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1040x E File

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1040x E File

1040x e file 18. 1040x e file   Alimony Table of Contents IntroductionSpouse or former spouse. 1040x e file Divorce or separation instrument. 1040x e file Useful Items - You may want to see: General RulesMortgage payments. 1040x e file Taxes and insurance. 1040x e file Other payments to a third party. 1040x e file Instruments Executed After 1984Payments to a third party. 1040x e file Exception. 1040x e file Substitute payments. 1040x e file Specifically designated as child support. 1040x e file Contingency relating to your child. 1040x e file Clearly associated with a contingency. 1040x e file How To Deduct Alimony Paid How To Report Alimony Received Recapture Rule Introduction This chapter discusses the rules that apply if you pay or receive alimony. 1040x e file It covers the following topics. 1040x e file What payments are alimony. 1040x e file What payments are not alimony, such as child support. 1040x e file How to deduct alimony you paid. 1040x e file How to report alimony you received as income. 1040x e file Whether you must recapture the tax benefits of alimony. 1040x e file Recapture means adding back in your income all or part of a deduction you took in a prior year. 1040x e file Alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. 1040x e file It does not include voluntary payments that are not made under a divorce or separation instrument. 1040x e file Alimony is deductible by the payer and must be included in the spouse's or former spouse's income. 1040x e file Although this chapter is generally written for the payer of the alimony, the recipient can use the information to determine whether an amount received is alimony. 1040x e file To be alimony, a payment must meet certain requirements. 1040x e file Different requirements generally apply to payments under instruments executed after 1984 and to payments under instruments executed before 1985. 1040x e file This chapter discusses the rules for payments under instruments executed after 1984. 1040x e file If you need the rules for payments under pre-1985 instruments, get and keep a copy of the 2004 version of Publication 504. 1040x e file That was the last year the information on pre-1985 instruments was included in Publication 504. 1040x e file Use Table 18-1 in this chapter as a guide to determine whether certain payments are considered alimony. 1040x e file Definitions. 1040x e file   The following definitions apply throughout this chapter. 1040x e file Spouse or former spouse. 1040x e file   Unless otherwise stated, the term “spouse” includes former spouse. 1040x e file Divorce or separation instrument. 1040x e file   The term “divorce or separation instrument” means: A decree of divorce or separate maintenance or a written instrument incident to that decree, A written separation agreement, or A decree or any type of court order requiring a spouse to make payments for the support or maintenance of the other spouse. 1040x e file This includes a temporary decree, an interlocutory (not final) decree, and a decree of alimony pendente lite (while awaiting action on the final decree or agreement). 1040x e file Useful Items - You may want to see: Publication 504 Divorced or Separated Individuals General Rules The following rules apply to alimony regardless of when the divorce or separation instrument was executed. 1040x e file Payments not alimony. 1040x e file   Not all payments under a divorce or separation instrument are alimony. 1040x e file Alimony does not include: Child support, Noncash property settlements, Payments that are your spouse's part of community income, as explained under Community Property in Publication 504, Payments to keep up the payer's property, or Use of the payer's property. 1040x e file Payments to a third party. 1040x e file   Cash payments, checks, or money orders to a third party on behalf of your spouse under the terms of your divorce or separation instrument can be alimony, if they otherwise qualify. 1040x e file These include payments for your spouse's medical expenses, housing costs (rent, utilities, etc. 1040x e file ), taxes, tuition, etc. 1040x e file The payments are treated as received by your spouse and then paid to the third party. 1040x e file Life insurance premiums. 1040x e file   Alimony includes premiums you must pay under your divorce or separation instrument for insurance on your life to the extent your spouse owns the policy. 1040x e file Payments for jointly-owned home. 1040x e file   If your divorce or separation instrument states that you must pay expenses for a home owned by you and your spouse, some of your payments may be alimony. 1040x e file Mortgage payments. 1040x e file   If you must pay all the mortgage payments (principal and interest) on a jointly-owned home, and they otherwise qualify as alimony, you can deduct one-half of the total payments as alimony. 1040x e file If you itemize deductions and the home is a qualified home, you can claim one-half of the interest in figuring your deductible interest. 1040x e file Your spouse must report one-half of the payments as alimony received. 1040x e file If your spouse itemizes deductions and the home is a qualified home, he or she can claim one-half of the interest on the mortgage in figuring deductible interest. 1040x e file Taxes and insurance. 1040x e file   If you must pay all the real estate taxes or insurance on a home held as tenants in common, you can deduct one-half of these payments as alimony. 1040x e file Your spouse must report one-half of these payments as alimony received. 1040x e file If you and your spouse itemize deductions, you can each claim one-half of the real estate taxes and none of the home insurance. 1040x e file    If your home is held as tenants by the entirety or joint tenants, none of your payments for taxes or insurance are alimony. 1040x e file But if you itemize deductions, you can claim all of the real estate taxes and none of the home insurance. 1040x e file Other payments to a third party. 1040x e file   If you made other third-party payments, see Publication 504 to see whether any part of the payments qualifies as alimony. 1040x e file Instruments Executed After 1984 The following rules for alimony apply to payments under divorce or separation instruments executed after 1984. 1040x e file Exception for instruments executed before 1985. 1040x e file   There are two situations where the rules for instruments executed after 1984 apply to instruments executed before 1985. 1040x e file A divorce or separation instrument executed before 1985 and then modified after 1984 to specify that the after-1984 rules will apply. 1040x e file A temporary divorce or separation instrument executed before 1985 and incorporated into, or adopted by, a final decree executed after 1984 that: Changes the amount or period of payment, or Adds or deletes any contingency or condition. 1040x e file   For the rules for alimony payments under pre-1985 instruments not meeting these exceptions, get the 2004 version of Publication 504 at www. 1040x e file irs. 1040x e file gov/pub504. 1040x e file Example 1. 1040x e file In November 1984, you and your former spouse executed a written separation agreement. 1040x e file In February 1985, a decree of divorce was substituted for the written separation agreement. 1040x e file The decree of divorce did not change the terms for the alimony you pay your former spouse. 1040x e file The decree of divorce is treated as executed before 1985. 1040x e file Alimony payments under this decree are not subject to the rules for payments under instruments executed after 1984. 1040x e file Example 2. 1040x e file Assume the same facts as in Example 1 except that the decree of divorce changed the amount of the alimony. 1040x e file In this example, the decree of divorce is not treated as executed before 1985. 1040x e file The alimony payments are subject to the rules for payments under instruments executed after 1984. 1040x e file Alimony requirements. 1040x e file   A payment to or for a spouse under a divorce or separation instrument is alimony if the spouses do not file a joint return with each other and all the following requirements are met. 1040x e file The payment is in cash. 1040x e file The instrument does not designate the payment as not alimony. 1040x e file Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. 1040x e file There is no liability to make any payment (in cash or property) after the death of the recipient spouse. 1040x e file The payment is not treated as child support. 1040x e file Each of these requirements is discussed below. 1040x e file Cash payment requirement. 1040x e file   Only cash payments, including checks and money orders, qualify as alimony. 1040x e file The following do not qualify as alimony. 1040x e file Transfers of services or property (including a debt instrument of a third party or an annuity contract). 1040x e file Execution of a debt instrument by the payer. 1040x e file The use of the payer's property. 1040x e file Payments to a third party. 1040x e file   Cash payments to a third party under the terms of your divorce or separation instrument can qualify as cash payments to your spouse. 1040x e file See Payments to a third party under General Rules, earlier. 1040x e file   Also, cash payments made to a third party at the written request of your spouse may qualify as alimony if all the following requirements are met. 1040x e file The payments are in lieu of payments of alimony directly to your spouse. 1040x e file The written request states that both spouses intend the payments to be treated as alimony. 1040x e file You receive the written request from your spouse before you file your return for the year you made the payments. 1040x e file Payments designated as not alimony. 1040x e file   You and your spouse can designate that otherwise qualifying payments are not alimony. 1040x e file You do this by including a provision in your divorce or separation instrument that states the payments are not deductible as alimony by you and are excludable from your spouse's income. 1040x e file For this purpose, any instrument (written statement) signed by both of you that makes this designation and that refers to a previous written separation agreement is treated as a written separation agreement (and therefore a divorce or separation instrument). 1040x e file If you are subject to temporary support orders, the designation must be made in the original or a later temporary support order. 1040x e file   Your spouse can exclude the payments from income only if he or she attaches a copy of the instrument designating them as not alimony to his or her return. 1040x e file The copy must be attached each year the designation applies. 1040x e file Spouses cannot be members of the same household. 1040x e file    Payments to your spouse while you are members of the same household are not alimony if you are legally separated under a decree of divorce or separate maintenance. 1040x e file A home you formerly shared is considered one household, even if you physically separate yourselves in the home. 1040x e file   You are not treated as members of the same household if one of you is preparing to leave the household and does leave no later than 1 month after the date of the payment. 1040x e file Exception. 1040x e file   If you are not legally separated under a decree of divorce or separate maintenance, a payment under a written separation agreement, support decree, or other court order may qualify as alimony even if you are members of the same household when the payment is made. 1040x e file Table 18-1. 1040x e file Alimony Requirements (Instruments Executed After 1984) Payments ARE alimony if all of the following are true: Payments are NOT alimony if any of the following are true: Payments are required by a divorce or separation instrument. 1040x e file Payments are not required by a divorce or separation instrument. 1040x e file Payer and recipient spouse do not file a joint return with each other. 1040x e file Payer and recipient spouse file a joint return with each other. 1040x e file Payment is in cash (including checks or money orders). 1040x e file Payment is: Not in cash, A noncash property settlement, Spouse's part of community income, or To keep up the payer's property. 1040x e file Payment is not designated in the instrument as not alimony. 1040x e file Payment is designated in the instrument as not alimony. 1040x e file Spouses legally separated under a decree of divorce or separate maintenance are not members of the same household. 1040x e file Spouses legally separated under a decree of divorce or separate maintenance are members of the same household. 1040x e file Payments are not required after death of the recipient spouse. 1040x e file Payments are required after death of the recipient spouse. 1040x e file Payment is not treated as child support. 1040x e file Payment is treated as child support. 1040x e file These payments are deductible by the payer and includible in income by the recipient. 1040x e file These payments are neither deductible by the payer nor includible in income by the recipient. 1040x e file Liability for payments after death of recipient spouse. 1040x e file   If any part of payments you make must continue to be made for any period after your spouse's death, that part of your payments is not alimony, whether made before or after the death. 1040x e file If all of the payments would continue, then none of the payments made before or after the death are alimony. 1040x e file   The divorce or separation instrument does not have to expressly state that the payments cease upon the death of your spouse if, for example, the liability for continued payments would end under state law. 1040x e file Example. 1040x e file You must pay your former spouse $10,000 in cash each year for 10 years. 1040x e file Your divorce decree states that the payments will end upon your former spouse's death. 1040x e file You must also pay your former spouse or your former spouse's estate $20,000 in cash each year for 10 years. 1040x e file The death of your spouse would not terminate these payments under state law. 1040x e file The $10,000 annual payments may qualify as alimony. 1040x e file The $20,000 annual payments that do not end upon your former spouse's death are not alimony. 1040x e file Substitute payments. 1040x e file   If you must make any payments in cash or property after your spouse's death as a substitute for continuing otherwise qualifying payments before the death, the otherwise qualifying payments are not alimony. 1040x e file To the extent that your payments begin, accelerate, or increase because of the death of your spouse, otherwise qualifying payments you made may be treated as payments that were not alimony. 1040x e file Whether or not such payments will be treated as not alimony depends on all the facts and circumstances. 1040x e file Example 1. 1040x e file Under your divorce decree, you must pay your former spouse $30,000 annually. 1040x e file The payments will stop at the end of 6 years or upon your former spouse's death, if earlier. 1040x e file Your former spouse has custody of your minor children. 1040x e file The decree provides that if any child is still a minor at your spouse's death, you must pay $10,000 annually to a trust until the youngest child reaches the age of majority. 1040x e file The trust income and corpus (principal) are to be used for your children's benefit. 1040x e file These facts indicate that the payments to be made after your former spouse's death are a substitute for $10,000 of the $30,000 annual payments. 1040x e file Of each of the $30,000 annual payments, $10,000 is not alimony. 1040x e file Example 2. 1040x e file Under your divorce decree, you must pay your former spouse $30,000 annually. 1040x e file The payments will stop at the end of 15 years or upon your former spouse's death, if earlier. 1040x e file The decree provides that if your former spouse dies before the end of the 15-year period, you must pay the estate the difference between $450,000 ($30,000 × 15) and the total amount paid up to that time. 1040x e file For example, if your spouse dies at the end of the tenth year, you must pay the estate $150,000 ($450,000 − $300,000). 1040x e file These facts indicate that the lump-sum payment to be made after your former spouse's death is a substitute for the full amount of the $30,000 annual payments. 1040x e file None of the annual payments are alimony. 1040x e file The result would be the same if the payment required at death were to be discounted by an appropriate interest factor to account for the prepayment. 1040x e file Child support. 1040x e file   A payment that is specifically designated as child support or treated as specifically designated as child support under your divorce or separation instrument is not alimony. 1040x e file The amount of child support may vary over time. 1040x e file Child support payments are not deductible by the payer and are not taxable to the recipient. 1040x e file Specifically designated as child support. 1040x e file   A payment will be treated as specifically designated as child support to the extent that the payment is reduced either: On the happening of a contingency relating to your child, or At a time that can be clearly associated with the contingency. 1040x e file A payment may be treated as specifically designated as child support even if other separate payments are specifically designated as child support. 1040x e file Contingency relating to your child. 1040x e file   A contingency relates to your child if it depends on any event relating to that child. 1040x e file It does not matter whether the event is certain or likely to occur. 1040x e file Events relating to your child include the child's: Becoming employed, Dying, Leaving the household, Leaving school, Marrying, or Reaching a specified age or income level. 1040x e file Clearly associated with a contingency. 1040x e file   Payments that would otherwise qualify as alimony are presumed to be reduced at a time clearly associated with the happening of a contingency relating to your child only in the following situations. 1040x e file The payments are to be reduced not more than 6 months before or after the date the child will reach 18, 21, or local age of majority. 1040x e file The payments are to be reduced on two or more occasions that occur not more than 1 year before or after a different one of your children reaches a certain age from 18 to 24. 1040x e file This certain age must be the same for each child, but need not be a whole number of years. 1040x e file In all other situations, reductions in payments are not treated as clearly associated with the happening of a contingency relating to your child. 1040x e file   Either you or the IRS can overcome the presumption in the two situations above. 1040x e file This is done by showing that the time at which the payments are to be reduced was determined independently of any contingencies relating to your children. 1040x e file For example, if you can show that the period of alimony payments is customary in the local jurisdiction, such as a period equal to one-half of the duration of the marriage, you can overcome the presumption and may be able to treat the amount as alimony. 1040x e file How To Deduct Alimony Paid You can deduct alimony you paid, whether or not you itemize deductions on your return. 1040x e file You must file Form 1040. 1040x e file You cannot use Form 1040A or Form 1040EZ. 1040x e file Enter the amount of alimony you paid on Form 1040, line 31a. 1040x e file In the space provided on line 31b, enter your spouse's social security number (SSN) or individual taxpayer identification number (ITIN). 1040x e file If you paid alimony to more than one person, enter the SSN or ITIN of one of the recipients. 1040x e file Show the SSN or ITIN and amount paid to each other recipient on an attached statement. 1040x e file Enter your total payments on line 31a. 1040x e file You must provide your spouse's SSN or ITIN. 1040x e file If you do not, you may have to pay a $50 penalty and your deduction may be disallowed. 1040x e file For more information on SSNs and ITINs, see Social Security Number (SSN) in chapter 1. 1040x e file How To Report Alimony Received Report alimony you received as income on Form 1040, line 11. 1040x e file You cannot use Form 1040A or Form 1040EZ. 1040x e file You must give the person who paid the alimony your SSN or ITIN. 1040x e file If you do not, you may have to pay a $50 penalty. 1040x e file Recapture Rule If your alimony payments decrease or end during the first 3 calendar years, you may be subject to the recapture rule. 1040x e file If you are subject to this rule, you have to include in income in the third year part of the alimony payments you previously deducted. 1040x e file Your spouse can deduct in the third year part of the alimony payments he or she previously included in income. 1040x e file The 3-year period starts with the first calendar year you make a payment qualifying as alimony under a decree of divorce or separate maintenance or a written separation agreement. 1040x e file Do not include any time in which payments were being made under temporary support orders. 1040x e file The second and third years are the next 2 calendar years, whether or not payments are made during those years. 1040x e file The reasons for a reduction or end of alimony payments that can require a recapture include: A change in your divorce or separation instrument, A failure to make timely payments, A reduction in your ability to provide support, or A reduction in your spouse's support needs. 1040x e file When to apply the recapture rule. 1040x e file   You are subject to the recapture rule in the third year if the alimony you pay in the third year decreases by more than $15,000 from the second year or the alimony you pay in the second and third years decreases significantly from the alimony you pay in the first year. 1040x e file   When you figure a decrease in alimony, do not include the following amounts. 1040x e file Payments made under a temporary support order. 1040x e file Payments required over a period of at least 3 calendar years that vary because they are a fixed part of your income from a business or property, or from compensation for employment or self-employment. 1040x e file Payments that decrease because of the death of either spouse or the remarriage of the spouse receiving the payments before the end of the third year. 1040x e file Figuring the recapture. 1040x e file   You can use Worksheet 1 in Publication 504 to figure recaptured alimony. 1040x e file Including the recapture in income. 1040x e file   If you must include a recapture amount in income, show it on Form 1040, line 11 (“Alimony received”). 1040x e file Cross out “received” and enter “recapture. 1040x e file ” On the dotted line next to the amount, enter your spouse's last name and SSN or ITIN. 1040x e file Deducting the recapture. 1040x e file   If you can deduct a recapture amount, show it on Form 1040, line 31a (“Alimony paid”). 1040x e file Cross out “paid” and enter “recapture. 1040x e file ” In the space provided, enter your spouse's SSN or ITIN. 1040x e file Prev  Up  Next   Home   More Online Publications
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The 1040x E File

1040x e file 4. 1040x e file   Underpayment Penalty for 2013 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: General RuleFarmers and fishermen. 1040x e file Higher income taxpayers. 1040x e file Minimum required for higher income taxpayers. 1040x e file Estate or trust payments of estimated tax. 1040x e file Lowering or eliminating the penalty. 1040x e file 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. 1040x e file 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. 1040x e file You may understand this chapter better if you can refer to a copy of your latest federal income tax return. 1040x e file No penalty. 1040x e file   Generally, you will not have to pay a penalty for 2013 if any of the following apply. 1040x e file The total of your withholding and timely estimated tax payments was at least as much as your 2012 tax. 1040x e file (See Special rules for certain individuals for higher income taxpayers and farmers and fishermen. 1040x e file ) 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. 1040x e file Your total tax for 2013 (defined later) minus your withholding is less than $1,000. 1040x e file You did not have a tax liability for 2012. 1040x e file You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000. 1040x e file IRS can figure the penalty for you. 1040x e file   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. 1040x e file Generally, the IRS will figure the penalty for you and send you a bill. 1040x e file   You only need to figure your penalty in the following three situations. 1040x e file You are requesting a waiver of part, but not all, of the penalty. 1040x e file You are using the annualized income installment method to figure the penalty. 1040x e file You are treating the federal income tax withheld from your income as paid on the dates actually withheld. 1040x e file 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. 1040x e file See Form 2210 , later. 1040x e file 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. 1040x e file 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. 1040x e file 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. 1040x e file (Your 2012 tax return must cover a 12-month period. 1040x e file ) Your 2013 tax, for this purpose, is defined under Total tax for 2013 , later. 1040x e file Special rules for certain individuals. 1040x e file   There are special rules for farmers and fishermen and certain higher income taxpayers. 1040x e file Farmers and fishermen. 1040x e file   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. 1040x e file   See Farmers and Fishermen , later. 1040x e file Higher income taxpayers. 1040x e file   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 . 1040x e file This rule does not apply to farmers or fishermen. 1040x e file   For 2012, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. 1040x e file Penalty figured separately for each period. 1040x e file   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. 1040x e file This is true even if you are due a refund when you file your income tax return. 1040x e file Example. 1040x e file You did not make estimated tax payments for 2013 because you thought you had enough tax withheld from your wages. 1040x e file Early in January 2014, you made an estimate of your total 2013 tax. 1040x e file Then you realized that your withholding was $2,000 less than the amount needed to avoid a penalty for underpayment of estimated tax. 1040x e file 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. 1040x e file Your final return shows your total tax to be $50 less than your estimate, so you are due a refund. 1040x e file You do not owe a penalty for your payment due January 15, 2014. 1040x e file 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. 1040x e file Minimum required each period. 1040x e file   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. 1040x e file 5% of your 2013 tax, or 25% of your 2012 tax. 1040x e file (Your 2012 tax return must cover a 12-month period. 1040x e file ) Minimum required for higher income taxpayers. 1040x e file   If you are subject to the rule for higher income taxpayers, discussed above, substitute 27. 1040x e file 5% for 25% in (2) under General Rule . 1040x e file When penalty is charged. 1040x e file   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. 1040x e file If a payment is mailed, the date of the U. 1040x e file S. 1040x e file postmark is considered the date of payment. 1040x e file   If a payment is made electronically, the date the payment is shown on your payment account (checking, savings, etc. 1040x e file ) is considered to be the date of payment. 1040x e file Estate or trust payments of estimated tax. 1040x e file   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. 1040x e file Amended returns. 1040x e file    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. 1040x e file If you file an amended return after the due date of the original return, use the tax shown on the original return. 1040x e file   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. 1040x e file This rule applies only if both original separate returns were filed on time. 1040x e file 2012 separate returns and 2013 joint return. 1040x e file    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. 1040x e file You filed a separate return if you filed as single, head of household, or married filing separately. 1040x e file 2012 joint return and 2013 separate returns. 1040x e file    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. 1040x e file You are filing a separate return if you file as single, head of household, or married filing separately. 1040x e file   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. 1040x e file Then multiply the tax on the joint return by the following fraction. 1040x e file   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. 1040x e file Lisa and Paul filed a joint return for 2012 showing taxable income of $49,000 and a tax of $6,484. 1040x e file Of the $49,000 taxable income, $41,000 was Lisa's and the rest was Paul's. 1040x e file For 2013, they file married filing separately. 1040x e file Lisa figures her share of the tax on the 2012 joint return as follows. 1040x e file 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. 1040x e file 67% Lisa's part of tax on joint return ($6,484 × 88. 1040x e file 67%) $ 5,749 Form 2210. 1040x e file   In most cases, you do not need to file Form 2210. 1040x e file The IRS will figure the penalty for you and send you a bill. 1040x e file If you want us to figure the penalty for you, leave the penalty line on your return blank. 1040x e file Do not file Form 2210. 1040x e file   To determine if you should file Form 2210, see Part II of Form 2210. 1040x e file 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. 1040x e file If you use Form 2210, you cannot file Form 1040EZ. 1040x e file   On Form 1040, enter the amount of your penalty on line 77. 1040x e file If you owe tax on line 76, add the penalty to your tax due and show your total payment on line 76. 1040x e file If you are due a refund, subtract the penalty from the overpayment and enter the result on line 73. 1040x e file   On Form 1040A, enter the amount of your penalty on line 46. 1040x e file If you owe tax on line 45, add the penalty to your tax due and show your total payment on line 45. 1040x e file If you are due a refund, subtract the penalty from the overpayment and enter the result on line 42. 1040x e file Lowering or eliminating the penalty. 1040x e file    You may be able to lower or eliminate your penalty if you file Form 2210. 1040x e file You must file Form 2210 with your return if any of the following applies. 1040x e file You request a waiver. 1040x e file See Waiver of Penalty , later. 1040x e file You use the annualized income installment method. 1040x e file See the explanation of this method under Annualized Income Installment Method (Schedule AI) . 1040x e file You use your actual withholding for each payment period for estimated tax purposes. 1040x e file See Actual withholding method under Figuring Your Underpayment (Part IV, Section A). 1040x e file 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. 1040x e file 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. 1040x e file 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. 1040x e file Total tax for 2013. 1040x e file   For 2013, your total tax on Form 1040 is the amount on line 61 reduced by the following. 1040x e file    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). 1040x e file 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. 1040x e file 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. 1040x e file Any refundable credit amounts listed on lines 64a, 65, 66, 70, and any credit from Form 8885 included on line 71. 1040x e file   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. 1040x e file   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. 1040x e file Note. 1040x e file 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. 1040x e file Paid through withholding. 1040x e file    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. 1040x e file Add to that any write-in amount on line 72 identified as “Form 8689. 1040x e file ” 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. 1040x e file On Form 1040EZ, it is the amount on line 7. 1040x e file No Tax Liability Last Year You do not owe a penalty if you had no tax liability last year and you were a U. 1040x e file S. 1040x e file citizen or resident for the whole year. 1040x e file For this rule to apply, your tax year must have included all 12 months of the year. 1040x e file You had no tax liability for 2012 if your total tax was zero or you were not required to file an income tax return. 1040x e file Example. 1040x e file Ray, who is single and 22 years old, was unemployed for a few months during 2012. 1040x e file He earned $6,700 in wages before he was laid off, and he received $1,400 in unemployment compensation afterwards. 1040x e file He had no other income. 1040x e file 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). 1040x e file He filed a return only to have his withheld income tax refunded to him. 1040x e file In 2013, Ray began regular work as an independent contractor. 1040x e file Ray made no estimated tax payments in 2013. 1040x e file 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. 1040x e file Total tax for 2012. 1040x e file   For 2012, your total tax on Form 1040 is the amount on line 61 reduced by the following. 1040x e file    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). 1040x e file 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. 1040x e file 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. 1040x e file 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. 1040x e file   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. 1040x e file   If you filed Form 1040EZ, your 2012 total tax is the amount on line 11 reduced by the amount on line 8a. 1040x e file Figuring Your Required Annual Payment (Part I) Figure your required annual payment in Part I of Form 2210, following the line-by-line instructions. 1040x e file If you rounded the entries on your tax return to whole dollars, you can round on Form 2210. 1040x e file Example. 1040x e file The tax on Lori Lane's 2012 return was $12,400. 1040x e file Her AGI was not more than $150,000 for either 2012 or 2013. 1040x e file The tax on her 2013 return (Form 1040, line 55) is $13,044. 1040x e file Line 56 (self-employment tax) is $8,902. 1040x e file Her 2013 total tax is $21,946. 1040x e file For 2013, Lori had $1,600 income tax withheld and made four equal estimated tax payments ($1,000 each). 1040x e file 90% of her 2013 tax is $19,751. 1040x e file 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. 1040x e file 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. 1040x e file Lori's required annual payment is $12,400 (100% of 2012 tax) because that is smaller than 90% of her 2013 tax. 1040x e file Different 2012 filing status. 1040x e file    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. 1040x e file 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. 1040x e file If you qualify to use this method, it will result in the same penalty amount as the regular method. 1040x e file However, either the annualized income installment method or the actual withholding method, explained later, may result in a smaller penalty. 1040x e file You can use the short method only if you meet one of the following requirements. 1040x e file You made no estimated tax payments for 2013 (it does not matter whether you had income tax withholding). 1040x e file You paid the same amount of estimated tax on each of the four payment due dates. 1040x e file 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. 1040x e file Note. 1040x e file 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. 1040x e file However, if the payment was only a few days early, the difference is likely to be small. 1040x e file You cannot use the short method if any of the following apply. 1040x e file You made any estimated tax payments late. 1040x e file You checked box C or D in Part II of Form 2210. 1040x e file You are filing Form 1040NR or 1040NR-EZ and you did not receive wages as an employee subject to U. 1040x e file S. 1040x e file income tax withholding. 1040x e file If you use the short method, you cannot use the annualized income installment method to figure your underpayment for each payment period. 1040x e file Also, you cannot use your actual withholding during each period to figure your payments for each period. 1040x e file These methods, which may give you a smaller penalty amount, are explained under Figuring Your Underpayment (Part IV, Section A). 1040x e file Complete Part III of Form 2210 following the line-by-line instructions in the Instructions for Form 2210. 1040x e file 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. 1040x e file 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. 1040x e file You paid one or more estimated tax payments on a date after the due date. 1040x e file You paid at least one, but less than four, installments of estimated tax. 1040x e file You paid estimated tax payments in un- equal amounts. 1040x e file You use the annualized income installment method to figure your underpayment for each payment period. 1040x e file You use your actual withholding during each payment period to figure your payments. 1040x e file 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. 1040x e file Enter the results on line 27 of Section B. 1040x e file 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. 1040x e file Complete lines 20 through 26 of the first column before going to line 20 of the next column. 1040x e file Required installments—line 18. 1040x e file   Your required payment for each payment period (line 18) is usually one-fourth of your required annual payment (Part I, line 9). 1040x e file This method—the regular method—is the one to use if you received your income evenly throughout the year. 1040x e file   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. 1040x e file First complete Schedule AI (Form 2210), then enter the amounts from line 25 of that schedule on line 18 of Form 2210, Part IV. 1040x e file See Annualized Income Installment Method (Schedule AI), later. 1040x e file Payments made—line 19. 1040x e file   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. 1040x e file For special rules for figuring your payments, see Form 2210 instructions for line 19. 1040x e file   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. 1040x e file 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. 1040x e file Actual withholding method. 1040x e file    Instead of using one-fourth of your withholding for each quarter, you can choose to use the amounts actually withheld by each due date. 1040x e file You can make this choice separately for the tax withheld from your wages and for all other withholding. 1040x e file This includes any excess social security and tier 1 RRTA tax withheld. 1040x e file   Using your actual withholding may result in a smaller penalty if most of your withholding occurred early in the year. 1040x e file   If you use your actual withholding, you must check box D in Form 2210, Part II. 1040x e file Then complete Form 2210 using the regular method (Part IV) and file it with your return. 1040x e file 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. 1040x e file 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. 1040x e file 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. 1040x e file A 3% rate applies to all four periods. 1040x e file Payments. 1040x e file    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. 1040x e file For example, if you had an underpayment for the first payment period, list your payments after April 15, 2013. 1040x e file You can use the table in the Form 2210 instructions to make your list. 1040x e file Follow those instructions for listing income tax withheld and payments made with your return. 1040x e file Use the list to determine when each underpayment was paid. 1040x e file   If you mail your estimated tax payments, use the date of the U. 1040x e file S. 1040x e file postmark as the date of payment. 1040x e file Line 1b. 1040x e file   Apply the payments listed to underpayment balance in the first column until it is fully paid. 1040x e file Apply payments in the order made. 1040x e file Figuring the penalty. 1040x e file   If an underpayment was paid in two or more payments on different dates, you must figure the penalty separately for each payment. 1040x e file 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. 1040x e file On line 4 figure the penalty for the amount of each payment applied on line 1b or the amount remaining unpaid. 1040x e file If no payments are applied, figure the penalty on the amount on line 1a. 1040x e file Aid for counting days. 1040x e file    Table 4-1 provides a simple method for counting the number of days between a due date and a payment date. 1040x e file 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. 1040x e file In the same manner, find the number for the date the payment was made. 1040x e file Subtract the due date “number” from the payment date “number. 1040x e file ”   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. 1040x e file Table 4-1. 1040x e file Calendar To Determine the Number of Days a Payment Is Late Instructions. 1040x e file Use this table with Form 2210 if you are completing Part IV, Section B. 1040x e file 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. 1040x e file Then, in the same manner, find the number for the date the payment was made. 1040x e file Finally, subtract the due date number from the payment date number. 1040x e file The result is the number of days the payment is late. 1040x e file Example. 1040x e file The payment due date is June 15 (61). 1040x e file The payment was made on November 4 (203). 1040x e file The payment is 142 days late (203 – 61). 1040x e file Tax Year 2013 Day of 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 Month April May June July Aug. 1040x e file Sept. 1040x e file Oct. 1040x e file Nov. 1040x e file Dec. 1040x e file Jan. 1040x e file Feb. 1040x e file Mar. 1040x e file Apr. 1040x e file 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. 1040x e file 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. 1040x e file To figure your underpayment using this method, complete Form 2210, Schedule AI. 1040x e file 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. 1040x e file If you use the annualized income installment method, you must check box C in Part II of Form 2210. 1040x e file Also, you must attach Form 2210 and Schedule AI to your return. 1040x e file If you use Schedule AI for any payment due date, you must use it for all payment due dates. 1040x e file Completing Schedule AI. 1040x e file   Follow the Form 2210 instructions to complete Schedule AI. 1040x e file For each period shown on Schedule AI, figure your income and deductions based on your method of accounting. 1040x e file 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. 1040x e file Note. 1040x e file Each period includes amounts from the previous period(s). 1040x e file Period (a) includes items for January 1 through March 31. 1040x e file Period (b) includes items for January 1 through May 31. 1040x e file Period (c) includes items for January 1 through August 31. 1040x e file Period (d) includes items for the entire year. 1040x e file Farmers and Fishermen If you are a farmer or fisherman, the following special rules for underpayment of estimated tax apply to you. 1040x e file 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. 1040x e file 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. 1040x e file Any penalty you owe for underpaying your 2013 estimated tax will be figured from one payment due date, January 15, 2014. 1040x e file 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. 1040x e file 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 . 1040x e file See Who Must Pay Estimated Tax in chapter 2 for the definition of a farmer or fisherman who is eligible for these special rules. 1040x e file Form 2210-F. 1040x e file   Use Form 2210-F to figure any underpayment penalty. 1040x e file Do not attach it to your return unless you check a box in Part I. 1040x e file However, if none of the boxes apply to you and you owe a penalty, you do not need to attach Form 2210-F. 1040x e file 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. 1040x e file Keep your filled-in Form 2210-F for your records. 1040x e file    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. 1040x e file Waiver of Penalty The IRS can waive the penalty for underpayment if either of the following applies. 1040x e file You did not make a payment because of a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty. 1040x e file You retired (after reaching age 62) or became disabled in 2012 or 2013 and both the following requirements are met. 1040x e file You had a reasonable cause for not making the payment. 1040x e file Your underpayment was not due to willful neglect. 1040x e file How to request a waiver. 1040x e file   To request a waiver, see the Instructions for Form 2210. 1040x e file Farmers and fishermen. 1040x e file   To request a waiver, see the Instructions for Form 2210-F. 1040x e file Federally declared disaster. 1040x e file   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. 1040x e file 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. 1040x e file Do not file Form 2210 or 2210-F if your underpayment was due to a federally declared disaster. 1040x e file If you still owe a penalty after the automatic waiver is applied, we will send you a bill. 1040x e file   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. 1040x e file Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. 1040x e file 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. 1040x e file   Details on the applicable disaster postponement period can be found at IRS. 1040x e file gov. 1040x e file Enter Tax Relief in Disaster Situations. 1040x e file Select the federally declared disaster that affected you. 1040x e file    Worksheet 4-1. 1040x e file 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Note. 1040x e file 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. 1040x e file                   1. 1040x e file Enter line 11 of your Schedule AI, or line 3 from Worksheet 4-2 1. 1040x e file       2. 1040x e file Enter your annualized qualified dividends for the period 2. 1040x e file           3. 1040x e file Are you filing Schedule D?               □ Yes. 1040x e file Enter the smaller of your annualized amount from line 15 or line 16 of Schedule D. 1040x e file If either line 15 or line 16 is blank or a loss, enter -0-. 1040x e file 3. 1040x e file             □ No. 1040x e file Enter your annualized capital gain distributions from Form 1040, line 13             4. 1040x e file Add lines 2 and 3   4. 1040x e file           5. 1040x e file If you are claiming investment interest expense on Form 4952, enter your annualized amount from line 4g of that form. 1040x e file Otherwise, enter -0-   5. 1040x e file           6. 1040x e file Subtract line 5 from line 4. 1040x e file If zero or less, enter -0- 6. 1040x e file       7. 1040x e file Subtract line 6 from line 1. 1040x e file If zero or less, enter -0- 7. 1040x e file       8. 1040x e file 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. 1040x e file 8. 1040x e file       9. 1040x e file Enter the smaller of line 1 or line 8 9. 1040x e file       10. 1040x e file Enter the smaller of line 7 or line 9 10. 1040x e file       11. 1040x e file Subtract line 10 from line 9. 1040x e file This amount is taxed at 0% 11. 1040x e file       12. 1040x e file Enter the smaller of line 1 or line 6 12. 1040x e file       13. 1040x e file Enter the amount from line 11 13. 1040x e file       14. 1040x e file Subtract line 13 from line 12 14. 1040x e file       15. 1040x e file Multiply line 14 by 15% (. 1040x e file 15) 15. 1040x e file   16. 1040x e file Figure the tax on the amount on line 7. 1040x e file 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. 1040x e file If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 16. 1040x e file   17. 1040x e file Add lines 15 and 16 17. 1040x e file   18. 1040x e file Figure the tax on the amount on line 1. 1040x e file 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. 1040x e file If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 18. 1040x e file   19. 1040x e file Tax on all taxable income. 1040x e file Enter the smaller of line 17 or line 18. 1040x e file Also enter this amount on line 12 of Schedule AI in the appropriate column. 1040x e file 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. 1040x e file   Worksheet 4-2. 1040x e file 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. 1040x e file             1. 1040x e file Enter the amount from line 11 of Schedule AI for the period 1. 1040x e file   2. 1040x e file 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. 1040x e file   3. 1040x e file Add lines 1 and 2 3. 1040x e file   4. 1040x e file Tax on the amount on line 3. 1040x e file Use the Tax Table, Tax Computation Worksheet, Form 8615**, Qualified Dividends and Capital Gain Tax Worksheet***, or Schedule D Tax Worksheet***, whichever applies. 1040x e file See the 2013 Instructions for Form 1040, line 44, to find out which tax computation method to use. 1040x e file (Note. 1040x e file You do not have to use the same method for each period on Schedule AI. 1040x e file ) 4. 1040x e file   5. 1040x e file Tax on the amount on line 2. 1040x e file 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. 1040x e file If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 5. 1040x e file   6. 1040x e file Subtract line 5 from line 4. 1040x e file Enter the result here and on line 12 of Schedule AI. 1040x e file If zero or less,  enter -0- 6. 1040x e file             * 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. 1040x e file     ** 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. 1040x e file 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. 1040x e file Complete the rest of Form 8615 according to its instructions. 1040x e file Then complete lines 5 and 6 above. 1040x e file     *** 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. 1040x e file Complete that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). 1040x e file Next, determine if you have a capital gain excess. 1040x e file     Figuring capital gain excess. 1040x e file 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). 1040x e file If the result is more than zero, that amount is your capital gain excess. 1040x e file     No capital gain excess. 1040x e file 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. 1040x e file Then complete lines 5 and 6 above. 1040x e file     Capital gain excess. 1040x e file 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. 1040x e file Then complete lines 5 and 6 above. 1040x e file     Make the modifications below only for purposes of filling out Worksheet 4-2 above. 1040x e file     a. 1040x e file 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. 1040x e file     b. 1040x e file 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. 1040x e file     c. 1040x e file Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess. 1040x e file     d. 1040x e file 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). 1040x e file   Prev  Up  Next   Home   More Online Publications