Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

File 2006 Taxes Online Free

2012 State TaxH&r Block Free EditionHow To Amend Previous Tax ReturnsFree 1040 Tax ReturnIrs Gov Free File Federal State Taxes1040x Turbotax OnlineIncome Tax Forms 2012File 2007 Taxes Online FreeFederal Tax Form 941 20121040ez Tax InstructionsFree Online 2012 Tax ReturnTax Forms 20122010 Tax Preparation1040a1040 Ez Forms2006 Income Tax FormsIrs Online Filing Tax ReturnHrblock 1040x1040nr 2012Free State Filing Income TaxWww Free State Tax ReturnTax Return AmendmentTax Act Online 2012Irs Free File Fillable FormsIrs.gov 1040x2012 E FileFederal 1040x FormIrs FreeFiling 2012 Taxes In 20141040ez Tax Form For 20121040 IrsTax For MilitaryHow Can I File My 2011 Tax ReturnIrs E File 2013Can You Still E File 2010 Tax Returns2011 Ez 1040 Tax FormCan I File My State Taxes For FreeIrs FormsFile Back TaxesFree Turbotax 2012

File 2006 Taxes Online Free

File 2006 taxes online free Publication 547 - Main Content Table of Contents CasualtyFamily pet. File 2006 taxes online free Progressive deterioration. File 2006 taxes online free Special Procedure for Damage From Corrosive Drywall Theft Loss on Deposits Proof of Loss Figuring a LossGain from reimbursement. File 2006 taxes online free Business or income-producing property. File 2006 taxes online free Loss of inventory. File 2006 taxes online free Leased property. File 2006 taxes online free Exception for personal-use real property. File 2006 taxes online free Decrease in Fair Market Value Adjusted Basis Insurance and Other Reimbursements Deduction Limits2% Rule $100 Rule 10% Rule Figuring the Deduction Figuring a GainPostponement of Gain When To Report Gains and LossesLoss on deposits. File 2006 taxes online free Lessee's loss. File 2006 taxes online free Disaster Area LossesDisaster loss to inventory. File 2006 taxes online free Main home in disaster area. File 2006 taxes online free Unsafe home. File 2006 taxes online free Time limit for making choice. File 2006 taxes online free Revoking your choice. File 2006 taxes online free Figuring the loss deduction. File 2006 taxes online free How to report the loss on Form 1040X. File 2006 taxes online free Records. File 2006 taxes online free Need a copy of your tax return for the preceding year? Postponed Tax Deadlines Contacting the Federal Emergency Management Agency (FEMA) How To Report Gains and LossesProperty held 1 year or less. File 2006 taxes online free Property held more than 1 year. File 2006 taxes online free Depreciable property. File 2006 taxes online free Adjustments to Basis If Deductions Are More Than Income How To Get Tax HelpLow Income Taxpayer Clinics Casualty A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. File 2006 taxes online free A sudden event is one that is swift, not gradual or progressive. File 2006 taxes online free An unexpected event is one that is ordinarily unanticipated and unintended. File 2006 taxes online free An unusual event is one that is not a day-to-day occurrence and that is not typical of the activity in which you were engaged. File 2006 taxes online free Generally, casualty losses are deductible during the taxable year that the loss occurred. File 2006 taxes online free See Table 3, later. File 2006 taxes online free Deductible losses. File 2006 taxes online free   Deductible casualty losses can result from a number of different causes, including the following. File 2006 taxes online free Car accidents (but see Nondeductible losses , next, for exceptions). File 2006 taxes online free Earthquakes. File 2006 taxes online free Fires (but see Nondeductible losses , next, for exceptions). File 2006 taxes online free Floods. File 2006 taxes online free Government-ordered demolition or relocation of a home that is unsafe to use because of a disaster as discussed under Disaster Area Losses , later. File 2006 taxes online free Mine cave-ins. File 2006 taxes online free Shipwrecks. File 2006 taxes online free Sonic booms. File 2006 taxes online free Storms, including hurricanes and tornadoes. File 2006 taxes online free Terrorist attacks. File 2006 taxes online free Vandalism. File 2006 taxes online free Volcanic eruptions. File 2006 taxes online free Nondeductible losses. File 2006 taxes online free   A casualty loss is not deductible if the damage or destruction is caused by the following. File 2006 taxes online free Accidentally breaking articles such as glassware or china under normal conditions. File 2006 taxes online free A family pet (explained below). File 2006 taxes online free A fire if you willfully set it, or pay someone else to set it. File 2006 taxes online free A car accident if your willful negligence or willful act caused it. File 2006 taxes online free The same is true if the willful act or willful negligence of someone acting for you caused the accident. File 2006 taxes online free Progressive deterioration (explained below). File 2006 taxes online free However, see Special Procedure for Damage From Corrosive Drywall , later. File 2006 taxes online free Family pet. File 2006 taxes online free   Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed earlier under Casualty are met. File 2006 taxes online free Example. File 2006 taxes online free Your antique oriental rug was damaged by your new puppy before it was housebroken. File 2006 taxes online free Because the damage was not unexpected and unusual, the loss is not deductible as a casualty loss. File 2006 taxes online free Progressive deterioration. File 2006 taxes online free   Loss of property due to progressive deterioration is not deductible as a casualty loss. File 2006 taxes online free This is because the damage results from a steadily operating cause or a normal process, rather than from a sudden event. File 2006 taxes online free The following are examples of damage due to progressive deterioration. File 2006 taxes online free The steady weakening of a building due to normal wind and weather conditions. File 2006 taxes online free The deterioration and damage to a water heater that bursts. File 2006 taxes online free However, the rust and water damage to rugs and drapes caused by the bursting of a water heater does qualify as a casualty. File 2006 taxes online free Most losses of property caused by droughts. File 2006 taxes online free To be deductible, a drought-related loss generally must be incurred in a trade or business or in a transaction entered into for profit. File 2006 taxes online free Termite or moth damage. File 2006 taxes online free The damage or destruction of trees, shrubs, or other plants by a fungus, disease, insects, worms, or similar pests. File 2006 taxes online free However, a sudden destruction due to an unexpected or unusual infestation of beetles or other insects may result in a casualty loss. File 2006 taxes online free Special Procedure for Damage From Corrosive Drywall Under a special procedure, you can deduct the amounts you paid to repair damage to your home and household appliances due to corrosive drywall. File 2006 taxes online free Under this procedure, you treat the amounts paid for repairs as a casualty loss in the year of payment. File 2006 taxes online free For example, amounts you paid for repairs in 2013 are deductible on your 2013 tax return and amounts you paid for repairs in 2012 are deductible on your 2012 tax return. File 2006 taxes online free Note. File 2006 taxes online free If you paid for any repairs before 2013 and you choose to follow this special procedure, you can amend your return for the earlier year by filing Form 1040X, Amended U. File 2006 taxes online free S. File 2006 taxes online free Individual Income Tax Return, and attaching a completed Form 4684 for the appropriate year. File 2006 taxes online free Form 4684 for the appropriate year can be found at IRS. File 2006 taxes online free gov. File 2006 taxes online free Generally, Form 1040X must be filed within 3 years after the date the original return was filed or within 2 years after the date the tax was paid, whichever is later. File 2006 taxes online free Corrosive drywall. File 2006 taxes online free   For purposes of this special procedure, “corrosive drywall” means drywall that is identified as problem drywall under the two-step identification method published by the Consumer Product Safety Commission (CPSC) and the Department of Housing and Urban Development (HUD) in their interim guidance dated January 28, 2010, as revised by the CPSC and HUD. File 2006 taxes online free The revised identification guidance and remediation guidelines are available at www. File 2006 taxes online free cpsc. File 2006 taxes online free gov/Safety-Education/Safety-Education-Centers/Drywall. File 2006 taxes online free Special instructions for completing Form 4684. File 2006 taxes online free   If you choose to follow this special procedure, complete Form 4684, Section A, according to the instructions below. File 2006 taxes online free The IRS will not challenge your treatment of damage resulting from corrosive drywall as a casualty loss if you determine and report the loss as explained below. File 2006 taxes online free Top margin of Form 4684. File 2006 taxes online free   Enter “Revenue Procedure 2010-36”. File 2006 taxes online free Line 1. File 2006 taxes online free   Enter the information required by the line 1 instructions. File 2006 taxes online free Line 2. File 2006 taxes online free   Skip this line. File 2006 taxes online free Line 3. File 2006 taxes online free   Enter the amount of insurance or other reimbursements you received (including through litigation). File 2006 taxes online free If none, enter -0-. File 2006 taxes online free Lines 4–7. File 2006 taxes online free   Skip these lines. File 2006 taxes online free Line 8. File 2006 taxes online free   Enter the amount you paid to repair the damage to your home and household appliances due to corrosive drywall. File 2006 taxes online free Enter only the amounts you paid to restore your home to the condition existing immediately before the damage. File 2006 taxes online free Do not enter any amounts you paid for improvements or additions that increased the value of your home above its pre-loss value. File 2006 taxes online free If you replaced a household appliance instead of repairing it, enter the lesser of: The current cost to replace the original appliance, or The basis of the original appliance (generally its cost). File 2006 taxes online free Line 9. File 2006 taxes online free   If line 8 is more than line 3, do one of the following. File 2006 taxes online free If you have a pending claim for reimbursement (or you intend to pursue reimbursement), enter 75% of the difference between lines 3 and 8. File 2006 taxes online free If item (1) does not apply to you, enter the full amount of the difference between lines 3 and 8. File 2006 taxes online free If line 8 is less than or equal to line 3, you cannot claim a casualty loss deduction using this special procedure. File 2006 taxes online free    If you have a pending claim for reimbursement (or you intend to pursue reimbursement), you may have income or an additional deduction in a later tax year depending on the actual amount of reimbursement received. File 2006 taxes online free See Reimbursement Received After Deducting Loss, later. File 2006 taxes online free Lines 10–18. File 2006 taxes online free   Complete these lines according to the Instructions for Form 4684. File 2006 taxes online free Choosing not to follow this special procedure. File 2006 taxes online free   If you choose not to follow this special procedure, you are subject to all of the provisions that apply to the deductibility of casualty losses, and you must complete lines 1–9 according to the Instructions for Form 4684. File 2006 taxes online free This means, for example, that you must establish that the damage, destruction, or loss of property resulted from an identifiable event as defined earlier under Casualty . File 2006 taxes online free Furthermore, you must have proof that shows the following. File 2006 taxes online free The loss is properly deductible in the tax year you claimed it and not in some other year. File 2006 taxes online free See When To Report Gains and Losses , later. File 2006 taxes online free The amount of the claimed loss. File 2006 taxes online free See Proof of Loss , later. File 2006 taxes online free No claim for reimbursement of any portion of the loss exists for which there is a reasonable prospect of recovery. File 2006 taxes online free See When To Report Gains and Losses , later. File 2006 taxes online free Theft A theft is the taking and removing of money or property with the intent to deprive the owner of it. File 2006 taxes online free The taking of property must be illegal under the law of the state where it occurred and it must have been done with criminal intent. File 2006 taxes online free You do not need to show a conviction for theft. File 2006 taxes online free Theft includes the taking of money or property by the following means. File 2006 taxes online free Blackmail. File 2006 taxes online free Burglary. File 2006 taxes online free Embezzlement. File 2006 taxes online free Extortion. File 2006 taxes online free Kidnapping for ransom. File 2006 taxes online free Larceny. File 2006 taxes online free Robbery. File 2006 taxes online free The taking of money or property through fraud or misrepresentation is theft if it is illegal under state or local law. File 2006 taxes online free Decline in market value of stock. File 2006 taxes online free   You cannot deduct as a theft loss the decline in market value of stock acquired on the open market for investment if the decline is caused by disclosure of accounting fraud or other illegal misconduct by the officers or directors of the corporation that issued the stock. File 2006 taxes online free However, you can deduct as a capital loss the loss you sustain when you sell or exchange the stock or the stock becomes completely worthless. File 2006 taxes online free You report a capital loss on Schedule D (Form 1040). File 2006 taxes online free For more information about stock sales, worthless stock, and capital losses, see chapter 4 of Publication 550. File 2006 taxes online free Mislaid or lost property. File 2006 taxes online free    The simple disappearance of money or property is not a theft. File 2006 taxes online free However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. File 2006 taxes online free Sudden, unexpected, and unusual events were defined earlier under Casualty . File 2006 taxes online free Example. File 2006 taxes online free A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. File 2006 taxes online free The diamond falls from the ring and is never found. File 2006 taxes online free The loss of the diamond is a casualty. File 2006 taxes online free Losses from Ponzi-type investment schemes. File 2006 taxes online free   The IRS has issued the following guidance to assist taxpayers who are victims of losses from Ponzi-type investment schemes: Revenue Ruling 2009-9, 2009-14 I. File 2006 taxes online free R. File 2006 taxes online free B. File 2006 taxes online free 735 (available at www. File 2006 taxes online free irs. File 2006 taxes online free gov/irb/2009-14_IRB/ar07. File 2006 taxes online free html). File 2006 taxes online free Revenue Procedure 2009-20, 2009-14 I. File 2006 taxes online free R. File 2006 taxes online free B. File 2006 taxes online free 749 (available at www. File 2006 taxes online free irs. File 2006 taxes online free gov/irb/2009-14_IRB/ar11. File 2006 taxes online free html). File 2006 taxes online free Revenue Procedure 2011-58, 2011-50 I. File 2006 taxes online free R. File 2006 taxes online free B. File 2006 taxes online free 847 (available at www. File 2006 taxes online free irs. File 2006 taxes online free gov/irb/2011-50_IRB/ar11. File 2006 taxes online free html). File 2006 taxes online free If you qualify to use Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, and you choose to follow the procedures in the guidance, first fill out Section C of Form 4684 to determine the amount to enter on Section B, line 28. File 2006 taxes online free Skip lines 19 to 27, but you must fill out Section B, lines 29 to 39, as appropriate. File 2006 taxes online free Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. File 2006 taxes online free You do not need to complete Appendix A. File 2006 taxes online free For more information, see the above revenue ruling and revenue procedures, and the Instructions for Form 4684. File 2006 taxes online free   If you choose not to use the procedures in Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58, you may claim your theft loss by filling out Section B, lines 19 to 39, as appropriate. File 2006 taxes online free Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. File 2006 taxes online free If you incurred this type of loss, you can choose one of the following ways to deduct the loss. File 2006 taxes online free As a casualty loss. File 2006 taxes online free As an ordinary loss. File 2006 taxes online free As a nonbusiness bad debt. File 2006 taxes online free Casualty loss or ordinary loss. File 2006 taxes online free   You can choose to deduct a loss on deposits as a casualty loss or as an ordinary loss for any year in which you can reasonably estimate how much of your deposits you have lost in an insolvent or bankrupt financial institution. File 2006 taxes online free The choice generally is made on the return you file for that year and applies to all your losses on deposits for the year in that particular financial institution. File 2006 taxes online free If you treat the loss as a casualty or ordinary loss, you cannot treat the same amount of the loss as a nonbusiness bad debt when it actually becomes worthless. File 2006 taxes online free However, you can take a nonbusiness bad debt deduction for any amount of loss that is more than the estimated amount you deducted as a casualty or ordinary loss. File 2006 taxes online free Once you make the choice, you cannot change it without permission from the Internal Revenue Service. File 2006 taxes online free   If you claim an ordinary loss, report it as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. File 2006 taxes online free The maximum amount you can claim is $20,000 ($10,000 if you are married filing separately) reduced by any expected state insurance proceeds. File 2006 taxes online free Your loss is subject to the 2%-of-adjusted-gross-income limit. File 2006 taxes online free You cannot choose to claim an ordinary loss if any part of the deposit is federally insured. File 2006 taxes online free Nonbusiness bad debt. File 2006 taxes online free   If you do not choose to deduct the loss as a casualty loss or as an ordinary loss, you must wait until the year the actual loss is determined and deduct the loss as a nonbusiness bad debt in that year. File 2006 taxes online free How to report. File 2006 taxes online free   The kind of deduction you choose for your loss on deposits determines how you report your loss. File 2006 taxes online free See Table 1. File 2006 taxes online free More information. File 2006 taxes online free   For more information, see Special Treatment for Losses on Deposits in Insolvent or Bankrupt Financial Institutions in the Instructions for Form 4684. File 2006 taxes online free Deducted loss recovered. File 2006 taxes online free   If you recover an amount you deducted as a loss in an earlier year, you may have to include the amount recovered in your income for the year of recovery. File 2006 taxes online free If any part of the original deduction did not reduce your tax in the earlier year, you do not have to include that part of the recovery in your income. File 2006 taxes online free For more information, see Recoveries in Publication 525. File 2006 taxes online free Proof of Loss To deduct a casualty or theft loss, you must be able to show that there was a casualty or theft. File 2006 taxes online free You also must be able to support the amount you take as a deduction. File 2006 taxes online free Casualty loss proof. File 2006 taxes online free   For a casualty loss, you should be able to show all of the following. File 2006 taxes online free The type of casualty (car accident, fire, storm, etc. File 2006 taxes online free ) and when it occurred. File 2006 taxes online free That the loss was a direct result of the casualty. File 2006 taxes online free That you were the owner of the property, or if you leased the property from someone else, that you were contractually liable to the owner for the damage. File 2006 taxes online free Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. File 2006 taxes online free Theft loss proof. File 2006 taxes online free   For a theft loss, you should be able to show all of the following. File 2006 taxes online free When you discovered that your property was missing. File 2006 taxes online free That your property was stolen. File 2006 taxes online free That you were the owner of the property. File 2006 taxes online free Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery. File 2006 taxes online free    It is important that you have records that will prove your deduction. File 2006 taxes online free If you do not have the actual records to support your deduction, you can use other satisfactory evidence to support it. File 2006 taxes online free Figuring a Loss To determine your deduction for a casualty or theft loss, you must first figure your loss. File 2006 taxes online free Table 1. File 2006 taxes online free Reporting Loss on Deposits IF you choose to report the loss as a(n). File 2006 taxes online free . File 2006 taxes online free . File 2006 taxes online free   THEN report it on. File 2006 taxes online free . File 2006 taxes online free . File 2006 taxes online free casualty loss   Form 4684 and Schedule A  (Form 1040). File 2006 taxes online free ordinary loss   Schedule A (Form 1040). File 2006 taxes online free nonbusiness bad debt   Form 8949 and Schedule D (Form 1040). File 2006 taxes online free Amount of loss. File 2006 taxes online free   Figure the amount of your loss using the following steps. File 2006 taxes online free Determine your adjusted basis in the property before the casualty or theft. File 2006 taxes online free Determine the decrease in fair market value (FMV) of the property as a result of the casualty or theft. File 2006 taxes online free From the smaller of the amounts you determined in (1) and (2), subtract any insurance or other reimbursement you received or expect to receive. File 2006 taxes online free For personal-use property and property used in performing services as an employee, apply the deduction limits, discussed later, to determine the amount of your deductible loss. File 2006 taxes online free Gain from reimbursement. File 2006 taxes online free   If your reimbursement is more than your adjusted basis in the property, you have a gain. File 2006 taxes online free This is true even if the decrease in the FMV of the property is smaller than your adjusted basis. File 2006 taxes online free If you have a gain, you may have to pay tax on it, or you may be able to postpone reporting the gain. File 2006 taxes online free See Figuring a Gain , later. File 2006 taxes online free Business or income-producing property. File 2006 taxes online free   If you have business or income-producing property, such as rental property, and it is stolen or completely destroyed, the decrease in FMV is not considered. File 2006 taxes online free Your loss is figured as follows:   Your adjusted basis in the property     MINUS     Any salvage value     MINUS     Any insurance or other reimbursement you  receive or expect to receive   Loss of inventory. File 2006 taxes online free   There are two ways you can deduct a casualty or theft loss of inventory, including items you hold for sale to customers. File 2006 taxes online free   One way is to deduct the loss through the increase in the cost of goods sold by properly reporting your opening and closing inventories. File 2006 taxes online free Do not claim this loss again as a casualty or theft loss. File 2006 taxes online free If you take the loss through the increase in the cost of goods sold, include any insurance or other reimbursement you receive for the loss in gross income. File 2006 taxes online free   The other way is to deduct the loss separately. File 2006 taxes online free If you deduct it separately, eliminate the affected inventory items from the cost of goods sold by making a downward adjustment to opening inventory or purchases. File 2006 taxes online free Reduce the loss by the reimbursement you received. File 2006 taxes online free Do not include the reimbursement in gross income. File 2006 taxes online free If you do not receive the reimbursement by the end of the year, you may not claim a loss to the extent you have a reasonable prospect of recovery. File 2006 taxes online free Leased property. File 2006 taxes online free   If you are liable for casualty damage to property you lease, your loss is the amount you must pay to repair the property minus any insurance or other reimbursement you receive or expect to receive. File 2006 taxes online free Separate computations. File 2006 taxes online free   Generally, if a single casualty or theft involves more than one item of property, you must figure the loss on each item separately. File 2006 taxes online free Then combine the losses to determine the total loss from that casualty or theft. File 2006 taxes online free Exception for personal-use real property. File 2006 taxes online free   In figuring a casualty loss on personal-use real property, the entire property (including any improvements, such as buildings, trees, and shrubs) is treated as one item. File 2006 taxes online free Figure the loss using the smaller of the following. File 2006 taxes online free The decrease in FMV of the entire property. File 2006 taxes online free The adjusted basis of the entire property. File 2006 taxes online free   See Real property under Figuring the Deduction, later. File 2006 taxes online free Decrease in Fair Market Value Fair market value (FMV) is the price for which you could sell your property to a willing buyer when neither of you has to sell or buy and both of you know all the relevant facts. File 2006 taxes online free The decrease in FMV used to figure the amount of a casualty or theft loss is the difference between the property's fair market value immediately before and immediately after the casualty or theft. File 2006 taxes online free FMV of stolen property. File 2006 taxes online free   The FMV of property immediately after a theft is considered to be zero because you no longer have the property. File 2006 taxes online free Example. File 2006 taxes online free Several years ago, you purchased silver dollars at face value for $150. File 2006 taxes online free This is your adjusted basis in the property. File 2006 taxes online free Your silver dollars were stolen this year. File 2006 taxes online free The FMV of the coins was $1,000 just before they were stolen, and insurance did not cover them. File 2006 taxes online free Your theft loss is $150. File 2006 taxes online free Recovered stolen property. File 2006 taxes online free   Recovered stolen property is your property that was stolen and later returned to you. File 2006 taxes online free If you recovered property after you had already taken a theft loss deduction, you must refigure your loss using the smaller of the property's adjusted basis (explained later) or the decrease in FMV from the time just before it was stolen until the time it was recovered. File 2006 taxes online free Use this amount to refigure your total loss for the year in which the loss was deducted. File 2006 taxes online free   If your refigured loss is less than the loss you deducted, you generally have to report the difference as income in the recovery year. File 2006 taxes online free But report the difference only up to the amount of the loss that reduced your tax. File 2006 taxes online free For more information on the amount to report, see Recoveries in Publication 525. File 2006 taxes online free Figuring Decrease in FMV — Items To Consider To figure the decrease in FMV because of a casualty or theft, you generally need a competent appraisal. File 2006 taxes online free However, other measures also can be used to establish certain decreases. File 2006 taxes online free See Appraisal and Cost of cleaning up or making repairs , next. File 2006 taxes online free Appraisal. File 2006 taxes online free   An appraisal to determine the difference between the FMV of the property immediately before a casualty or theft and immediately afterwards should be made by a competent appraiser. File 2006 taxes online free The appraiser must recognize the effects of any general market decline that may occur along with the casualty. File 2006 taxes online free This information is needed to limit any deduction to the actual loss resulting from damage to the property. File 2006 taxes online free   Several factors are important in evaluating the accuracy of an appraisal, including the following. File 2006 taxes online free The appraiser's familiarity with your property before and after the casualty or theft. File 2006 taxes online free The appraiser's knowledge of sales of comparable property in the area. File 2006 taxes online free The appraiser's knowledge of conditions in the area of the casualty. File 2006 taxes online free The appraiser's method of appraisal. File 2006 taxes online free You may be able to use an appraisal that you used to get a federal loan (or a federal loan guarantee) as the result of a federally declared disaster to establish the amount of your disaster loss. File 2006 taxes online free For more information on disasters, see Disaster Area Losses, later. File 2006 taxes online free Cost of cleaning up or making repairs. File 2006 taxes online free   The cost of repairing damaged property is not part of a casualty loss. File 2006 taxes online free Neither is the cost of cleaning up after a casualty. File 2006 taxes online free But you can use the cost of cleaning up or of making repairs after a casualty as a measure of the decrease in FMV if you meet all the following conditions. File 2006 taxes online free The repairs are actually made. File 2006 taxes online free The repairs are necessary to bring the property back to its condition before the casualty. File 2006 taxes online free The amount spent for repairs is not excessive. File 2006 taxes online free The repairs take care of the damage only. File 2006 taxes online free The value of the property after the repairs is not, due to the repairs, more than the value of the property before the casualty. File 2006 taxes online free Landscaping. File 2006 taxes online free   The cost of restoring landscaping to its original condition after a casualty may indicate the decrease in FMV. File 2006 taxes online free You may be able to measure your loss by what you spend on the following. File 2006 taxes online free Removing destroyed or damaged trees and shrubs, minus any salvage you receive. File 2006 taxes online free Pruning and other measures taken to preserve damaged trees and shrubs. File 2006 taxes online free Replanting necessary to restore the property to its approximate value before the casualty. File 2006 taxes online free Car value. File 2006 taxes online free   Books issued by various automobile organizations that list your car may be useful in figuring the value of your car. File 2006 taxes online free You can use the books' retail values and modify them by factors such as the mileage and condition of your car to figure its value. File 2006 taxes online free The prices are not official, but they may be useful in determining value and suggesting relative prices for comparison with current sales and offerings in your area. File 2006 taxes online free If your car is not listed in the books, determine its value from other sources. File 2006 taxes online free A dealer's offer for your car as a trade-in on a new car is not usually a measure of its true value. File 2006 taxes online free Figuring Decrease in FMV — Items Not To Consider You generally should not consider the following items when attempting to establish the decrease in FMV of your property. File 2006 taxes online free Cost of protection. File 2006 taxes online free   The cost of protecting your property against a casualty or theft is not part of a casualty or theft loss. File 2006 taxes online free The amount you spend on insurance or to board up your house against a storm is not part of your loss. File 2006 taxes online free If the property is business property, these expenses are deductible as business expenses. File 2006 taxes online free   If you make permanent improvements to your property to protect it against a casualty or theft, add the cost of these improvements to your basis in the property. File 2006 taxes online free An example would be the cost of a dike to prevent flooding. File 2006 taxes online free Exception. File 2006 taxes online free   You cannot increase your basis in the property by, or deduct as a business expense, any expenditures you made with respect to qualified disaster mitigation payments (discussed later under Disaster Area Losses ). File 2006 taxes online free Related expenses. File 2006 taxes online free   The incidental expenses due to a casualty or theft, such as expenses for the treatment of personal injuries, for temporary housing, or for a rental car, are not part of your casualty or theft loss. File 2006 taxes online free However, they may be deductible as business expenses if the damaged or stolen property is business property. File 2006 taxes online free Replacement cost. File 2006 taxes online free   The cost of replacing stolen or destroyed property is not part of a casualty or theft loss. File 2006 taxes online free Example. File 2006 taxes online free You bought a new chair 4 years ago for $300. File 2006 taxes online free In April, a fire destroyed the chair. File 2006 taxes online free You estimate that it would cost $500 to replace it. File 2006 taxes online free If you had sold the chair before the fire, you estimate that you could have received only $100 for it because it was 4 years old. File 2006 taxes online free The chair was not insured. File 2006 taxes online free Your loss is $100, the FMV of the chair before the fire. File 2006 taxes online free It is not $500, the replacement cost. File 2006 taxes online free Sentimental value. File 2006 taxes online free   Do not consider sentimental value when determining your loss. File 2006 taxes online free If a family portrait, heirloom, or keepsake is damaged, destroyed, or stolen, you must base your loss on its FMV, as limited by your adjusted basis in the property. File 2006 taxes online free Decline in market value of property in or near casualty area. File 2006 taxes online free   A decrease in the value of your property because it is in or near an area that suffered a casualty, or that might again suffer a casualty, is not to be taken into consideration. File 2006 taxes online free You have a loss only for actual casualty damage to your property. File 2006 taxes online free However, if your home is in a federally declared disaster area, see Disaster Area Losses , later. File 2006 taxes online free Costs of photographs and appraisals. File 2006 taxes online free   Photographs taken after a casualty will be helpful in establishing the condition and value of the property after it was damaged. File 2006 taxes online free Photographs showing the condition of the property after it was repaired, restored, or replaced may also be helpful. File 2006 taxes online free   Appraisals are used to figure the decrease in FMV because of a casualty or theft. File 2006 taxes online free See Appraisal , earlier, under Figuring Decrease in FMV — Items To Consider, for information about appraisals. File 2006 taxes online free   The costs of photographs and appraisals used as evidence of the value and condition of property damaged as a result of a casualty are not a part of the loss. File 2006 taxes online free They are expenses in determining your tax liability. File 2006 taxes online free You can claim these costs as a miscellaneous itemized deduction subject to the 2%-of-adjusted-gross-income limit on Schedule A (Form 1040). File 2006 taxes online free Adjusted Basis The measure of your investment in the property you own is its basis. File 2006 taxes online free For property you buy, your basis is usually its cost to you. File 2006 taxes online free For property you acquire in some other way, such as inheriting it, receiving it as a gift, or getting it in a nontaxable exchange, you must figure your basis in another way, as explained in Publication 551. File 2006 taxes online free If you inherited the property from someone who died in 2010 and the executor of the decedent's estate made the election to file Form 8939, refer to the information provided by the executor or see Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010. File 2006 taxes online free Adjustments to basis. File 2006 taxes online free    While you own the property, various events may take place that change your basis. File 2006 taxes online free Some events, such as additions or permanent improvements to the property, increase basis. File 2006 taxes online free Others, such as earlier casualty losses and depreciation deductions, decrease basis. File 2006 taxes online free When you add the increases to the basis and subtract the decreases from the basis, the result is your adjusted basis. File 2006 taxes online free See Publication 551 for more information on figuring the basis of your property. File 2006 taxes online free Insurance and Other Reimbursements If you receive an insurance or other type of reimbursement, you must subtract the reimbursement when you figure your loss. File 2006 taxes online free You do not have a casualty or theft loss to the extent you are reimbursed. File 2006 taxes online free If you expect to be reimbursed for part or all of your loss, you must subtract the expected reimbursement when you figure your loss. File 2006 taxes online free You must reduce your loss even if you do not receive payment until a later tax year. File 2006 taxes online free See Reimbursement Received After Deducting Loss , later. File 2006 taxes online free Failure to file a claim for reimbursement. File 2006 taxes online free   If your property is covered by insurance, you must file a timely insurance claim for reimbursement of your loss. File 2006 taxes online free Otherwise, you cannot deduct this loss as a casualty or theft. File 2006 taxes online free The portion of the loss usually not covered by insurance (for example, a deductible) is not subject to this rule. File 2006 taxes online free Example. File 2006 taxes online free You have a car insurance policy with a $1,000 deductible. File 2006 taxes online free Because your insurance did not cover the first $1,000 of an auto collision, the $1,000 would be deductible (subject to the $100 and 10% rules, discussed later). File 2006 taxes online free This is true, even if you do not file an insurance claim, because your insurance policy would never have reimbursed you for the deductible. File 2006 taxes online free Types of Reimbursements The most common type of reimbursement is an insurance payment for your stolen or damaged property. File 2006 taxes online free Other types of reimbursements are discussed next. File 2006 taxes online free Also see the Instructions for Form 4684. File 2006 taxes online free Employer's emergency disaster fund. File 2006 taxes online free   If you receive money from your employer's emergency disaster fund and you must use that money to rehabilitate or replace property on which you are claiming a casualty loss deduction, you must take that money into consideration in computing the casualty loss deduction. File 2006 taxes online free Take into consideration only the amount you used to replace your destroyed or damaged property. File 2006 taxes online free Example. File 2006 taxes online free Your home was extensively damaged by a tornado. File 2006 taxes online free Your loss after reimbursement from your insurance company was $10,000. File 2006 taxes online free Your employer set up a disaster relief fund for its employees. File 2006 taxes online free Employees receiving money from the fund had to use it to rehabilitate or replace their damaged or destroyed property. File 2006 taxes online free You received $4,000 from the fund and spent the entire amount on repairs to your home. File 2006 taxes online free In figuring your casualty loss, you must reduce your unreimbursed loss ($10,000) by the $4,000 you received from your employer's fund. File 2006 taxes online free Your casualty loss before applying the deduction limits (discussed later) is $6,000. File 2006 taxes online free Cash gifts. File 2006 taxes online free   If you receive excludable cash gifts as a disaster victim and there are no limits on how you can use the money, you do not reduce your casualty loss by these excludable cash gifts. File 2006 taxes online free This applies even if you use the money to pay for repairs to property damaged in the disaster. File 2006 taxes online free Example. File 2006 taxes online free Your home was damaged by a hurricane. File 2006 taxes online free Relatives and neighbors made cash gifts to you that were excludable from your income. File 2006 taxes online free You used part of the cash gifts to pay for repairs to your home. File 2006 taxes online free There were no limits or restrictions on how you could use the cash gifts. File 2006 taxes online free It was an excludable gift, so the money you received and used to pay for repairs to your home does not reduce your casualty loss on the damaged home. File 2006 taxes online free Insurance payments for living expenses. File 2006 taxes online free   You do not reduce your casualty loss by insurance payments you receive to cover living expenses in either of the following situations. File 2006 taxes online free You lose the use of your main home because of a casualty. File 2006 taxes online free Government authorities do not allow you access to your main home because of a casualty or threat of one. File 2006 taxes online free Inclusion in income. File 2006 taxes online free   If these insurance payments are more than the temporary increase in your living expenses, you must include the excess in your income. File 2006 taxes online free Report this amount on Form 1040, line 21. File 2006 taxes online free However, if the casualty occurs in a federally declared disaster area, none of the insurance payments are taxable. File 2006 taxes online free See Qualified disaster relief payments , later, under Disaster Area Losses. File 2006 taxes online free   A temporary increase in your living expenses is the difference between the actual living expenses you and your family incurred during the period you could not use your home and your normal living expenses for that period. File 2006 taxes online free Actual living expenses are the reasonable and necessary expenses incurred because of the loss of your main home. File 2006 taxes online free Generally, these expenses include the amounts you pay for the following. File 2006 taxes online free Renting suitable housing. File 2006 taxes online free Transportation. File 2006 taxes online free Food. File 2006 taxes online free Utilities. File 2006 taxes online free Miscellaneous services. File 2006 taxes online free Normal living expenses consist of these same expenses that you would have incurred but did not because of the casualty or the threat of one. File 2006 taxes online free Example. File 2006 taxes online free As a result of a fire, you vacated your apartment for a month and moved to a motel. File 2006 taxes online free You normally pay $525 a month for rent. File 2006 taxes online free None was charged for the month the apartment was vacated. File 2006 taxes online free Your motel rent for this month was $1,200. File 2006 taxes online free You normally pay $200 a month for food. File 2006 taxes online free Your food expenses for the month you lived in the motel were $400. File 2006 taxes online free You received $1,100 from your insurance company to cover your living expenses. File 2006 taxes online free You determine the payment you must include in income as follows. File 2006 taxes online free 1. File 2006 taxes online free Insurance payment for living expenses $1,100 2. File 2006 taxes online free Actual expenses during the month you are unable to use your home because of the fire $1,600   3. File 2006 taxes online free Normal living expenses 725   4. File 2006 taxes online free Temporary increase in living expenses: Subtract line 3  from line 2 875 5. File 2006 taxes online free Amount of payment includible in income: Subtract line 4 from line 1 $ 225 Tax year of inclusion. File 2006 taxes online free   You include the taxable part of the insurance payment in income for the year you regain the use of your main home or, if later, for the year you receive the taxable part of the insurance payment. File 2006 taxes online free Example. File 2006 taxes online free Your main home was destroyed by a tornado in August 2011. File 2006 taxes online free You regained use of your home in November 2012. File 2006 taxes online free The insurance payments you received in 2011 and 2012 were $1,500 more than the temporary increase in your living expenses during those years. File 2006 taxes online free You include this amount in income on your 2012 Form 1040. File 2006 taxes online free If, in 2013, you receive further payments to cover the living expenses you had in 2011 and 2012, you must include those payments in income on your 2013 Form 1040. File 2006 taxes online free Disaster relief. File 2006 taxes online free   Food, medical supplies, and other forms of assistance you receive do not reduce your casualty loss, unless they are replacements for lost or destroyed property. File 2006 taxes online free Table 2. File 2006 taxes online free Deduction Limit Rules for Personal-Use and Employee Property       $100 Rule 10% Rule 2% Rule General Application You must reduce each casualty or theft loss by $100 when figuring your deduction. File 2006 taxes online free Apply this rule to personal-use property after you have figured the amount of your loss. File 2006 taxes online free You must reduce your total casualty or theft loss by 10% of your adjusted gross income. File 2006 taxes online free Apply this rule to personal-use property after you reduce each loss by $100 (the $100 rule). File 2006 taxes online free You must reduce your total casualty or theft loss by 2% of your adjusted gross income. File 2006 taxes online free Apply this rule to property you used in performing services as an employee after you have figured the amount of your loss and added it to your job expenses and most other miscellaneous itemized deductions. File 2006 taxes online free Single Event Apply this rule only once, even if many pieces of property are affected. File 2006 taxes online free Apply this rule only once, even if many pieces of property are affected. File 2006 taxes online free Apply this rule only once, even if many pieces of property are affected. File 2006 taxes online free More Than One Event Apply to the loss from each event. File 2006 taxes online free Apply to the total of all your losses from all events. File 2006 taxes online free Apply to the total of all your losses from all events. File 2006 taxes online free More Than One Person— With Loss From the   Same Event  (other than a married couple  filing jointly) Apply separately to each person. File 2006 taxes online free Apply separately to each person. File 2006 taxes online free Apply separately to each person. File 2006 taxes online free Married Couple—  With Loss From the  Same Event Filing Joint Return Apply as if you were one person. File 2006 taxes online free Apply as if you were one person. File 2006 taxes online free Apply as if you were one person. File 2006 taxes online free Filing Separate Return Apply separately to each spouse. File 2006 taxes online free Apply separately to each spouse. File 2006 taxes online free Apply separately to each spouse. File 2006 taxes online free More Than One Owner (other than a married couple filing jointly) Apply separately to each owner of jointly owned property. File 2006 taxes online free Apply separately to each owner of jointly owned property. File 2006 taxes online free Apply separately to each owner of jointly owned property. File 2006 taxes online free    Qualified disaster relief payments you receive for expenses you incurred as a result of a federally declared disaster, are not taxable income to you. File 2006 taxes online free For more information, see Qualified disaster relief payments under Disaster Area Losses, later. File 2006 taxes online free   Disaster unemployment assistance payments are unemployment benefits that are taxable. File 2006 taxes online free   Generally, disaster relief grants received under the Robert T. File 2006 taxes online free Stafford Disaster Relief and Emergency Assistance Act are not included in your income. File 2006 taxes online free See Federal disaster relief grants , later, under Disaster Area Losses. File 2006 taxes online free Loan proceeds. File 2006 taxes online free   Do not reduce your casualty loss by loan proceeds you use to rehabilitate or replace property on which you are claiming a casualty loss deduction. File 2006 taxes online free If you have a federal loan that is canceled (forgiven), see Federal loan canceled , later, under Disaster Area Losses. File 2006 taxes online free Reimbursement Received After Deducting Loss If you figured your casualty or theft loss using the amount of your expected reimbursement, you may have to adjust your tax return for the tax year in which you get your actual reimbursement. File 2006 taxes online free This section explains the adjustment you may have to make. File 2006 taxes online free Actual reimbursement less than expected. File 2006 taxes online free   If you later receive less reimbursement than you expected, include that difference as a loss with your other losses (if any) on your return for the year in which you can reasonably expect no more reimbursement. File 2006 taxes online free Example. File 2006 taxes online free Your personal car had a FMV of $2,000 when it was destroyed in a collision with another car in 2012. File 2006 taxes online free The accident was due to the negligence of the other driver. File 2006 taxes online free At the end of 2012, there was a reasonable prospect that the owner of the other car would reimburse you in full. File 2006 taxes online free You did not have a deductible loss in 2012. File 2006 taxes online free In January 2013, the court awards you a judgment of $2,000. File 2006 taxes online free However, in July it becomes apparent that you will be unable to collect any amount from the other driver. File 2006 taxes online free Since this is your only casualty or theft loss, you can deduct the loss in 2013 that is figured by applying the Deduction Limits (discussed later). File 2006 taxes online free Actual reimbursement more than expected. File 2006 taxes online free   If you later receive more reimbursement than you expected, after you have claimed a deduction for the loss, you may have to include the extra reimbursement in your income for the year you receive it. File 2006 taxes online free However, if any part of the original deduction did not reduce your tax for the earlier year, do not include that part of the reimbursement in your income. File 2006 taxes online free You do not refigure your tax for the year you claimed the deduction. File 2006 taxes online free See Recoveries in Publication 525 to find out how much extra reimbursement to include in income. File 2006 taxes online free Example. File 2006 taxes online free In 2012, a hurricane destroyed your motorboat. File 2006 taxes online free Your loss was $3,000, and you estimated that your insurance would cover $2,500 of it. File 2006 taxes online free You did not itemize deductions on your 2012 return, so you could not deduct the loss. File 2006 taxes online free When the insurance company reimburses you for the loss, you do not report any of the reimbursement as income. File 2006 taxes online free This is true even if it is for the full $3,000 because you did not deduct the loss on your 2012 return. File 2006 taxes online free The loss did not reduce your tax. File 2006 taxes online free    If the total of all the reimbursements you receive is more than your adjusted basis in the destroyed or stolen property, you will have a gain on the casualty or theft. File 2006 taxes online free If you have already taken a deduction for a loss and you receive the reimbursement in a later year, you may have to include the gain in your income for the later year. File 2006 taxes online free Include the gain as ordinary income up to the amount of your deduction that reduced your tax for the earlier year. File 2006 taxes online free You may be able to postpone reporting any remaining gain as explained under Postponement of Gain, later. File 2006 taxes online free Actual reimbursement same as expected. File 2006 taxes online free   If you receive exactly the reimbursement you expected to receive, you do not have to include any of the reimbursement in your income and you cannot deduct any additional loss. File 2006 taxes online free Example. File 2006 taxes online free In December 2013, you had a collision while driving your personal car. File 2006 taxes online free Repairs to the car cost $950. File 2006 taxes online free You had $100 deductible collision insurance. File 2006 taxes online free Your insurance company agreed to reimburse you for the rest of the damage. File 2006 taxes online free Because you expected a reimbursement from the insurance company, you did not have a casualty loss deduction in 2013. File 2006 taxes online free Due to the $100 rule, you cannot deduct the $100 you paid as the deductible. File 2006 taxes online free When you receive the $850 from the insurance company in 2014, do not report it as income. File 2006 taxes online free Deduction Limits After you have figured your casualty or theft loss, you must figure how much of the loss you can deduct. File 2006 taxes online free The deduction for casualty and theft losses of employee property and personal-use property is limited. File 2006 taxes online free A loss on employee property is subject to the 2% rule, discussed next. File 2006 taxes online free With certain exceptions, a loss on property you own for your personal use is subject to the $100 and 10% rules, discussed later. File 2006 taxes online free The 2%, $100, and 10% rules are also summarized in Table 2 . File 2006 taxes online free Losses on business property (other than employee property) and income-producing property are not subject to these rules. File 2006 taxes online free However, if your casualty or theft loss involved a home you used for business or rented out, your deductible loss may be limited. File 2006 taxes online free See the Instructions for Form 4684, Section B. File 2006 taxes online free If the casualty or theft loss involved property used in a passive activity, see Form 8582, Passive Activity Loss Limitations, and its instructions. File 2006 taxes online free 2% Rule The casualty and theft loss deduction for employee property, when added to your job expenses and most other miscellaneous itemized deductions on Schedule A (Form 1040) or Form 1040NR, Schedule A, must be reduced by 2% of your adjusted gross income. File 2006 taxes online free Employee property is property used in performing services as an employee. File 2006 taxes online free $100 Rule After you have figured your casualty or theft loss on personal-use property, as discussed earlier, you must reduce that loss by $100. File 2006 taxes online free This reduction applies to each total casualty or theft loss. File 2006 taxes online free It does not matter how many pieces of property are involved in an event. File 2006 taxes online free Only a single $100 reduction applies. File 2006 taxes online free Example. File 2006 taxes online free You have $750 deductible collision insurance on your car. File 2006 taxes online free The car is damaged in a collision. File 2006 taxes online free The insurance company pays you for the damage minus the $750 deductible. File 2006 taxes online free The amount of the casualty loss is based solely on the deductible. File 2006 taxes online free The casualty loss is $650 ($750 − $100) because the first $100 of a casualty loss on personal-use property is not deductible. File 2006 taxes online free Single event. File 2006 taxes online free   Generally, events closely related in origin cause a single casualty. File 2006 taxes online free It is a single casualty when the damage is from two or more closely related causes, such as wind and flood damage caused by the same storm. File 2006 taxes online free A single casualty may also damage two or more pieces of property, such as a hailstorm that damages both your home and your car parked in your driveway. File 2006 taxes online free Example 1. File 2006 taxes online free A thunderstorm destroyed your pleasure boat. File 2006 taxes online free You also lost some boating equipment in the storm. File 2006 taxes online free Your loss was $5,000 on the boat and $1,200 on the equipment. File 2006 taxes online free Your insurance company reimbursed you $4,500 for the damage to your boat. File 2006 taxes online free You had no insurance coverage on the equipment. File 2006 taxes online free Your casualty loss is from a single event and the $100 rule applies once. File 2006 taxes online free Figure your loss before applying the 10% rule (discussed later) as follows. File 2006 taxes online free     Boat Equipment 1. File 2006 taxes online free Loss $5,000 $1,200 2. File 2006 taxes online free Subtract insurance 4,500 -0- 3. File 2006 taxes online free Loss after reimbursement $ 500 $1,200 4. File 2006 taxes online free Total loss $1,700 5. File 2006 taxes online free Subtract $100 100 6. File 2006 taxes online free Loss before 10% rule $1,600 Example 2. File 2006 taxes online free Thieves broke into your home in January and stole a ring and a fur coat. File 2006 taxes online free You had a loss of $200 on the ring and $700 on the coat. File 2006 taxes online free This is a single theft. File 2006 taxes online free The $100 rule applies to the total $900 loss. File 2006 taxes online free Example 3. File 2006 taxes online free In September, hurricane winds blew the roof off your home. File 2006 taxes online free Flood waters caused by the hurricane further damaged your home and destroyed your furniture and personal car. File 2006 taxes online free This is considered a single casualty. File 2006 taxes online free The $100 rule is applied to your total loss from the flood waters and the wind. File 2006 taxes online free More than one loss. File 2006 taxes online free   If you have more than one casualty or theft loss during your tax year, you must reduce each loss by $100. File 2006 taxes online free Example. File 2006 taxes online free Your family car was damaged in an accident in January. File 2006 taxes online free Your loss after the insurance reimbursement was $75. File 2006 taxes online free In February, your car was damaged in another accident. File 2006 taxes online free This time your loss after the insurance reimbursement was $90. File 2006 taxes online free Apply the $100 rule to each separate casualty loss. File 2006 taxes online free Since neither accident resulted in a loss of over $100, you are not entitled to any deduction for these accidents. File 2006 taxes online free More than one person. File 2006 taxes online free   If two or more individuals (other than a husband and wife filing a joint return) have losses from the same casualty or theft, the $100 rule applies separately to each individual. File 2006 taxes online free Example. File 2006 taxes online free A fire damaged your house and also damaged the personal property of your house guest. File 2006 taxes online free You must reduce your loss by $100. File 2006 taxes online free Your house guest must reduce his or her loss by $100. File 2006 taxes online free Married taxpayers. File 2006 taxes online free   If you and your spouse file a joint return, you are treated as one individual in applying the $100 rule. File 2006 taxes online free It does not matter whether you own the property jointly or separately. File 2006 taxes online free   If you and your spouse have a casualty or theft loss and you file separate returns, each of you must reduce your loss by $100. File 2006 taxes online free This is true even if you own the property jointly. File 2006 taxes online free If one spouse owns the property, only that spouse can figure a loss deduction on a separate return. File 2006 taxes online free   If the casualty or theft loss is on property you own as tenants by the entirety, each of you can figure your deduction on only one-half of the loss on separate returns. File 2006 taxes online free Neither of you can figure your deduction on the entire loss on a separate return. File 2006 taxes online free Each of you must reduce the loss by $100. File 2006 taxes online free More than one owner. File 2006 taxes online free   If two or more individuals (other than a husband and wife filing a joint return) have a loss on property jointly owned, the $100 rule applies separately to each. File 2006 taxes online free For example, if two sisters live together in a home they own jointly and they have a casualty loss on the home, the $100 rule applies separately to each sister. File 2006 taxes online free 10% Rule You must reduce the total of all your casualty or theft losses on personal-use property by 10% of your adjusted gross income. File 2006 taxes online free Apply this rule after you reduce each loss by $100. File 2006 taxes online free For more information, see the Form 4684 instructions. File 2006 taxes online free If you have both gains and losses from casualties or thefts, see Gains and losses , later in this discussion. File 2006 taxes online free Example. File 2006 taxes online free In June, you discovered that your house had been burglarized. File 2006 taxes online free Your loss after insurance reimbursement was $2,000. File 2006 taxes online free Your adjusted gross income for the year you discovered the theft is $29,500. File 2006 taxes online free Figure your theft loss as follows. File 2006 taxes online free 1. File 2006 taxes online free Loss after insurance $2,000 2. File 2006 taxes online free Subtract $100 100 3. File 2006 taxes online free Loss after $100 rule $1,900 4. File 2006 taxes online free Subtract 10% of $29,500 AGI $2,950 5. File 2006 taxes online free Theft loss deduction $-0- You do not have a theft loss deduction because your loss ($1,900) is less than 10% of your adjusted gross income ($2,950). File 2006 taxes online free More than one loss. File 2006 taxes online free   If you have more than one casualty or theft loss during your tax year, reduce each loss by any reimbursement and by $100. File 2006 taxes online free Then you must reduce the total of all your losses by 10% of your adjusted gross income. File 2006 taxes online free Example. File 2006 taxes online free In March, you had a car accident that totally destroyed your car. File 2006 taxes online free You did not have collision insurance on your car, so you did not receive any insurance reimbursement. File 2006 taxes online free Your loss on the car was $1,800. File 2006 taxes online free In November, a fire damaged your basement and totally destroyed the furniture, washer, dryer, and other items you had stored there. File 2006 taxes online free Your loss on the basement items after reimbursement was $2,100. File 2006 taxes online free Your adjusted gross income for the year that the accident and fire occurred is $25,000. File 2006 taxes online free You figure your casualty loss deduction as follows. File 2006 taxes online free     Car Basement 1. File 2006 taxes online free Loss $1,800 $2,100 2. File 2006 taxes online free Subtract $100 per incident 100 100 3. File 2006 taxes online free Loss after $100 rule $1,700 $2,000 4. File 2006 taxes online free Total loss $3,700 5. File 2006 taxes online free Subtract 10% of $25,000 AGI 2,500 6. File 2006 taxes online free Casualty loss deduction $1,200 Married taxpayers. File 2006 taxes online free   If you and your spouse file a joint return, you are treated as one individual in applying the 10% rule. File 2006 taxes online free It does not matter if you own the property jointly or separately. File 2006 taxes online free   If you file separate returns, the 10% rule applies to each return on which a loss is claimed. File 2006 taxes online free More than one owner. File 2006 taxes online free   If two or more individuals (other than husband and wife filing a joint return) have a loss on property that is owned jointly, the 10% rule applies separately to each. File 2006 taxes online free Gains and losses. File 2006 taxes online free   If you have casualty or theft gains as well as losses to personal-use property, you must compare your total gains to your total losses. File 2006 taxes online free Do this after you have reduced each loss by any reimbursements and by $100 but before you have reduced the losses by 10% of your adjusted gross income. File 2006 taxes online free Casualty or theft gains do not include gains you choose to postpone. File 2006 taxes online free See Postponement of Gain, later. File 2006 taxes online free Losses more than gains. File 2006 taxes online free   If your losses are more than your recognized gains, subtract your gains from your losses and reduce the result by 10% of your adjusted gross income. File 2006 taxes online free The rest, if any, is your deductible loss from personal-use property. File 2006 taxes online free Example. File 2006 taxes online free Your theft loss after reducing it by reimbursements and by $100 is $2,700. File 2006 taxes online free Your casualty gain is $700. File 2006 taxes online free Your loss is more than your gain, so you must reduce your $2,000 net loss ($2,700 − $700) by 10% of your adjusted gross income. File 2006 taxes online free Gains more than losses. File 2006 taxes online free   If your recognized gains are more than your losses, subtract your losses from your gains. File 2006 taxes online free The difference is treated as a capital gain and must be reported on Schedule D (Form 1040). File 2006 taxes online free The 10% rule does not apply to your gains. File 2006 taxes online free Example. File 2006 taxes online free Your theft loss is $600 after reducing it by reimbursements and by $100. File 2006 taxes online free Your casualty gain is $1,600. File 2006 taxes online free Because your gain is more than your loss, you must report the $1,000 net gain ($1,600 − $600) on Schedule D (Form 1040). File 2006 taxes online free More information. File 2006 taxes online free   For information on how to figure recognized gains, see Figuring a Gain , later. File 2006 taxes online free Figuring the Deduction Generally, you must figure your loss separately for each item stolen, damaged, or destroyed. File 2006 taxes online free However, a special rule applies to real property you own for personal use. File 2006 taxes online free Real property. File 2006 taxes online free   In figuring a loss to real estate you own for personal use, all improvements (such as buildings and ornamental trees and the land containing the improvements) are considered together. File 2006 taxes online free Example 1. File 2006 taxes online free In June, a fire destroyed your lakeside cottage, which cost $144,800 (including $14,500 for the land) several years ago. File 2006 taxes online free (Your land was not damaged. File 2006 taxes online free ) This was your only casualty or theft loss for the year. File 2006 taxes online free The FMV of the property immediately before the fire was $180,000 ($145,000 for the cottage and $35,000 for the land). File 2006 taxes online free The FMV immediately after the fire was $35,000 (value of the land). File 2006 taxes online free You collected $130,000 from the insurance company. File 2006 taxes online free Your adjusted gross income for the year the fire occurred is $80,000. File 2006 taxes online free Your deduction for the casualty loss is $6,700, figured in the following manner. File 2006 taxes online free 1. File 2006 taxes online free Adjusted basis of the entire property (cost in this example) $144,800 2. File 2006 taxes online free FMV of entire property  before fire $180,000 3. File 2006 taxes online free FMV of entire property after fire 35,000 4. File 2006 taxes online free Decrease in FMV of entire property (line 2 − line 3) $145,000 5. File 2006 taxes online free Loss (smaller of line 1 or line 4) $144,800 6. File 2006 taxes online free Subtract insurance 130,000 7. File 2006 taxes online free Loss after reimbursement $14,800 8. File 2006 taxes online free Subtract $100 100 9. File 2006 taxes online free Loss after $100 rule $14,700 10. File 2006 taxes online free Subtract 10% of $80,000 AGI 8,000 11. File 2006 taxes online free Casualty loss deduction $ 6,700 Example 2. File 2006 taxes online free You bought your home a few years ago. File 2006 taxes online free You paid $150,000 ($10,000 for the land and $140,000 for the house). File 2006 taxes online free You also spent an additional $2,000 for landscaping. File 2006 taxes online free This year a fire destroyed your home. File 2006 taxes online free The fire also damaged the shrubbery and trees in your yard. File 2006 taxes online free The fire was your only casualty or theft loss this year. File 2006 taxes online free Competent appraisers valued the property as a whole at $175,000 before the fire, but only $50,000 after the fire. File 2006 taxes online free Shortly after the fire, the insurance company paid you $95,000 for the loss. File 2006 taxes online free Your adjusted gross income for this year is $70,000. File 2006 taxes online free You figure your casualty loss deduction as follows. File 2006 taxes online free 1. File 2006 taxes online free Adjusted basis of the entire property (cost of land, building, and landscaping) $152,000 2. File 2006 taxes online free FMV of entire property  before fire $175,000 3. File 2006 taxes online free FMV of entire property after fire 50,000 4. File 2006 taxes online free Decrease in FMV of entire property (line 2 − line 3) $125,000 5. File 2006 taxes online free Loss (smaller of line 1 or line 4) $125,000 6. File 2006 taxes online free Subtract insurance 95,000 7. File 2006 taxes online free Loss after reimbursement $30,000 8. File 2006 taxes online free Subtract $100 100 9. File 2006 taxes online free Loss after $100 rule $29,900 10. File 2006 taxes online free Subtract 10% of $70,000 AGI 7,000 11. File 2006 taxes online free Casualty loss deduction $ 22,900 Personal property. File 2006 taxes online free   Personal property is any property that is not real property. File 2006 taxes online free If your personal property is stolen or is damaged or destroyed by a casualty, you must figure your loss separately for each item of property. File 2006 taxes online free Then combine these separate losses to figure the total loss. File 2006 taxes online free Reduce the total loss by $100 and 10% of your adjusted gross income to figure the loss deduction. File 2006 taxes online free Example 1. File 2006 taxes online free In August, a storm destroyed your pleasure boat, which cost $18,500. File 2006 taxes online free This was your only casualty or theft loss for the year. File 2006 taxes online free Its FMV immediately before the storm was $17,000. File 2006 taxes online free You had no insurance, but were able to salvage the motor of the boat and sell it for $200. File 2006 taxes online free Your adjusted gross income for the year the casualty occurred is $70,000. File 2006 taxes online free Although the motor was sold separately, it is part of the boat and not a separate item of property. File 2006 taxes online free You figure your casualty loss deduction as follows. File 2006 taxes online free 1. File 2006 taxes online free Adjusted basis (cost in this example) $18,500 2. File 2006 taxes online free FMV before storm $17,000 3. File 2006 taxes online free FMV after storm 200 4. File 2006 taxes online free Decrease in FMV  (line 2 − line 3) $16,800 5. File 2006 taxes online free Loss (smaller of line 1 or line 4) $16,800 6. File 2006 taxes online free Subtract insurance -0- 7. File 2006 taxes online free Loss after reimbursement $16,800 8. File 2006 taxes online free Subtract $100 100 9. File 2006 taxes online free Loss after $100 rule $16,700 10. File 2006 taxes online free Subtract 10% of $70,000 AGI 7,000 11. File 2006 taxes online free Casualty loss deduction $ 9,700 Example 2. File 2006 taxes online free In June, you were involved in an auto accident that totally destroyed your personal car and your antique pocket watch. File 2006 taxes online free You had bought the car for $30,000. File 2006 taxes online free The FMV of the car just before the accident was $17,500. File 2006 taxes online free Its FMV just after the accident was $180 (scrap value). File 2006 taxes online free Your insurance company reimbursed you $16,000. File 2006 taxes online free Your watch was not insured. File 2006 taxes online free You had purchased it for $250. File 2006 taxes online free Its FMV just before the accident was $500. File 2006 taxes online free Your adjusted gross income for the year the accident occurred is $97,000. File 2006 taxes online free Your casualty loss deduction is zero, figured as follows. File 2006 taxes online free     Car Watch 1. File 2006 taxes online free Adjusted basis (cost) $30,000 $250 2. File 2006 taxes online free FMV before accident $17,500 $500 3. File 2006 taxes online free FMV after accident 180 -0- 4. File 2006 taxes online free Decrease in FMV (line 2 − line 3) $17,320 $500 5. File 2006 taxes online free Loss (smaller of line 1 or line 4) $17,320 $250 6. File 2006 taxes online free Subtract insurance 16,000 -0- 7. File 2006 taxes online free Loss after reimbursement $1,320 $250 8. File 2006 taxes online free Total loss $1,570 9. File 2006 taxes online free Subtract $100 100 10. File 2006 taxes online free Loss after $100 rule $1,470 11. File 2006 taxes online free Subtract 10% of $97,000 AGI 9,700 12. File 2006 taxes online free Casualty loss deduction $ -0- Both real and personal properties. File 2006 taxes online free   When a casualty involves both real and personal properties, you must figure the loss separately for each type of property. File 2006 taxes online free However, you apply a single $100 reduction to the total loss. File 2006 taxes online free Then, you apply the 10% rule to figure the casualty loss deduction. File 2006 taxes online free Example. File 2006 taxes online free In July, a hurricane damaged your home, which cost you $164,000 including land. File 2006 taxes online free The FMV of the property (both building and land) immediately before the storm was $170,000 and its FMV immediately after the storm was $100,000. File 2006 taxes online free Your household furnishings were also damaged. File 2006 taxes online free You separately figured the loss on each damaged household item and arrived at a total loss of $600. File 2006 taxes online free You collected $50,000 from the insurance company for the damage to your home, but your household furnishings were not insured. File 2006 taxes online free Your adjusted gross income for the year the hurricane occurred is $65,000. File 2006 taxes online free You figure your casualty loss deduction from the hurricane in the following manner. File 2006 taxes online free 1. File 2006 taxes online free Adjusted basis of real property (cost in this example) $164,000 2. File 2006 taxes online free FMV of real property before hurricane $170,000 3. File 2006 taxes online free FMV of real property after hurricane 100,000 4. File 2006 taxes online free Decrease in FMV of real property (line 2 − line 3) $70,000 5. File 2006 taxes online free Loss on real property (smaller of line 1 or line 4) $70,000 6. File 2006 taxes online free Subtract insurance 50,000 7. File 2006 taxes online free Loss on real property after reimbursement $20,000 8. File 2006 taxes online free Loss on furnishings $600 9. File 2006 taxes online free Subtract insurance -0- 10. File 2006 taxes online free Loss on furnishings after reimbursement $600 11. File 2006 taxes online free Total loss (line 7 plus line 10) $20,600 12. File 2006 taxes online free Subtract $100 100 13. File 2006 taxes online free Loss after $100 rule $20,500 14. File 2006 taxes online free Subtract 10% of $65,000 AGI 6,500 15. File 2006 taxes online free Casualty loss deduction $14,000 Property used partly for business and partly for personal purposes. File 2006 taxes online free   When property is used partly for personal purposes and partly for business or income-producing purposes, the casualty or theft loss deduction must be figured separately for the personal-use portion and for the business or income-producing portion. File 2006 taxes online free You must figure each loss separately because the losses attributed to these two uses are figured in two different ways. File 2006 taxes online free When figuring each loss, allocate the total cost or basis, the FMV before and after the casualty or theft loss, and the insurance or other reimbursement between the business and personal use of the property. File 2006 taxes online free The $100 rule and the 10% rule apply only to the casualty or theft loss on the personal-use portion of the property. File 2006 taxes online free Example. File 2006 taxes online free You own a building that you constructed on leased land. File 2006 taxes online free You use half of the building for your business and you live in the other half. File 2006 taxes online free The cost of the building was $400,000. File 2006 taxes online free You made no further improvements or additions to it. File 2006 taxes online free A flood in March damaged the entire building. File 2006 taxes online free The FMV of the building was $380,000 immediately before the flood and $320,000 afterwards. File 2006 taxes online free Your insurance company reimbursed you $40,000 for the flood damage. File 2006 taxes online free Depreciation on the business part of the building before the flood totaled $24,000. File 2006 taxes online free Your adjusted gross income for the year the flood occurred is $125,000. File 2006 taxes online free You have a deductible business casualty loss of $10,000. File 2006 taxes online free You do not have a deductible personal casualty loss because of the 10% rule. File 2006 taxes online free You figure your loss as follows. File 2006 taxes online free     Business   Personal     Part   Part 1. File 2006 taxes online free Cost (total $400,000) $200,000   $200,000 2. File 2006 taxes online free Subtract depreciation 24,000   -0- 3. File 2006 taxes online free Adjusted basis $176,000   $200,000 4. File 2006 taxes online free FMV before flood (total $380,000) $190,000   $190,000 5. File 2006 taxes online free FMV after flood (total $320,000) 160,000   160,000 6. File 2006 taxes online free Decrease in FMV  (line 4 − line 5) $30,000   $30,000 7. File 2006 taxes online free Loss (smaller of line 3 or line 6) $30,000   $30,000 8. File 2006 taxes online free Subtract insurance 20,000   20,000 9. File 2006 taxes online free Loss after reimbursement $10,000   $10,000 10. File 2006 taxes online free Subtract $100 on personal-use property -0-   100 11. File 2006 taxes online free Loss after $100 rule $10,000   $9,900 12. File 2006 taxes online free Subtract 10% of $125,000 AGI on personal-use property -0-   12,500 13. File 2006 taxes online free Deductible business loss $10,000     14. File 2006 taxes online free Deductible personal loss $-0- Figuring a Gain If you receive an insurance payment or other reimbursement that is more than your adjusted basis in the destroyed, damaged, or stolen property, you have a gain from the casualty or theft. File 2006 taxes online free Your gain is figured as follows. File 2006 taxes online free The amount you receive (discussed next), minus Your adjusted basis in the property at the time of the casualty or theft. File 2006 taxes online free See Adjusted Basis , earlier, for information on adjusted basis. File 2006 taxes online free Even if the decrease in FMV of your property is smaller than the adjusted basis of your property, use your adjusted basis to figure the gain. File 2006 taxes online free Amount you receive. File 2006 taxes online free   The amount you receive includes any money plus the value of any property you receive minus any expenses you have in obtaining reimbursement. File 2006 taxes online free It also includes any reimbursement used to pay off a mortgage or other lien on the damaged, destroyed, or stolen property. File 2006 taxes online free Example. File 2006 taxes online free A hurricane destroyed your personal residence and the insurance company awarded you $145,000. File 2006 taxes online free You received $140,000 in cash. File 2006 taxes online free The remaining $5,000 was paid directly to the holder of a mortgage on the property. File 2006 taxes online free The amount you received includes the $5,000 reimbursement paid on the mortgage. File 2006 taxes online free Main home destroyed. File 2006 taxes online free   If you have a gain because your main home was destroyed, you generally can exclude the gain from your income as if you had sold or exchanged your home. File 2006 taxes online free You may be able to exclude up to $250,000 of the gain (up to $500,000 if married filing jointly). File 2006 taxes online free To exclude a gain, you generally must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date it was destroyed. File 2006 taxes online free For information on this exclusion, see Publication 523. File 2006 taxes online free If your gain is more than the amount you can exclude, but you buy replacement property, you may be able to postpone reporting the excess gain. File 2006 taxes online free See Postponement of Gain , later. File 2006 taxes online free Reporting a gain. File 2006 taxes online free   You generally must report your gain as income in the year you receive the reimbursement. File 2006 taxes online free However, you do not have to report your gain if you meet certain requirements and choose to postpone reporting the gain according to the rules explained under Postponement of Gain, next. File 2006 taxes online free   For information on how to report a gain, see How To Report Gains and Losses , later. File 2006 taxes online free    If you have a casualty or theft gain on personal-use property that you choose to postpone reporting (as explained next) and you also have another casualty or theft loss on personal-use property, do not consider the gain you are postponing when figuring your casualty or theft loss deduction. File 2006 taxes online free See 10% Rule under Deduction Limits, earlier. File 2006 taxes online free Postponement of Gain Do not report a gain if you receive reimbursement in the form of property similar or related in service or use to the destroyed or stolen property. File 2006 taxes online free Your basis in the new property is generally the same as your adjusted basis in the property it replaces. File 2006 taxes online free You must ordinarily report the gain on your stolen or destroyed property if you receive money or unlike property as reimbursement. File 2006 taxes online free However, you can choose to postpone reporting the gain if you purchase property that is similar or related in service or use to the stolen or destroyed property within a specified replacement period, discussed later. File 2006 taxes online free You also can choose to postpone reporting the gain if you purchase a controlling interest (at least 80%) in a corporation owning property that is similar or related in service or use to the property. File 2006 taxes online free See Controlling interest in a corporation , later. File 2006 taxes online free If you have a gain on damaged property, you can postpone reporting the gain if you spend the reimbursement to restore the property. File 2006 taxes online free To postpone reporting all the gain, the cost of your replacement property must be at least as much as the reimbursement you receive. File 2006 taxes online free If the cost of the replacement property is less than the reimbursement, you must include the gain in your income up to the amount of the unspent reimbursement. File 2006 taxes online free Example. File 2006 taxes online free In 1970, you bought an oceanfront cottage for your personal use at a cost of $18,000. File 2006 taxes online free You made no further improvements or additions to it. File 2006 taxes online free When a storm destroyed the cottage this January, the cottage was worth $250,000. File 2006 taxes online free You received $146,000 from the insurance company in March. File 2006 taxes online free You had a gain of $128,000 ($146,000 − $18,000). File 2006 taxes online free You spent $144,000 to rebuild the cottage. File 2006 taxes online free Since this is less than the insurance proceeds received, you must include $2,000 ($146,000 − $144,000) in your income. File 2006 taxes online free Buying replacement property from a related person. File 2006 taxes online free   You cannot postpone reporting a gain from a casualty or theft if you buy the replacement property from a related person (discussed later). File 2006 taxes online free This rule applies to the following taxpayers. File 2006 taxes online free C corporations. File 2006 taxes online free Partnerships in which more than 50% of the capital or profits interests is owned by C corporations. File 2006 taxes online free All others (including individuals, partnerships — other than those in (2) — and S corporations) if the total realized gain for the tax year on all destroyed or stolen properties on which there are realized gains is more than $100,000. File 2006 taxes online free For casualties and thefts described in (3) above, gains cannot be offset by any losses when determining whether the total gain is more than $100,000. File 2006 taxes online free If the property is owned by a partnership, the $100,000 limit applies to the partnership and each partner. File 2006 taxes online free If the property is owned by an S corporation, the $100,000 limit applies to the S corporation and each shareholder. File 2006 taxes online free Exception. File 2006 taxes online free   This rule does not apply if the related person acquired the property from an unrelated person within the period of time allowed for replacing the destroyed or stolen property. File 2006 taxes online free Related persons. File 2006 taxes online free   Under this rule, related persons include, for example, a parent and child, a brother and sister, a corporation and an individual who owns more than 50% of its outstanding stock, and two partnerships in which the same C corporations own more than 50% of the capital or profits interests. File 2006 taxes online free For more information on related persons, see Nondeductible Loss under Sales and Exchanges Between Related Persons in chapter 2 of Publication 544. File 2006 taxes online free Death of a taxpayer. File 2006 taxes online free   If a taxpayer dies after having a gain but before buying replacement property, the gain must be reported for the year in which the decedent realized the gain. File 2006 taxes online free The executor of the estate or the person succeeding to the funds from the casualty or theft cannot postpone reporting the gain by buying replacement property. File 2006 taxes online free Replacement Property You must buy replacement property for the specific purpose of replacing your destroyed or stolen property. File 2006 taxes online free Property you acquire as a gift or inheritance does not qualify. File 2006 taxes online free You do not have to use the same funds you receive as
Print - Click this link to Print this page

Estimated Taxes

中文 | 한국어 | TiếngViệt | Pусский

Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.

Estimated tax is used to pay income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. If you do not pay enough through withholding or estimated tax payments, you may be charged a penalty. If you do not pay enough by the due date of each payment period you may be charged a penalty even if you are due a refund when you file your tax return.

How to Pay Estimated Tax

If you are filing as a sole proprietor, partner, S corporation shareholder and/or a self-employed individual, you should use Form 1040-ES, Estimated Tax for Individuals (PDF), to figure and pay your estimated tax. For additional information on filing for a sole proprietor, partners, and/or S corporation shareholder, refer to Publication 505, Tax Withholding and Estimated Tax.

If you are filing as a corporation you should use Form 1120-W, Estimated Tax for Corporations (PDF), to figure the estimated tax. You must deposit the payments. For additional information on filing for a corporation, refer to Publication 542, Corporations.

Who Must Pay Estimated Tax

If you are filing as a sole proprietor, partner, S corporation shareholder, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.

If you are filing as a corporation you generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return.

If you had a tax liability for the prior year, you may have to pay estimated tax for the current year. See the worksheet in Form 1040-ES (PDF) for more details on who must pay estimated tax.

Who Does Not Have To Pay Estimated Tax

If you receive salaries and wages, you can avoid having to pay estimated tax by asking your employer to withhold more tax from your earnings. To do this, file a new Form W-4 (PDF) with your employer. There is a special line on Form W-4 for you to enter the additional amount you want your employer to withhold.

You do not have to pay estimated tax for the current year if you meet all three of the following conditions.

  • You had no tax liability for the prior year
  • You were a U.S. citizen or resident for the whole year
  • Your prior tax year covered a 12 month period

You had no tax liability for the prior year if your total tax was zero or you did not have to file an income tax return. For additional information on how to figure your estimated tax, refer to Publication 505, Tax Withholding and Estimated Tax.

Estimated tax requirements are different for farmers and fishermen. Publication 505, Tax Withholding and Estimated Tax, provides more information about these special estimated tax rules.

How To Figure Estimated Tax

To figure your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year.

When figuring your estimated tax for the current year, it may be helpful to use your income, deductions, and credits for prior year as a starting point. Use your prior year's federal tax return as a guide. You can use the worksheet in Form 1040-ES (PDF) to figure your estimated tax. You will need to estimate the amount of income you expect to earn for the year. If you estimated your earnings too high, simply complete another Form 1040-ES worksheet to refigure your estimated tax for the next quarter. If you estimated your earnings too low, again complete another Form 1040-ES worksheet to recalculate your estimated tax for the next quarter. You want to estimate your income as accurately as you can to avoid penalties.

You must make adjustments both for changes in your own situation and for recent changes in the tax law.

When To Pay Estimated Taxes

For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return, see underpayment of tax below for more information.

Using the EFTPS system is the easiest way to pay your federal taxes for individuals as well as businesses. Make ALL of your federal tax payments including federal tax deposits (FTDs), installment agreement and estimated tax payments using Electronic Federal Tax Payment System (EFTPS). If it is easier to pay your estimated taxes weekly, bi-weekly, monthly, etc. you can, as long as you have paid enough in by the end of the quarter. Using EFTPS, you can access a history of your payments, so you know how much and when you made your estimated tax payments.

Underpayment of Estimated Tax

If you did not pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. There are special rules for farmers and fishermen. Please refer to Publication 505 Tax Withholding and Estimated Tax, for additional information.

However, if your income is received unevenly during the year, you may be able to avoid or lower the penalty by annualizing your income and making unequal payments. Use Form 2210 (PDF), Underpayment of Estimated Tax by Individuals, Estates, and Trusts, to see if you owe a penalty for underpaying your estimated tax. Please refer to the Form 1040 Instructions (PDF) or the Form 1040A Instructions for where to report the estimated tax penalty on your return.

The penalty may also be waived if:

  1. The failure to make estimated payments was caused by a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty, or
  2. You retired (after reaching age 62) or became disabled during the tax year for which estimated payments were required to be made or in the preceding tax year, and the underpayment was due to reasonable cause and not willful neglect.

You should also use Form 2210 (PDF) to request a waiver of the penalty for the reasons shown above.

Page Last Reviewed or Updated: 31-Oct-2013

The File 2006 Taxes Online Free

File 2006 taxes online free 2. File 2006 taxes online free   Estimated Tax for 2014 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated TaxGeneral Rule Married Taxpayers Special Rules Aliens Estates and Trusts How To Figure Estimated Tax2014 Estimated Tax Worksheet When To Pay Estimated TaxWhen To Start Farmers and Fishermen How To Figure Each PaymentRegular Installment Method Annualized Income Installment Method Estimated Tax Payments Not Required How To Pay Estimated TaxCredit an Overpayment Pay Online Pay by Phone Pay by Check or Money Order Using the Estimated Tax Payment Voucher Introduction Estimated tax is the method used to pay tax on income that is not subject to withholding. File 2006 taxes online free This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. File 2006 taxes online free You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough. File 2006 taxes online free Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. File 2006 taxes online free If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. File 2006 taxes online free If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax , later), you may be charged a penalty even if you are due a refund when you file your tax return. File 2006 taxes online free For information on when the penalty applies, see chapter 4. File 2006 taxes online free It would be helpful for you to have a copy of your 2013 tax return and an estimate of your 2014 income nearby while reading this chapter. File 2006 taxes online free Topics - This chapter discusses: Who must pay estimated tax, How to figure estimated tax (including illustrated examples), When to pay estimated tax, How to figure each payment, and How to pay estimated tax. File 2006 taxes online free Useful Items - You may want to see: Form (and Instructions) 1040-ES Estimated Tax for Individuals See chapter 5 for information about how to get this publication and form. File 2006 taxes online free Worksheets. File 2006 taxes online free   You may need to use several of the blank worksheets included in this chapter. File 2006 taxes online free See Worksheets for Chapter 2, later, to locate what you need. File 2006 taxes online free Who Does Not Have To Pay Estimated Tax If you receive salaries and wages, you may be able to avoid paying estimated tax by asking your employer to take more tax out of your earnings. File 2006 taxes online free To do this, file a new Form W-4 with your employer. File 2006 taxes online free See chapter 1. File 2006 taxes online free Estimated tax not required. File 2006 taxes online free   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. File 2006 taxes online free You had no tax liability for 2013. File 2006 taxes online free You were a U. File 2006 taxes online free S. File 2006 taxes online free citizen or resident alien for the whole year. File 2006 taxes online free Your 2013 tax year covered a 12-month period. File 2006 taxes online free   You had no tax liability for 2013 if your total tax (defined later under Total tax for 2013—line 14b ) was zero or you did not have to file an income tax return. File 2006 taxes online free Please click here for the text description of the image. File 2006 taxes online free Figure 2-A: Do You Have To Pay Estimated Tax? Who Must Pay Estimated Tax If you owed additional tax for 2013, you may have to pay estimated tax for 2014. File 2006 taxes online free You can use the following general rule as a guide during the year to see if you will have enough withholding, or should increase your withholding or make estimated tax payments. File 2006 taxes online free General Rule In most cases, you must pay estimated tax for 2014 if both of the following apply. File 2006 taxes online free You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. File 2006 taxes online free You expect your withholding and refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. File 2006 taxes online free Your 2013 tax return must cover all 12 months. File 2006 taxes online free Note. File 2006 taxes online free The percentages in (2a) or (2b) above may be different if you are a farmer, fisherman, or higher income taxpayer. File 2006 taxes online free See Special Rules , later. File 2006 taxes online free If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet for a more accurate calculation. File 2006 taxes online free Figure 2-A takes you through the general rule. File 2006 taxes online free You may find this helpful in determining if you must pay estimated tax. File 2006 taxes online free If all your income will be subject to income tax withholding, you probably do not need to pay estimated tax. File 2006 taxes online free Example 1. File 2006 taxes online free Jane Smart uses Figure 2-A and the following information to figure whether she should pay estimated tax for 2014. File 2006 taxes online free She files as head of household claiming her dependent son, takes the standard deduction, and expects no refundable credits for 2014. File 2006 taxes online free Expected adjusted gross income (AGI) for 2014 $82,800 AGI for 2013 $73,700 Total tax on 2013 return (Form 1040,  line 61) $  8,746 Total 2014 estimated tax (line 13c of the 2014 Estimated Tax Worksheet) $11,015 Tax expected to be withheld in 2014 $10,000 Jane's answer to Figure 2-A, box 1, is YES; she expects to owe at least $1,000 for 2014 after subtracting her withholding from her expected total tax ($11,015 − $10,000 = $1,015). File 2006 taxes online free Her answer to box 2a is YES; she expects her income tax withholding ($10,000) to be at least 90% of the tax to be shown on her 2014 return ($11,015 × 90% = $9,913. File 2006 taxes online free 50). File 2006 taxes online free Jane does not need to pay estimated tax. File 2006 taxes online free Example 2. File 2006 taxes online free The facts are the same as in Example 1, except that Jane expects only $8,700 tax to be withheld in 2014. File 2006 taxes online free Because that is less than $9,913. File 2006 taxes online free 50, her answer to box 2a is NO. File 2006 taxes online free Jane's answer to box 2b is also NO; she does not expect her income tax withholding ($8,700) to be at least 100% of the total tax shown on her 2013 return ($8,746). File 2006 taxes online free Jane must increase her withholding or pay estimated tax for 2014. File 2006 taxes online free Example 3. File 2006 taxes online free The facts are the same as in Example 2, except that the total tax shown on Jane's 2013 return was $8,600. File 2006 taxes online free Because she expects to have more than $8,600 withheld in 2014 ($8,700), her answer to box 2b is YES. File 2006 taxes online free Jane does not need to pay estimated tax for 2014. File 2006 taxes online free Married Taxpayers If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. File 2006 taxes online free You and your spouse can make joint estimated tax payments even if you are not living together. File 2006 taxes online free However, you and your spouse cannot make joint estimated tax payments if: You are legally separated under a decree of divorce or separate maintenance, You and your spouse have different tax years, Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes). File 2006 taxes online free See Choosing Resident Alien Status in Publication 519, or Individuals of the same sex and opposite sex who are in registered domestic partnerships, civil unions, or other similar formal relationships that are not marriages under state law cannot make joint estimated tax payments. File 2006 taxes online free These individuals can take credit only for the estimated tax payments that he or she made. File 2006 taxes online free If you and your spouse cannot make joint estimated tax payments, apply these rules to your separate estimated income. File 2006 taxes online free Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. File 2006 taxes online free 2013 separate returns and 2014 joint return. File 2006 taxes online free   If you plan to file a joint return with your spouse for 2014, but you filed separate returns for 2013, your 2013 tax is the total of the tax shown on your separate returns. File 2006 taxes online free You filed a separate return if you filed as single, head of household, or married filing separately. File 2006 taxes online free 2013 joint return and 2014 separate returns. File 2006 taxes online free   If you plan to file a separate return for 2014, but you filed a joint return for 2013, your 2013 tax is your share of the tax on the joint return. File 2006 taxes online free You file a separate return if you file as single, head of household, or married filing separately. File 2006 taxes online free   To figure your share of the tax on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2013 using the same filing status for 2014. File 2006 taxes online free Then multiply the tax on the joint return by the following fraction. File 2006 taxes online free      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. File 2006 taxes online free Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. File 2006 taxes online free Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. File 2006 taxes online free For 2014, they plan to file married filing separately. File 2006 taxes online free Joe figures his share of the tax on the 2013 joint return as follows: Tax on $40,100 based on separate return $5,960 Tax on $8,400 based on separate return 843 Total $6,803 Joe's percentage of total ($5,960 ÷ $6,803) 87. File 2006 taxes online free 6% Joe's share of tax on joint return  ($6,386 × 87. File 2006 taxes online free 6%) $5,594 Special Rules There are special rules for farmers, fishermen, and certain higher income taxpayers. File 2006 taxes online free Farmers and Fishermen If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under General Rule , earlier. File 2006 taxes online free Gross income. File 2006 taxes online free   Your gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. File 2006 taxes online free To determine whether two-thirds of your gross income for 2013 was from farming or fishing, use as your gross income the total of the income (not loss) amounts. File 2006 taxes online free Joint returns. File 2006 taxes online free   On a joint return, you must add your spouse's gross income to your gross income to determine if at least two-thirds of your total gross income is from farming or fishing. File 2006 taxes online free Gross income from farming. File 2006 taxes online free   This is income from cultivating the soil or raising agricultural commodities. File 2006 taxes online free It includes the following amounts. File 2006 taxes online free Income from operating a stock, dairy, poultry, bee, fruit, or truck farm. File 2006 taxes online free Income from a plantation, ranch, nursery, range, orchard, or oyster bed. File 2006 taxes online free Crop shares for the use of your land. File 2006 taxes online free Gains from sales of draft, breeding, dairy, or sporting livestock. File 2006 taxes online free   For 2013, gross income from farming is the total of the following amounts. File 2006 taxes online free Schedule F (Form 1040), Profit or Loss From Farming, line 9. File 2006 taxes online free Form 4835, Farm Rental Income and Expenses, line 7. File 2006 taxes online free Your share of the gross farming income from a partnership, S corporation, estate or trust, from: Schedule K-1 (Form 1065), Schedule K-1 (Form 1120S), or Schedule K-1 (Form 1041). File 2006 taxes online free Your gains from sales of draft, breeding, dairy, or sporting livestock shown on Form 4797, Sales of Business Property. File 2006 taxes online free   Wages you receive as a farm employee and wages you receive from a farm corporation are not gross income from farming. File 2006 taxes online free Gross income from fishing. File 2006 taxes online free   This is income from catching, taking, harvesting, cultivating, or farming any kind of fish, shellfish (for example, clams and mussels), crustaceans (for example, lobsters, crabs, and shrimp), sponges, seaweeds, or other aquatic forms of animal and vegetable life. File 2006 taxes online free   Gross income from fishing includes the following amounts. File 2006 taxes online free Schedule C (Form 1040), Profit or Loss From Business. File 2006 taxes online free Income for services as an officer or crew member of a vessel while the vessel is engaged in fishing. File 2006 taxes online free Your share of the gross fishing income from a partnership, S corporation, estate or trust, from: Schedule K-1 (Form 1065), Schedule K-1 (Form 1120S), or Schedule K-1 (Form 1041). File 2006 taxes online free Certain taxable interest and punitive damage awards received in connection with the Exxon Valdez litigation. File 2006 taxes online free Income for services normally performed in connection with fishing. File 2006 taxes online free Services normally performed in connection with fishing include: Shore service as an officer or crew member of a vessel engaged in fishing, and Services that are necessary for the immediate preservation of the catch, such as cleaning, icing, and packing the catch. File 2006 taxes online free Higher Income Taxpayers If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing a separate return), substitute 110% for 100% in (2b) under General Rule , earlier. File 2006 taxes online free For 2013, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. File 2006 taxes online free Note. File 2006 taxes online free This rule does not apply to farmers and fishermen. File 2006 taxes online free Aliens Resident and nonresident aliens also may have to pay estimated tax. File 2006 taxes online free Resident aliens should follow the rules in this publication, unless noted otherwise. File 2006 taxes online free Nonresident aliens should get Form 1040-ES (NR), U. File 2006 taxes online free S. File 2006 taxes online free Estimated Tax for Nonresident Alien Individuals. File 2006 taxes online free You are an alien if you are not a citizen or national of the United States. File 2006 taxes online free You are a resident alien if you either have a green card or meet the substantial presence test. File 2006 taxes online free For more information about withholding, the substantial presence test, and Form 1040-ES (NR), see Publication 519. File 2006 taxes online free Estates and Trusts Estates and trusts also must pay estimated tax. File 2006 taxes online free However, estates (and certain grantor trusts that receive the residue of the decedent's estate under the decedent's will) are exempt from paying estimated tax for the first 2 years after the decedent's death. File 2006 taxes online free Estates and trusts must use Form 1041-ES, Estimated Income Tax for Estates and Trusts, to figure and pay estimated tax. File 2006 taxes online free How To Figure Estimated Tax To figure your estimated tax, you must figure your expected AGI, taxable income, taxes, deductions, and credits for the year. File 2006 taxes online free When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. File 2006 taxes online free Use your 2013 federal tax return as a guide. File 2006 taxes online free You can use Form 1040-ES to figure your estimated tax. File 2006 taxes online free Nonresident aliens use Form 1040-ES (NR) to figure estimated tax. File 2006 taxes online free You must make adjustments both for changes in your own situation and for recent changes in the tax law. File 2006 taxes online free Some of these changes are discussed under What's New for 2014 , earlier. File 2006 taxes online free For information about these and other changes in the law, visit the IRS website at IRS. File 2006 taxes online free gov. File 2006 taxes online free The instructions for Form 1040-ES include a worksheet to help you figure your estimated tax. File 2006 taxes online free Keep the worksheet for your records. File 2006 taxes online free 2014 Estimated Tax Worksheet Use Worksheet 2-1 to help guide you through the information about completing the 2014 Estimated Tax Worksheet. File 2006 taxes online free You can also find a copy of the worksheet in the Instructions for Form 1040-ES. File 2006 taxes online free Expected AGI—Line 1 Your expected AGI for 2014 (line 1) is your expected total income minus your expected adjustments to income. File 2006 taxes online free Total income. File 2006 taxes online free   Include in your total income all the income you expect to receive during the year, even income that is subject to withholding. File 2006 taxes online free However, do not include income that is tax exempt. File 2006 taxes online free   Total income includes all income and loss for 2014 that, if you had received it in 2013, would have been included on your 2013 tax return in the total on line 22 of Form 1040, line 15 of Form 1040A, or line 4 of Form 1040EZ. File 2006 taxes online free Social security and railroad retirement benefits. File 2006 taxes online free If you expect to receive social security or tier 1 railroad retirement benefits during 2014, use Worksheet 2-2 to figure the amount of expected taxable benefits you should include on line 1. File 2006 taxes online free Adjustments to income. File 2006 taxes online free   Be sure to subtract from your expected total income all of the adjustments you expect to take on your 2014 tax return. File 2006 taxes online free Self-employed. File 2006 taxes online free If you expect to have income from self-employment, use Worksheet 2-3 to figure your expected self-employment tax and your allowable deduction for self-employment tax. File 2006 taxes online free Include the amount from Worksheet 2-3 in your expected adjustments to income. File 2006 taxes online free If you file a joint return and both you and your spouse have net earnings from self-employment, each of you must complete a separate worksheet. File 2006 taxes online free Expected Taxable Income— Lines 2–5 Reduce your expected AGI for 2014 (line 1) by either your expected itemized deductions or your standard deduction and by your exemptions (lines 2 through 5). File 2006 taxes online free Itemized deductions—line 2. File 2006 taxes online free   If you expect to claim itemized deductions on your 2014 tax return, enter the estimated amount on line 2. File 2006 taxes online free   Itemized deductions are the deductions that can be claimed on Schedule A (Form 1040). File 2006 taxes online free    For 2014, your total itemized deductions may be reduced if your AGI is more than the amount shown next for your filing status. File 2006 taxes online free Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than this amount, use Worksheet 2-5 to figure the amount to enter on line 2. File 2006 taxes online free Standard deduction—line 2. File 2006 taxes online free   If you expect to claim the standard deduction on your 2014 tax return, enter the amount on line 2. File 2006 taxes online free Use Worksheet 2-4 to figure your standard deduction. File 2006 taxes online free No standard deduction. File 2006 taxes online free   The standard deduction for some individuals is zero. File 2006 taxes online free Your standard deduction will be zero if you: File a separate return and your spouse itemizes deductions, Are a dual-status alien, or File a return for a period of less than 12 months because you change your accounting period. File 2006 taxes online free Exemptions—line 4. File 2006 taxes online free   After you have subtracted either your expected itemized deductions or your standard deduction from your expected AGI, reduce the amount remaining by $3,950 for each exemption you expect to take on your 2014 tax return. File 2006 taxes online free If another person (such as your parent) can claim an exemption for you on his or her tax return, you cannot claim your own personal exemption. File 2006 taxes online free This is true even if the other person will not claim your exemption or the exemption will be reduced or eliminated under the phaseout rule. File 2006 taxes online free    For 2014, your deduction for personal exemption is reduced if your AGI is more than the amount shown next for your filing status. File 2006 taxes online free Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than this amount, use Worksheet 2-6 to figure the amount to enter on line 4. File 2006 taxes online free Expected Taxes and Credits— Lines 6–13c After you have figured your expected taxable income (line 5), follow the steps next to figure your expected taxes, credits, and total tax for 2014. File 2006 taxes online free Most people will have entries for only a few of these steps. File 2006 taxes online free However, you should check every step to be sure you do not overlook anything. File 2006 taxes online free Step 1. File 2006 taxes online free   Figure your expected income tax (line 6). File 2006 taxes online free Generally, you will use the 2014 Tax Rate Schedules, later, to figure your expected income tax. File 2006 taxes online free   However, see below for situations where you must use a different method to compute your estimated tax. File 2006 taxes online free Tax on child's investment income. File 2006 taxes online free   You must use a special method to figure tax on the income of the following children who have more than $2,000 of investment income. File 2006 taxes online free Children under age 18 at the end of 2014. File 2006 taxes online free The following children if their earned income is not more than half their support. File 2006 taxes online free Children age 18 at the end of 2014. File 2006 taxes online free Children who are full-time students over age 18 and under age 24 at the end of 2014. File 2006 taxes online free See Publication 929, Tax Rules for Children and Dependents. File 2006 taxes online free Although the ages and dollar amounts in the publication may be different in the 2014 revision, this reference will give you basic information for figuring the tax. File 2006 taxes online free Tax on net capital gain. File 2006 taxes online free   The regular income tax rates for individuals do not apply to a net capital gain. File 2006 taxes online free Instead, your net capital gain is taxed at a lower maximum rate. File 2006 taxes online free   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. File 2006 taxes online free Tax on capital gain and qualified dividends. File 2006 taxes online free If the amount on line 1 includes a net capital gain or qualified dividends, use Worksheet 2-7 to figure your tax. File 2006 taxes online free Note. File 2006 taxes online free For 2014, your capital gains and dividends rate will depend on your income. File 2006 taxes online free Tax if excluding foreign earned income or excluding or deducting foreign housing. File 2006 taxes online free If you expect to claim the foreign earned income exclusion or the housing exclusion or deduction on Form 2555 or Form 2555-EZ, use Worksheet 2-8 to figure your estimated tax. File 2006 taxes online free Step 2. File 2006 taxes online free   Total your expected taxes (line 8). File 2006 taxes online free Include on line 8 the sum of the following. File 2006 taxes online free Your tax on line 6. File 2006 taxes online free Your expected alternative minimum tax (AMT) from Form 6251, or included on Form 1040A. File 2006 taxes online free Your expected additional taxes from Form 8814, Parents' Election To Report Child's Interest and Dividends, and Form 4972, Tax on Lump-Sum Distributions. File 2006 taxes online free Any recapture of education credits. File 2006 taxes online free Step 3. File 2006 taxes online free   Subtract your expected credits (line 9). File 2006 taxes online free If you are using your 2013 return as a guide and filed Form 1040, your total credits for 2013 were shown on line 54. File 2006 taxes online free If you filed Form 1040A, your total credits for 2013 were on line 34. File 2006 taxes online free   If your credits on line 9 are more than your taxes on line 8, enter “-0-” on line 10 and go to Step 4. File 2006 taxes online free Step 4. File 2006 taxes online free   Add your expected self-employment tax (line 11). File 2006 taxes online free You already should have figured your self-employment tax (see Self-employed under Expected AGI—Line 1, earlier). File 2006 taxes online free Step 5. File 2006 taxes online free   Add your expected other taxes (line 12). File 2006 taxes online free   Other taxes include the following. File 2006 taxes online free Additional tax on early distributions from: An IRA or other qualified retirement plan, A tax-sheltered annuity, or A modified endowment contract entered into after June 20, 1988. File 2006 taxes online free Household employment taxes if: You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income, or You would be required to make estimated tax payments even if you did not include household employment taxes when figuring your estimated tax. File 2006 taxes online free Amounts written on Form 1040 on the line for “other taxes” (line 60 on the 2013 Form 1040). File 2006 taxes online free But, do not include recapture of a federal mortgage subsidy; tax on excess golden parachute payments; look-back interest due under section 167(g) or 460(b) of the Internal Revenue Code; excise tax on insider stock compensation from an expatriated corporation; uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance; or additional tax on advance payments of health coverage tax credit when not eligible. File 2006 taxes online free Repayment of the first-time homebuyer credit. File 2006 taxes online free See Form 5405. File 2006 taxes online free Additional Medicare Tax. File 2006 taxes online free A 0. File 2006 taxes online free 9% Additional Medicare Tax applies to your combined Medicare wages and self-employment income and/or your RRTA compensation that exceeds the amount listed in the following chart, based on your filing status. File 2006 taxes online free Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $200,000 Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. File 2006 taxes online free A self-employment loss should not be considered for purposes of this tax. File 2006 taxes online free RRTA compensation should be separately compared to the threshold. File 2006 taxes online free Your employer is responsible for withholding the 0. File 2006 taxes online free 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2014. File 2006 taxes online free You should consider this withholding, if applicable, in determining whether you need to make an estimated payment. File 2006 taxes online free For more information on Additional Medicare Tax, go to IRS. File 2006 taxes online free gov and enter “Additional Medicare Tax” in the search box. File 2006 taxes online free Net Investment Income Tax (NIIT). File 2006 taxes online free The NIIT is 3. File 2006 taxes online free 8% of the lesser of your net investment income or the excess of your modified adjusted gross income over the amount listed in the following chart, based on your filing status. File 2006 taxes online free Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $250,000 For more information on Net Investment Income Tax, go to IRS. File 2006 taxes online free gov and enter “Net Investment Income Tax” in the search box. File 2006 taxes online free Step 6. File 2006 taxes online free   Subtract your refundable credit (line 13b). File 2006 taxes online free   To figure your expected fuel tax credit, do not include fuel tax for the first three quarters of the year that you expect to have refunded to you. File 2006 taxes online free   The result of steps 1 through 6 is your total estimated tax for 2014 (line 13c). File 2006 taxes online free Required Annual Payment— Line 14c On lines 14a through 14c, figure the total amount you must pay for 2014, through withholding and estimated tax payments, to avoid paying a penalty. File 2006 taxes online free General rule. File 2006 taxes online free   The total amount you must pay is the smaller of: 90% of your total expected tax for 2014, or 100% of the total tax shown on your 2013 return. File 2006 taxes online free Your 2013 tax return must cover all 12 months. File 2006 taxes online free Special rules. File 2006 taxes online free   There are special rules for higher income taxpayers and for farmers and fishermen. File 2006 taxes online free Higher income taxpayers. File 2006 taxes online free   If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. File 2006 taxes online free This rule does not apply to farmers and fishermen. File 2006 taxes online free For 2013, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. File 2006 taxes online free Example. File 2006 taxes online free   Jeremy Martin's total tax on his 2013 return was $42,581, and his expected tax for 2014 is $71,253. File 2006 taxes online free His 2013 AGI was $180,000. File 2006 taxes online free Because Jeremy had more than $150,000 of AGI in 2013, he figures his required annual payment as follows. File 2006 taxes online free He determines that 90% of his expected tax for 2014 is $64,128 (. File 2006 taxes online free 90 × $71,253). File 2006 taxes online free Next, he determines that 110% of the tax shown on his 2013 return is $46,839 (1. File 2006 taxes online free 10 x $42,581). File 2006 taxes online free Finally, he determines that his required annual payment is $46,839, the smaller of the two. File 2006 taxes online free Farmers and fishermen. File 2006 taxes online free   If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, your required annual payment is the smaller of: 662/3% (. File 2006 taxes online free 6667) of your total tax for 2014, or 100% of the total tax shown on your 2013 return. File 2006 taxes online free (Your 2013 tax return must cover all 12 months. File 2006 taxes online free )   For definitions of “gross income from farming” and “gross income from fishing,” see Farmers and Fishermen , under Special Rules discussed earlier. File 2006 taxes online free Total tax for 2013—line 14b. File 2006 taxes online free   Your 2013 total tax, if you filed Form 1040, is the amount on line 61 reduced by the following. File 2006 taxes online free Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). File 2006 taxes online free The following amounts from Form 5329 included on line 58. File 2006 taxes online free Any tax on excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts. File 2006 taxes online free Any tax on excess accumulations in qualified retirement plans. File 2006 taxes online free The following write-ins on line 60. File 2006 taxes online free Excise tax on excess golden parachute payments (identified as “EPP”). File 2006 taxes online free Excise tax on insider stock compensation from an expatriated corporation (identified as “ISC”). File 2006 taxes online free Look-back interest due under section 167(g) (identified as “From Form 8866”). File 2006 taxes online free Look-back interest due under section 460(b) (identified as “From Form 8697”). File 2006 taxes online free Recapture of federal mortgage subsidy (identified as “FMSR”). File 2006 taxes online free Additional tax on advance payments of health coverage tax credit when not eligible (identified as “HCTC”). File 2006 taxes online free Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance (identified as “UT”). File 2006 taxes online free Any refundable credit amounts. File 2006 taxes online free   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits. File 2006 taxes online free   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. File 2006 taxes online free Total Estimated Tax Payments Needed—Line 16a Use lines 15 and 16a to figure the total estimated tax you may be required to pay for 2014. File 2006 taxes online free Subtract your expected withholding from your required annual payment (line 14c). File 2006 taxes online free You usually must pay this difference in four equal installments. File 2006 taxes online free See When To Pay Estimated Tax and How To Figure Each Payment . File 2006 taxes online free You do not have to pay estimated tax if: Line 14c minus line 15 is zero or less, or Line 13c minus line 15 is less than $1,000. File 2006 taxes online free Withholding—line 15. File 2006 taxes online free   Your expected withholding for 2014 (line 15) includes the income tax you expect to be withheld from all sources (wages, pensions and annuities, etc. File 2006 taxes online free ). File 2006 taxes online free It includes excess social security, and tier 1 railroad retirement tax you expect to be withheld from your wages and compensation. File 2006 taxes online free For this purpose, you will have excess social security or tier 1 railroad retirement tax withholding for 2014 only if your wages and compensation from two or more employers are more than $117,000. File 2006 taxes online free See Excess Social Security or Railroad Retirement Tax Withholding in chapter 3. File 2006 taxes online free   It also includes Additional Medicare Tax you expect to be withheld from your wages or compensation. File 2006 taxes online free Your employer is responsible for withholding the 0. File 2006 taxes online free 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. File 2006 taxes online free When To Pay Estimated Tax For estimated tax purposes, the year is divided into four payment periods. File 2006 taxes online free Each period has a specific payment due date. File 2006 taxes online free If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return. File 2006 taxes online free If a payment is mailed, the date of the U. File 2006 taxes online free S. File 2006 taxes online free postmark is considered the date of payment. File 2006 taxes online free The payment periods and due dates for estimated tax payments are shown next. File 2006 taxes online free For exceptions to the dates listed, see Saturday, Sunday, holiday rule below. File 2006 taxes online free For the period: Due date: Jan. File 2006 taxes online free 11 – March 31 April 15 April 1 – May 31 June 16 June 1 – August 31 September 15 Sept. File 2006 taxes online free 1 – Dec. File 2006 taxes online free 31 January 15  next year2 1If your tax year does not begin on January 1,  see Fiscal year taxpayers . File 2006 taxes online free 2See January payment . File 2006 taxes online free Saturday, Sunday, holiday rule. File 2006 taxes online free   If the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or a holiday. File 2006 taxes online free January payment. File 2006 taxes online free   If you file your 2014 Form 1040 or Form 1040A by February 2, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015. File 2006 taxes online free Example. File 2006 taxes online free Janet Adams does not pay any estimated tax for 2014. File 2006 taxes online free She files her 2014 income tax return and pays the balance due shown on her return on January 26, 2015. File 2006 taxes online free Janet's estimated tax for the fourth payment period is considered to have been paid on time. File 2006 taxes online free However, she may owe a penalty for not making the first three estimated tax payments, if required. File 2006 taxes online free Any penalty for not making those payments will be figured up to January 26, 2015. File 2006 taxes online free Fiscal year taxpayers. File 2006 taxes online free   If your tax year does not start on January 1, your payment due dates are: The 15th day of the 4th month of your fiscal year, The 15th day of the 6th month of your fiscal year, The 15th day of the 9th month of your fiscal year, and The 15th day of the 1st month after the end of your fiscal year. File 2006 taxes online free   You do not have to make the last payment listed above if you file your income tax return by the last day of the first month after the end of your fiscal year and pay all the tax you owe with your return. File 2006 taxes online free When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. File 2006 taxes online free If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. File 2006 taxes online free You have several options when paying estimated taxes. File 2006 taxes online free You can: apply an overpayment from the previous tax year, pay all your estimated tax by the due date of your first payment, or pay it in installments. File 2006 taxes online free If you choose to pay in installments, make your first payment by the due date for the first payment period. File 2006 taxes online free Make your remaining installment payments by the due dates for the later periods. File 2006 taxes online free To avoid any estimated tax penalties, all installments must be paid by their due date and for the required amount. File 2006 taxes online free No income subject to estimated tax during first period. File 2006 taxes online free   If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. File 2006 taxes online free You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. File 2006 taxes online free Table 2-1 shows the dates for making installment payments. File 2006 taxes online free    Table 2-1. File 2006 taxes online free Due Dates for Estimated Tax Installment Payments If you first have income on which you must pay estimated tax: Make a payment  by:* Make later  installments  by:* Before April 1 April 15 June 16     Sept. File 2006 taxes online free 15     Jan. File 2006 taxes online free 15 next year April 1–May 31 June 16 Sept. File 2006 taxes online free 15     Jan. File 2006 taxes online free 15 next year June 1–Aug. File 2006 taxes online free 31 Sept. File 2006 taxes online free 15 Jan. File 2006 taxes online free 15 next year After Aug. File 2006 taxes online free 31 Jan. File 2006 taxes online free 15 next year (None) *See January payment and Saturday, Sunday, holiday rule . File 2006 taxes online free How much to pay to avoid penalty. File 2006 taxes online free   To determine how much you should pay by each payment due date, see How To Figure Each Payment , later. File 2006 taxes online free Farmers and Fishermen If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, you have only one payment due date for your 2014 estimated tax, January 15, 2015. File 2006 taxes online free The due dates for the first three payment periods, discussed under When To Pay Estimated Tax , earlier, do not apply to you. File 2006 taxes online free If you file your 2014 Form 1040 by March 2, 2015, and pay all the tax you owe at that time, you do not need to make an estimated tax payment. File 2006 taxes online free Fiscal year farmers and fishermen. File 2006 taxes online free   If you are a farmer or fisherman, but your tax year does not start on January 1, you can either: Pay all your estimated tax by the 15th day after the end of your tax year, or File your return and pay all the tax you owe by the 1st day of the 3rd month after the end of your tax year. File 2006 taxes online free How To Figure Each Payment After you have figured your total estimated tax, figure how much you must pay by the due date of each payment period. File 2006 taxes online free You should pay enough by each due date to avoid a penalty for that period. File 2006 taxes online free If you do not pay enough during any payment period, you may be charged a penalty even if you are due a refund when you file your tax return. File 2006 taxes online free The penalty is discussed in chapter 4. File 2006 taxes online free Regular Installment Method If your first estimated tax payment is due April 15, 2014, you can figure your required payment for each period by dividing your annual estimated tax due (line 16a of the 2014 Estimated Tax Worksheet (Worksheet 2-1)) by 4. File 2006 taxes online free Enter this amount on line 17. File 2006 taxes online free However, use this method only if your income is basically the same throughout the year. File 2006 taxes online free Change in estimated tax. File 2006 taxes online free   After you make an estimated tax payment, changes in your income, adjustments, deductions, credits, or exemptions may make it necessary for you to refigure your estimated tax. File 2006 taxes online free Pay the unpaid balance of your amended estimated tax by the next payment due date after the change or in installments by that date and the due dates for the remaining payment periods. File 2006 taxes online free If you do not receive your income evenly throughout the year, your required estimated tax payments may not be the same for each period. File 2006 taxes online free See Annualized Income Installment Method . File 2006 taxes online free Amended estimated tax. File 2006 taxes online free If you refigure your estimated tax during the year, or if your first estimated tax payment is due after April 15, 2014, figure your required payment for each remaining payment period using Worksheet 2-14. File 2006 taxes online free Example. File 2006 taxes online free Early in 2014, Mira Roberts figures that her estimated tax due is $1,800. File 2006 taxes online free She makes estimated tax payments on April 15 and June 16 of $450 each ($1,800 ÷ 4). File 2006 taxes online free On July 10, she sells investment property at a gain. File 2006 taxes online free Her refigured estimated tax is $4,100. File 2006 taxes online free Her required estimated tax payment for the third payment period is $2,175, as shown in her filled-in Worksheet 2-14. File 2006 taxes online free If Mira's estimated tax does not change again, her required estimated tax payment for the fourth payment period will be $1,025. File 2006 taxes online free Worksheet 2-14. File 2006 taxes online free Amended Estimated Tax Worksheet—Illustrated               1. File 2006 taxes online free Amended total estimated tax due 1. File 2006 taxes online free $4,100 2. File 2006 taxes online free Multiply line 1 by:           50% (. File 2006 taxes online free 50) if next payment is due June 16, 2014           75% (. File 2006 taxes online free 75) if next payment is due September 15,  2014           100% (1. File 2006 taxes online free 00) if next payment is due January 15,  2015 2. File 2006 taxes online free 3,075     3. File 2006 taxes online free Estimated tax payments for all previous periods 3. File 2006 taxes online free 900     4. File 2006 taxes online free Next required payment: Subtract line 3 from line 2 and enter the result (but not less than zero) here and on your payment voucher for your next required payment 4. File 2006 taxes online free $2,175       Note. File 2006 taxes online free If the payment on line 4 is due January 15, 2015, stop here. File 2006 taxes online free Otherwise, go to line 5. File 2006 taxes online free         5. File 2006 taxes online free Add lines 3 and 4 5. File 2006 taxes online free 3,075 6. File 2006 taxes online free Subtract line 5 from line 1 and enter the result (but not less than zero) 6. File 2006 taxes online free 1,025 7. File 2006 taxes online free Each following required payment: If the payment on line 4 is due June 16, 2014, enter one-half of the amount on line 6 here and on the payment vouchers for your payments due September 15, 2014, and January 15, 2015. File 2006 taxes online free If the amount on line 4 is due September 15, 2014, enter the amount from line 6 here and on the payment voucher for your payment due January 15, 2015 7. File 2006 taxes online free $1,025 Worksheet 2-14. File 2006 taxes online free Amended Estimated Tax Worksheet—Blank               1. File 2006 taxes online free Amended total estimated tax due 1. File 2006 taxes online free   2. File 2006 taxes online free Multiply line 1 by:           50% (. File 2006 taxes online free 50) if next payment is due June 16, 2014           75% (. File 2006 taxes online free 75) if next payment is due September 15,  2014           100% (1. File 2006 taxes online free 00) if next payment is due January 15,  2015 2. File 2006 taxes online free       3. File 2006 taxes online free Estimated tax payments for all previous periods 3. File 2006 taxes online free       4. File 2006 taxes online free Next required payment: Subtract line 3 from line 2 and enter the result (but not less than zero) here and on your payment voucher for your next required payment 4. File 2006 taxes online free         Note. File 2006 taxes online free If the payment on line 4 is due January 15, 2015, stop here. File 2006 taxes online free Otherwise, go to line 5. File 2006 taxes online free         5. File 2006 taxes online free Add lines 3 and 4 5. File 2006 taxes online free   6. File 2006 taxes online free Subtract line 5 from line 1 and enter the result (but not less than zero) 6. File 2006 taxes online free   7. File 2006 taxes online free Each following required payment: If the payment on line 4 is due June 16, 2014, enter one-half of the amount on line 6 here and on the payment vouchers for your payments due September 15, 2014, and January 15, 2015. File 2006 taxes online free If the amount on line 4 is due September 15, 2014, enter the amount from line 6 here and on the payment voucher for your payment due January 15, 2015 7. File 2006 taxes online free   Underpayment penalty. File 2006 taxes online free   The penalty is figured separately for each payment period. File 2006 taxes online free If you figure your payments using the regular installment method and later refigure your payments because of an increase in income, you may be charged a penalty for underpayment of estimated tax for the period(s) before you changed your payments. File 2006 taxes online free To see how you may be able to avoid or reduce this penalty, see Annualized Income Installment Method (Schedule AI) in chapter 4. File 2006 taxes online free Annualized Income Installment Method If you do not receive your income evenly throughout the year (for example, your income from a repair shop you operate is much larger in the summer than it is during the rest of the year), your required estimated tax payment for one or more periods may be less than the amount figured using the regular installment method. File 2006 taxes online free The annualized income installment method annualizes your tax at the end of each period based on a reasonable estimate of your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. File 2006 taxes online free To see whether you can pay less for any period, complete the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9). File 2006 taxes online free You first must complete the 2014 Estimated Tax Worksheet (Worksheet 2-1) through line 16b. File 2006 taxes online free Use the result you figure on line 32 of Worksheet 2-9 to make your estimated tax payments and complete your payment vouchers. File 2006 taxes online free Note. File 2006 taxes online free If you use the annualized income installment method to figure your estimated tax payments, you must file Form 2210 with your 2014 tax return. File 2006 taxes online free See Annualized Income Installment Method (Schedule AI) in chapter 4 for more information. File 2006 taxes online free Instructions for the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9) Use Worksheet 2-9 to help you follow these instructions. File 2006 taxes online free The purpose of this worksheet is to determine your estimated tax liability as your income accumulates throughout the year, rather than dividing your entire year's estimated tax liability by four as if your income was earned equally throughout the year. File 2006 taxes online free The top of the worksheet shows the dates for each payment period. File 2006 taxes online free The periods build; that is, each period includes all previous periods. File 2006 taxes online free After the end of each payment period, complete the corresponding worksheet column to figure the payment due for that period. File 2006 taxes online free Line 1. File 2006 taxes online free   Enter your AGI for the period. File 2006 taxes online free This is your gross income for the period, including your share of partnership or S corporation income or loss, minus your adjustments to income for that period. File 2006 taxes online free See Expected AGI—Line 1 , earlier. File 2006 taxes online free Self-employment income. File 2006 taxes online free   If you had self-employment income, first complete Section B of this worksheet. File 2006 taxes online free Use the amounts on line 43 when figuring your expected AGI to enter in each column of Section A, line 1. File 2006 taxes online free Line 4. File 2006 taxes online free   Be sure to consider all deduction limits figured on Schedule A (Form 1040), such as reducing your medical expenses by 10% (7. File 2006 taxes online free 5% if either you or your spouse was born before January 2, 1950) or reducing certain miscellaneous deductions by 2% of your AGI. File 2006 taxes online free Figure your deduction limits using your expected AGI in the corresponding column of line 1 (2014 Annualized Estimated Tax Worksheet (Worksheet 2-9)). File 2006 taxes online free Line 6. File 2006 taxes online free   Multiply line 4 by line 5 and enter the result on line 6 unless line 3 is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately. File 2006 taxes online free In that case, use Worksheet 2-10 to figure the amount to enter on line 6. File 2006 taxes online free Complete Worksheet 2–10 for each period, as necessary. File 2006 taxes online free Line 7. File 2006 taxes online free   If you will not itemize your deductions, use Worksheet 2-4 to figure your standard deduction. File 2006 taxes online free Line 10. File 2006 taxes online free   Multiply $3,950 by your total expected exemptions and enter the result on line 10 unless line 3 is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately. File 2006 taxes online free   In that case, use Worksheet 2-11 to figure the amount to enter on line 10. File 2006 taxes online free Line 12. File 2006 taxes online free   Generally, you will use the Tax Rate Schedules to figure the tax on your annualized income. File 2006 taxes online free However, see below for situations where you must use a different method to compute your estimated tax. File 2006 taxes online free Tax on child's investment income. File 2006 taxes online free   You must use a special method to figure tax on the income of the following children who have more than $2,000 of investment income. File 2006 taxes online free Children under age 18 at the end of 2014. File 2006 taxes online free The following children if their earned income is not more than half their support. File 2006 taxes online free Children age 18 at the end of 2014. File 2006 taxes online free Children who are full-time students over age 18 and under age 24 at the end of 2014. File 2006 taxes online free See Publication 929. File 2006 taxes online free Tax on net capital gain. File 2006 taxes online free   The regular income tax rates for individuals do not apply to a net capital gain. File 2006 taxes online free Instead, your net capital gain is taxed at a lower maximum rate. File 2006 taxes online free   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. File 2006 taxes online free Tax on qualified dividends and capital gains. File 2006 taxes online free   For 2014, your capital gain and dividends rate will depend on your income. File 2006 taxes online free Tax on capital gain or qualified dividends. File 2006 taxes online free If the amount on line 1 includes a net capital gain or qualified dividends, use Worksheet 2-12 to figure the amount to enter on line 12. File 2006 taxes online free Tax if excluding foreign earned income or excluding or deducting foreign housing. File 2006 taxes online free If you expect to claim the foreign earned income exclusion or the housing exclusion or deduction on Form 2555 or Form 2555-EZ, use Worksheet 2-13 to figure the amount to enter on line 12. File 2006 taxes online free Line 13. File 2006 taxes online free   If you file Form 1040, add the tax from Forms 8814, 4972, and 6251 for the period. File 2006 taxes online free If you file Form 1040A, add the amount from the Alternative Minimum Tax Worksheet found in the instructions. File 2006 taxes online free Also include any recapture of an education credit for each period. File 2006 taxes online free You may owe this tax if you claimed an education credit in an earlier year and you received either tax-free educational assistance or a refund of qualifying expenses for the same student after filing your 2013 return. File 2006 taxes online free   Use the 2013 forms or worksheets to see if you will owe any of the taxes discussed above. File 2006 taxes online free Figure the tax based on your income and deductions during the period shown in the column headings. File 2006 taxes online free Multiply this amount by the annualization amounts shown for each column on line 2 of the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9). File 2006 taxes online free Enter the result on line 13 of this worksheet. File 2006 taxes online free Line 15. File 2006 taxes online free   Include all the nonrefundable credits you expect to claim because of events that will occur during the period. File 2006 taxes online free Note. File 2006 taxes online free When figuring your credits for each period, annualize any item of income or deduction to figure each credit. File 2006 taxes online free For example, if you need to use your AGI to figure a credit, use line 3 of Worksheet 2-9 to figure the credit for each column. File 2006 taxes online free Line 18. File 2006 taxes online free   Add your expected other taxes. File 2006 taxes online free   Other taxes include the following. File 2006 taxes online free Additional tax on early distributions from: An IRA or other qualified retirement plan, A tax-sheltered annuity, or A modified endowment contract entered into after June 20, 1988. File 2006 taxes online free Household employment taxes if: You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income, or You would be required to make estimated tax payments even if you did not include household employment taxes when figuring your estimated tax. File 2006 taxes online free Amounts on Form 1040 written on the line for “other taxes” (line 60 on the 2013 Form 1040). File 2006 taxes online free But do not include recapture of a federal mortgage subsidy; tax on excess golden parachute payments; look-back interest due under section 167(g) or 460(b) of the Internal Revenue Code; excise tax on insider stock compensation from an expatriated corporation; uncollected social security, Medicare, or RRTA tax on tips or group-term life insurance; or additional tax on advance payments of health coverage tax credit when not eligible. File 2006 taxes online free Repayment of the first-time homebuyer credit if the home will cease to be your main home in 2014. File 2006 taxes online free See Form 5405 for exceptions. File 2006 taxes online free Additional Medicare Tax. File 2006 taxes online free A 0. File 2006 taxes online free 9% Additional Medicare Tax applies to your combined Medicare wages and self-employment income and/or your RRTA compensation that exceeds the amount listed in the following chart, based on your filing status. File 2006 taxes online free Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $200,000 Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. File 2006 taxes online free A self-employment loss should not be considered for purposes of this tax. File 2006 taxes online free RRTA compensation should be separately compared to the threshold. File 2006 taxes online free Your employer is responsible for withholding the 0. File 2006 taxes online free 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays you in excess of $200,000 in 2014. File 2006 taxes online free You should consider this withholding, if applicable, in determining whether you need to make an estimated payment. File 2006 taxes online free For more information on Additional Medicare Tax, go to IRS. File 2006 taxes online free gov and enter “Additional Medicare Tax” in the search box. File 2006 taxes online free Net Investment Income Tax (NIIT). File 2006 taxes online free The NIIT is 3. File 2006 taxes online free 8% of the lesser of your net investment income or the excess of your modified adjusted gross income over a specified threshold amount. File 2006 taxes online free Threshold amounts: Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single $200,000 Head of household $200,000 Qualifying Widow(er) $250,000 For more information on Net Investment Income Tax, go to IRS. File 2006 taxes online free gov and enter “Net Investment Income Tax” in the search box. File 2006 taxes online free Line 20. File 2006 taxes online free   Include all the refundable credits (other than withholding credits) you can claim because of events that occurred during the period. File 2006 taxes online free Note. File 2006 taxes online free When figuring your refundable credits for each period, annualize any item of income or deduction used to figure each credit. File 2006 taxes online free Line 29. File 2006 taxes online free   If line 28 is smaller than line 25 and you are not certain of the estimate of your 2014 tax, you can avoid a penalty by entering the amount from line 25 on line 29. File 2006 taxes online free Line 31. File 2006 taxes online free   For each period, include estimated tax payments made and any excess social security and railroad retirement tax. File 2006 taxes online free   Also include estimated federal income tax withholding. File 2006 taxes online free One-fourth of your estimated withholding is considered withheld on the due date of each payment period. File 2006 taxes online free To figure the amount to include on line 31 for each period, multiply your total expected withholding for 2014 by: 25% (. File 2006 taxes online free 25) for the first period, 50% (. File 2006 taxes online free 50) for the second period, 75% (. File 2006 taxes online free 75) for the third period, and 100% (1. File 2006 taxes online free 00) for the fourth period. File 2006 taxes online free   However, you may choose to include your withholding according to the actual dates on which the amounts will be withheld. File 2006 taxes online free For each period, include withholding made from the beginning of the period up to and including the payment due date. File 2006 taxes online free You can make this choice separately for the taxes withheld from your wages and all other withholding. File 2006 taxes online free For an explanation of what to include in withholding, see Total Estimated Tax Payments Needed—Line 16a , earlier. File 2006 taxes online free Nonresident aliens. File 2006 taxes online free   If you will file Form 1040NR and you do not receive wages as an employee subject to U. File 2006 taxes online free S. File 2006 taxes online free income tax withholding, the instructions for the worksheet are modified as follows. File 2006 taxes online free Skip column (a). File 2006 taxes online free On line 1, enter your income for the period that is effectively connected with a U. File 2006 taxes online free S. File 2006 taxes online free trade or business. File 2006 taxes online free On line 21, increase your entry by the amount determined by multiplying your income for the period that is not effectively connected with a U. File 2006 taxes online free S. File 2006 taxes online free trade or business by the following. File 2006 taxes online free 72% for column (b). File 2006 taxes online free 45% for column (c). File 2006 taxes online free 30% for column (d). File 2006 taxes online free However, if you can use a treaty rate lower than 30%, use the percentages determined by multiplying your treaty rate by 2. File 2006 taxes online free 4, 1. File 2006 taxes online free 5, and 1, respectively. File 2006 taxes online free On line 26, enter one-half of the amount from line 16c of the Form 1040-ES (NR) 2014 Estimated Tax Worksheet in column (b), and one-fourth in columns (c) and (d) of Worksheet 2-9. File 2006 taxes online free On lines 24 and 27, skip column (b). File 2006 taxes online free On line 31, if you do not use the actual withholding method, include one-half of your total expected withholding in column (b) and one-fourth in columns (c) and (d). File 2006 taxes online free See Publication 519 for more information. File 2006 taxes online free Estimated Tax Payments Not Required You do not have to pay estimated tax if your withholding in each payment period is at least as much as: One-fourth of your required annual payment, or Your required annualized income installment for that period. File 2006 taxes online free You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you will owe with your return under $1,000. File 2006 taxes online free How To Pay Estimated Tax There are several ways to pay estimated tax. File 2006 taxes online free Credit an overpayment on your 2013 return to your 2014 estimated tax. File 2006 taxes online free Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. File 2006 taxes online free Send in your payment (check or money order) with a payment voucher from Form 1040-ES. File 2006 taxes online free Credit an Overpayment If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2013, you can apply part or all of it to your estimated tax for 2014. File 2006 taxes online free On Form 1040, or Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. File 2006 taxes online free Take the amount you have credited into account when figuring your estimated tax payments. File 2006 taxes online free If you timely file your 2013 return, treat the credit as a payment made on April 15, 2014. File 2006 taxes online free If you are a beneficiary of an estate or trust, and the trustee elects to credit 2014 trust payments of estimated tax to you, you can treat the amount credited as paid by you on January 15, 2015. File 2006 taxes online free If you choose to have an overpayment of tax credited to your estimated tax, you cannot have any of that amount refunded to you until you file your tax return for the following year. File 2006 taxes online free You also cannot use that overpayment in any other way. File 2006 taxes online free Example. File 2006 taxes online free When Kathleen finished filling out her 2013 tax return, she saw that she had overpaid her taxes by $750. File 2006 taxes online free Kathleen knew she would owe additional tax in 2014. File 2006 taxes online free She credited $600 of the overpayment to her 2014 estimated tax and had the remaining $150 refunded to her. File 2006 taxes online free In September, she amended her 2013 return by filing Form 1040X, Amended U. File 2006 taxes online free S. File 2006 taxes online free Individual Income Tax Return. File 2006 taxes online free It turned out that she owed $250 more in tax than she had thought. File 2006 taxes online free This reduced her 2013 overpayment from $750 to $500. File 2006 taxes online free Because the $750 had already been applied to her 2014 estimated tax or refunded to her, the IRS billed her for the additional $250 she owed, plus penalties and interest. File 2006 taxes online free Kathleen could not use any of the $600 she had credited to her 2014 estimated tax to pay this bill. File 2006 taxes online free Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. File 2006 taxes online free You can make your estimated tax payments online when you e-file or at any time during the year. File 2006 taxes online free You can pay using either of the following electronic payment methods. File 2006 taxes online free Direct transfer from your bank account. File 2006 taxes online free Credit or debit card. File 2006 taxes online free To pay your taxes online or for more information, go to www. File 2006 taxes online free irs. File 2006 taxes online free gov/e-pay. File 2006 taxes online free Pay by Phone Paying by phone is another safe and secure method of paying electronically. File 2006 taxes online free Use one of the following methods. File 2006 taxes online free Direct transfer from your bank account. File 2006 taxes online free Credit or debit card. File 2006 taxes online free To pay by direct transfer from your bank account, call EFTPS Customer Service at 1-800-555-4477 (English), 1-800-244-4829 (Espanol), or TTY/TDD 1-800-733-4829. File 2006 taxes online free To pay using a credit or debit card, you can call one of the following service providers. File 2006 taxes online free There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. File 2006 taxes online free WorldPay 1-888-9-PAY-TAXTM (1-888-972-9829) www. File 2006 taxes online free payUSAtax. File 2006 taxes online free com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. File 2006 taxes online free officialpayments. File 2006 taxes online free com Link2GOV Corporation 1-888-PAY-1040TM (1-888-729-1040) www. File 2006 taxes online free PAY1040. File 2006 taxes online free com For the latest details on how to pay by phone, go to www. File 2006 taxes online free irs. File 2006 taxes online free gov/e-pay. File 2006 taxes online free Pay by Check or Money Order Using the Estimated Tax Payment Voucher Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. File 2006 taxes online free If you use your own envelopes (and not the window envelope that comes with the 1040-ES package), make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live. File 2006 taxes online free Do not use the address shown in the Form 1040 or Form 1040A instructions. File 2006 taxes online free If you did not pay estimated tax last year, get a copy of Form 1040-ES from the IRS (see chapter 5). File 2006 taxes online free Follow the instructions to make sure you use the vouchers correctly. File 2006 taxes online free Joint estimated tax payments. File 2006 taxes online free    If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return. File 2006 taxes online free Change of address. File 2006 taxes online free    You must notify the IRS if you are making estimated tax payments and you changed your address during the year. File 2006 taxes online free Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. File 2006 taxes online free Worksheets for Chapter 2 Use the following worksheets and tables to figure your correct estimated tax. File 2006 taxes online free IF you need. File 2006 taxes online free . File 2006 taxes online free . File 2006 taxes online free THEN use. File 2006 taxes online free . File 2006 taxes online free . File 2006 taxes online free 2014 Tax Rate Schedules   the 2014 Estimated Tax Worksheet Worksheet 2-1 to estimate your taxable social security and railroad retirement benefits—line 1 of ES Worksheet (or Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-2 to estimate your self-employment (SE) tax and your deduction for SE tax—lines 1 and 11 of ES Worksheet (lines 1 and 17 of Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-3 to estimate your standard deduction—line 2 of ES Worksheet (line 7 of Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-4 to reduce your itemized deductions because your estimated AGI is more than $152,525—line 2 of ES Worksheet Worksheet 2-5 to reduce your exemption amount because your estimated AGI is more than $152,525—line 4 of ES Worksheet Worksheet 2-6 to estimate your income tax if line 1 of your ES Worksheet includes a net capital gain or qualified dividends—line 6 of ES Worksheet Worksheet 2-7 to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing exclusion or deduction on Form 2555 or Form 2555-EZ—line 6 of ES Worksheet Worksheet 2-8 the 2014 Annualized Estimated Tax Worksheet (Annualized ES Worksheet) Worksheet 2-9 to reduce your itemized deductions because your estimated annualized AGI is more than $152,525—line 6 of Annualized ES Worksheet Worksheet 2-10 to reduce your exemption amount because your estimated annualized AGI is more than $152,525—line 10 of Annualized ES Worksheet Worksheet 2-11 to estimate your income tax if line 1 of your Annualized ES Worksheet includes a net capital gain or qualified dividends—line 12 of Annualized ES Worksheet Worksheet 2-12 to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing exclusion or deduction on Form 2555 or Form 2555-EZ—line 12 of Annualized ES Worksheet Worksheet 2-13 to refigure (amend) your estimated tax during the year Worksheet 2-14 2014 Tax Rate Schedules Do not use these Tax Rate Schedules to figure your 2013 taxes. File 2006 taxes online free Use them only to figure your 2014 estimated taxes. File 2006 taxes online free Schedule X—Use if your 2014 filing status is  Single Schedule Z—Use if your 2014 filing status is Head of household If line 5 is: The tax is:     If line 5 is: The tax is:     Over— But not  over—         of the  amount  over— Over— But not  over—         of the  amount  over— $0 $9,075     10. File 2006 taxes online free 0%   $0 $0 $12,950     10. File 2006 taxes online free 0%   $0 9,075 36,900 $907. File 2006 taxes online free 50 + 15. File 2006 taxes online free 0%   9,075 12,950 49,400 $1,295. File 2006 taxes online free 00 + 15. File 2006 taxes online free 0%   12,950 36,900 89,350 5,081. File 2006 taxes online free 25 + 25. File 2006 taxes online free 0%   36,900 49,400 127,550 6,762. File 2006 taxes online free 50 + 25. File 2006 taxes online free 0%   49,400 89,350 186,350 18,193. File 2006 taxes online free 75 + 28. File 2006 taxes online free 0%   89,350 127,550 206,600 26,300. File 2006 taxes online free 00 + 28. File 2006 taxes online free 0%   127,550 186,350 405,100 45,353. File 2006 taxes online free 75 + 33. File 2006 taxes online free 0%   186,350 206,600 405,100 48,434. File 2006 taxes online free 00 + 33. File 2006 taxes online free 0%   206,600 405,100 406,750 117,541. File 2006 taxes online free 25 + 35. File 2006 taxes online free 0%   405,100 405,100 432,200 113,939. File 2006 taxes online free 00 + 35. File 2006 taxes online free 0%   405,100 406,750 - - - - - - 118,118. File 2006 taxes online free 75 + 39. File 2006 taxes online free 6%   406,750 432,200 - - - - - - 123,424. File 2006 taxes online free 00 + 39. File 2006 taxes online free 6%   432,200 Schedule Y-1—Use if your 2014 filing status is Married filing jointly or Qualifying widow(er) Schedule Y-2—Use if your 2014 filing status is  Married filing separately If line 5 is: The tax is:     If line 5 is: The tax is:     Over— But not  over—         of the  amount  over— Over— But not  over—         of the  amount  over— $0 $18,150     10. File 2006 taxes online free 0%   $0 $0 $9,075     10. File 2006 taxes online free 0%   $0 18,150 73,800 $1,815. File 2006 taxes online free 00 + 15. File 2006 taxes online free 0%   18,150 9,075 36,900 $907. File 2006 taxes online free 50 + 15. File 2006 taxes online free 0%   9,075 73,800 148,850 10,162. File 2006 taxes online free 50 + 25. File 2006 taxes online free 0%   73,800 36,900 74,425 5,081. File 2006 taxes online free 25 + 25. File 2006 taxes online free 0%   36,900 148,850 226,850 28,925. File 2006 taxes online free 00 + 28. File 2006 taxes online free 0%   148,850 74,425 113,425 14,462. File 2006 taxes online free 50 + 28. File 2006 taxes online free 0%   74,425 226,850 405,100 50,765. File 2006 taxes online free 00 + 33. File 2006 taxes online free 0%   226,850 113,425 202,550 25,382. File 2006 taxes online free 50 + 33. File 2006 taxes online free 0%   113,425 405,100 457,600 109,587. File 2006 taxes online free 50 + 35. File 2006 taxes online free 0%   405,100 202,550 228,800 54,793. File 2006 taxes online free 75 + 35. File 2006 taxes online free 0%   202,550 457,600 - - - - - - 127,962. File 2006 taxes online free 50 + 39. File 2006 taxes online free 6%   457,600 228,800 - - - - - - 63,981. File 2006 taxes online free 25 + 39. File 2006 taxes online free 6%   228,800                             Worksheet 2-1. File 2006 taxes online free 2014 Estimated Tax Worksheet When this worksheet refers you to instructions, you can find those instructions in the Instructions for 2014 Form 1040-ES. File 2006 taxes online free 1 Adjusted gross income you expect in 2014 (see instructions) 1     2 If you plan to itemize deductions, enter the estimated total of your itemized deductions. File 2006 taxes online free  Caution: If line 1 is over $152,525, your deduction may be reduced. File 2006 taxes online free See Worksheet 2-5. File 2006 taxes online free If you do not plan to itemize deductions, enter your standard deduction. File 2006 taxes online free 2     3 Subtract line 2 from line 1 3     4 Exemptions. File 2006 taxes online free Multiply $3,950 by the number of personal exemptions. File 2006 taxes online free  Caution: If line 1 is over $152,525, the amount of your personal exemptions may be limited. File 2006 taxes online free See Worksheet 2-6. File 2006 taxes online free 4     5 Subtract line 4 from line 3 5     6 Tax. File 2006 taxes online free Figure your tax on the amount on line 5 by using the 2014 Tax Rate Schedules Caution: If you will have qualified dividends or a net capital gain, or expect to exclude or deduct foreign earned income or housing, see Worksheets 2-7 and 2-8 to figure the tax 6     7 Alternative minimum tax from Form 6251 or included on Form 1040A, line 28 7     8 Add lines 6 and 7. File 2006 taxes online free Add to this amount any other taxes you expect to include in the total on Form 1040, line 44 8     9 Credits (see instructions). File 2006 taxes online free Do not include any income tax withholding on this line 9     10 Subtract line 9 from line 8. File 2006 taxes online free If zero or less, enter -0- 10     11 Self-employment tax (see instructions) 11     12 Other taxes including, if applicable, Additional Medicare Tax and/or NIIT (see instructions) 12     13a Add lines 10 through 12 13a     b Earned income credit, additional child tax credit, fuel tax credit, and refundable American opportunity credit 13b     c Total 2014 estimated tax. File 2006 taxes online free Subtract line 13b from line 13a. File 2006 taxes online free If zero or less, enter -0- ▶ 13c     14a Multiply line 13c by 90% (662/3% for farmers and fishermen) 14a           b Required annual payment based on prior year's tax (see instructions) 14b           c Required annual payment to avoid a penalty. File 2006 taxes online free Enter the smaller of line 14a or 14b ▶ 14c        Caution: Generally, if you do not prepay (through income tax withholding and estimated tax payments) at least the amount on line 14c, you may owe a penalty for not paying enough estimated tax. File 2006 taxes online free To avoid a penalty, make sure your estimate on line 13c is as accurate as possible. File 2006 taxes online free Even if you pay the required annual payment, you may still owe tax when you file your return. File 2006 taxes online free If you prefer, you can pay the amount shown on line 13c. File 2006 taxes online free                         15 Income tax withheld and estimated to be withheld during 2014 (including income tax withholding on pensions, annuities, certain deferred income, etc. File 2006 taxes online free ) 15     16a Subtract line 15 from line 14c 16a             Is the result zero or less? □ Yes. File 2006 taxes online free Stop here. File 2006 taxes online free You are not required to make estimated tax payments. File 2006 taxes online free  □ No. File 2006 taxes online free Go to line 16b. File 2006 taxes online free             b Subtract line 15 from line 13c 16b             Is the result less than $1,000? □ Yes. File 2006 taxes online free Stop here. File 2006 taxes online free You are not required to make estimated tax payments. File 2006 taxes online free  □ No. File 2006 taxes online free Go to line 17 to figure your required payment. File 2006 taxes online free                         17 If the first payment you are required to make is due April 15, 2014, enter ¼ of line 16a (minus any 2013 overpayment that you are applying to this installment) here, and on your estimated tax payment voucher(s) if you are paying by check or money order 17     Worksheet 2-2. File 2006 taxes online free 2014 Estimated Tax Worksheet—Line 1 Estimated Taxable Social Security and Railroad Retirement Benefits Note. File 2006 taxes online free If you are using this worksheet to estimate your taxable social security or railroad retirement benefits for Worksheet 2-9, 2014 Annualized Estimated Tax Worksheet, multiply the expected amount of benefits for each period by the annualization amount shown on Worksheet 2-9, line 2, for the same period before entering it on line 1 below. File 2006 taxes online free     1. File 2006 taxes online free Enter your expected social security and railroad retirement benefits 1. File 2006 taxes online free   2. File 2006 taxes online free Enter one-half of line 1 2. File 2006 taxes online free   3. File 2006 taxes online free Enter your expected total income. File 2006 taxes online free Do not include any social security and railroad retirement benefits, nontaxable interest income, nontaxable IRA distributions, or nontaxable pension distributions 3. File 2006 taxes online free   4. File 2006 taxes online free Enter your expected nontaxable interest income 4. File 2006 taxes online free   5. File 2006 taxes online free Enter (as a positive amount) the total of any expected exclusions or deductions for: U. File 2006 taxes online free S. File 2006 taxes online free savings bond interest used for higher education expenses (Form 8815) Employer-provided adoption benefits (Form 8839) Foreign earned income or housing (Form 2555 or 2555-EZ) Income by bona fide residents of American Samoa (Form 4563) or Puerto Rico 5. File 2006 taxes online free   6. File 2006 taxes online free Add lines 2, 3, 4, and 5 6. File 2006 taxes online free   7. File 2006 taxes online free Enter your expected adjustments to income. File 2006 taxes online free Do not include any student loan interest deduction 7. File 2006 taxes online free   8. File 2006 taxes online free Subtract line 7 from line 6. File 2006 taxes online free If zero or less, stop here. File 2006 taxes online free  Note. File 2006 taxes online free Do not include any social security or railroad retirement benefits in the amount on line 1 of your 2014 Estimated Tax Worksheet (Worksheet 2-1) (or Annualized Estimated Tax Worksheet (Worksheet 2-9)) 8. File 2006 taxes online free   9. File 2006 taxes online free Enter $25,000 ($32,000 if you expect to file married filing jointly; $0 if you expect to file married filing separately and expect to live with your spouse at any time during the year) 9. File 2006 taxes online free   10. File 2006 taxes online free Subtract line 9 from line 8. File 2006 taxes online free If zero or less, stop here. File 2006 taxes online free  Note. File 2006 taxes online free Do not include any social security or railroad retirement benefits in the amount on line 1 of your Worksheet 2-1 (or Annualized Estimated Tax Worksheet (Worksheet 2-9)) 10. File 2006 taxes online free   11. File 2006 taxes online free Enter $9,000 ($12,000 if you expect to file married filing jointly; $0 if you expect to file married filing separately and expect to live with your spouse at any time during the year) 11. File 2006 taxes online free   12. File 2006 taxes online free Subtract line 11 from line 10. File 2006 taxes online free If zero or less, enter -0- 12. File 2006 taxes online free   13. File 2006 taxes online free Enter the smaller of line 10 or line 11 13. File 2006 taxes online free   14. File 2006 taxes online free Enter one-half of line 13 14. File 2006 taxes online free   15