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Free filing h&r block Publication 510 - Introductory Material Table of Contents What's New Reminders Introduction Useful Items - You may want to see: Excise Taxes Not Covered What's New Medical device excise tax. Free filing h&r block  The Affordable Care Act (the “Act”) (Public Law 111-148, amended by Public Law 111-152) imposes a 2. Free filing h&r block 3% (. Free filing h&r block 023) excise tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device. Free filing h&r block The tax applies to sales of taxable medical devices after December 31, 2012. Free filing h&r block See Taxable Medical Devices in chapter 5, later. Free filing h&r block Tax on seasonal flu vaccines. Free filing h&r block  Sales of all vaccines against seasonal influenza are now subject to the section 4131 excise tax at the existing rate of $. Free filing h&r block 75 per dose of taxable vaccine. Free filing h&r block Previously, only trivalent influenza vaccines were subject to this tax. Free filing h&r block See Vaccines in chapter 5, later. Free filing h&r block Patient-centered outcomes research fee. Free filing h&r block  The Act imposes a fee on issuers of specified health insurance policies (section 4375) and plan sponsors of applicable self-insured health plans (section 4576) to help fund the Patient-Centered Outcomes Research Institute. Free filing h&r block The fee, required to be reported annually on the 2nd quarter Form 720 and paid by its due date, July 31st, is based on the average number of lives covered under the policy or plan. Free filing h&r block The fee applies to policy or plan years ending on or after October 1, 2012. Free filing h&r block See chapter 11, later. Free filing h&r block Extension of fuel tax credits. Free filing h&r block  The following section 6426 credits, previously expired on December 31, 2011, are retroactively extended. Free filing h&r block Biodiesel or renewable diesel mixture credit. Free filing h&r block Alternative fuel credit. Free filing h&r block Alternative fuel mixture credit. Free filing h&r block See Notice 2013–26 (fuel tax credits) on page 984 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2013–18 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb13-18. Free filing h&r block pdf; also see chapter 2, later. Free filing h&r block Alternative fuel mixture credit can be claimed on Schedule C (Form 720) only. Free filing h&r block  For alternative fuel mixtures produced after December 31, 2011, the section 6426 alternative fuel mixture credit can be claimed on Schedule C (Form 720) only, not on Form 4136, Credit for Federal Tax Paid on Fuels, or Schedule 3 (Form 8849), Claim for Refund of Excise Taxes, and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel, and kerosene. Free filing h&r block See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit in chapter 2, later. Free filing h&r block Expiration of alcohol fuel mixture credit. Free filing h&r block  The section 6426 alcohol fuel mixture credit expired after December 31, 2011. Free filing h&r block Expiration of alcohol fuels credits. Free filing h&r block  The section 40 alcohol, alcohol mixture, and small ethanol producer credits expired after December 31, 2011. Free filing h&r block Second generation biofuel producer credit and excise tax. Free filing h&r block  The section 40 cellulosic biofuel producer credit was retroactively extended to include fuel sold or used through January 2, 2013. Free filing h&r block After January 2, 2013, cellulosic biofuel is renamed second generation biofuel, which adds algae-based fuel. Free filing h&r block The second generation biofuel producer credit is for fuel sold or used after January 2, 2013, and before January 1, 2014. Free filing h&r block You are liable for an excise tax on each gallon of cellulosic or second generation biofuel at the rate you used to figure the credit if you do not use the fuel for the purposes described under Qualified Cellulosic Biofuel Production or Qualified Second Generation Biofuel Production, later. Free filing h&r block Report the tax on Form 720. Free filing h&r block See Cellulosic or Second Generation Biofuel Not Used as Fuel, later; also see Form 6478, Biofuel Producer Credit, for more information. Free filing h&r block Extension of section 40A biodiesel fuels credit. Free filing h&r block  The biodiesel fuels credit, previously expired on December 31, 2011, is retroactively extended. Free filing h&r block Future developments. Free filing h&r block  The IRS has created a page on IRS. Free filing h&r block gov that includes information about Publication 510 at www. Free filing h&r block irs. Free filing h&r block gov/pub510. Free filing h&r block Information about any future developments will be posted on that page. Free filing h&r block Reminders Publication 510 updates. Free filing h&r block  Publication 510 is not updated annually. Free filing h&r block Instead, it will be updated only when there are major changes in the tax law. Free filing h&r block Use of international air travel facilities. Free filing h&r block  Generally, the tax on the use of international air travel facilities increases annually. Free filing h&r block See the Instructions for Form 720 for the tax rate. Free filing h&r block For more information, see Air Transportation Taxes in chapter 4. Free filing h&r block Aviation fuels for use in foreign trade. Free filing h&r block  Aviation gasoline and kerosene for use in aviation are exempt from the leaking underground storage tank (LUST) tax. Free filing h&r block Arrow shafts, tax rate. Free filing h&r block  Generally, the tax on arrow shafts increases annually. Free filing h&r block See Form 720 for the tax rate. Free filing h&r block Disregarded entities and qualified subchapter S subsidiaries. Free filing h&r block  Qualified subchapter S subsidiaries (QSubs) and eligible single-owner disregarded entities are treated as separate entities for excise tax and reporting purposes. Free filing h&r block QSubs and eligible single-owner disregarded entities must pay and report excise taxes (other than IRS Nos. Free filing h&r block 31, 51, and 117), register for most excise tax activities, and claim any refunds, credits, and payments under the entity's employer identification number (EIN). Free filing h&r block These actions cannot take place under the owner's taxpayer identification number (TIN). Free filing h&r block Some QSubs and disregarded entities may already have an EIN. Free filing h&r block However, if you are unsure, please call the IRS Business and Specialty Tax line at 1-800-829-4933. Free filing h&r block Generally, QSubs and eligible single-owner disregarded entities will continue to be treated as disregarded entities for other federal tax purposes (other than employment taxes). Free filing h&r block For more information on these regulations, see Treasury Decision (T. Free filing h&r block D. Free filing h&r block ) 9356, T. Free filing h&r block D. Free filing h&r block 9462, and T. Free filing h&r block D. Free filing h&r block 9596. Free filing h&r block You can find T. Free filing h&r block D. Free filing h&r block 9356 on page 675 of Internal Revenue Bulletin (I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block ) 2007-39 at  www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb07-39. Free filing h&r block pdf;  T. Free filing h&r block D. Free filing h&r block 9462 on page 504 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2009-42 at  www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb09-42. Free filing h&r block pdf;  and T. Free filing h&r block D. Free filing h&r block 9596 on page 84 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2012-30 at  www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb12-30. Free filing h&r block pdf. Free filing h&r block Registration for certain activities. Free filing h&r block  You are required to be registered for certain excise tax activities, such as blending of gasoline, diesel fuel, or kerosene outside the bulk transfer/terminal system. Free filing h&r block See the instructions for Form 637 for the list of activities for which you must register. Free filing h&r block Also see Registration Requirements under Fuel Taxes in chapter 1 for information on registration for activities related to fuel. Free filing h&r block Each business unit that has, or is required to have, a separate employer identification number must be registered. Free filing h&r block To apply for registration, complete Form 637 and provide the information requested in its instructions. Free filing h&r block If your application is approved, you will receive a Letter of Registration showing the activities for which you are registered, the effective date of the registration, and your registration number. Free filing h&r block A copy of Form 637 is not a Letter of Registration. Free filing h&r block Photographs of missing children. Free filing h&r block  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Free filing h&r block Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free filing h&r block You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Free filing h&r block Introduction This publication covers the excise taxes for which you may be liable and which are reported on Form 720 and other forms. Free filing h&r block It also covers fuel tax credits and refunds. Free filing h&r block For information on fuel credits against income tax (the section 40 credits for the production of cellulosic biofuel and second generation biofuel, and the section 40A credit for biodiesel and renewable diesel used as fuel) see the instructions for Form 6478 and Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Free filing h&r block Comments and suggestions. Free filing h&r block   We welcome your comments about this publication and your suggestions for future editions. Free filing h&r block   You can write to us at the following address: Internal Revenue Service Individual and Specialty Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Free filing h&r block NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Free filing h&r block Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free filing h&r block   You can email us at taxforms@irs. Free filing h&r block gov. Free filing h&r block Please put “Publications Comment” on the subject line. Free filing h&r block You can also send us comments from www. Free filing h&r block irs. Free filing h&r block gov/Forms-&-Pubs/More-Information/ and select “Comment on Tax Forms and Publications”. Free filing h&r block   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Free filing h&r block Useful Items - You may want to see: Publication 509 Tax Calendars Form (and Instructions) 11-C Occupational Tax and Registration Return for Wagering 637 Application for Registration (For Certain Excise Tax Activities) 720 Quarterly Federal Excise Tax Return 720X Amended Quarterly Federal Excise Tax Return 730 Monthly Tax Return for Wagers 1363 Export Exemption Certificate 2290 Heavy Highway Vehicle Use Tax Return 2290(SP) Declaración del Impuesto sobre el Uso de Vehículos Pesados en las Carreteras 4136 Credit for Federal Tax Paid on Fuels 6197 Gas Guzzler Tax 6478 Biofuel Producer Credit 6627 Environmental Taxes 8849 Claim for Refund of Excise Taxes, and Schedules 1–3, 5, 6, and 8 8864 Biodiesel and Renewable Diesel Fuels Credit Information Returns    Form 720-TO, Terminal Operator Report Form 720-CS, Carrier Summary Report   See How To Get Tax Help in chapter 17 for information about ordering forms and publications. Free filing h&r block Guidance    You can find Notice 2005-4 (fuel tax guidance) on page 289 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2005-2 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb05-02. Free filing h&r block pdf. Free filing h&r block Notice 2005-62 (biodiesel and aviation-grade kerosene) on page 443 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2005-35 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb05-35. Free filing h&r block pdf. Free filing h&r block Notice 2005-80 (LUST, kerosene, claims by credit card issuers, and mechanical dye injection) on page 953 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2005-46 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb05-46. Free filing h&r block pdf. Free filing h&r block Notice 2006-92 (alternative fuels and alternative fuel mixtures) on page 774 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2006-43 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb06-43. Free filing h&r block pdf. Free filing h&r block Notice 2008-110 (biodiesel and cellulosic biofuel) on page 1298 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2008-51 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb08-51. Free filing h&r block pdf. Free filing h&r block Notice 2010-68 (Alaska dyed diesel exemption) on page 576 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2010-44 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb10-44. Free filing h&r block pdf. Free filing h&r block Notice 2012-27 (fractional aircraft ownership programs fuel surtax) on page 849 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2012-17 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb12-17. Free filing h&r block pdf. Free filing h&r block Notice 2013-26 (fuel tax credits) on page 984 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2013-18 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb13-18. Free filing h&r block pdf. Free filing h&r block T. Free filing h&r block D. Free filing h&r block 9604 and Notice 2012–77 (medical device tax) on pages 730 and 781, respectively, of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2012-52 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb12-52. Free filing h&r block pdf. Free filing h&r block T. Free filing h&r block D. Free filing h&r block 9602 (patient-centered outcomes research fee) on page 746 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2012-52 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb12-52. Free filing h&r block pdf. Free filing h&r block Revenue Procedure 2012-41 (inflation adjustments) on page 539 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2012-45 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb12-45. Free filing h&r block pdf. Free filing h&r block T. Free filing h&r block D. Free filing h&r block 9621 (indoor tanning services tax) on page 49 of I. Free filing h&r block R. Free filing h&r block B. Free filing h&r block 2013-28 at www. Free filing h&r block irs. Free filing h&r block gov/pub/irs-irbs/irb13-28. Free filing h&r block pdf. Free filing h&r block Excise Taxes Not Covered In addition to the taxes discussed in this publication, you may have to report certain other excise taxes. Free filing h&r block For tax forms relating to alcohol, firearms, and tobacco, visit the Alcohol and Tobacco Tax and Trade Bureau website at www. Free filing h&r block ttb. Free filing h&r block gov. Free filing h&r block Heavy highway vehicle use tax. Free filing h&r block   You report the federal excise tax on the use of certain trucks, truck tractors, and buses used on public highways on Form 2290, Heavy Highway Vehicle Use Tax Return. Free filing h&r block The tax applies to highway motor vehicles with a taxable gross weight of 55,000 pounds or more. Free filing h&r block Vans, pickup trucks, panel trucks, and similar trucks generally are not subject to this tax. Free filing h&r block Note. Free filing h&r block A Spanish version (Formulario 2290(SP)) is also available. Free filing h&r block See How To Get Tax Help in chapter 17. Free filing h&r block Registration of vehicles. Free filing h&r block   Generally, you must prove that you paid your heavy highway vehicle use tax to register your taxable vehicle with your state motor vehicle department or to enter the United States in a Canadian or Mexican registered taxable vehicle. Free filing h&r block Generally, a copy of Schedule 1 (Form 2290) is stamped by the IRS and returned to you as proof of payment. Free filing h&r block    If you have questions on Form 2290, see its separate instructions, or you can call the Form 2290 call site at 1-866-699-4096 (toll free) from the United States, and 1-859-669-5733 (not toll free) from Canada and Mexico. Free filing h&r block The hours of service are 8:00 a. Free filing h&r block m. Free filing h&r block to 6:00 p. Free filing h&r block m. Free filing h&r block Eastern time. Free filing h&r block Wagering tax and occupational tax. Free filing h&r block   The information on wagering tax can be found in the instructions for Form 730, Tax on Wagering, and Form 11-C, Occupational Tax and Registration Return for Wagering. Free filing h&r block Prev  Up  Next   Home   More Online Publications

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Free filing h&r block 4. Free filing h&r block   Tax Withholding and Estimated Tax Table of Contents What's New for 2014 Reminders Introduction Useful Items - You may want to see: Tax Withholding for 2014Salaries and Wages Tips Taxable Fringe Benefits Sick Pay Pensions and Annuities Gambling Winnings Unemployment Compensation Federal Payments Backup Withholding Estimated Tax for 2014Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated Tax How To Figure Estimated Tax When To Pay Estimated Tax How To Figure Each Payment How To Pay Estimated Tax Credit for Withholding and Estimated Tax for 2013Withholding Estimated Tax Underpayment Penalty for 2013 What's New for 2014 Tax law changes for 2014. Free filing h&r block  When you figure how much income tax you want withheld from your pay and when you figure your estimated tax, consider tax law changes effective in 2014. Free filing h&r block For more information, see Publication 505. Free filing h&r block Reminders Estimated tax safe harbor for higher income taxpayers. Free filing h&r block  If your 2013 adjusted gross income was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2014 or 110% of the tax shown on your 2013 return to avoid an estimated tax penalty. Free filing h&r block Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. Free filing h&r block In general, the federal income tax is a pay-as-you-go tax. Free filing h&r block There are two ways to pay as you go. Free filing h&r block Withholding. Free filing h&r block If you are an employee, your employer probably withholds income tax from your pay. Free filing h&r block Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. Free filing h&r block The amount withheld is paid to the IRS in your name. Free filing h&r block Estimated tax. Free filing h&r block If you do not pay your tax through withholding, or do not pay enough tax that way, you may have to pay estimated tax. Free filing h&r block People who are in business for themselves generally will have to pay their tax this way. Free filing h&r block Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. Free filing h&r block Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Free filing h&r block This chapter explains these methods. Free filing h&r block In addition, it also explains the following. Free filing h&r block Credit for withholding and estimated tax. Free filing h&r block When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. Free filing h&r block , and for the estimated tax you paid for 2013. Free filing h&r block Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). Free filing h&r block Underpayment penalty. Free filing h&r block If you did not pay enough tax during the year, either through withholding or by making estimated tax payments, you may have to pay a penalty. Free filing h&r block In most cases, the IRS can figure this penalty for you. Free filing h&r block See Underpayment Penalty for 2013 at the end of this chapter. Free filing h&r block Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request 1040-ES Estimated Tax for Individuals 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen Tax Withholding for 2014 This section discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. Free filing h&r block This section explains the rules for withholding tax from each of these types of income. Free filing h&r block This section also covers backup withholding on interest, dividends, and other payments. Free filing h&r block Salaries and Wages Income tax is withheld from the pay of most employees. Free filing h&r block Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Free filing h&r block It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Free filing h&r block See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. Free filing h&r block If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Free filing h&r block This is explained under Exemption From Withholding , later. Free filing h&r block You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Free filing h&r block If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Free filing h&r block Military retirees. Free filing h&r block   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. Free filing h&r block Household workers. Free filing h&r block   If you are a household worker, you can ask your employer to withhold income tax from your pay. Free filing h&r block A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Free filing h&r block   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Free filing h&r block If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Free filing h&r block Farmworkers. Free filing h&r block   Generally, income tax is withheld from your cash wages for work on a farm unless your employer does both of these: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. Free filing h&r block Differential wage payments. Free filing h&r block    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Free filing h&r block Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. Free filing h&r block The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Free filing h&r block   The credit employers can claim for differential wages paid to activated military reservists is scheduled to expire for wages paid after December 31, 2013. Free filing h&r block Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. Free filing h&r block The amount you earn in each payroll period. Free filing h&r block The information you give your employer on Form W-4. Free filing h&r block Form W-4 includes four types of information that your employer will use to figure your withholding. Free filing h&r block Whether to withhold at the single rate or at the lower married rate. Free filing h&r block How many withholding allowances you claim (each allowance reduces the amount withheld). Free filing h&r block Whether you want an additional amount withheld. Free filing h&r block Whether you are claiming an exemption from withholding in 2014. Free filing h&r block See Exemption From Withholding , later. Free filing h&r block Note. Free filing h&r block You must specify a filing status and a number of withholding allowances on Form W-4. Free filing h&r block You cannot specify only a dollar amount of withholding. Free filing h&r block New Job When you start a new job, you must fill out Form W-4 and give it to your employer. Free filing h&r block Your employer should have copies of the form. Free filing h&r block If you need to change the information later, you must fill out a new form. Free filing h&r block If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. Free filing h&r block You may be able to avoid overwithholding if your employer agrees to use the part-year method. Free filing h&r block See Part-Year Method in chapter 1 of Publication 505 for more information. Free filing h&r block Employee also receiving pension income. Free filing h&r block   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Free filing h&r block However, you can choose to split your withholding allowances between your pension and job in any manner. Free filing h&r block Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. Free filing h&r block When this happens, you may need to give your employer a new Form W-4 to change your withholding status or your number of allowances. Free filing h&r block If the changes reduce the number of allowances you are claiming or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. Free filing h&r block Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other reason. Free filing h&r block Changing your withholding for 2015. Free filing h&r block   If events in 2014 will decrease the number of your withholding allowances for 2015, you must give your employer a new Form W-4 by December 1, 2014. Free filing h&r block If the event occurs in December 2014, submit a new Form W-4 within 10 days. Free filing h&r block Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too little or too much. Free filing h&r block If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Free filing h&r block You should try to have your withholding match your actual tax liability. Free filing h&r block If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. Free filing h&r block If too much tax is withheld, you will lose the use of that money until you get your refund. Free filing h&r block Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. Free filing h&r block Note. Free filing h&r block You cannot give your employer a payment to cover withholding on salaries and wages for past pay periods or a payment for estimated tax. Free filing h&r block Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Free filing h&r block The worksheets are for your own records. Free filing h&r block Do not give them to your employer. Free filing h&r block Multiple jobs. Free filing h&r block   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Free filing h&r block Then split your allowances between the Forms W-4 for each job. Free filing h&r block You cannot claim the same allowances with more than one employer at the same time. Free filing h&r block You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Free filing h&r block Married individuals. Free filing h&r block   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. Free filing h&r block Use only one set of worksheets. Free filing h&r block You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Free filing h&r block   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. Free filing h&r block Alternative method of figuring withholding allowances. Free filing h&r block   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. Free filing h&r block For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. Free filing h&r block Personal Allowances Worksheet. Free filing h&r block   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. Free filing h&r block Deduction and Adjustments Worksheet. Free filing h&r block   Use the Deduction and Adjustments Worksheet on Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. Free filing h&r block Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. Free filing h&r block Two-Earners/Multiple Jobs Worksheet. Free filing h&r block   You may need to complete the Two-Earners/Multiple Jobs Worksheet on Form W-4 if you have more than one job, a working spouse, or are also receiving a pension. Free filing h&r block Also, on this worksheet you can add any additional withholding necessary to cover any amount you expect to owe other than income tax, such as self-employment tax. Free filing h&r block Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. Free filing h&r block You accurately complete all the Form W-4 worksheets that apply to you. Free filing h&r block You give your employer a new Form W-4 when changes occur. Free filing h&r block But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Free filing h&r block This is most likely to happen in the following situations. Free filing h&r block You are married and both you and your spouse work. Free filing h&r block You have more than one job at a time. Free filing h&r block You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Free filing h&r block You will owe additional amounts with your return, such as self-employment tax. Free filing h&r block Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Free filing h&r block Your earnings are more than the amount shown under Check your withholding in the instructions at the top of page 1 of Form W-4. Free filing h&r block You work only part of the year. Free filing h&r block You change the number of your withholding allowances during the year. Free filing h&r block Cumulative wage method. Free filing h&r block   If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. Free filing h&r block You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. Free filing h&r block You must ask your employer in writing to use this method. Free filing h&r block   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Free filing h&r block ) since the beginning of the year. Free filing h&r block Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. Free filing h&r block It will help you compare the total tax to be withheld during the year with the tax you can expect to figure on your return. Free filing h&r block It also will help you determine how much, if any, additional withholding is needed each payday to avoid owing tax when you file your return. Free filing h&r block If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. Free filing h&r block You can use the IRS Withholding Calculator at www. Free filing h&r block irs. Free filing h&r block gov/Individuals, instead of Publication 505 or the worksheets included with Form W-4, to determine whether you need to have your withholding increased or decreased. Free filing h&r block Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Free filing h&r block These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Free filing h&r block New Form W-4. Free filing h&r block   When you start a new job, your employer should have you complete a Form W-4. Free filing h&r block Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Free filing h&r block   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Free filing h&r block The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. Free filing h&r block No Form W-4. Free filing h&r block   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. Free filing h&r block Repaying withheld tax. Free filing h&r block   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. Free filing h&r block Your employer cannot repay any of the tax previously withheld. Free filing h&r block Instead, claim the full amount withheld when you file your tax return. Free filing h&r block   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. Free filing h&r block Your employer can repay the amount that was withheld incorrectly. Free filing h&r block If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. Free filing h&r block Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Free filing h&r block The exemption applies only to income tax, not to social security or Medicare tax. Free filing h&r block You can claim exemption from withholding for 2014 only if both of the following situations apply. Free filing h&r block For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Free filing h&r block For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Free filing h&r block Students. Free filing h&r block   If you are a student, you are not automatically exempt. Free filing h&r block See chapter 1 to find out if you must file a return. Free filing h&r block If you work only part time or only during the summer, you may qualify for exemption from withholding. Free filing h&r block Age 65 or older or blind. Free filing h&r block   If you are 65 or older or blind, use Worksheet 1-3 or 1-4 in chapter 1 of Publication 505, to help you decide if you qualify for exemption from withholding. Free filing h&r block Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Free filing h&r block Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. Free filing h&r block Claiming exemption from withholding. Free filing h&r block   To claim exemption, you must give your employer a Form W-4. Free filing h&r block Do not complete lines 5 and 6. Free filing h&r block Enter “Exempt” on line 7. Free filing h&r block   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. Free filing h&r block If you claim exemption in 2014, but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. Free filing h&r block   Your claim of exempt status may be reviewed by the IRS. Free filing h&r block An exemption is good for only 1 year. Free filing h&r block   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Free filing h&r block Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Free filing h&r block The payer can figure withholding on supplemental wages using the same method used for your regular wages. Free filing h&r block However, if these payments are identified separately from your regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. Free filing h&r block Expense allowances. Free filing h&r block   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Free filing h&r block   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. Free filing h&r block   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. Free filing h&r block Penalties You may have to pay a penalty of $500 if both of the following apply. Free filing h&r block You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Free filing h&r block You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Free filing h&r block There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. Free filing h&r block The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Free filing h&r block These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. Free filing h&r block A simple error or an honest mistake will not result in one of these penalties. Free filing h&r block For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a W-4 penalty. Free filing h&r block Tips The tips you receive while working on your job are considered part of your pay. Free filing h&r block You must include your tips on your tax return on the same line as your regular pay. Free filing h&r block However, tax is not withheld directly from tip income, as it is from your regular pay. Free filing h&r block Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Free filing h&r block See chapter 6 for information on reporting your tips to your employer. Free filing h&r block For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. Free filing h&r block How employer figures amount to withhold. Free filing h&r block   The tips you report to your employer are counted as part of your income for the month you report them. Free filing h&r block Your employer can figure your withholding in either of two ways. Free filing h&r block By withholding at the regular rate on the sum of your pay plus your reported tips. Free filing h&r block By withholding at the regular rate on your pay plus a percentage of your reported tips. Free filing h&r block Not enough pay to cover taxes. Free filing h&r block   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. Free filing h&r block See Giving your employer money for taxes in chapter 6. Free filing h&r block Allocated tips. Free filing h&r block   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. Free filing h&r block Withholding is based only on your pay plus your reported tips. Free filing h&r block Your employer should refund to you any incorrectly withheld tax. Free filing h&r block See Allocated Tips in chapter 6 for more information. Free filing h&r block Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. Free filing h&r block Your employer generally must withhold income tax on these benefits from your regular pay. Free filing h&r block For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. Free filing h&r block Although the value of your personal use of an employer-provided car, truck, or other highway motor vehicle is taxable, your employer can choose not to withhold income tax on that amount. Free filing h&r block Your employer must notify you if this choice is made. Free filing h&r block For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. Free filing h&r block Sick Pay Sick pay is a payment to you to replace your regular wages while you are temporarily absent from work due to sickness or personal injury. Free filing h&r block To qualify as sick pay, it must be paid under a plan to which your employer is a party. Free filing h&r block If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. Free filing h&r block An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. Free filing h&r block However, if you receive sick pay from a third party who is not acting as an agent of your employer, income tax will be withheld only if you choose to have it withheld. Free filing h&r block See Form W-4S , later. Free filing h&r block If you receive payments under a plan in which your employer does not participate (such as an accident or health plan where you paid all the premiums), the payments are not sick pay and usually are not taxable. Free filing h&r block Union agreements. Free filing h&r block   If you receive sick pay under a collective bargaining agreement between your union and your employer, the agreement may determine the amount of income tax withholding. Free filing h&r block See your union representative or your employer for more information. Free filing h&r block Form W-4S. Free filing h&r block   If you choose to have income tax withheld from sick pay paid by a third party, such as an insurance company, you must fill out Form W-4S. Free filing h&r block Its instructions contain a worksheet you can use to figure the amount you want withheld. Free filing h&r block They also explain restrictions that may apply. Free filing h&r block   Give the completed form to the payer of your sick pay. Free filing h&r block The payer must withhold according to your directions on the form. Free filing h&r block Estimated tax. Free filing h&r block   If you do not request withholding on Form W-4S, or if you do not have enough tax withheld, you may have to make estimated tax payments. Free filing h&r block If you do not pay enough tax, either through estimated tax or withholding, or a combination of both, you may have to pay a penalty. Free filing h&r block See Underpayment Penalty for 2013 at the end of this chapter. Free filing h&r block Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. Free filing h&r block This rule applies to distributions from: A traditional individual retirement arrangement (IRA); A life insurance company under an endowment, annuity, or life insurance contract; A pension, annuity, or profit-sharing plan; A stock bonus plan; and Any other plan that defers the time you receive compensation. Free filing h&r block The amount withheld depends on whether you receive payments spread out over more than 1 year (periodic payments), within 1 year (nonperiodic payments), or as an eligible rollover distribution (ERD). Free filing h&r block Income tax withholding from an ERD is mandatory. Free filing h&r block More information. Free filing h&r block   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. Free filing h&r block For information on IRAs, see chapter 17. Free filing h&r block For more information on withholding on pensions and annuities, including a discussion of Form W-4P, see Pensions and Annuities in chapter 1 of Publication 505. Free filing h&r block Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. Free filing h&r block Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. Free filing h&r block Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. Free filing h&r block Any other wager, if the proceeds are at least 300 times the amount of the bet. Free filing h&r block It does not matter whether your winnings are paid in cash, in property, or as an annuity. Free filing h&r block Winnings not paid in cash are taken into account at their fair market value. Free filing h&r block Exception. Free filing h&r block   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. Free filing h&r block However, you may need to provide the payer with a social security number to avoid withholding. Free filing h&r block See Backup withholding on gambling winnings in chapter 1 of Publication 505. Free filing h&r block If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. Free filing h&r block See Estimated Tax for 2014 , later. Free filing h&r block 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. Free filing h&r block See Underpayment Penalty for 2013 at the end of this chapter. Free filing h&r block Form W-2G. Free filing h&r block   If a payer withholds income tax from your gambling winnings, you should receive a Form W-2G, Certain Gambling Winnings, showing the amount you won and the amount withheld. Free filing h&r block Report the tax withheld on line 62 of Form 1040. Free filing h&r block Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. Free filing h&r block To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Free filing h&r block All unemployment compensation is taxable. Free filing h&r block So, if you do not have income tax withheld, you may have to pay estimated tax. Free filing h&r block See Estimated Tax for 2014 , later. Free filing h&r block 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. Free filing h&r block For information, see Underpayment Penalty for 2013 at the end of this chapter. Free filing h&r block Federal Payments You can choose to have income tax withheld from certain federal payments you receive. Free filing h&r block These payments are: Social security benefits, Tier 1 railroad retirement benefits, Commodity credit corporation loans you choose to include in your gross income, Payments under the Agricultural Act of 1949 (7 U. Free filing h&r block S. Free filing h&r block C. Free filing h&r block 1421 et. Free filing h&r block seq. Free filing h&r block ), as amended, or title II of the Disaster Assistance Act of 1988, that are treated as insurance proceeds and that you receive because: Your crops were destroyed or damaged by drought, flood, or any other natural disaster, or You were unable to plant crops because of a natural disaster described in (a), and Any other payment under Federal law as determined by the Secretary. Free filing h&r block To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Free filing h&r block If you do not choose to have income tax withheld, you may have to pay estimated tax. Free filing h&r block See Estimated Tax for 2014 , later. Free filing h&r block 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. Free filing h&r block For information, see Underpayment Penalty for 2013 at the end of this chapter. Free filing h&r block More information. Free filing h&r block   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. Free filing h&r block Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. Free filing h&r block Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. Free filing h&r block The information return shows how much you were paid during the year. Free filing h&r block It also includes your name and taxpayer identification number (TIN). Free filing h&r block TINs are explained in chapter 1 under Social Security Number (SSN) . Free filing h&r block These payments generally are not subject to withholding. Free filing h&r block However, “backup” withholding is required in certain situations. Free filing h&r block Backup withholding can apply to most kinds of payments that are reported on Form 1099. Free filing h&r block The payer must withhold at a flat 28% rate in the following situations. Free filing h&r block You do not give the payer your TIN in the required manner. Free filing h&r block The IRS notifies the payer that the TIN you gave is incorrect. Free filing h&r block You are required, but fail, to certify that you are not subject to backup withholding. Free filing h&r block The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. Free filing h&r block The IRS will do this only after it has mailed you four notices over at least a 210-day period. Free filing h&r block See Backup Withholding in chapter 1 of Publication 505 for more information. Free filing h&r block Penalties. Free filing h&r block   There are civil and criminal penalties for giving false information to avoid backup withholding. Free filing h&r block The civil penalty is $500. Free filing h&r block The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. Free filing h&r block Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. Free filing h&r block This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Free filing h&r block 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. Free filing h&r block 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. Free filing h&r block 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. Free filing h&r block 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. Free filing h&r block For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. Free filing h&r block Who Does Not Have To Pay Estimated Tax If you receive salaries or wages, you can avoid having to pay estimated tax by asking your employer to take more tax out of your earnings. Free filing h&r block To do this, give a new Form W-4 to your employer. Free filing h&r block See chapter 1 of Publication 505. Free filing h&r block Estimated tax not required. Free filing h&r block   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. Free filing h&r block You had no tax liability for 2013. Free filing h&r block You were a U. Free filing h&r block S. Free filing h&r block citizen or resident alien for the whole year. Free filing h&r block Your 2013 tax year covered a 12-month period. Free filing h&r block   You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. Free filing h&r block For the definition of “total tax” for 2013, see Publication 505, chapter 2. Free filing h&r block Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. Free filing h&r block You can use the following general rule as a guide during the year to see if you will have enough withholding, or if you should increase your withholding or make estimated tax payments. Free filing h&r block General rule. Free filing h&r block   In most cases, you must pay estimated tax for 2014 if both of the following apply. Free filing h&r block You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Free filing h&r block You expect your withholding plus your 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 (but see Special rules for farmers, fishermen, and higher income taxpayers, later). Free filing h&r block Your 2013 tax return must cover all 12 months. Free filing h&r block    If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet in Publication 505 for a more accurate calculation. Free filing h&r block Special rules for farmers, fishermen, and higher income taxpayers. Free filing h&r block   If at least two-thirds of your gross income for tax year 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under the General rule, earlier. Free filing h&r block 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. Free filing h&r block See Figure 4-A and Publication 505, chapter 2 for more information. Free filing h&r block Figure 4-A. Free filing h&r block Do You Have To Pay Estimated Tax? Please click here for the text description of the image. Free filing h&r block Figure 4-A Do You Have To Pay Estimated Tax? Aliens. Free filing h&r block   Resident and nonresident aliens also may have to pay estimated tax. Free filing h&r block Resident aliens should follow the rules in this chapter unless noted otherwise. Free filing h&r block Nonresident aliens should get Form 1040-ES (NR), U. Free filing h&r block S. Free filing h&r block Estimated Tax for Nonresident Alien Individuals. Free filing h&r block   You are an alien if you are not a citizen or national of the United States. Free filing h&r block You are a resident alien if you either have a green card or meet the substantial presence test. Free filing h&r block For more information about the substantial presence test, see Publication 519, U. Free filing h&r block S. Free filing h&r block Tax Guide for Aliens. Free filing h&r block Married taxpayers. Free filing h&r block   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. Free filing h&r block   You and your spouse can make joint estimated tax payments even if you are not living together. Free filing h&r block   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, or Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes (see chapter 1 of Publication 519)). Free filing h&r block   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. Free filing h&r block Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. Free filing h&r block 2013 separate returns and 2014 joint return. Free filing h&r block   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. Free filing h&r block You filed a separate return if you filed as single, head of household, or married filing separately. Free filing h&r block 2013 joint return and 2014 separate returns. Free filing h&r block   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. Free filing h&r block You file a separate return if you file as single, head of household, or married filing separately. Free filing h&r block   To figure your share of the tax on the 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 as for 2014. Free filing h&r block Then multiply the tax on the joint return by the following fraction. Free filing h&r block     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. Free filing h&r block Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. Free filing h&r block Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. Free filing h&r block For 2014, they plan to file married filing separately. Free filing h&r block Joe figures his share of the tax on the 2013 joint return as follows. Free filing h&r block   Tax on $40,100 based on a separate return $5,960     Tax on $8,400 based on a separate return 843     Total $6,803     Joe's percentage of total ($5,960 ÷ $6,803) 87. Free filing h&r block 6%     Joe's share of tax on joint return  ($6,386 × 87. Free filing h&r block 6%) $5,594   How To Figure Estimated Tax To figure your estimated tax, you must figure your expected adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year. Free filing h&r block When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. Free filing h&r block Use your 2013 federal tax return as a guide. Free filing h&r block You can use Form 1040-ES and Publication 505 to figure your estimated tax. Free filing h&r block Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). Free filing h&r block You must make adjustments both for changes in your own situation and for recent changes in the tax law. Free filing h&r block For a discussion of these changes, visit IRS. Free filing h&r block gov. Free filing h&r block For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. Free filing h&r block When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. Free filing h&r block Each period has a specific payment due date. Free filing h&r block If you do not pay enough tax by the due date of each payment period, you may be charged a penalty even if you are due a refund when you file your income tax return. Free filing h&r block The payment periods and due dates for estimated tax payments are shown next. Free filing h&r block   For the period: Due date:*     Jan. Free filing h&r block 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. Free filing h&r block 15     Sept. Free filing h&r block 1– Dec. Free filing h&r block 31 Jan. Free filing h&r block 15, next year     *See Saturday, Sunday, holiday rule and January payment . Free filing h&r block Saturday, Sunday, holiday rule. Free filing h&r block   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 legal holiday. Free filing h&r block January payment. Free filing h&r block   If you file your 2014 Form 1040 or Form 1040A by January 31, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015. Free filing h&r block Fiscal year taxpayers. Free filing h&r block   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. Free filing h&r block When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. Free filing h&r block 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. Free filing h&r block You can pay all your estimated tax at that time, or you can pay it in installments. Free filing h&r block If you choose to pay in installments, make your first payment by the due date for the first payment period. Free filing h&r block Make your remaining installment payments by the due dates for the later periods. Free filing h&r block No income subject to estimated tax during first period. Free filing h&r block    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. Free filing h&r block 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. Free filing h&r block The following chart shows when to make installment payments. Free filing h&r block 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. Free filing h&r block 15 Jan. Free filing h&r block 15 next year April 1–May 31 June 16 Sept. Free filing h&r block 15 Jan. Free filing h&r block 15 next year June 1–Aug. Free filing h&r block 31 Sept. Free filing h&r block 15 Jan. Free filing h&r block 15 next year After Aug. Free filing h&r block 31 Jan. Free filing h&r block 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . Free filing h&r block How much to pay to avoid a penalty. Free filing h&r block   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. Free filing h&r block How To Figure Each Payment You should pay enough estimated tax by the due date of each payment period to avoid a penalty for that period. Free filing h&r block You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. Free filing h&r block These methods are described in chapter 2 of Publication 505. Free filing h&r block If you do not pay enough during each payment period, you may be charged a penalty even if you are due a refund when you file your tax return. Free filing h&r block If the earlier discussion of No income subject to estimated tax during first period or the later discussion of Change in estimated tax applies to you, you may benefit from reading Annualized Income Installment Method in chapter 2 of Publication 505 for information on how to avoid a penalty. Free filing h&r block Underpayment penalty. Free filing h&r block   Under the regular installment method, if your estimated tax payment for any period is less than one-fourth of your estimated tax, you may be charged a penalty for underpayment of estimated tax for that period when you file your tax return. Free filing h&r block Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. Free filing h&r block See chapter 4 of Publication 505 for more information. Free filing h&r block Change in estimated tax. Free filing h&r block   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. Free filing h&r block 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. Free filing h&r block 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. Free filing h&r block You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you owe with your return under $1,000. Free filing h&r block How To Pay Estimated Tax There are several ways to pay estimated tax. Free filing h&r block Credit an overpayment on your 2013 return to your 2014 estimated tax. Free filing h&r block Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. Free filing h&r block Send in your payment (check or money order) with a payment voucher from Form 1040-ES. Free filing h&r block 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. Free filing h&r block On line 75 of Form 1040, or line 44 of Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. Free filing h&r block Take the amount you have credited into account when figuring your estimated tax payments. Free filing h&r block You cannot have any of the amount you credited to your estimated tax refunded to you until you file your tax return for the following year. Free filing h&r block You also cannot use that overpayment in any other way. Free filing h&r block Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. Free filing h&r block You can pay using either of the following electronic payment methods. Free filing h&r block Direct transfer from your bank account. Free filing h&r block Credit or debit card. Free filing h&r block To pay your taxes online or for more information, go to www. Free filing h&r block irs. Free filing h&r block gov/e-pay. Free filing h&r block Pay by Phone Paying by phone is another safe and secure method of paying electronically. Free filing h&r block Use one of the following methods. Free filing h&r block Direct transfer from your bank account. Free filing h&r block Credit or debit card. Free filing h&r block To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). Free filing h&r block People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD can call 1-800-733-4829. Free filing h&r block To pay using a credit or debit card, you can call one of the following service providers. Free filing h&r block There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. Free filing h&r block WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. Free filing h&r block payUSAtax. Free filing h&r block com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. Free filing h&r block officialpayments. Free filing h&r block com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. Free filing h&r block PAY1040. Free filing h&r block com For the latest details on how to pay by phone, go to www. Free filing h&r block irs. Free filing h&r block gov/e-pay. Free filing h&r block 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. Free filing h&r block During 2013, if you: made at least one estimated tax payment but not by electronic means, did not use software or a paid preparer to prepare or file your return,  then you should receive a copy of the 2014 Form 1040-ES/V. Free filing h&r block The enclosed payment vouchers will be preprinted with your name, address, and social security number. Free filing h&r block Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. Free filing h&r block Use the window envelopes that came with your Form 1040-ES package. Free filing h&r block If you use your own envelopes, make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live. Free filing h&r block Note. Free filing h&r block These criteria can change without notice. Free filing h&r block If you do not receive a Form 1040-ES/V package and you are required to make an estimated tax payment, you should go to www. Free filing h&r block irs. Free filing h&r block gov and print a copy of Form 1040-ES which includes four blank payment vouchers. Free filing h&r block Complete one of these and make your payment timely to avoid penalties for paying late. Free filing h&r block Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. Free filing h&r block If you did not pay estimated tax last year, you can order Form 1040-ES from the IRS (see inside back cover of this publication) or download it from IRS. Free filing h&r block gov. Free filing h&r block Follow the instructions to make sure you use the vouchers correctly. Free filing h&r block Joint estimated tax payments. Free filing h&r block   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. Free filing h&r block Change of address. Free filing h&r block   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Free filing h&r block Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. Free filing h&r block Credit for Withholding and Estimated Tax for 2013 When you file your 2013 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. Free filing h&r block Also take credit for the estimated tax you paid for 2013. Free filing h&r block These credits are subtracted from your total tax. Free filing h&r block Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Free filing h&r block Two or more employers. Free filing h&r block   If you had two or more employers in 2013 and were paid wages of more than $113,700, too much social security or tier 1 railroad retirement tax may have been withheld from your pay. Free filing h&r block You may be able to claim the excess as a credit against your income tax when you file your return. Free filing h&r block See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. Free filing h&r block Withholding If you had income tax withheld during 2013, you should be sent a statement by January 31, 2014, showing your income and the tax withheld. Free filing h&r block Depending on the source of your income, you should receive: Form W-2, Wage and Tax Statement, Form W-2G, Certain Gambling Winnings, or A form in the 1099 series. Free filing h&r block Forms W-2 and W-2G. Free filing h&r block   If you file a paper return, always file Form W-2 with your income tax return. Free filing h&r block File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. Free filing h&r block   You should get at least two copies of each form. Free filing h&r block If you file a paper return, attach one copy to the front of your federal income tax return. Free filing h&r block Keep one copy for your records. Free filing h&r block You also should receive copies to file with your state and local returns. Free filing h&r block Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Free filing h&r block You should receive a separate Form W-2 from each employer you worked for. Free filing h&r block If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. Free filing h&r block However, your employer must provide or send it to you by January 31, 2014. Free filing h&r block If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later. Free filing h&r block If you have not received your Form W-2 by January 31, you should ask your employer for it. Free filing h&r block If you do not receive it by February 15, call the IRS. Free filing h&r block Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. Free filing h&r block Include the federal income tax withheld (as shown in box 2 of Form W-2) on: Line 62 if you file Form 1040, Line 36 if you file Form 1040A, or Line 7 if you file Form 1040EZ. Free filing h&r block In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Free filing h&r block Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Free filing h&r block If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Free filing h&r block Report the amounts you won on line 21 of Form 1040. Free filing h&r block Take credit for the tax withheld on line 62 of Form 1040. Free filing h&r block If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Free filing h&r block The 1099 Series Most forms in the 1099 series are not filed with your return. Free filing h&r block These forms should be furnished to you by January 31, 2014 (or, for Forms 1099-B, 1099-S, and certain Forms 1099-MISC, by February 15, 2014). Free filing h&r block Unless instructed to file any of these forms with your return, keep them for your records. Free filing h&r block There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received from Cooperatives; Form 1099-Q, Payments From Qualified Education Programs; Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Free filing h&r block ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. Free filing h&r block If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. Free filing h&r block See the instructions to these forms for details. Free filing h&r block Form 1099-R. Free filing h&r block   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. Free filing h&r block Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. Free filing h&r block You cannot use Form 1040EZ if you received payments reported on Form 1099-R. Free filing h&r block Backup withholding. Free filing h&r block   If you were subject to backup withholding on income you received during 2013, include the amount withheld, as shown on your Form 1099, in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. Free filing h&r block Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. Free filing h&r block Call the telephone number or write to the address given for the payer on the form. Free filing h&r block The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Free filing h&r block A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Free filing h&r block In certain situations, you will receive two forms in place of the original incorrect form. Free filing h&r block This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). Free filing h&r block One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Free filing h&r block This form will have an “X” in the “CORRECTED” box at the top of the form. Free filing h&r block The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Free filing h&r block Form Received After Filing If you file your return and you later receive a form for income that you did not include on your return, you should report the income and take credit for any income tax withheld by filing Form 1040X, Amended U. Free filing h&r block S. Free filing h&r block Individual Income Tax Return. Free filing h&r block Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Free filing h&r block Do not include any amount withheld from your spouse's income. Free filing h&r block However, different rules may apply if you live in a community property state. Free filing h&r block Community property states are listed in chapter 2. Free filing h&r block For more information on these rules, and some exceptions, see Publication 555, Community Property. Free filing h&r block Fiscal Years If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules to determine your credit for federal income tax withholding. Free filing h&r block For a discussion of how to take credit for withholding on a fiscal year return, see Fiscal Years (FY) in chapter 3 of Publication 505. Free filing h&r block Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Free filing h&r block Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Free filing h&r block You must use Form 1040 or Form 1040A if you paid estimated tax. Free filing h&r block You cannot use Form 1040EZ. Free filing h&r block Name changed. Free filing h&r block   If you changed your name, and you made estimated tax payments using your old name, attach a brief statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and Your social security number. Free filing h&r block The statement should cover payments you made jointly with your spouse as well as any you made separately. Free filing h&r block   Be sure to report the change to the Social Security Administration. Free filing h&r block This prevents delays in processing your return and issuing any refunds. Free filing h&r block Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. Free filing h&r block If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Free filing h&r block One of you can claim all of the estimated tax paid and the other none, or you can divide it in any other way you agree on. Free filing h&r block If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. Free filing h&r block Divorced Taxpayers If you made joint estimated tax payments for 2013, and you were divorced during the year, either you or your former spouse can claim all of the joint payments, or you each can claim part of them. Free filing h&r block If you cannot agree on how to divide the payments, you must divide them in proportion to each spouse's individual tax as shown on your separate returns for 2013. Free filing h&r block If you claim any of the joint payments on your tax return, enter your former spouse's social security number (SSN) in the space provided on the front of Form 1040 or Form 1040A. Free filing h&r block If you divorced and remarried in 2013, enter your present spouse's SSN in that space and write your former spouse's SSN, followed by “DIV,” to the left of Form 1040, line 63, or Form 1040A, line 37. Free filing h&r block Underpayment Penalty for 2013 If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have an underpayment of estimated tax and you may have to pay a penalty. Free filing h&r block Generally, you will not have to pay a penalty for 2013 if any of the following apply. Free filing h&r block The total of your withholding and estimated tax payments was at least as much as your 2012 tax (or 110% of your 2012 tax if your AGI was more than $150,000, $75,000 if your 2013 filing status is married filing separately) and you paid all required estimated tax payments on time. Free filing h&r block The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. Free filing h&r block Your total 2013 tax minus your withholding and refundable credits is less than $1,000. Free filing h&r block You did not have a tax liability for 2012 and your 2012 tax year was 12 months, or You did not have any withholding taxes and your current year tax less any household employment taxes is less than $1,000. Free filing h&r block See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. Free filing h&r block Farmers and fishermen. Free filing h&r block   Special rules apply if you are a farmer or fisherman. Free filing h&r block See Farmers and Fishermen in chapter 4 of Publication 505 for more information. Free filing h&r block IRS can figure the penalty for you. Free filing h&r block   If you think you owe the penalty but you do not want to figure it yourself when you file your tax return, you may not have to. Free filing h&r block Generally, the IRS will figure the penalty for you and send you a bill. Free filing h&r block However, if you think you are able to lower or eliminate your penalty, you must complete Form 2210 or Form 2210-F and attach it to your paper return. Free filing h&r block See chapter 4 of Publication 505. Free filing h&r block Prev  Up  Next   Home   More Online Publications