Medicaid and supplemental security income (SSI). 1040 es tax forms Supplemental Nutrition Assistance Program (food stamps). 1040 es tax forms Low-income housing. 1040 es tax forms Temporary Assistance for Needy Families (TANF). 1040 es tax forms  In addition, when determining eligibility, the refund cannot be counted as a resource for at least 12 months after you receive it. 1040 es tax forms Check with your local benefit coordinator to find out if your refund will affect your benefits. 1040 es tax forms Do You Qualify for the Earned Income Credit (EIC)? Use Table 5-1 as an initial guide to the rules you must meet in order to qualify for the EIC. 1040 es tax forms The specific rules you must meet depend on whether you have a qualifying child. 1040 es tax forms If you have a qualifying child, the rules in Parts A, B, and D apply to you. 1040 es tax forms If you do not have a qualifying child, the rules in Parts A, C, and D apply to you. 1040 es tax forms  If, after reading all the rules in each part that applies to you, you think you may qualify for the credit, see Publication 596, Earned Income Credit, for more details about the EIC. 1040 es tax forms You can also find information about the EIC in the instructions for Form 1040 (line 64a), Form 1040A (line 38a), or Form 1040EZ (line 8a). 1040 es tax forms The sections that follow provide additional information for some of the rules. 1040 es tax forms Adjusted gross income (AGI). 1040 es tax forms   Under Rule 1, you cannot claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5-1. 1040 es tax forms Your AGI is the amount on line 37 (Form 1040), line 21 (Form 1040A), or line 4 (Form 1040EZ). 1040 es tax forms Table 5-1. 1040 es tax forms Earned Income Credit (EIC) in a Nutshell First, you must meet all the rules in this column. 1040 es tax forms Second, you must meet all the rules in one of these columns, whichever applies. 1040 es tax forms Third, you must meet the rule in this column. 1040 es tax forms Part A. 1040 es tax forms  Rules for Everyone Part B. 1040 es tax forms  Rules If You Have a Qualifying Child Part C. 1040 es tax forms  Rules If You Do Not Have a Qualifying Child Part D. 1040 es tax forms  Figuring and Claiming the EIC 1. 1040 es tax forms Your adjusted gross income (AGI) must be less than: •$46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, •$43,038 ($48,378 for married filing jointly) if you have two qualifying children, •$37,870 ($43,210 for married filing jointly) if you have one qualifying child, or  •$14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. 1040 es tax forms 2. 1040 es tax forms You must have a valid social security number. 1040 es tax forms  3. 1040 es tax forms Your filing status cannot be “Married filing separately. 1040 es tax forms ” 4. 1040 es tax forms You must be a U. 1040 es tax forms S. 1040 es tax forms citizen or resident alien all year. 1040 es tax forms  5. 1040 es tax forms You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). 1040 es tax forms  6. 1040 es tax forms Your investment income must be $3,300 or less. 1040 es tax forms  7. 1040 es tax forms You must have earned income. 1040 es tax forms 8. 1040 es tax forms Your child must meet the relationship, age, residency, and joint return tests. 1040 es tax forms  9. 1040 es tax forms Your qualifying child cannot be used by more than one person to claim the EIC. 1040 es tax forms  10. 1040 es tax forms You generally cannot be a qualifying child of another person. 1040 es tax forms 11. 1040 es tax forms You must be at least age 25 but under age 65. 1040 es tax forms  12. 1040 es tax forms You cannot be the dependent of another person. 1040 es tax forms  13. 1040 es tax forms You generally cannot be a qualifying child of another person. 1040 es tax forms  14. 1040 es tax forms You must have lived in the United States more than half of the year. 1040 es tax forms 15. 1040 es tax forms Your earned income must be less than: •$46,227 ($51,567 for married filing jointly) if you have three or more qualifying children, •$43,038 ($48,378 for married filing jointly) if you have two qualifying children, •$37,870 ($43,210 for married filing jointly) if you have one qualifying child, or •$14,340 ($19,680 for married filing jointly) if you do not have a qualifying child. 1040 es tax forms Social security number. 1040 es tax forms   Under Rule 2, you (and your spouse if you are married filing jointly) must have a valid social security number (SSN) issued by the Social Security Administration (SSA). 1040 es tax forms Any qualifying child listed on Schedule EIC also must have a valid SSN. 1040 es tax forms (See Qualifying child , later, if you have a qualifying child. 1040 es tax forms )   If your social security card (or your spouse's if you are married filing jointly) says “Not valid for employment” and your SSN was issued so that you (or your spouse) could get a federally funded benefit, you cannot get the EIC. 1040 es tax forms An example of a federally funded benefit is Medicaid. 1040 es tax forms Investment income. 1040 es tax forms   Under Rule 6, you cannot claim the EIC unless your investment income is $3,300 or less. 1040 es tax forms If your investment income is more than $3,300, you cannot claim the credit. 1040 es tax forms For most people, investment income is the total of the following amounts. 1040 es tax forms Taxable interest (line 8a of Form 1040 or 1040A). 1040 es tax forms Tax-exempt interest (line 8b of Form 1040 or 1040A). 1040 es tax forms Dividend income (line 9a of Form 1040 or 1040A). 1040 es tax forms Capital gain net income (line 13 of Form 1040, if more than zero, or line 10 of Form 1040A). 1040 es tax forms  If you file Form 1040EZ, your investment income is the total of the amount of line 2 and the amount of any tax-exempt interest you wrote to the right of the words “Form 1040EZ” on line 2. 1040 es tax forms   For more information about investment income, see Publication 596, Earned Income Credit. 1040 es tax forms Earned income. 1040 es tax forms   Under Rule 7, you must have earned income to claim the EIC. 1040 es tax forms Under Rule 15, you cannot claim the EIC unless your earned income is less than the applicable limit shown in Table 5-1, Part D. 1040 es tax forms Earned income includes all of the following types of income. 1040 es tax forms Wages, salaries, tips, and other taxable employee pay. 1040 es tax forms Employee pay is earned income only if it is taxable. 1040 es tax forms Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, is not earned income. 1040 es tax forms But there is an exception for nontaxable combat pay, which you can choose to include in earned income. 1040 es tax forms Net earnings from self-employment. 1040 es tax forms Gross income received as a statutory employee. 1040 es tax forms Gross income defined. 1040 es tax forms   Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). 1040 es tax forms Do not include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2013, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). 1040 es tax forms If (a) or (b) applies, see the instructions for Form 1040, lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. 1040 es tax forms Self-employed persons. 1040 es tax forms   If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. 1040 es tax forms If you do not, you may not get all the credit to which you are entitled. 1040 es tax forms Disability benefits. 1040 es tax forms   If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. 1040 es tax forms Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. 1040 es tax forms Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. 1040 es tax forms   Payments you received from a disability insurance policy that you paid the premiums for are not earned income. 1040 es tax forms It does not matter whether you have reached minimum retirement age. 1040 es tax forms If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J. 1040 es tax forms Income that is not earned income. 1040 es tax forms   Examples of items that are not earned income under Rule 7 include interest and dividends, pensions and annuities, social security and railroad retirement benefits (including disability benefits — except for payments covered under Disability benefits earlier), alimony and child support, welfare benefits, workers' compensation benefits, unemployment compensation (insurance), nontaxable foster care payments, and veterans' benefits, including VA rehabilitation payments. 1040 es tax forms Do not include any of these items in your earned income. 1040 es tax forms Workfare payments. 1040 es tax forms   Nontaxable workfare payments are not earned income for the EIC. 1040 es tax forms These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal Temporary Assistance for Needy Families (TANF) program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment is not available, or (2) community service program activities. 1040 es tax forms Qualifying child. 1040 es tax forms   Under Rule 8, your child is a qualifying child if your child meets four tests. 1040 es tax forms The four tests are: Relationship, Age, Residency, and Joint return. 1040 es tax forms   The four tests are illustrated in Figure 5-C. 1040 es tax forms See Publication 596 for more information about each test. 1040 es tax forms Figure 5-C. 1040 es tax forms Tests for Qualifying Child A qualifying child for the EIC is a child who is your. 1040 es tax forms . 1040 es tax forms . 1040 es tax forms Son, daughter, stepchild, foster child,  or a descendant of any of them (for example, your grandchild) OR Brother, sister, half brother, half sister, stepbrother,  stepsister, or a descendant of any of them (for example, your  niece or nephew) was . 1040 es tax forms . 1040 es tax forms . 1040 es tax forms Under age 19 at the end of 2013 and younger than you (or your spouse if filing jointly) OR Under age 24 at the end of 2013, a student, and younger than you (or your spouse if filing jointly) OR Permanently and totally disabled at any time during the year, regardless of age who. 1040 es tax forms . 1040 es tax forms . 1040 es tax forms Is not filing a joint return for 2013  (or is filing a joint return for 2013 only as a claim for refund of income tax withheld or estimated tax paid) who. 1040 es tax forms . 1040 es tax forms . 1040 es tax forms Lived with you in the United States for more than half of 2013. 1040 es tax forms  If the child did not live with you for the required time, see Publication 596 for more information. 1040 es tax forms Figuring the EIC To figure the amount of your credit, you have two choices. 1040 es tax forms Have the IRS figure the EIC for you. 1040 es tax forms If you want to do this, see IRS Will Figure the EIC for You in Publication 596. 1040 es tax forms Figure the EIC yourself. 1040 es tax forms If you want to do this, see How To Figure the EIC Yourself in Publication 596. 1040 es tax forms Prev  Up  Next   Home   More Online Publications