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Free H & R Block Tax Filing

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Free H & R Block Tax Filing

Free h & r block tax filing 4. Free h & r block tax filing   Underpayment Penalty for 2013 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: General RuleFarmers and fishermen. Free h & r block tax filing Higher income taxpayers. Free h & r block tax filing Minimum required for higher income taxpayers. Free h & r block tax filing Estate or trust payments of estimated tax. Free h & r block tax filing Lowering or eliminating the penalty. Free h & r block tax filing ExceptionsLess Than $1,000 Due No Tax Liability Last Year Figuring Your Required Annual Payment (Part I) Short Method for Figuring the Penalty (Part III) Regular Method for Figuring the Penalty (Part IV)Figuring Your Underpayment (Part IV, Section A) Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Annualized Income Installment Method (Schedule AI) Farmers and Fishermen Waiver of PenaltyFarmers and fishermen. Free h & r block tax filing Introduction If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have underpaid your estimated tax and may have to pay a penalty. Free h & r block tax filing You may understand this chapter better if you can refer to a copy of your latest federal income tax return. Free h & r block tax filing No penalty. Free h & r block tax filing   Generally, you will not have to pay a penalty for 2013 if any of the following apply. Free h & r block tax filing The total of your withholding and timely estimated tax payments was at least as much as your 2012 tax. Free h & r block tax filing (See Special rules for certain individuals for higher income taxpayers and farmers and fishermen. Free h & r block tax filing ) 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 h & r block tax filing Your total tax for 2013 (defined later) minus your withholding is less than $1,000. Free h & r block tax filing You did not have a tax liability for 2012. Free h & r block tax filing You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000. Free h & r block tax filing IRS can figure the penalty for you. Free h & r block tax filing   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 h & r block tax filing Generally, the IRS will figure the penalty for you and send you a bill. Free h & r block tax filing   You only need to figure your penalty in the following three situations. Free h & r block tax filing You are requesting a waiver of part, but not all, of the penalty. Free h & r block tax filing You are using the annualized income installment method to figure the penalty. Free h & r block tax filing You are treating the federal income tax withheld from your income as paid on the dates actually withheld. Free h & r block tax filing However, if these situations do not apply to you, and you think you can lower or eliminate your penalty, complete Form 2210 or Form 2210-F and attach it to your return. Free h & r block tax filing See Form 2210 , later. Free h & r block tax filing Topics - This chapter discusses: The general rule for the underpayment penalty, Special rules for certain individuals, Exceptions to the underpayment penalty, How to figure your underpayment and the amount of your penalty on Form 2210, and How to ask the IRS to waive the penalty. Free h & r block tax filing Useful Items - You may want to see: Form (and Instructions) 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen See chapter 5 for information about getting these forms. Free h & r block tax filing General Rule In general, you may owe a penalty for 2013 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of: 90% of your 2013 tax, or 100% of your 2012 tax. Free h & r block tax filing (Your 2012 tax return must cover a 12-month period. Free h & r block tax filing ) Your 2013 tax, for this purpose, is defined under Total tax for 2013 , later. Free h & r block tax filing Special rules for certain individuals. Free h & r block tax filing   There are special rules for farmers and fishermen and certain higher income taxpayers. Free h & r block tax filing Farmers and fishermen. Free h & r block tax filing   If at least two-thirds of your gross income for 2012 or 2013 is from farming or fishing, substitute  662/3% for 90% in (1) above. Free h & r block tax filing   See Farmers and Fishermen , later. Free h & r block tax filing Higher income taxpayers. Free h & r block tax filing   If your AGI for 2012 was more than $150,000 ($75,000 if your 2013 filing status is married filing a separate return), substitute 110% for 100% in (2) under General Rule . Free h & r block tax filing This rule does not apply to farmers or fishermen. Free h & r block tax filing   For 2012, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. Free h & r block tax filing Penalty figured separately for each period. Free h & r block tax filing   Because the penalty is figured separately for each payment period, you may owe a penalty for an earlier payment period even if you later paid enough to make up the underpayment. Free h & r block tax filing This is true even if you are due a refund when you file your income tax return. Free h & r block tax filing Example. Free h & r block tax filing You did not make estimated tax payments for 2013 because you thought you had enough tax withheld from your wages. Free h & r block tax filing Early in January 2014, you made an estimate of your total 2013 tax. Free h & r block tax filing Then you realized that your withholding was $2,000 less than the amount needed to avoid a penalty for underpayment of estimated tax. Free h & r block tax filing On January 10, you made an estimated tax payment of $3,000, which is the difference between your withholding and your estimate of your total tax. Free h & r block tax filing Your final return shows your total tax to be $50 less than your estimate, so you are due a refund. Free h & r block tax filing You do not owe a penalty for your payment due January 15, 2014. Free h & r block tax filing However, you may owe a penalty through January 10, 2014, the day you made the $3,000 payment, for your underpayments for the earlier payment periods. Free h & r block tax filing Minimum required each period. Free h & r block tax filing   You will owe a penalty for any 2013 payment period for which your estimated tax payment plus your withholding for the period and overpayments applied from previous periods was less than the smaller of: 22. Free h & r block tax filing 5% of your 2013 tax, or 25% of your 2012 tax. Free h & r block tax filing (Your 2012 tax return must cover a 12-month period. Free h & r block tax filing ) Minimum required for higher income taxpayers. Free h & r block tax filing   If you are subject to the rule for higher income taxpayers, discussed above, substitute 27. Free h & r block tax filing 5% for 25% in (2) under General Rule . Free h & r block tax filing When penalty is charged. Free h & r block tax filing   If you miss a payment or you paid less than the minimum required in a period, you may be charged an underpayment penalty from the date the amount was due to the date the payment is made. Free h & r block tax filing If a payment is mailed, the date of the U. Free h & r block tax filing S. Free h & r block tax filing postmark is considered the date of payment. Free h & r block tax filing   If a payment is made electronically, the date the payment is shown on your payment account (checking, savings, etc. Free h & r block tax filing ) is considered to be the date of payment. Free h & r block tax filing Estate or trust payments of estimated tax. Free h & r block tax filing   If you have estimated taxes credited to you from an estate or trust (Schedule K-1 (Form 1041)), treat the payment as made by you on January 15, 2014. Free h & r block tax filing Amended returns. Free h & r block tax filing    If you file an amended return by the due date of your original return, use the tax shown on your amended return to figure your required estimated tax payments. Free h & r block tax filing If you file an amended return after the due date of the original return, use the tax shown on the original return. Free h & r block tax filing   However, if you and your spouse file a joint return after the due date to replace separate returns you originally filed by the due date, use the tax shown on the joint return to figure your required estimated tax payments. Free h & r block tax filing This rule applies only if both original separate returns were filed on time. Free h & r block tax filing 2012 separate returns and 2013 joint return. Free h & r block tax filing    If you file a joint return with your spouse for 2013, but you filed separate returns for 2012, your 2012 tax is the total of the tax shown on your separate returns. Free h & r block tax filing You filed a separate return if you filed as single, head of household, or married filing separately. Free h & r block tax filing 2012 joint return and 2013 separate returns. Free h & r block tax filing    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, your 2012 tax is your share of the tax on the joint return. Free h & r block tax filing You are filing a separate return if you file as single, head of household, or married filing separately. Free h & r block tax filing   To figure your share of the taxes on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2012 using the same filing status as for 2013. Free h & r block tax filing Then multiply the tax on the joint return by the following fraction. Free h & r block tax filing   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 h & r block tax filing Lisa and Paul filed a joint return for 2012 showing taxable income of $49,000 and a tax of $6,484. Free h & r block tax filing Of the $49,000 taxable income, $41,000 was Lisa's and the rest was Paul's. Free h & r block tax filing For 2013, they file married filing separately. Free h & r block tax filing Lisa figures her share of the tax on the 2012 joint return as follows. Free h & r block tax filing 2012 tax on $41,000 based on a separate return $ 6,286 2012 tax on $8,000 based on a  separate return 803 Total $ 7,089 Lisa's percentage of total tax  ($6,286 ÷ $ 7,089) 88. Free h & r block tax filing 67% Lisa's part of tax on joint return ($6,484 × 88. Free h & r block tax filing 67%) $ 5,749 Form 2210. Free h & r block tax filing   In most cases, you do not need to file Form 2210. Free h & r block tax filing The IRS will figure the penalty for you and send you a bill. Free h & r block tax filing If you want us to figure the penalty for you, leave the penalty line on your return blank. Free h & r block tax filing Do not file Form 2210. Free h & r block tax filing   To determine if you should file Form 2210, see Part II of Form 2210. Free h & r block tax filing If you decide to figure your penalty, complete Part I, Part II, and either Part III or Part IV of the form and the Penalty Worksheet in the Instructions for Form 2210. Free h & r block tax filing If you use Form 2210, you cannot file Form 1040EZ. Free h & r block tax filing   On Form 1040, enter the amount of your penalty on line 77. Free h & r block tax filing If you owe tax on line 76, add the penalty to your tax due and show your total payment on line 76. Free h & r block tax filing If you are due a refund, subtract the penalty from the overpayment and enter the result on line 73. Free h & r block tax filing   On Form 1040A, enter the amount of your penalty on line 46. Free h & r block tax filing If you owe tax on line 45, add the penalty to your tax due and show your total payment on line 45. Free h & r block tax filing If you are due a refund, subtract the penalty from the overpayment and enter the result on line 42. Free h & r block tax filing Lowering or eliminating the penalty. Free h & r block tax filing    You may be able to lower or eliminate your penalty if you file Form 2210. Free h & r block tax filing You must file Form 2210 with your return if any of the following applies. Free h & r block tax filing You request a waiver. Free h & r block tax filing See Waiver of Penalty , later. Free h & r block tax filing You use the annualized income installment method. Free h & r block tax filing See the explanation of this method under Annualized Income Installment Method (Schedule AI) . Free h & r block tax filing You use your actual withholding for each payment period for estimated tax purposes. Free h & r block tax filing See Actual withholding method under Figuring Your Underpayment (Part IV, Section A). Free h & r block tax filing You base any of your required installments on the tax shown on your 2012 return and you filed or are filing a joint return for either 2012 or 2013, but not for both years. Free h & r block tax filing Exceptions Generally, you do not have to pay an underpayment penalty if either: Your total tax is less than $1,000, or You had no tax liability last year. Free h & r block tax filing Less Than $1,000 Due You do not owe a penalty if the total tax shown on your return minus the amount you paid through withholding (including excess social security and tier 1 railroad retirement (RRTA) tax withholding) is less than $1,000. Free h & r block tax filing Total tax for 2013. Free h & r block tax filing   For 2013, your total tax on Form 1040 is the amount on line 61 reduced by the following. Free h & r block tax filing    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Free h & r block tax filing Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. Free h & r block tax filing The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. Free h & r block tax filing Any refundable credit amounts listed on lines 64a, 65, 66, 70, and any credit from Form 8885 included on line 71. Free h & r block tax filing   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. Free h & r block tax filing   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. Free h & r block tax filing Note. Free h & r block tax filing When figuring the amount on line 60, include household employment taxes only if you had federal income tax withheld from your income or you would owe the penalty even if you did not include those taxes. Free h & r block tax filing Paid through withholding. Free h & r block tax filing    For 2013, the amount you paid through withholding on Form 1040 is the amount on line 62 plus any excess social security or tier 1 RRTA tax withholding on line 69. Free h & r block tax filing Add to that any write-in amount on line 72 identified as “Form 8689. Free h & r block tax filing ” On Form 1040A, the amount you paid through withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included on line 41. Free h & r block tax filing On Form 1040EZ, it is the amount on line 7. Free h & r block tax filing No Tax Liability Last Year You do not owe a penalty if you had no tax liability last year and you were a U. Free h & r block tax filing S. Free h & r block tax filing citizen or resident for the whole year. Free h & r block tax filing For this rule to apply, your tax year must have included all 12 months of the year. Free h & r block tax filing You had no tax liability for 2012 if your total tax was zero or you were not required to file an income tax return. Free h & r block tax filing Example. Free h & r block tax filing Ray, who is single and 22 years old, was unemployed for a few months during 2012. Free h & r block tax filing He earned $6,700 in wages before he was laid off, and he received $1,400 in unemployment compensation afterwards. Free h & r block tax filing He had no other income. Free h & r block tax filing Even though he had gross income of $8,100, he did not have to pay income tax because his gross income was less than the filing requirement for a single person under age 65 ($9,750 for 2012). Free h & r block tax filing He filed a return only to have his withheld income tax refunded to him. Free h & r block tax filing In 2013, Ray began regular work as an independent contractor. Free h & r block tax filing Ray made no estimated tax payments in 2013. Free h & r block tax filing Even though he did owe tax at the end of the year, Ray does not owe the underpayment penalty for 2013 because he had no tax liability in 2012. Free h & r block tax filing Total tax for 2012. Free h & r block tax filing   For 2012, your total tax on Form 1040 is the amount on line 61 reduced by the following. Free h & r block tax filing    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Free h & r block tax filing Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. Free h & r block tax filing The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. Free h & r block tax filing Any refundable credit amounts listed on lines 64a, 65, 66, 70, and credits from Forms 8801 (line 27 only), and 8885 included on line 71. Free h & r block tax filing   If you filed Form 1040A, your 2012 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. Free h & r block tax filing   If you filed Form 1040EZ, your 2012 total tax is the amount on line 11 reduced by the amount on line 8a. Free h & r block tax filing Figuring Your Required Annual Payment (Part I) Figure your required annual payment in Part I of Form 2210, following the line-by-line instructions. Free h & r block tax filing If you rounded the entries on your tax return to whole dollars, you can round on Form 2210. Free h & r block tax filing Example. Free h & r block tax filing The tax on Lori Lane's 2012 return was $12,400. Free h & r block tax filing Her AGI was not more than $150,000 for either 2012 or 2013. Free h & r block tax filing The tax on her 2013 return (Form 1040, line 55) is $13,044. Free h & r block tax filing Line 56 (self-employment tax) is $8,902. Free h & r block tax filing Her 2013 total tax is $21,946. Free h & r block tax filing For 2013, Lori had $1,600 income tax withheld and made four equal estimated tax payments ($1,000 each). Free h & r block tax filing 90% of her 2013 tax is $19,751. Free h & r block tax filing Because she paid less than her 2012 tax ($12,400) and less than 90% of her 2013 tax ($19,751), and does not meet an exception, Lori knows that she owes a penalty for underpayment of estimated tax. Free h & r block tax filing The IRS will figure the penalty for Lori, but she decides to figure it herself on Form 2210 and pay it with her taxes when she files her tax return. Free h & r block tax filing Lori's required annual payment is $12,400 (100% of 2012 tax) because that is smaller than 90% of her 2013 tax. Free h & r block tax filing Different 2012 filing status. Free h & r block tax filing    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, see 2012 joint return and 2013 separate returns , earlier, to figure the amount to enter as your 2012 tax on line 8 of Form 2210. Free h & r block tax filing Short Method for Figuring the Penalty (Part III) You may be able to use the short method in Part III of Form 2210 to figure your penalty for underpayment of estimated tax. Free h & r block tax filing If you qualify to use this method, it will result in the same penalty amount as the regular method. Free h & r block tax filing However, either the annualized income installment method or the actual withholding method, explained later, may result in a smaller penalty. Free h & r block tax filing You can use the short method only if you meet one of the following requirements. Free h & r block tax filing You made no estimated tax payments for 2013 (it does not matter whether you had income tax withholding). Free h & r block tax filing You paid the same amount of estimated tax on each of the four payment due dates. Free h & r block tax filing If you do not meet either requirement, figure your penalty using the regular method in Part IV of Form 2210 and the Penalty Worksheet in the instructions. Free h & r block tax filing Note. Free h & r block tax filing If any payment was made before the due date, you can use the short method, but the penalty may be less if you use the regular method. Free h & r block tax filing However, if the payment was only a few days early, the difference is likely to be small. Free h & r block tax filing You cannot use the short method if any of the following apply. Free h & r block tax filing You made any estimated tax payments late. Free h & r block tax filing You checked box C or D in Part II of Form 2210. Free h & r block tax filing You are filing Form 1040NR or 1040NR-EZ and you did not receive wages as an employee subject to U. Free h & r block tax filing S. Free h & r block tax filing income tax withholding. Free h & r block tax filing If you use the short method, you cannot use the annualized income installment method to figure your underpayment for each payment period. Free h & r block tax filing Also, you cannot use your actual withholding during each period to figure your payments for each period. Free h & r block tax filing These methods, which may give you a smaller penalty amount, are explained under Figuring Your Underpayment (Part IV, Section A). Free h & r block tax filing Complete Part III of Form 2210 following the line-by-line instructions in the Instructions for Form 2210. Free h & r block tax filing Regular Method for Figuring the Penalty (Part IV) You can use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if you paid one or more estimated tax payments earlier than the due date. Free h & r block tax filing You must use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if any of the following apply to you. Free h & r block tax filing You paid one or more estimated tax payments on a date after the due date. Free h & r block tax filing You paid at least one, but less than four, installments of estimated tax. Free h & r block tax filing You paid estimated tax payments in un- equal amounts. Free h & r block tax filing You use the annualized income installment method to figure your underpayment for each payment period. Free h & r block tax filing You use your actual withholding during each payment period to figure your payments. Free h & r block tax filing Under the regular method, figure your underpayment for each payment period in Section A, then figure your penalty using the Penalty Worksheet in the Instructions for Form 2210. Free h & r block tax filing Enter the results on line 27 of Section B. Free h & r block tax filing Figuring Your Underpayment (Part IV, Section A) Figure your underpayment of estimated tax for each payment period in Section A following the line-by-line instructions in the Instructions for Form 2210. Free h & r block tax filing Complete lines 20 through 26 of the first column before going to line 20 of the next column. Free h & r block tax filing Required installments—line 18. Free h & r block tax filing   Your required payment for each payment period (line 18) is usually one-fourth of your required annual payment (Part I, line 9). Free h & r block tax filing This method—the regular method—is the one to use if you received your income evenly throughout the year. Free h & r block tax filing   However, if you did not receive your income evenly throughout the year, you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Free h & r block tax filing First complete Schedule AI (Form 2210), then enter the amounts from line 25 of that schedule on line 18 of Form 2210, Part IV. Free h & r block tax filing See Annualized Income Installment Method (Schedule AI), later. Free h & r block tax filing Payments made—line 19. Free h & r block tax filing   Enter in each column the total of: Your estimated tax paid after the due date for the previous column and by the due date shown at the top of the column, and One-fourth of your withholding. Free h & r block tax filing For special rules for figuring your payments, see Form 2210 instructions for line 19. Free h & r block tax filing   If you file Form 1040, your withholding is the amount on line 62, plus any excess social security or tier 1 RRTA tax withholding on line 69. Free h & r block tax filing If you file Form 1040A, your withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included in line 41. Free h & r block tax filing Actual withholding method. Free h & r block tax filing    Instead of using one-fourth of your withholding for each quarter, you can choose to use the amounts actually withheld by each due date. Free h & r block tax filing You can make this choice separately for the tax withheld from your wages and for all other withholding. Free h & r block tax filing This includes any excess social security and tier 1 RRTA tax withheld. Free h & r block tax filing   Using your actual withholding may result in a smaller penalty if most of your withholding occurred early in the year. Free h & r block tax filing   If you use your actual withholding, you must check box D in Form 2210, Part II. Free h & r block tax filing Then complete Form 2210 using the regular method (Part IV) and file it with your return. Free h & r block tax filing Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Figure the amount of your penalty for Section B using the Penalty Worksheet in the Form 2210 instructions. Free h & r block tax filing The penalty is imposed on each underpayment amount shown on Form 2210, Section A, line 25, for the number of days that it remained unpaid. Free h & r block tax filing For 2013, there are four rate periods—April 16 through June 30, July 1 through September 30, October 1 through December 31, and January 1, 2014 through April 15, 2014. Free h & r block tax filing A 3% rate applies to all four periods. Free h & r block tax filing Payments. Free h & r block tax filing    Before completing the Penalty Worksheet, it may be helpful to make a list of the payments you made and income tax withheld after the due date (or the last day payments could be made on time) for the earliest payment period an underpayment occurred. Free h & r block tax filing For example, if you had an underpayment for the first payment period, list your payments after April 15, 2013. Free h & r block tax filing You can use the table in the Form 2210 instructions to make your list. Free h & r block tax filing Follow those instructions for listing income tax withheld and payments made with your return. Free h & r block tax filing Use the list to determine when each underpayment was paid. Free h & r block tax filing   If you mail your estimated tax payments, use the date of the U. Free h & r block tax filing S. Free h & r block tax filing postmark as the date of payment. Free h & r block tax filing Line 1b. Free h & r block tax filing   Apply the payments listed to underpayment balance in the first column until it is fully paid. Free h & r block tax filing Apply payments in the order made. Free h & r block tax filing Figuring the penalty. Free h & r block tax filing   If an underpayment was paid in two or more payments on different dates, you must figure the penalty separately for each payment. Free h & r block tax filing On line 3 of the Penalty Worksheet enter the number of days between the due date (line 2) and the date of each payment on line 1b. Free h & r block tax filing On line 4 figure the penalty for the amount of each payment applied on line 1b or the amount remaining unpaid. Free h & r block tax filing If no payments are applied, figure the penalty on the amount on line 1a. Free h & r block tax filing Aid for counting days. Free h & r block tax filing    Table 4-1 provides a simple method for counting the number of days between a due date and a payment date. Free h & r block tax filing Find the number for the date the payment was due by going across to the column of the month the payment was due and moving down the column to the due date. Free h & r block tax filing In the same manner, find the number for the date the payment was made. Free h & r block tax filing Subtract the due date “number” from the payment date “number. Free h & r block tax filing ”   For example, if a payment was due on June 15 (61), but was not paid until September 1 (139), the payment was 78 (139 – 61) days late. Free h & r block tax filing Table 4-1. Free h & r block tax filing Calendar To Determine the Number of Days a Payment Is Late Instructions. Free h & r block tax filing Use this table with Form 2210 if you are completing Part IV, Section B. Free h & r block tax filing First, find the number for the payment due date by going across to the column of the month the payment was due and moving down the column to the due date. Free h & r block tax filing Then, in the same manner, find the number for the date the payment was made. Free h & r block tax filing Finally, subtract the due date number from the payment date number. Free h & r block tax filing The result is the number of days the payment is late. Free h & r block tax filing Example. Free h & r block tax filing The payment due date is June 15 (61). Free h & r block tax filing The payment was made on November 4 (203). Free h & r block tax filing The payment is 142 days late (203 – 61). Free h & r block tax filing Tax Year 2013 Day of 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 Month April May June July Aug. Free h & r block tax filing Sept. Free h & r block tax filing Oct. Free h & r block tax filing Nov. Free h & r block tax filing Dec. Free h & r block tax filing Jan. Free h & r block tax filing Feb. Free h & r block tax filing Mar. Free h & r block tax filing Apr. Free h & r block tax filing 1   16 47 77 108 139 169 200 230 261 292 320 351 2   17 48 78 109 140 170 201 231 262 293 321 352 3   18 49 79 110 141 171 202 232 263 294 322 353 4   19 50 80 111 142 172 203 233 264 295 323 354 5   20 51 81 112 143 173 204 234 265 296 324 355 6   21 52 82 113 144 174 205 235 266 297 325 356 7   22 53 83 114 145 175 206 236 267 298 326 357 8   23 54 84 115 146 176 207 237 268 299 327 358 9   24 55 85 116 147 177 208 238 269 300 328 359 10   25 56 86 117 148 178 209 239 270 301 329 360 11   26 57 87 118 149 179 210 240 271 302 330 361 12   27 58 88 119 150 180 211 241 272 303 331 362 13   28 59 89 120 151 181 212 242 273 304 332 363 14   29 60 90 121 152 182 213 243 274 305 333 364 15 0 30 61 91 122 153 183 214 244 275 306 334 365 16 1 31 62 92 123 154 184 215 245 276 307 335   17 2 32 63 93 124 155 185 216 246 277 308 336   18 3 33 64 94 125 156 186 217 247 278 309 337   19 4 34 65 95 126 157 187 218 248 279 310 338   20 5 35 66 96 127 158 188 219 249 280 311 339   21 6 36 67 97 128 159 189 220 250 281 312 340   22 7 37 68 98 129 160 190 221 251 282 313 341   23 8 38 69 99 130 161 191 222 252 283 314 342   24 9 39 70 100 131 162 192 223 253 284 315 343   25 10 40 71 101 132 163 193 224 254 285 316 344   26 11 41 72 102 133 164 194 225 255 286 317 345   27 12 42 73 103 134 165 195 226 256 287 318 346   28 13 43 74 104 135 166 196 227 257 288 319 347   29 14 44 75 105 136 167 197 228 258 289   348   30 15 45 76 106 137 168 198 229 259 290   349   31   46   107 138   199   260 291   350   Annualized Income Installment Method (Schedule AI) If you did not receive your income evenly throughout the year (for example, your income from a shop you operated at a marina was much larger in the summer than it was during the rest of the year), you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Free h & r block tax filing Under this method, your required installment (Part IV, line 18) for one or more payment periods may be less than one-fourth of your required annual payment. Free h & r block tax filing To figure your underpayment using this method, complete Form 2210, Schedule AI. Free h & r block tax filing Schedule AI annualizes your tax at the end of each payment period based on your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. Free h & r block tax filing If you use the annualized income installment method, you must check box C in Part II of Form 2210. Free h & r block tax filing Also, you must attach Form 2210 and Schedule AI to your return. Free h & r block tax filing If you use Schedule AI for any payment due date, you must use it for all payment due dates. Free h & r block tax filing Completing Schedule AI. Free h & r block tax filing   Follow the Form 2210 instructions to complete Schedule AI. Free h & r block tax filing For each period shown on Schedule AI, figure your income and deductions based on your method of accounting. Free h & r block tax filing If you use the cash method of accounting (used by most people), include all income actually or constructively received during the period and all deductions actually paid during the period. Free h & r block tax filing Note. Free h & r block tax filing Each period includes amounts from the previous period(s). Free h & r block tax filing Period (a) includes items for January 1 through March 31. Free h & r block tax filing Period (b) includes items for January 1 through May 31. Free h & r block tax filing Period (c) includes items for January 1 through August 31. Free h & r block tax filing Period (d) includes items for the entire year. Free h & r block tax filing Farmers and Fishermen If you are a farmer or fisherman, the following special rules for underpayment of estimated tax apply to you. Free h & r block tax filing The penalty for underpaying your 2013 estimated tax will not apply if you file your return and pay all the tax due by March 3, 2014. Free h & r block tax filing If you are a fiscal year taxpayer, the penalty will not apply if you file your return and pay the tax due by the first day of the third month after the end of your tax year. Free h & r block tax filing Any penalty you owe for underpaying your 2013 estimated tax will be figured from one payment due date, January 15, 2014. Free h & r block tax filing The underpayment penalty for 2013 is figured on the difference between the amount of 2013 withholding plus estimated tax paid by the due date and the smaller of: 662/3% (rather than 90%) of your 2013 tax, or 100% of the tax shown on your 2012 return. Free h & r block tax filing Even if these special rules apply to you, you will not owe the penalty if you meet either of the two conditions discussed under Exceptions . Free h & r block tax filing See Who Must Pay Estimated Tax in chapter 2 for the definition of a farmer or fisherman who is eligible for these special rules. Free h & r block tax filing Form 2210-F. Free h & r block tax filing   Use Form 2210-F to figure any underpayment penalty. Free h & r block tax filing Do not attach it to your return unless you check a box in Part I. Free h & r block tax filing However, if none of the boxes apply to you and you owe a penalty, you do not need to attach Form 2210-F. Free h & r block tax filing Enter the amount from line 16 on Form 1040, line 77 and add the penalty to any balance due on your return or subtract it from your refund. Free h & r block tax filing Keep your filled-in Form 2210-F for your records. Free h & r block tax filing    If none of the boxes on Form 2210-F apply to you and you owe a penalty, the IRS can figure your penalty and send you a bill. Free h & r block tax filing Waiver of Penalty The IRS can waive the penalty for underpayment if either of the following applies. Free h & r block tax filing You did not make a payment because of a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty. Free h & r block tax filing You retired (after reaching age 62) or became disabled in 2012 or 2013 and both the following requirements are met. Free h & r block tax filing You had a reasonable cause for not making the payment. Free h & r block tax filing Your underpayment was not due to willful neglect. Free h & r block tax filing How to request a waiver. Free h & r block tax filing   To request a waiver, see the Instructions for Form 2210. Free h & r block tax filing Farmers and fishermen. Free h & r block tax filing   To request a waiver, see the Instructions for Form 2210-F. Free h & r block tax filing Federally declared disaster. Free h & r block tax filing   Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster. Free h & r block tax filing During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief. Free h & r block tax filing Do not file Form 2210 or 2210-F if your underpayment was due to a federally declared disaster. Free h & r block tax filing If you still owe a penalty after the automatic waiver is applied, we will send you a bill. Free h & r block tax filing   Individuals, estates, and trusts not in a covered disaster area but whose books, records, or tax professionals' offices are in a covered area are also entitled to relief. Free h & r block tax filing Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. Free h & r block tax filing If you meet either of these eligibility requirements, you must call the IRS disaster hotline at 1-866-562-5227 and identify yourself as eligible for this relief. Free h & r block tax filing   Details on the applicable disaster postponement period can be found at IRS. Free h & r block tax filing gov. Free h & r block tax filing Enter Tax Relief in Disaster Situations. Free h & r block tax filing Select the federally declared disaster that affected you. Free h & r block tax filing    Worksheet 4-1. Free h & r block tax filing 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Note. Free h & r block tax filing To figure the annualized entries for lines 2, 3, and 5 below, multiply the expected amount for the period by the  annualization amount on line 2 of Schedule AI for the same period. Free h & r block tax filing                   1. Free h & r block tax filing Enter line 11 of your Schedule AI, or line 3 from Worksheet 4-2 1. Free h & r block tax filing       2. Free h & r block tax filing Enter your annualized qualified dividends for the period 2. Free h & r block tax filing           3. Free h & r block tax filing Are you filing Schedule D?               □ Yes. Free h & r block tax filing Enter the smaller of your annualized amount from line 15 or line 16 of Schedule D. Free h & r block tax filing If either line 15 or line 16 is blank or a loss, enter -0-. Free h & r block tax filing 3. Free h & r block tax filing             □ No. Free h & r block tax filing Enter your annualized capital gain distributions from Form 1040, line 13             4. Free h & r block tax filing Add lines 2 and 3   4. Free h & r block tax filing           5. Free h & r block tax filing If you are claiming investment interest expense on Form 4952, enter your annualized amount from line 4g of that form. Free h & r block tax filing Otherwise, enter -0-   5. Free h & r block tax filing           6. Free h & r block tax filing Subtract line 5 from line 4. Free h & r block tax filing If zero or less, enter -0- 6. Free h & r block tax filing       7. Free h & r block tax filing Subtract line 6 from line 1. Free h & r block tax filing If zero or less, enter -0- 7. Free h & r block tax filing       8. Free h & r block tax filing Enter: $36,900 if single or married filing separately, $73,800 if married filing jointly or qualifying widow(er), $49,400 if head of household. Free h & r block tax filing 8. Free h & r block tax filing       9. Free h & r block tax filing Enter the smaller of line 1 or line 8 9. Free h & r block tax filing       10. Free h & r block tax filing Enter the smaller of line 7 or line 9 10. Free h & r block tax filing       11. Free h & r block tax filing Subtract line 10 from line 9. Free h & r block tax filing This amount is taxed at 0% 11. Free h & r block tax filing       12. Free h & r block tax filing Enter the smaller of line 1 or line 6 12. Free h & r block tax filing       13. Free h & r block tax filing Enter the amount from line 11 13. Free h & r block tax filing       14. Free h & r block tax filing Subtract line 13 from line 12 14. Free h & r block tax filing       15. Free h & r block tax filing Multiply line 14 by 15% (. Free h & r block tax filing 15) 15. Free h & r block tax filing   16. Free h & r block tax filing Figure the tax on the amount on line 7. Free h & r block tax filing If the amount on line 7 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Free h & r block tax filing If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 16. Free h & r block tax filing   17. Free h & r block tax filing Add lines 15 and 16 17. Free h & r block tax filing   18. Free h & r block tax filing Figure the tax on the amount on line 1. Free h & r block tax filing If the amount on line 1 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Free h & r block tax filing If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 18. Free h & r block tax filing   19. Free h & r block tax filing Tax on all taxable income. Free h & r block tax filing Enter the smaller of line 17 or line 18. Free h & r block tax filing Also enter this amount on line 12 of Schedule AI in the appropriate column. Free h & r block tax filing However, if you are using this worksheet to figure the tax on the amount on line 3 of Worksheet 4-2, enter the amount from line 19 on Worksheet 4-2, line 4 19. Free h & r block tax filing   Worksheet 4-2. Free h & r block tax filing 2013 Form 2210, Schedule AI—Line 12 Foreign Earned Income Tax Worksheet Before you begin:If Schedule AI, line 11, is zero for the period, do not complete this worksheet. Free h & r block tax filing             1. Free h & r block tax filing Enter the amount from line 11 of Schedule AI for the period 1. Free h & r block tax filing   2. Free h & r block tax filing Enter the annualized amount* of foreign earned income and housing amount excluded or deducted (from  Form 2555, lines 45 and 50, or Form 2555-EZ, line 18) in figuring the amount entered for the period on line 1  of Schedule AI 2. Free h & r block tax filing   3. Free h & r block tax filing Add lines 1 and 2 3. Free h & r block tax filing   4. Free h & r block tax filing Tax on the amount on line 3. Free h & r block tax filing Use the Tax Table, Tax Computation Worksheet, Form 8615**, Qualified Dividends and Capital Gain Tax Worksheet***, or Schedule D Tax Worksheet***, whichever applies. Free h & r block tax filing See the 2013 Instructions for Form 1040, line 44, to find out which tax computation method to use. Free h & r block tax filing (Note. Free h & r block tax filing You do not have to use the same method for each period on Schedule AI. Free h & r block tax filing ) 4. Free h & r block tax filing   5. Free h & r block tax filing Tax on the amount on line 2. Free h & r block tax filing If the amount on line 2 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Free h & r block tax filing If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 5. Free h & r block tax filing   6. Free h & r block tax filing Subtract line 5 from line 4. Free h & r block tax filing Enter the result here and on line 12 of Schedule AI. Free h & r block tax filing If zero or less,  enter -0- 6. Free h & r block tax filing             * To figure the annualized amount for line 2, multiply the exclusion or deduction for the period by the annualization amount on line 2 of Schedule AI for the same period. Free h & r block tax filing     ** If you use Form 8615 to figure the tax on line 4 above, enter the amount from line 3 above on line 4 of Form 8615. Free h & r block tax filing If the child's parent files Form 2555 or 2555-EZ, enter the amounts from lines 3 and 4 of the parent's Foreign Earned Income Tax Worksheet on lines 6 and 10, respectively, of Form 8615. Free h & r block tax filing Complete the rest of Form 8615 according to its instructions. Free h & r block tax filing Then complete lines 5 and 6 above. Free h & r block tax filing     *** Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet (or Worksheet 4-1 in this chapter) or the Schedule D Tax Worksheet, whichever worksheet you use to figure the tax on line 4 above. Free h & r block tax filing Complete that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Free h & r block tax filing Next, determine if you have a capital gain excess. Free h & r block tax filing     Figuring capital gain excess. Free h & r block tax filing To find out if you have a capital gain excess for the appropriate period, subtract line 11 of Schedule AI from line 6 of Worksheet 4-1 or your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). Free h & r block tax filing If the result is more than zero, that amount is your capital gain excess. Free h & r block tax filing     No capital gain excess. Free h & r block tax filing If you do not have a capital gain excess, complete the rest of Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or the Schedule D Tax Worksheet according to the worksheet's instructions. Free h & r block tax filing Then complete lines 5 and 6 above. Free h & r block tax filing     Capital gain excess. Free h & r block tax filing If you have a capital gain excess, complete a second Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Free h & r block tax filing Then complete lines 5 and 6 above. Free h & r block tax filing     Make the modifications below only for purposes of filling out Worksheet 4-2 above. Free h & r block tax filing     a. Free h & r block tax filing Reduce (but not below zero) the amount you otherwise would enter on line 3 of your Worksheet 4-1, line 3 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 9 of your Schedule D Tax Worksheet by your capital gain excess. Free h & r block tax filing     b. Free h & r block tax filing Reduce (but not below zero) the amount you otherwise would enter on line 2 of your Worksheet 4-1, line 2 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (a) above. Free h & r block tax filing     c. Free h & r block tax filing Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess. Free h & r block tax filing     d. Free h & r block tax filing Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet in the 2013 Instructions for Schedule D (Form 1040). Free h & r block tax filing   Prev  Up  Next   Home   More Online Publications
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Understanding Your CP05 Notice

We’re reviewing your tax return to verify the following:

  • Your income
  • The withholding you reported on your income and social security benefits
  • The tax credits you claimed
  • The household help you claimed
  • Your business income

We’re holding your refund pending the results of our review.


What you need to do

You don’t need to take any action at this time. We may contact third parties to verify the information you reported on your return. If you haven’t received your refund or been contacted by us within 45 days from the date of this notice, you can call us at the number provided on your notice.


You may want to

  • Review this notice with your tax preparer.
  • If you are experiencing economic harm, believe an IRS system or procedure isn’t working as it should, or are seeking help in resolving tax problems that have not been resolved through normal channels, you may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach them at 1-877-777-4778 or TTY/TTD 1-800-829-4059.

Answers to Common Questions

Why was my return being reviewed?
While most returns are accepted as filed, some are selected for examination. The IRS examines some federal tax returns to determine if income, expenses, and credits are being reported accurately. The IRS selects returns for examination using various methods which include random sampling, computerized screening, and comparison of information received by the IRS such as Forms W-2 and 1099. Having your return selected for examination does not suggest that you made an error or were dishonest.

What if I did not file a tax return claiming the items you are questioning and someone else is using my name and social security number?
Send us a completed and signed Form 14039, Identity Theft Affidavit. You can download this form online at www.irs.gov. You can also refer to the IRS Identity Theft resource page for more information.


Tips for next year

Review all of your income and withholding documents for completeness and review your return to make sure you are eligible to claim all income, credits and business income that you reported.

Page Last Reviewed or Updated: 19-Feb-2014

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Free H & R Block Tax Filing

Free h & r block tax filing 4. Free h & r block tax filing   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 h & r block tax filing  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 h & r block tax filing For more information, see Publication 505. Free h & r block tax filing Reminders Estimated tax safe harbor for higher income taxpayers. Free h & r block tax filing  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 h & r block tax filing Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. Free h & r block tax filing In general, the federal income tax is a pay-as-you-go tax. Free h & r block tax filing There are two ways to pay as you go. Free h & r block tax filing Withholding. Free h & r block tax filing If you are an employee, your employer probably withholds income tax from your pay. Free h & r block tax filing Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. Free h & r block tax filing The amount withheld is paid to the IRS in your name. Free h & r block tax filing Estimated tax. Free h & r block tax filing 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 h & r block tax filing People who are in business for themselves generally will have to pay their tax this way. Free h & r block tax filing Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. Free h & r block tax filing Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Free h & r block tax filing This chapter explains these methods. Free h & r block tax filing In addition, it also explains the following. Free h & r block tax filing Credit for withholding and estimated tax. Free h & r block tax filing When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. Free h & r block tax filing , and for the estimated tax you paid for 2013. Free h & r block tax filing Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). Free h & r block tax filing Underpayment penalty. Free h & r block tax filing 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 h & r block tax filing In most cases, the IRS can figure this penalty for you. Free h & r block tax filing See Underpayment Penalty for 2013 at the end of this chapter. Free h & r block tax filing 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 h & r block tax filing This section explains the rules for withholding tax from each of these types of income. Free h & r block tax filing This section also covers backup withholding on interest, dividends, and other payments. Free h & r block tax filing Salaries and Wages Income tax is withheld from the pay of most employees. Free h & r block tax filing Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Free h & r block tax filing It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Free h & r block tax filing See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. Free h & r block tax filing 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 h & r block tax filing This is explained under Exemption From Withholding , later. Free h & r block tax filing You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Free h & r block tax filing 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 h & r block tax filing Military retirees. Free h & r block tax filing   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 h & r block tax filing Household workers. Free h & r block tax filing   If you are a household worker, you can ask your employer to withhold income tax from your pay. Free h & r block tax filing A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Free h & r block tax filing   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Free h & r block tax filing 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 h & r block tax filing Farmworkers. Free h & r block tax filing   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 h & r block tax filing Differential wage payments. Free h & r block tax filing    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Free h & r block tax filing 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 h & r block tax filing The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Free h & r block tax filing   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 h & r block tax filing 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 h & r block tax filing The amount you earn in each payroll period. Free h & r block tax filing The information you give your employer on Form W-4. Free h & r block tax filing Form W-4 includes four types of information that your employer will use to figure your withholding. Free h & r block tax filing Whether to withhold at the single rate or at the lower married rate. Free h & r block tax filing How many withholding allowances you claim (each allowance reduces the amount withheld). Free h & r block tax filing Whether you want an additional amount withheld. Free h & r block tax filing Whether you are claiming an exemption from withholding in 2014. Free h & r block tax filing See Exemption From Withholding , later. Free h & r block tax filing Note. Free h & r block tax filing You must specify a filing status and a number of withholding allowances on Form W-4. Free h & r block tax filing You cannot specify only a dollar amount of withholding. Free h & r block tax filing New Job When you start a new job, you must fill out Form W-4 and give it to your employer. Free h & r block tax filing Your employer should have copies of the form. Free h & r block tax filing If you need to change the information later, you must fill out a new form. Free h & r block tax filing 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 h & r block tax filing You may be able to avoid overwithholding if your employer agrees to use the part-year method. Free h & r block tax filing See Part-Year Method in chapter 1 of Publication 505 for more information. Free h & r block tax filing Employee also receiving pension income. Free h & r block tax filing   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 h & r block tax filing However, you can choose to split your withholding allowances between your pension and job in any manner. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing Changing your withholding for 2015. Free h & r block tax filing   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 h & r block tax filing If the event occurs in December 2014, submit a new Form W-4 within 10 days. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing You should try to have your withholding match your actual tax liability. Free h & r block tax filing 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 h & r block tax filing If too much tax is withheld, you will lose the use of that money until you get your refund. Free h & r block tax filing 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 h & r block tax filing Note. Free h & r block tax filing 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 h & r block tax filing Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Free h & r block tax filing The worksheets are for your own records. Free h & r block tax filing Do not give them to your employer. Free h & r block tax filing Multiple jobs. Free h & r block tax filing   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Free h & r block tax filing Then split your allowances between the Forms W-4 for each job. Free h & r block tax filing You cannot claim the same allowances with more than one employer at the same time. Free h & r block tax filing You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Free h & r block tax filing Married individuals. Free h & r block tax filing   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 h & r block tax filing Use only one set of worksheets. Free h & r block tax filing You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Free h & r block tax filing   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 h & r block tax filing Alternative method of figuring withholding allowances. Free h & r block tax filing   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 h & r block tax filing For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. Free h & r block tax filing Personal Allowances Worksheet. Free h & r block tax filing   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. Free h & r block tax filing Deduction and Adjustments Worksheet. Free h & r block tax filing   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 h & r block tax filing Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. Free h & r block tax filing Two-Earners/Multiple Jobs Worksheet. Free h & r block tax filing   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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing You accurately complete all the Form W-4 worksheets that apply to you. Free h & r block tax filing You give your employer a new Form W-4 when changes occur. Free h & r block tax filing But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Free h & r block tax filing This is most likely to happen in the following situations. Free h & r block tax filing You are married and both you and your spouse work. Free h & r block tax filing You have more than one job at a time. Free h & r block tax filing You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Free h & r block tax filing You will owe additional amounts with your return, such as self-employment tax. Free h & r block tax filing Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Free h & r block tax filing 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 h & r block tax filing You work only part of the year. Free h & r block tax filing You change the number of your withholding allowances during the year. Free h & r block tax filing Cumulative wage method. Free h & r block tax filing   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 h & r block tax filing 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 h & r block tax filing You must ask your employer in writing to use this method. Free h & r block tax filing   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Free h & r block tax filing ) since the beginning of the year. Free h & r block tax filing Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. Free h & r block tax filing You can use the IRS Withholding Calculator at www. Free h & r block tax filing irs. Free h & r block tax filing 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 h & r block tax filing Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Free h & r block tax filing These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Free h & r block tax filing New Form W-4. Free h & r block tax filing   When you start a new job, your employer should have you complete a Form W-4. Free h & r block tax filing Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Free h & r block tax filing   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Free h & r block tax filing 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 h & r block tax filing No Form W-4. Free h & r block tax filing   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 h & r block tax filing Repaying withheld tax. Free h & r block tax filing   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 h & r block tax filing Your employer cannot repay any of the tax previously withheld. Free h & r block tax filing Instead, claim the full amount withheld when you file your tax return. Free h & r block tax filing   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 h & r block tax filing Your employer can repay the amount that was withheld incorrectly. Free h & r block tax filing 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 h & r block tax filing Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Free h & r block tax filing The exemption applies only to income tax, not to social security or Medicare tax. Free h & r block tax filing You can claim exemption from withholding for 2014 only if both of the following situations apply. Free h & r block tax filing For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Free h & r block tax filing For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Free h & r block tax filing Students. Free h & r block tax filing   If you are a student, you are not automatically exempt. Free h & r block tax filing See chapter 1 to find out if you must file a return. Free h & r block tax filing If you work only part time or only during the summer, you may qualify for exemption from withholding. Free h & r block tax filing Age 65 or older or blind. Free h & r block tax filing   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 h & r block tax filing Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Free h & r block tax filing Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. Free h & r block tax filing Claiming exemption from withholding. Free h & r block tax filing   To claim exemption, you must give your employer a Form W-4. Free h & r block tax filing Do not complete lines 5 and 6. Free h & r block tax filing Enter “Exempt” on line 7. Free h & r block tax filing   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 h & r block tax filing 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 h & r block tax filing   Your claim of exempt status may be reviewed by the IRS. Free h & r block tax filing An exemption is good for only 1 year. Free h & r block tax filing   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Free h & r block tax filing Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Free h & r block tax filing The payer can figure withholding on supplemental wages using the same method used for your regular wages. Free h & r block tax filing 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 h & r block tax filing Expense allowances. Free h & r block tax filing   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Free h & r block tax filing   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 h & r block tax filing   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. Free h & r block tax filing Penalties You may have to pay a penalty of $500 if both of the following apply. Free h & r block tax filing You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Free h & r block tax filing You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Free h & r block tax filing 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 h & r block tax filing The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Free h & r block tax filing 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 h & r block tax filing A simple error or an honest mistake will not result in one of these penalties. Free h & r block tax filing 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 h & r block tax filing Tips The tips you receive while working on your job are considered part of your pay. Free h & r block tax filing You must include your tips on your tax return on the same line as your regular pay. Free h & r block tax filing However, tax is not withheld directly from tip income, as it is from your regular pay. Free h & r block tax filing Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Free h & r block tax filing See chapter 6 for information on reporting your tips to your employer. Free h & r block tax filing For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. Free h & r block tax filing How employer figures amount to withhold. Free h & r block tax filing   The tips you report to your employer are counted as part of your income for the month you report them. Free h & r block tax filing Your employer can figure your withholding in either of two ways. Free h & r block tax filing By withholding at the regular rate on the sum of your pay plus your reported tips. Free h & r block tax filing By withholding at the regular rate on your pay plus a percentage of your reported tips. Free h & r block tax filing Not enough pay to cover taxes. Free h & r block tax filing   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 h & r block tax filing See Giving your employer money for taxes in chapter 6. Free h & r block tax filing Allocated tips. Free h & r block tax filing   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. Free h & r block tax filing Withholding is based only on your pay plus your reported tips. Free h & r block tax filing Your employer should refund to you any incorrectly withheld tax. Free h & r block tax filing See Allocated Tips in chapter 6 for more information. Free h & r block tax filing Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. Free h & r block tax filing Your employer generally must withhold income tax on these benefits from your regular pay. Free h & r block tax filing For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. Free h & r block tax filing 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 h & r block tax filing Your employer must notify you if this choice is made. Free h & r block tax filing For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. Free h & r block tax filing 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 h & r block tax filing To qualify as sick pay, it must be paid under a plan to which your employer is a party. Free h & r block tax filing If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. Free h & r block tax filing An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. Free h & r block tax filing 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 h & r block tax filing See Form W-4S , later. Free h & r block tax filing 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 h & r block tax filing Union agreements. Free h & r block tax filing   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 h & r block tax filing See your union representative or your employer for more information. Free h & r block tax filing Form W-4S. Free h & r block tax filing   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 h & r block tax filing Its instructions contain a worksheet you can use to figure the amount you want withheld. Free h & r block tax filing They also explain restrictions that may apply. Free h & r block tax filing   Give the completed form to the payer of your sick pay. Free h & r block tax filing The payer must withhold according to your directions on the form. Free h & r block tax filing Estimated tax. Free h & r block tax filing   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 h & r block tax filing 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 h & r block tax filing See Underpayment Penalty for 2013 at the end of this chapter. Free h & r block tax filing Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing Income tax withholding from an ERD is mandatory. Free h & r block tax filing More information. Free h & r block tax filing   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. Free h & r block tax filing For information on IRAs, see chapter 17. Free h & r block tax filing 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 h & r block tax filing Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. Free h & r block tax filing Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. Free h & r block tax filing Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. Free h & r block tax filing Any other wager, if the proceeds are at least 300 times the amount of the bet. Free h & r block tax filing It does not matter whether your winnings are paid in cash, in property, or as an annuity. Free h & r block tax filing Winnings not paid in cash are taken into account at their fair market value. Free h & r block tax filing Exception. Free h & r block tax filing   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. Free h & r block tax filing However, you may need to provide the payer with a social security number to avoid withholding. Free h & r block tax filing See Backup withholding on gambling winnings in chapter 1 of Publication 505. Free h & r block tax filing If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. Free h & r block tax filing See Estimated Tax for 2014 , later. Free h & r block tax filing 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 h & r block tax filing See Underpayment Penalty for 2013 at the end of this chapter. Free h & r block tax filing Form W-2G. Free h & r block tax filing   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 h & r block tax filing Report the tax withheld on line 62 of Form 1040. Free h & r block tax filing Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. Free h & r block tax filing To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Free h & r block tax filing All unemployment compensation is taxable. Free h & r block tax filing So, if you do not have income tax withheld, you may have to pay estimated tax. Free h & r block tax filing See Estimated Tax for 2014 , later. Free h & r block tax filing 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 h & r block tax filing For information, see Underpayment Penalty for 2013 at the end of this chapter. Free h & r block tax filing Federal Payments You can choose to have income tax withheld from certain federal payments you receive. Free h & r block tax filing 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 h & r block tax filing S. Free h & r block tax filing C. Free h & r block tax filing 1421 et. Free h & r block tax filing seq. Free h & r block tax filing ), 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 h & r block tax filing To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Free h & r block tax filing If you do not choose to have income tax withheld, you may have to pay estimated tax. Free h & r block tax filing See Estimated Tax for 2014 , later. Free h & r block tax filing 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 h & r block tax filing For information, see Underpayment Penalty for 2013 at the end of this chapter. Free h & r block tax filing More information. Free h & r block tax filing   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. Free h & r block tax filing Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. Free h & r block tax filing Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. Free h & r block tax filing The information return shows how much you were paid during the year. Free h & r block tax filing It also includes your name and taxpayer identification number (TIN). Free h & r block tax filing TINs are explained in chapter 1 under Social Security Number (SSN) . Free h & r block tax filing These payments generally are not subject to withholding. Free h & r block tax filing However, “backup” withholding is required in certain situations. Free h & r block tax filing Backup withholding can apply to most kinds of payments that are reported on Form 1099. Free h & r block tax filing The payer must withhold at a flat 28% rate in the following situations. Free h & r block tax filing You do not give the payer your TIN in the required manner. Free h & r block tax filing The IRS notifies the payer that the TIN you gave is incorrect. Free h & r block tax filing You are required, but fail, to certify that you are not subject to backup withholding. Free h & r block tax filing 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 h & r block tax filing The IRS will do this only after it has mailed you four notices over at least a 210-day period. Free h & r block tax filing See Backup Withholding in chapter 1 of Publication 505 for more information. Free h & r block tax filing Penalties. Free h & r block tax filing   There are civil and criminal penalties for giving false information to avoid backup withholding. Free h & r block tax filing The civil penalty is $500. Free h & r block tax filing The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. Free h & r block tax filing Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. Free h & r block tax filing This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. Free h & r block tax filing 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 h & r block tax filing To do this, give a new Form W-4 to your employer. Free h & r block tax filing See chapter 1 of Publication 505. Free h & r block tax filing Estimated tax not required. Free h & r block tax filing   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. Free h & r block tax filing You had no tax liability for 2013. Free h & r block tax filing You were a U. Free h & r block tax filing S. Free h & r block tax filing citizen or resident alien for the whole year. Free h & r block tax filing Your 2013 tax year covered a 12-month period. Free h & r block tax filing   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 h & r block tax filing For the definition of “total tax” for 2013, see Publication 505, chapter 2. Free h & r block tax filing Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. Free h & r block tax filing 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 h & r block tax filing General rule. Free h & r block tax filing   In most cases, you must pay estimated tax for 2014 if both of the following apply. Free h & r block tax filing You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Free h & r block tax filing 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 h & r block tax filing Your 2013 tax return must cover all 12 months. Free h & r block tax filing    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 h & r block tax filing Special rules for farmers, fishermen, and higher income taxpayers. Free h & r block tax filing   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 h & r block tax filing 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 h & r block tax filing See Figure 4-A and Publication 505, chapter 2 for more information. Free h & r block tax filing Figure 4-A. Free h & r block tax filing Do You Have To Pay Estimated Tax? Please click here for the text description of the image. Free h & r block tax filing Figure 4-A Do You Have To Pay Estimated Tax? Aliens. Free h & r block tax filing   Resident and nonresident aliens also may have to pay estimated tax. Free h & r block tax filing Resident aliens should follow the rules in this chapter unless noted otherwise. Free h & r block tax filing Nonresident aliens should get Form 1040-ES (NR), U. Free h & r block tax filing S. Free h & r block tax filing Estimated Tax for Nonresident Alien Individuals. Free h & r block tax filing   You are an alien if you are not a citizen or national of the United States. Free h & r block tax filing You are a resident alien if you either have a green card or meet the substantial presence test. Free h & r block tax filing For more information about the substantial presence test, see Publication 519, U. Free h & r block tax filing S. Free h & r block tax filing Tax Guide for Aliens. Free h & r block tax filing Married taxpayers. Free h & r block tax filing   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. Free h & r block tax filing   You and your spouse can make joint estimated tax payments even if you are not living together. Free h & r block tax filing   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 h & r block tax filing   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. Free h & r block tax filing Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. Free h & r block tax filing 2013 separate returns and 2014 joint return. Free h & r block tax filing   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 h & r block tax filing You filed a separate return if you filed as single, head of household, or married filing separately. Free h & r block tax filing 2013 joint return and 2014 separate returns. Free h & r block tax filing   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 h & r block tax filing You file a separate return if you file as single, head of household, or married filing separately. Free h & r block tax filing   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 h & r block tax filing Then multiply the tax on the joint return by the following fraction. Free h & r block tax filing     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 h & r block tax filing Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. Free h & r block tax filing Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. Free h & r block tax filing For 2014, they plan to file married filing separately. Free h & r block tax filing Joe figures his share of the tax on the 2013 joint return as follows. Free h & r block tax filing   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 h & r block tax filing 6%     Joe's share of tax on joint return  ($6,386 × 87. Free h & r block tax filing 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 h & r block tax filing When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. Free h & r block tax filing Use your 2013 federal tax return as a guide. Free h & r block tax filing You can use Form 1040-ES and Publication 505 to figure your estimated tax. Free h & r block tax filing Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). Free h & r block tax filing You must make adjustments both for changes in your own situation and for recent changes in the tax law. Free h & r block tax filing For a discussion of these changes, visit IRS. Free h & r block tax filing gov. Free h & r block tax filing For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. Free h & r block tax filing When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. Free h & r block tax filing Each period has a specific payment due date. Free h & r block tax filing 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 h & r block tax filing The payment periods and due dates for estimated tax payments are shown next. Free h & r block tax filing   For the period: Due date:*     Jan. Free h & r block tax filing 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. Free h & r block tax filing 15     Sept. Free h & r block tax filing 1– Dec. Free h & r block tax filing 31 Jan. Free h & r block tax filing 15, next year     *See Saturday, Sunday, holiday rule and January payment . Free h & r block tax filing Saturday, Sunday, holiday rule. Free h & r block tax filing   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 h & r block tax filing January payment. Free h & r block tax filing   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 h & r block tax filing Fiscal year taxpayers. Free h & r block tax filing   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. Free h & r block tax filing When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. Free h & r block tax filing 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 h & r block tax filing You can pay all your estimated tax at that time, or you can pay it in installments. Free h & r block tax filing If you choose to pay in installments, make your first payment by the due date for the first payment period. Free h & r block tax filing Make your remaining installment payments by the due dates for the later periods. Free h & r block tax filing No income subject to estimated tax during first period. Free h & r block tax filing    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 h & r block tax filing 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 h & r block tax filing The following chart shows when to make installment payments. Free h & r block tax filing 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 h & r block tax filing 15 Jan. Free h & r block tax filing 15 next year April 1–May 31 June 16 Sept. Free h & r block tax filing 15 Jan. Free h & r block tax filing 15 next year June 1–Aug. Free h & r block tax filing 31 Sept. Free h & r block tax filing 15 Jan. Free h & r block tax filing 15 next year After Aug. Free h & r block tax filing 31 Jan. Free h & r block tax filing 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . Free h & r block tax filing How much to pay to avoid a penalty. Free h & r block tax filing   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. Free h & r block tax filing 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 h & r block tax filing You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. Free h & r block tax filing These methods are described in chapter 2 of Publication 505. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing Underpayment penalty. Free h & r block tax filing   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 h & r block tax filing Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. Free h & r block tax filing See chapter 4 of Publication 505 for more information. Free h & r block tax filing Change in estimated tax. Free h & r block tax filing   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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing How To Pay Estimated Tax There are several ways to pay estimated tax. Free h & r block tax filing Credit an overpayment on your 2013 return to your 2014 estimated tax. Free h & r block tax filing 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 h & r block tax filing Send in your payment (check or money order) with a payment voucher from Form 1040-ES. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing Take the amount you have credited into account when figuring your estimated tax payments. Free h & r block tax filing 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 h & r block tax filing You also cannot use that overpayment in any other way. Free h & r block tax filing Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. Free h & r block tax filing You can pay using either of the following electronic payment methods. Free h & r block tax filing Direct transfer from your bank account. Free h & r block tax filing Credit or debit card. Free h & r block tax filing To pay your taxes online or for more information, go to www. Free h & r block tax filing irs. Free h & r block tax filing gov/e-pay. Free h & r block tax filing Pay by Phone Paying by phone is another safe and secure method of paying electronically. Free h & r block tax filing Use one of the following methods. Free h & r block tax filing Direct transfer from your bank account. Free h & r block tax filing Credit or debit card. Free h & r block tax filing To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). Free h & r block tax filing 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 h & r block tax filing To pay using a credit or debit card, you can call one of the following service providers. Free h & r block tax filing There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. Free h & r block tax filing WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. Free h & r block tax filing payUSAtax. Free h & r block tax filing com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. Free h & r block tax filing officialpayments. Free h & r block tax filing com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. Free h & r block tax filing PAY1040. Free h & r block tax filing com For the latest details on how to pay by phone, go to www. Free h & r block tax filing irs. Free h & r block tax filing gov/e-pay. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing The enclosed payment vouchers will be preprinted with your name, address, and social security number. Free h & r block tax filing Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. Free h & r block tax filing Use the window envelopes that came with your Form 1040-ES package. Free h & r block tax filing 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 h & r block tax filing Note. Free h & r block tax filing These criteria can change without notice. Free h & r block tax filing 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 h & r block tax filing irs. Free h & r block tax filing gov and print a copy of Form 1040-ES which includes four blank payment vouchers. Free h & r block tax filing Complete one of these and make your payment timely to avoid penalties for paying late. Free h & r block tax filing Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. Free h & r block tax filing 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 h & r block tax filing gov. Free h & r block tax filing Follow the instructions to make sure you use the vouchers correctly. Free h & r block tax filing Joint estimated tax payments. Free h & r block tax filing   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 h & r block tax filing Change of address. Free h & r block tax filing   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Free h & r block tax filing Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. Free h & r block tax filing 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 h & r block tax filing Also take credit for the estimated tax you paid for 2013. Free h & r block tax filing These credits are subtracted from your total tax. Free h & r block tax filing Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Free h & r block tax filing Two or more employers. Free h & r block tax filing   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 h & r block tax filing You may be able to claim the excess as a credit against your income tax when you file your return. Free h & r block tax filing See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing Forms W-2 and W-2G. Free h & r block tax filing   If you file a paper return, always file Form W-2 with your income tax return. Free h & r block tax filing File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. Free h & r block tax filing   You should get at least two copies of each form. Free h & r block tax filing If you file a paper return, attach one copy to the front of your federal income tax return. Free h & r block tax filing Keep one copy for your records. Free h & r block tax filing You also should receive copies to file with your state and local returns. Free h & r block tax filing Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Free h & r block tax filing You should receive a separate Form W-2 from each employer you worked for. Free h & r block tax filing 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 h & r block tax filing However, your employer must provide or send it to you by January 31, 2014. Free h & r block tax filing 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 h & r block tax filing If you have not received your Form W-2 by January 31, you should ask your employer for it. Free h & r block tax filing If you do not receive it by February 15, call the IRS. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Free h & r block tax filing 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 h & r block tax filing Report the amounts you won on line 21 of Form 1040. Free h & r block tax filing Take credit for the tax withheld on line 62 of Form 1040. Free h & r block tax filing If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Free h & r block tax filing The 1099 Series Most forms in the 1099 series are not filed with your return. Free h & r block tax filing 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 h & r block tax filing Unless instructed to file any of these forms with your return, keep them for your records. Free h & r block tax filing 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 h & r block tax filing ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. Free h & r block tax filing 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 h & r block tax filing See the instructions to these forms for details. Free h & r block tax filing Form 1099-R. Free h & r block tax filing   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. Free h & r block tax filing Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. Free h & r block tax filing You cannot use Form 1040EZ if you received payments reported on Form 1099-R. Free h & r block tax filing Backup withholding. Free h & r block tax filing   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 h & r block tax filing Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. Free h & r block tax filing Call the telephone number or write to the address given for the payer on the form. Free h & r block tax filing 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 h & r block tax filing A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Free h & r block tax filing In certain situations, you will receive two forms in place of the original incorrect form. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing This form will have an “X” in the “CORRECTED” box at the top of the form. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing S. Free h & r block tax filing Individual Income Tax Return. Free h & r block tax filing 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 h & r block tax filing Do not include any amount withheld from your spouse's income. Free h & r block tax filing However, different rules may apply if you live in a community property state. Free h & r block tax filing Community property states are listed in chapter 2. Free h & r block tax filing For more information on these rules, and some exceptions, see Publication 555, Community Property. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Free h & r block tax filing You must use Form 1040 or Form 1040A if you paid estimated tax. Free h & r block tax filing You cannot use Form 1040EZ. Free h & r block tax filing Name changed. Free h & r block tax filing   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 h & r block tax filing The statement should cover payments you made jointly with your spouse as well as any you made separately. Free h & r block tax filing   Be sure to report the change to the Social Security Administration. Free h & r block tax filing This prevents delays in processing your return and issuing any refunds. Free h & r block tax filing 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 h & r block tax filing If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing Generally, you will not have to pay a penalty for 2013 if any of the following apply. Free h & r block tax filing 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 h & r block tax filing 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 h & r block tax filing Your total 2013 tax minus your withholding and refundable credits is less than $1,000. Free h & r block tax filing 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 h & r block tax filing See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. Free h & r block tax filing Farmers and fishermen. Free h & r block tax filing   Special rules apply if you are a farmer or fisherman. Free h & r block tax filing See Farmers and Fishermen in chapter 4 of Publication 505 for more information. Free h & r block tax filing IRS can figure the penalty for you. Free h & r block tax filing   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 h & r block tax filing Generally, the IRS will figure the penalty for you and send you a bill. Free h & r block tax filing 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 h & r block tax filing See chapter 4 of Publication 505. Free h & r block tax filing Prev  Up  Next   Home   More Online Publications