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Claim Social Security Income Taxes

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Claim Social Security Income Taxes

Claim social security income taxes 16. Claim social security income taxes   Reporting Gains and Losses Table of Contents What's New Introduction Useful Items - You may want to see: Reporting Capital Gains and Losses Exception 1. Claim social security income taxes Exception 2. Claim social security income taxes File Form 1099-B or Form 1099-S with the IRS. Claim social security income taxes Capital Losses Capital Gain Tax Rates What's New Maximum capital gain rates. Claim social security income taxes . Claim social security income taxes  For 2013, the maximum capital gain rates are 0%, 15%, 20%, 25%, and 28%. Claim social security income taxes Introduction This chapter discusses how to report capital gains and losses from sales, exchanges, and other dispositions of investment property on Form 8949 and Schedule D (Form 1040). Claim social security income taxes The discussion includes the following topics. Claim social security income taxes How to report short-term gains and losses. Claim social security income taxes How to report long-term gains and losses. Claim social security income taxes How to figure capital loss carryovers. Claim social security income taxes How to figure your tax on a net capital gain. Claim social security income taxes If you sell or otherwise dispose of property used in a trade or business or for the production of income, see Publication 544, Sales and Other Dispositions of Assets, before completing Schedule D (Form 1040). Claim social security income taxes Useful Items - You may want to see: Publication 537 Installment Sales 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses Form (and Instructions) 4797 Sales of Business Property 6252 Installment Sale Income 8582 Passive Activity Loss Limitations 8949 Sales and Other Dispositions of Capital Assets Schedule D (Form 1040) Capital Gains and Losses Reporting Capital Gains and Losses Generally, report capital gains and losses on Form 8949. Claim social security income taxes Complete Form 8949 before you complete line 1b, 2, 3, 8b, 9, or 10 of Schedule D (Form 1040). Claim social security income taxes Use Form 8949 to report: The sale or exchange of a capital asset not reported on another form or schedule; Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit; and Nonbusiness bad debts. Claim social security income taxes Use Schedule D (Form 1040): To figure the overall gain or loss from transactions reported on Form 8949; To report a gain from Form 6252 or Part I of Form 4797; To report a gain or loss from Form 4684, 6781, or 8824; To report capital gain distributions not reported directly on Form 1040 or Form 1040A; To report a capital loss carryover from the previous tax year to the current tax year; To report your share of a gain or (loss) from a partnership, S corporation, estate, or trust; To report transactions reported to you on a Form 1099-B (or substitute statement) showing basis was reported to the IRS and to which none of the Form 8949 adjustments or codes apply; and To report undistributed long-term capital gains from Form 2439. Claim social security income taxes On Form 8949, enter all sales and exchanges of capital assets, including stocks, bonds, etc. Claim social security income taxes , and real estate (if not reported on Form 4684, 4797, 6252, 6781, 8824, or line 1a or 8a of Schedule D). Claim social security income taxes Include these transactions even if you did not receive a Form 1099-B or 1099-S (or substitute statement) for the transaction. Claim social security income taxes Report short-term gains or losses in Part I. Claim social security income taxes Report long-term gains or losses in Part II. Claim social security income taxes Use as many Forms 8949 as you need. Claim social security income taxes Exceptions to filing Form 8949 and Schedule D (Form 1040). Claim social security income taxes   There are certain situations where you may not have to file Form 8949 and/or Schedule D (Form 1040). Claim social security income taxes Exception 1. Claim social security income taxes   You do not have to file Form 8949 or Schedule D (Form 1040) if you have no capital losses and your only capital gains are capital gain distributions from Form(s) 1099-DIV, box 2a (or substitute statements). Claim social security income taxes (If any Form(s) 1099-DIV (or substitute statements) you receive have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain), you do not qualify for this exception. Claim social security income taxes ) If you qualify for this exception, report your capital gain distributions directly on line 13 of Form 1040 (and check the box on line 13). Claim social security income taxes Also use the Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040 instructions to figure your tax. Claim social security income taxes You can report your capital gain distributions on line 10 of Form 1040A, instead of on Form 1040, if none of the Forms 1099-DIV (or substitute statements) you received have an amount in box 2b, 2c, or 2d, and you do not have to file Form 1040. Claim social security income taxes Exception 2. Claim social security income taxes   You must file Schedule D (Form 1040), but generally do not have to file Form 8949, if Exception 1 does not apply and your only capital gains and losses are: Capital gain distributions; A capital loss carryover; A gain from Form 2439 or 6252 or Part I of Form 4797; A gain or loss from Form 4684, 6781, or 8824; A gain or loss from a partnership, S corporation, estate, or trust; or Gains and losses from transactions for which you received a Form 1099-B (or substitute statement) that shows the basis was reported to the IRS and for which you do not need to make any adjustments in column (g) of Form 8949 or enter any codes in column (f) of Form 8949. Claim social security income taxes Installment sales. Claim social security income taxes   You cannot use the installment method to report a gain from the sale of stock or securities traded on an established securities market. Claim social security income taxes You must report the entire gain in the year of sale (the year in which the trade date occurs). Claim social security income taxes Passive activity gains and losses. Claim social security income taxes    If you have gains or losses from a passive activity, you may also have to report them on Form 8582. Claim social security income taxes In some cases, the loss may be limited under the passive activity rules. Claim social security income taxes Refer to Form 8582 and its instructions for more information about reporting capital gains and losses from a passive activity. Claim social security income taxes Form 1099-B transactions. Claim social security income taxes   If you sold property, such as stocks, bonds, or certain commodities, through a broker, you should receive Form 1099-B or substitute statement from the broker. Claim social security income taxes Use the Form 1099-B or the substitute statement to complete Form 8949. Claim social security income taxes If you sold a covered security in 2013, your broker should send you a Form 1099-B (or substitute statement) that shows your basis. Claim social security income taxes This will help you complete Form 8949. Claim social security income taxes Generally, a covered security is a security you acquired after 2010. Claim social security income taxes   Report the gross proceeds shown in box 2a of Form 1099-B as the sales price in column (d) of either Part I or Part II of Form 8949, whichever applies. Claim social security income taxes However, if the broker advises you, in box 2a of Form 1099-B, that gross proceeds (sales price) less commissions and option premiums were reported to the IRS, enter that net sales price in column (d) of either Part I or Part II of Form 8949, whichever applies. Claim social security income taxes    Include in column (g) any expense of sale, such as broker's fees, commissions, state and local transfer taxes, and option premiums, unless you reported the net sales price in column (d). Claim social security income taxes If you include an expense of sale in column (g), enter “E” in column (f). Claim social security income taxes Form 1099-CAP transactions. Claim social security income taxes   If a corporation in which you own stock has had a change in control or a substantial change in capital structure, you should receive Form 1099-CAP or a substitute statement from the corporation. Claim social security income taxes Use the Form 1099-CAP or substitute statement to fill in Form 8949. Claim social security income taxes If your computations show that you would have a loss because of the change, do not enter any amounts on Form 8949 or Schedule D (Form 1040). Claim social security income taxes You cannot claim a loss on Schedule D (Form 1040) as a result of this transaction. Claim social security income taxes   Report the aggregate amount received shown in box 2 of Form 1099-CAP as the sales price in column (d) of either Part I or Part II of Form 8949, whichever applies. Claim social security income taxes Form 1099-S transactions. Claim social security income taxes   If you sold or traded reportable real estate, you generally should receive from the real estate reporting person a Form 1099-S showing the gross proceeds. Claim social security income taxes    “Reportable real estate” is defined as any present or future ownership interest in any of the following: Improved or unimproved land, including air space; Inherently permanent structures, including any residential, commercial, or industrial building; A condominium unit and its accessory fixtures and common elements, including land; and Stock in a cooperative housing corporation (as defined in section 216 of the Internal Revenue Code). Claim social security income taxes   A “real estate reporting person” could include the buyer's attorney, your attorney, the title or escrow company, a mortgage lender, your broker, the buyer's broker, or the person acquiring the biggest interest in the property. Claim social security income taxes   Your Form 1099-S will show the gross proceeds from the sale or exchange in box 2. Claim social security income taxes See the Instructions for Form 8949 and the Instructions for Schedule D (Form 1040) for how to report these transactions and include them in Part I or Part II of Form 8949 as appropriate. Claim social security income taxes However, report like-kind exchanges on Form 8824 instead. Claim social security income taxes   It is unlawful for any real estate reporting person to separately charge you for complying with the requirement to file Form 1099-S. Claim social security income taxes Nominees. Claim social security income taxes   If you receive gross proceeds as a nominee (that is, the gross proceeds are in your name but actually belong to someone else), see the Instructions for Form 8949 for how to report these amounts on Form 8949. Claim social security income taxes File Form 1099-B or Form 1099-S with the IRS. Claim social security income taxes   If you received gross proceeds as a nominee in 2013, you must file a Form 1099-B or Form 1099-S for those proceeds with the IRS. Claim social security income taxes Send the Form 1099-B or Form 1099-S with a Form 1096, Annual Summary and Transmittal of U. Claim social security income taxes S. Claim social security income taxes Information Returns, to your Internal Revenue Service Center by February 28, 2014 (March 31, 2014, if you file Form 1099-B or Form 1099-S electronically). Claim social security income taxes Give the actual owner of the proceeds Copy B of the Form 1099-B or Form 1099-S by February 18, 2014. Claim social security income taxes On Form 1099-B, you should be listed as the “Payer. Claim social security income taxes ” The other owner should be listed as the “Recipient. Claim social security income taxes ” On Form 1099-S, you should be listed as the “Filer. Claim social security income taxes ” The other owner should be listed as the “Transferor. Claim social security income taxes ” You do not have to file a Form 1099-B or Form 1099-S to show proceeds for your spouse. Claim social security income taxes For more information about the reporting requirements and the penalties for failure to file (or furnish) certain information returns, see the General Instructions for Certain Information Returns. Claim social security income taxes If you are filing electronically see Publication 1220. Claim social security income taxes Sale of property bought at various times. Claim social security income taxes   If you sell a block of stock or other property that you bought at various times, report the short-term gain or loss from the sale on one row in Part I of Form 8949, and the long-term gain or loss on one row in Part II of Form 8949. Claim social security income taxes Write “Various” in column (b) for the “Date acquired. Claim social security income taxes ” Sale expenses. Claim social security income taxes    On Form 8949, include in column (g) any expense of sale, such as broker's fees, commissions, state and local transfer taxes, and option premiums, unless you reported the net sales price in column (d). Claim social security income taxes If you include an expense of sale in column (g), enter “E” in column (f). Claim social security income taxes   For more information about adjustments to basis, see chapter 13. Claim social security income taxes Short-term gains and losses. Claim social security income taxes   Capital gain or loss on the sale or trade of investment property held 1 year or less is a short-term capital gain or loss. Claim social security income taxes You report it in Part I of Form 8949. Claim social security income taxes   You combine your share of short-term capital gain or loss from partnerships, S corporations, estates, and trusts, and any short-term capital loss carryover, with your other short-term capital gains and losses to figure your net short-term capital gain or loss on line 7 of Schedule D (Form 1040). Claim social security income taxes Long-term gains and losses. Claim social security income taxes    A capital gain or loss on the sale or trade of investment property held more than 1 year is a long-term capital gain or loss. Claim social security income taxes You report it in Part II of Form 8949. Claim social security income taxes   You report the following in Part II of Schedule D (Form 1040): Undistributed long-term capital gains from a mutual fund (or other regulated investment company) or real estate investment trust (REIT); Your share of long-term capital gains or losses from partnerships, S corporations, estates, and trusts; All capital gain distributions from mutual funds and REITs not reported directly on line 10 of Form 1040A or line 13 of Form 1040; and Long-term capital loss carryovers. Claim social security income taxes    The result after combining these items with your other long-term capital gains and losses is your net long-term capital gain or loss (Schedule D (Form 1040), line 15). Claim social security income taxes Total net gain or loss. Claim social security income taxes   To figure your total net gain or loss, combine your net short-term capital gain or loss (Schedule D (Form 1040), line 7) with your net long-term capital gain or loss (Schedule D (Form 1040), line 15). Claim social security income taxes Enter the result on Schedule D (Form 1040), Part III, line 16. Claim social security income taxes If your losses are more than your gains, see Capital Losses , next. Claim social security income taxes If both lines 15 and 16 of your Schedule D (Form 1040) are gains and your taxable income on your Form 1040 is more than zero, see Capital Gain Tax Rates , later. Claim social security income taxes Capital Losses If your capital losses are more than your capital gains, you can claim a capital loss deduction. Claim social security income taxes Report the amount of the deduction on line 13 of Form 1040, in parentheses. Claim social security income taxes Limit on deduction. Claim social security income taxes   Your allowable capital loss deduction, figured on Schedule D (Form 1040), is the lesser of: $3,000 ($1,500 if you are married and file a separate return); or Your total net loss as shown on line 16 of Schedule D (Form 1040). Claim social security income taxes   You can use your total net loss to reduce your income dollar for dollar, up to the $3,000 limit. Claim social security income taxes Capital loss carryover. Claim social security income taxes   If you have a total net loss on line 16 of Schedule D (Form 1040) that is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you had incurred it in that next year. Claim social security income taxes If part of the loss is still unused, you can carry it over to later years until it is completely used up. Claim social security income taxes   When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year. Claim social security income taxes   When you carry over a loss, it remains long term or short term. Claim social security income taxes A long-term capital loss you carry over to the next tax year will reduce that year's long-term capital gains before it reduces that year's short-term capital gains. Claim social security income taxes Figuring your carryover. Claim social security income taxes   The amount of your capital loss carryover is the amount of your total net loss that is more than the lesser of: Your allowable capital loss deduction for the year; or Your taxable income increased by your allowable capital loss deduction for the year and your deduction for personal exemptions. Claim social security income taxes   If your deductions are more than your gross income for the tax year, use your negative taxable income in computing the amount in item (2). Claim social security income taxes    Complete the Capital Loss Carryover Worksheet in the Instructions for Schedule D or Publication 550 to determine the part of your capital loss that you can carry over. Claim social security income taxes Example. Claim social security income taxes Bob and Gloria sold securities in 2013. Claim social security income taxes The sales resulted in a capital loss of $7,000. Claim social security income taxes They had no other capital transactions. Claim social security income taxes Their taxable income was $26,000. Claim social security income taxes On their joint 2013 return, they can deduct $3,000. Claim social security income taxes The unused part of the loss, $4,000 ($7,000 − $3,000), can be carried over to 2014. Claim social security income taxes If their capital loss had been $2,000, their capital loss deduction would have been $2,000. Claim social security income taxes They would have no carryover. Claim social security income taxes Use short-term losses first. Claim social security income taxes   When you figure your capital loss carryover, use your short-term capital losses first, even if you incurred them after a long-term capital loss. Claim social security income taxes If you have not reached the limit on the capital loss deduction after using the short-term capital losses, use the long-term capital losses until you reach the limit. Claim social security income taxes Decedent's capital loss. Claim social security income taxes    A capital loss sustained by a decedent during his or her last tax year (or carried over to that year from an earlier year) can be deducted only on the final income tax return filed for the decedent. Claim social security income taxes The capital loss limits discussed earlier still apply in this situation. Claim social security income taxes The decedent's estate cannot deduct any of the loss or carry it over to following years. Claim social security income taxes Joint and separate returns. Claim social security income taxes   If you and your spouse once filed separate returns and are now filing a joint return, combine your separate capital loss carryovers. Claim social security income taxes However, if you and your spouse once filed a joint return and are now filing separate returns, any capital loss carryover from the joint return can be deducted only on the return of the spouse who actually had the loss. Claim social security income taxes Capital Gain Tax Rates The tax rates that apply to a net capital gain are generally lower than the tax rates that apply to other income. Claim social security income taxes These lower rates are called the maximum capital gain rates. Claim social security income taxes The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss. Claim social security income taxes For 2013, the maximum capital gain rates are 0%, 15%, 20%, 25%, and 28%. Claim social security income taxes See Table 16-1 for details. Claim social security income taxes If you figure your tax using the maximum capital gain rate and the regular tax computation results in a lower tax, the regular tax computation applies. Claim social security income taxes Example. Claim social security income taxes All of your net capital gain is from selling collectibles, so the capital gain rate would be 28%. Claim social security income taxes If you are otherwise subject to a rate lower than 28%, the 28% rate does not apply. Claim social security income taxes Investment interest deducted. Claim social security income taxes   If you claim a deduction for investment interest, you may have to reduce the amount of your net capital gain that is eligible for the capital gain tax rates. Claim social security income taxes Reduce it by the amount of the net capital gain you choose to include in investment income when figuring the limit on your investment interest deduction. Claim social security income taxes This is done on the Schedule D Tax Worksheet or the Qualified Dividends and Capital Gain Tax Worksheet. Claim social security income taxes For more information about the limit on investment interest, see Interest Expenses in chapter 3 of Publication 550. Claim social security income taxes Table 16-1. Claim social security income taxes What Is Your Maximum Capital Gain Rate? IF your net capital gain is from . Claim social security income taxes . Claim social security income taxes . Claim social security income taxes THEN your  maximum capital gain rate is . Claim social security income taxes . Claim social security income taxes . Claim social security income taxes a collectibles gain 28% an eligible gain on qualified small business stock minus the section 1202 exclusion 28% an unrecaptured section 1250 gain 25% other gain1 and the regular tax rate that would apply is 39. Claim social security income taxes 6% 20% other gain1 and the regular tax rate that would apply is 25%, 28%, 33%, or 35% 15% other gain1 and the regular tax rate that would apply is 10% or 15% 0% 1 Other gain means any gain that is not collectibles gain, gain on qualified small business stock, or unrecaptured section 1250 gain. Claim social security income taxes     Collectibles gain or loss. Claim social security income taxes   This is gain or loss from the sale or trade of a work of art, rug, antique, metal (such as gold, silver, and platinum bullion), gem, stamp, coin, or alcoholic beverage held more than 1 year. Claim social security income taxes   Collectibles gain includes gain from sale of an interest in a partnership, S corporation, or trust due to unrealized appreciation of collectibles. Claim social security income taxes Gain on qualified small business stock. Claim social security income taxes    If you realized a gain from qualified small business stock that you held more than 5 years, you generally can exclude some or all of your gain under section 1202. Claim social security income taxes The eligible gain minus your section 1202 exclusion is a 28% rate gain. Claim social security income taxes See Gains on Qualified Small Business Stock in chapter 4 of Publication 550. Claim social security income taxes Unrecaptured section 1250 gain. Claim social security income taxes    Generally, this is any part of your capital gain from selling section 1250 property (real property) that is due to depreciation (but not more than your net section 1231 gain), reduced by any net loss in the 28% group. Claim social security income taxes Use the Unrecaptured Section 1250 Gain Worksheet in the Schedule D (Form 1040) instructions to figure your unrecaptured section 1250 gain. Claim social security income taxes For more information about section 1250 property and section 1231 gain, see chapter 3 of Publication 544. Claim social security income taxes Tax computation using maximum capital gain rates. Claim social security income taxes   Use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet (whichever applies) to figure your tax if you have qualified dividends or net capital gain. Claim social security income taxes You have net capital gain if Schedule D (Form 1040), lines 15 and 16, are both gains. Claim social security income taxes Schedule D Tax Worksheet. Claim social security income taxes   Use the Schedule D Tax Worksheet in the Schedule D (Form 1040) instructions to figure your tax if: You have to file Schedule D (Form 1040); and Schedule D (Form 1040), line 18 (28% rate gain) or line 19 (unrecaptured section 1250 gain), is more than zero. Claim social security income taxes Qualified Dividends and Capital Gain Tax Worksheet. Claim social security income taxes   If you do not have to use the Schedule D Tax Worksheet (as explained above) and any of the following apply, use the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040 or Form 1040A (whichever you file) to figure your tax. Claim social security income taxes You received qualified dividends. Claim social security income taxes (See Qualified Dividends in chapter 8. Claim social security income taxes ) You do not have to file Schedule D (Form 1040) and you received capital gain distributions. Claim social security income taxes (See Exceptions to filing Form 8949 and Schedule D (Form 1040) , earlier. Claim social security income taxes ) Schedule D (Form 1040), lines 15 and 16, are both more than zero. Claim social security income taxes Alternative minimum tax. Claim social security income taxes   These capital gain rates are also used in figuring alternative minimum tax. Claim social security income taxes Prev  Up  Next   Home   More Online Publications
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Claim social security income taxes 4. Claim social security income taxes   Underpayment Penalty for 2013 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: General RuleFarmers and fishermen. Claim social security income taxes Higher income taxpayers. Claim social security income taxes Minimum required for higher income taxpayers. Claim social security income taxes Estate or trust payments of estimated tax. Claim social security income taxes Lowering or eliminating the penalty. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes You may understand this chapter better if you can refer to a copy of your latest federal income tax return. Claim social security income taxes No penalty. Claim social security income taxes   Generally, you will not have to pay a penalty for 2013 if any of the following apply. Claim social security income taxes The total of your withholding and timely estimated tax payments was at least as much as your 2012 tax. Claim social security income taxes (See Special rules for certain individuals for higher income taxpayers and farmers and fishermen. Claim social security income taxes ) 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. Claim social security income taxes Your total tax for 2013 (defined later) minus your withholding is less than $1,000. Claim social security income taxes You did not have a tax liability for 2012. Claim social security income taxes You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000. Claim social security income taxes IRS can figure the penalty for you. Claim social security income taxes   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. Claim social security income taxes Generally, the IRS will figure the penalty for you and send you a bill. Claim social security income taxes   You only need to figure your penalty in the following three situations. Claim social security income taxes You are requesting a waiver of part, but not all, of the penalty. Claim social security income taxes You are using the annualized income installment method to figure the penalty. Claim social security income taxes You are treating the federal income tax withheld from your income as paid on the dates actually withheld. Claim social security income taxes 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. Claim social security income taxes See Form 2210 , later. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes (Your 2012 tax return must cover a 12-month period. Claim social security income taxes ) Your 2013 tax, for this purpose, is defined under Total tax for 2013 , later. Claim social security income taxes Special rules for certain individuals. Claim social security income taxes   There are special rules for farmers and fishermen and certain higher income taxpayers. Claim social security income taxes Farmers and fishermen. Claim social security income taxes   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. Claim social security income taxes   See Farmers and Fishermen , later. Claim social security income taxes Higher income taxpayers. Claim social security income taxes   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 . Claim social security income taxes This rule does not apply to farmers or fishermen. Claim social security income taxes   For 2012, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. Claim social security income taxes Penalty figured separately for each period. Claim social security income taxes   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. Claim social security income taxes This is true even if you are due a refund when you file your income tax return. Claim social security income taxes Example. Claim social security income taxes You did not make estimated tax payments for 2013 because you thought you had enough tax withheld from your wages. Claim social security income taxes Early in January 2014, you made an estimate of your total 2013 tax. Claim social security income taxes Then you realized that your withholding was $2,000 less than the amount needed to avoid a penalty for underpayment of estimated tax. Claim social security income taxes 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. Claim social security income taxes Your final return shows your total tax to be $50 less than your estimate, so you are due a refund. Claim social security income taxes You do not owe a penalty for your payment due January 15, 2014. Claim social security income taxes 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. Claim social security income taxes Minimum required each period. Claim social security income taxes   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. Claim social security income taxes 5% of your 2013 tax, or 25% of your 2012 tax. Claim social security income taxes (Your 2012 tax return must cover a 12-month period. Claim social security income taxes ) Minimum required for higher income taxpayers. Claim social security income taxes   If you are subject to the rule for higher income taxpayers, discussed above, substitute 27. Claim social security income taxes 5% for 25% in (2) under General Rule . Claim social security income taxes When penalty is charged. Claim social security income taxes   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. Claim social security income taxes If a payment is mailed, the date of the U. Claim social security income taxes S. Claim social security income taxes postmark is considered the date of payment. Claim social security income taxes   If a payment is made electronically, the date the payment is shown on your payment account (checking, savings, etc. Claim social security income taxes ) is considered to be the date of payment. Claim social security income taxes Estate or trust payments of estimated tax. Claim social security income taxes   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. Claim social security income taxes Amended returns. Claim social security income taxes    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. Claim social security income taxes If you file an amended return after the due date of the original return, use the tax shown on the original return. Claim social security income taxes   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. Claim social security income taxes This rule applies only if both original separate returns were filed on time. Claim social security income taxes 2012 separate returns and 2013 joint return. Claim social security income taxes    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. Claim social security income taxes You filed a separate return if you filed as single, head of household, or married filing separately. Claim social security income taxes 2012 joint return and 2013 separate returns. Claim social security income taxes    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. Claim social security income taxes You are filing a separate return if you file as single, head of household, or married filing separately. Claim social security income taxes   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. Claim social security income taxes Then multiply the tax on the joint return by the following fraction. Claim social security income taxes   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. Claim social security income taxes Lisa and Paul filed a joint return for 2012 showing taxable income of $49,000 and a tax of $6,484. Claim social security income taxes Of the $49,000 taxable income, $41,000 was Lisa's and the rest was Paul's. Claim social security income taxes For 2013, they file married filing separately. Claim social security income taxes Lisa figures her share of the tax on the 2012 joint return as follows. Claim social security income taxes 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. Claim social security income taxes 67% Lisa's part of tax on joint return ($6,484 × 88. Claim social security income taxes 67%) $ 5,749 Form 2210. Claim social security income taxes   In most cases, you do not need to file Form 2210. Claim social security income taxes The IRS will figure the penalty for you and send you a bill. Claim social security income taxes If you want us to figure the penalty for you, leave the penalty line on your return blank. Claim social security income taxes Do not file Form 2210. Claim social security income taxes   To determine if you should file Form 2210, see Part II of Form 2210. Claim social security income taxes 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. Claim social security income taxes If you use Form 2210, you cannot file Form 1040EZ. Claim social security income taxes   On Form 1040, enter the amount of your penalty on line 77. Claim social security income taxes If you owe tax on line 76, add the penalty to your tax due and show your total payment on line 76. Claim social security income taxes If you are due a refund, subtract the penalty from the overpayment and enter the result on line 73. Claim social security income taxes   On Form 1040A, enter the amount of your penalty on line 46. Claim social security income taxes If you owe tax on line 45, add the penalty to your tax due and show your total payment on line 45. Claim social security income taxes If you are due a refund, subtract the penalty from the overpayment and enter the result on line 42. Claim social security income taxes Lowering or eliminating the penalty. Claim social security income taxes    You may be able to lower or eliminate your penalty if you file Form 2210. Claim social security income taxes You must file Form 2210 with your return if any of the following applies. Claim social security income taxes You request a waiver. Claim social security income taxes See Waiver of Penalty , later. Claim social security income taxes You use the annualized income installment method. Claim social security income taxes See the explanation of this method under Annualized Income Installment Method (Schedule AI) . Claim social security income taxes You use your actual withholding for each payment period for estimated tax purposes. Claim social security income taxes See Actual withholding method under Figuring Your Underpayment (Part IV, Section A). Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes Total tax for 2013. Claim social security income taxes   For 2013, your total tax on Form 1040 is the amount on line 61 reduced by the following. Claim social security income taxes    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes Any refundable credit amounts listed on lines 64a, 65, 66, 70, and any credit from Form 8885 included on line 71. Claim social security income taxes   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. Claim social security income taxes   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. Claim social security income taxes Note. Claim social security income taxes 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. Claim social security income taxes Paid through withholding. Claim social security income taxes    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. Claim social security income taxes Add to that any write-in amount on line 72 identified as “Form 8689. Claim social security income taxes ” 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. Claim social security income taxes On Form 1040EZ, it is the amount on line 7. Claim social security income taxes No Tax Liability Last Year You do not owe a penalty if you had no tax liability last year and you were a U. Claim social security income taxes S. Claim social security income taxes citizen or resident for the whole year. Claim social security income taxes For this rule to apply, your tax year must have included all 12 months of the year. Claim social security income taxes You had no tax liability for 2012 if your total tax was zero or you were not required to file an income tax return. Claim social security income taxes Example. Claim social security income taxes Ray, who is single and 22 years old, was unemployed for a few months during 2012. Claim social security income taxes He earned $6,700 in wages before he was laid off, and he received $1,400 in unemployment compensation afterwards. Claim social security income taxes He had no other income. Claim social security income taxes 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). Claim social security income taxes He filed a return only to have his withheld income tax refunded to him. Claim social security income taxes In 2013, Ray began regular work as an independent contractor. Claim social security income taxes Ray made no estimated tax payments in 2013. Claim social security income taxes 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. Claim social security income taxes Total tax for 2012. Claim social security income taxes   For 2012, your total tax on Form 1040 is the amount on line 61 reduced by the following. Claim social security income taxes    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes   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. Claim social security income taxes   If you filed Form 1040EZ, your 2012 total tax is the amount on line 11 reduced by the amount on line 8a. Claim social security income taxes Figuring Your Required Annual Payment (Part I) Figure your required annual payment in Part I of Form 2210, following the line-by-line instructions. Claim social security income taxes If you rounded the entries on your tax return to whole dollars, you can round on Form 2210. Claim social security income taxes Example. Claim social security income taxes The tax on Lori Lane's 2012 return was $12,400. Claim social security income taxes Her AGI was not more than $150,000 for either 2012 or 2013. Claim social security income taxes The tax on her 2013 return (Form 1040, line 55) is $13,044. Claim social security income taxes Line 56 (self-employment tax) is $8,902. Claim social security income taxes Her 2013 total tax is $21,946. Claim social security income taxes For 2013, Lori had $1,600 income tax withheld and made four equal estimated tax payments ($1,000 each). Claim social security income taxes 90% of her 2013 tax is $19,751. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes Lori's required annual payment is $12,400 (100% of 2012 tax) because that is smaller than 90% of her 2013 tax. Claim social security income taxes Different 2012 filing status. Claim social security income taxes    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. Claim social security income taxes 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. Claim social security income taxes If you qualify to use this method, it will result in the same penalty amount as the regular method. Claim social security income taxes However, either the annualized income installment method or the actual withholding method, explained later, may result in a smaller penalty. Claim social security income taxes You can use the short method only if you meet one of the following requirements. Claim social security income taxes You made no estimated tax payments for 2013 (it does not matter whether you had income tax withholding). Claim social security income taxes You paid the same amount of estimated tax on each of the four payment due dates. Claim social security income taxes 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. Claim social security income taxes Note. Claim social security income taxes 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. Claim social security income taxes However, if the payment was only a few days early, the difference is likely to be small. Claim social security income taxes You cannot use the short method if any of the following apply. Claim social security income taxes You made any estimated tax payments late. Claim social security income taxes You checked box C or D in Part II of Form 2210. Claim social security income taxes You are filing Form 1040NR or 1040NR-EZ and you did not receive wages as an employee subject to U. Claim social security income taxes S. Claim social security income taxes income tax withholding. Claim social security income taxes If you use the short method, you cannot use the annualized income installment method to figure your underpayment for each payment period. Claim social security income taxes Also, you cannot use your actual withholding during each period to figure your payments for each period. Claim social security income taxes These methods, which may give you a smaller penalty amount, are explained under Figuring Your Underpayment (Part IV, Section A). Claim social security income taxes Complete Part III of Form 2210 following the line-by-line instructions in the Instructions for Form 2210. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes You paid one or more estimated tax payments on a date after the due date. Claim social security income taxes You paid at least one, but less than four, installments of estimated tax. Claim social security income taxes You paid estimated tax payments in un- equal amounts. Claim social security income taxes You use the annualized income installment method to figure your underpayment for each payment period. Claim social security income taxes You use your actual withholding during each payment period to figure your payments. Claim social security income taxes 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. Claim social security income taxes Enter the results on line 27 of Section B. Claim social security income taxes 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. Claim social security income taxes Complete lines 20 through 26 of the first column before going to line 20 of the next column. Claim social security income taxes Required installments—line 18. Claim social security income taxes   Your required payment for each payment period (line 18) is usually one-fourth of your required annual payment (Part I, line 9). Claim social security income taxes This method—the regular method—is the one to use if you received your income evenly throughout the year. Claim social security income taxes   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. Claim social security income taxes First complete Schedule AI (Form 2210), then enter the amounts from line 25 of that schedule on line 18 of Form 2210, Part IV. Claim social security income taxes See Annualized Income Installment Method (Schedule AI), later. Claim social security income taxes Payments made—line 19. Claim social security income taxes   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. Claim social security income taxes For special rules for figuring your payments, see Form 2210 instructions for line 19. Claim social security income taxes   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. Claim social security income taxes 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. Claim social security income taxes Actual withholding method. Claim social security income taxes    Instead of using one-fourth of your withholding for each quarter, you can choose to use the amounts actually withheld by each due date. Claim social security income taxes You can make this choice separately for the tax withheld from your wages and for all other withholding. Claim social security income taxes This includes any excess social security and tier 1 RRTA tax withheld. Claim social security income taxes   Using your actual withholding may result in a smaller penalty if most of your withholding occurred early in the year. Claim social security income taxes   If you use your actual withholding, you must check box D in Form 2210, Part II. Claim social security income taxes Then complete Form 2210 using the regular method (Part IV) and file it with your return. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes A 3% rate applies to all four periods. Claim social security income taxes Payments. Claim social security income taxes    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. Claim social security income taxes For example, if you had an underpayment for the first payment period, list your payments after April 15, 2013. Claim social security income taxes You can use the table in the Form 2210 instructions to make your list. Claim social security income taxes Follow those instructions for listing income tax withheld and payments made with your return. Claim social security income taxes Use the list to determine when each underpayment was paid. Claim social security income taxes   If you mail your estimated tax payments, use the date of the U. Claim social security income taxes S. Claim social security income taxes postmark as the date of payment. Claim social security income taxes Line 1b. Claim social security income taxes   Apply the payments listed to underpayment balance in the first column until it is fully paid. Claim social security income taxes Apply payments in the order made. Claim social security income taxes Figuring the penalty. Claim social security income taxes   If an underpayment was paid in two or more payments on different dates, you must figure the penalty separately for each payment. Claim social security income taxes 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. Claim social security income taxes On line 4 figure the penalty for the amount of each payment applied on line 1b or the amount remaining unpaid. Claim social security income taxes If no payments are applied, figure the penalty on the amount on line 1a. Claim social security income taxes Aid for counting days. Claim social security income taxes    Table 4-1 provides a simple method for counting the number of days between a due date and a payment date. Claim social security income taxes 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. Claim social security income taxes In the same manner, find the number for the date the payment was made. Claim social security income taxes Subtract the due date “number” from the payment date “number. Claim social security income taxes ”   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. Claim social security income taxes Table 4-1. Claim social security income taxes Calendar To Determine the Number of Days a Payment Is Late Instructions. Claim social security income taxes Use this table with Form 2210 if you are completing Part IV, Section B. Claim social security income taxes 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. Claim social security income taxes Then, in the same manner, find the number for the date the payment was made. Claim social security income taxes Finally, subtract the due date number from the payment date number. Claim social security income taxes The result is the number of days the payment is late. Claim social security income taxes Example. Claim social security income taxes The payment due date is June 15 (61). Claim social security income taxes The payment was made on November 4 (203). Claim social security income taxes The payment is 142 days late (203 – 61). Claim social security income taxes Tax Year 2013 Day of 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 Month April May June July Aug. Claim social security income taxes Sept. Claim social security income taxes Oct. Claim social security income taxes Nov. Claim social security income taxes Dec. Claim social security income taxes Jan. Claim social security income taxes Feb. Claim social security income taxes Mar. Claim social security income taxes Apr. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes To figure your underpayment using this method, complete Form 2210, Schedule AI. Claim social security income taxes 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. Claim social security income taxes If you use the annualized income installment method, you must check box C in Part II of Form 2210. Claim social security income taxes Also, you must attach Form 2210 and Schedule AI to your return. Claim social security income taxes If you use Schedule AI for any payment due date, you must use it for all payment due dates. Claim social security income taxes Completing Schedule AI. Claim social security income taxes   Follow the Form 2210 instructions to complete Schedule AI. Claim social security income taxes For each period shown on Schedule AI, figure your income and deductions based on your method of accounting. Claim social security income taxes 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. Claim social security income taxes Note. Claim social security income taxes Each period includes amounts from the previous period(s). Claim social security income taxes Period (a) includes items for January 1 through March 31. Claim social security income taxes Period (b) includes items for January 1 through May 31. Claim social security income taxes Period (c) includes items for January 1 through August 31. Claim social security income taxes Period (d) includes items for the entire year. Claim social security income taxes Farmers and Fishermen If you are a farmer or fisherman, the following special rules for underpayment of estimated tax apply to you. Claim social security income taxes 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. Claim social security income taxes 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. Claim social security income taxes Any penalty you owe for underpaying your 2013 estimated tax will be figured from one payment due date, January 15, 2014. Claim social security income taxes 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. Claim social security income taxes 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 . Claim social security income taxes See Who Must Pay Estimated Tax in chapter 2 for the definition of a farmer or fisherman who is eligible for these special rules. Claim social security income taxes Form 2210-F. Claim social security income taxes   Use Form 2210-F to figure any underpayment penalty. Claim social security income taxes Do not attach it to your return unless you check a box in Part I. Claim social security income taxes However, if none of the boxes apply to you and you owe a penalty, you do not need to attach Form 2210-F. Claim social security income taxes 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. Claim social security income taxes Keep your filled-in Form 2210-F for your records. Claim social security income taxes    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. Claim social security income taxes Waiver of Penalty The IRS can waive the penalty for underpayment if either of the following applies. Claim social security income taxes You did not make a payment because of a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty. Claim social security income taxes You retired (after reaching age 62) or became disabled in 2012 or 2013 and both the following requirements are met. Claim social security income taxes You had a reasonable cause for not making the payment. Claim social security income taxes Your underpayment was not due to willful neglect. Claim social security income taxes How to request a waiver. Claim social security income taxes   To request a waiver, see the Instructions for Form 2210. Claim social security income taxes Farmers and fishermen. Claim social security income taxes   To request a waiver, see the Instructions for Form 2210-F. Claim social security income taxes Federally declared disaster. Claim social security income taxes   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. Claim social security income taxes 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. Claim social security income taxes Do not file Form 2210 or 2210-F if your underpayment was due to a federally declared disaster. Claim social security income taxes If you still owe a penalty after the automatic waiver is applied, we will send you a bill. Claim social security income taxes   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. Claim social security income taxes Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. Claim social security income taxes 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. Claim social security income taxes   Details on the applicable disaster postponement period can be found at IRS. Claim social security income taxes gov. Claim social security income taxes Enter Tax Relief in Disaster Situations. Claim social security income taxes Select the federally declared disaster that affected you. Claim social security income taxes    Worksheet 4-1. Claim social security income taxes 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Note. Claim social security income taxes 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. Claim social security income taxes                   1. Claim social security income taxes Enter line 11 of your Schedule AI, or line 3 from Worksheet 4-2 1. Claim social security income taxes       2. Claim social security income taxes Enter your annualized qualified dividends for the period 2. Claim social security income taxes           3. Claim social security income taxes Are you filing Schedule D?               □ Yes. Claim social security income taxes Enter the smaller of your annualized amount from line 15 or line 16 of Schedule D. Claim social security income taxes If either line 15 or line 16 is blank or a loss, enter -0-. Claim social security income taxes 3. Claim social security income taxes             □ No. Claim social security income taxes Enter your annualized capital gain distributions from Form 1040, line 13             4. Claim social security income taxes Add lines 2 and 3   4. Claim social security income taxes           5. Claim social security income taxes If you are claiming investment interest expense on Form 4952, enter your annualized amount from line 4g of that form. Claim social security income taxes Otherwise, enter -0-   5. Claim social security income taxes           6. Claim social security income taxes Subtract line 5 from line 4. Claim social security income taxes If zero or less, enter -0- 6. Claim social security income taxes       7. Claim social security income taxes Subtract line 6 from line 1. Claim social security income taxes If zero or less, enter -0- 7. Claim social security income taxes       8. Claim social security income taxes 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. Claim social security income taxes 8. Claim social security income taxes       9. Claim social security income taxes Enter the smaller of line 1 or line 8 9. Claim social security income taxes       10. Claim social security income taxes Enter the smaller of line 7 or line 9 10. Claim social security income taxes       11. Claim social security income taxes Subtract line 10 from line 9. Claim social security income taxes This amount is taxed at 0% 11. Claim social security income taxes       12. Claim social security income taxes Enter the smaller of line 1 or line 6 12. Claim social security income taxes       13. Claim social security income taxes Enter the amount from line 11 13. Claim social security income taxes       14. Claim social security income taxes Subtract line 13 from line 12 14. Claim social security income taxes       15. Claim social security income taxes Multiply line 14 by 15% (. Claim social security income taxes 15) 15. Claim social security income taxes   16. Claim social security income taxes Figure the tax on the amount on line 7. Claim social security income taxes 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. Claim social security income taxes If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 16. Claim social security income taxes   17. Claim social security income taxes Add lines 15 and 16 17. Claim social security income taxes   18. Claim social security income taxes Figure the tax on the amount on line 1. Claim social security income taxes 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. Claim social security income taxes If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 18. Claim social security income taxes   19. Claim social security income taxes Tax on all taxable income. Claim social security income taxes Enter the smaller of line 17 or line 18. Claim social security income taxes Also enter this amount on line 12 of Schedule AI in the appropriate column. Claim social security income taxes 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. Claim social security income taxes   Worksheet 4-2. Claim social security income taxes 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. Claim social security income taxes             1. Claim social security income taxes Enter the amount from line 11 of Schedule AI for the period 1. Claim social security income taxes   2. Claim social security income taxes 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. Claim social security income taxes   3. Claim social security income taxes Add lines 1 and 2 3. Claim social security income taxes   4. Claim social security income taxes Tax on the amount on line 3. Claim social security income taxes Use the Tax Table, Tax Computation Worksheet, Form 8615**, Qualified Dividends and Capital Gain Tax Worksheet***, or Schedule D Tax Worksheet***, whichever applies. Claim social security income taxes See the 2013 Instructions for Form 1040, line 44, to find out which tax computation method to use. Claim social security income taxes (Note. Claim social security income taxes You do not have to use the same method for each period on Schedule AI. Claim social security income taxes ) 4. Claim social security income taxes   5. Claim social security income taxes Tax on the amount on line 2. Claim social security income taxes 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. Claim social security income taxes If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 5. Claim social security income taxes   6. Claim social security income taxes Subtract line 5 from line 4. Claim social security income taxes Enter the result here and on line 12 of Schedule AI. Claim social security income taxes If zero or less,  enter -0- 6. Claim social security income taxes             * 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. Claim social security income taxes     ** 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. Claim social security income taxes 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. Claim social security income taxes Complete the rest of Form 8615 according to its instructions. Claim social security income taxes Then complete lines 5 and 6 above. Claim social security income taxes     *** 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. Claim social security income taxes Complete that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Claim social security income taxes Next, determine if you have a capital gain excess. Claim social security income taxes     Figuring capital gain excess. Claim social security income taxes 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). Claim social security income taxes If the result is more than zero, that amount is your capital gain excess. Claim social security income taxes     No capital gain excess. Claim social security income taxes 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. Claim social security income taxes Then complete lines 5 and 6 above. Claim social security income taxes     Capital gain excess. Claim social security income taxes 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. Claim social security income taxes Then complete lines 5 and 6 above. Claim social security income taxes     Make the modifications below only for purposes of filling out Worksheet 4-2 above. Claim social security income taxes     a. Claim social security income taxes 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. Claim social security income taxes     b. Claim social security income taxes 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. Claim social security income taxes     c. Claim social security income taxes Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess. Claim social security income taxes     d. Claim social security income taxes 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). Claim social security income taxes   Prev  Up  Next   Home   More Online Publications