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File 2012 Taxes Electronically

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File 2012 Taxes Electronically

File 2012 taxes electronically Publication 547 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. File 2012 taxes electronically Tax questions. File 2012 taxes electronically Useful Items - You may want to see: What's New Section C of Form 4684 for Ponzi-type investment schemes. File 2012 taxes electronically  Section C of Form 4684 is new for 2013. File 2012 taxes electronically You must complete Section C if you are claiming a theft loss deduction due to a Ponzi-type investment scheme and are using Revenue Procedure 2009-20, as modified by Revenue Procedure 2011-58. File 2012 taxes electronically Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. File 2012 taxes electronically You do not need to complete Appendix A. File 2012 taxes electronically For details, see Losses from Ponzi-type investment schemes , later. File 2012 taxes electronically Reminders Future developments. File 2012 taxes electronically   For the latest information about developments related to Publication 547, such as legislation enacted after it was published, go to www. File 2012 taxes electronically irs. File 2012 taxes electronically gov/pub547. File 2012 taxes electronically Photographs of missing children. File 2012 taxes electronically  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. File 2012 taxes electronically Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. File 2012 taxes electronically You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. File 2012 taxes electronically Introduction This publication explains the tax treatment of casualties, thefts, and losses on deposits. File 2012 taxes electronically A casualty occurs when your property is damaged as a result of a disaster such as a storm, fire, car accident, or similar event. File 2012 taxes electronically A theft occurs when someone steals your property. File 2012 taxes electronically A loss on deposits occurs when your financial institution becomes insolvent or bankrupt. File 2012 taxes electronically This publication discusses the following topics. File 2012 taxes electronically Definitions of a casualty, theft, and loss on deposits. File 2012 taxes electronically How to figure the amount of your gain or loss. File 2012 taxes electronically How to treat insurance and other reimbursements you receive. File 2012 taxes electronically The deduction limits. File 2012 taxes electronically When and how to report a casualty or theft. File 2012 taxes electronically The special rules for disaster area losses. File 2012 taxes electronically Forms to file. File 2012 taxes electronically   Generally, when you have a casualty or theft, you have to file Form 4684. File 2012 taxes electronically You may also have to file one or more of the following forms. File 2012 taxes electronically Schedule A (Form 1040). File 2012 taxes electronically Form 1040NR, Schedule A (for nonresident aliens). File 2012 taxes electronically Schedule D. File 2012 taxes electronically Form 4797. File 2012 taxes electronically For details on which form to use, see How To Report Gains and Losses , later. File 2012 taxes electronically Condemnations. File 2012 taxes electronically   For information on condemnations of property, see Involuntary Conversions in chapter 1 of Publication 544, Sales and Other Dispositions of Assets. File 2012 taxes electronically Workbooks for casualties and thefts. File 2012 taxes electronically   Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property), is available to help you make a list of your stolen or damaged personal-use property and figure your loss. File 2012 taxes electronically It includes schedules to help you figure the loss on your home and its contents, and your motor vehicles. File 2012 taxes electronically   Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook, is available to help you make a list of your stolen or damaged business or income-producing property and figure your loss. File 2012 taxes electronically Comments and suggestions. File 2012 taxes electronically   We welcome your comments about this publication and your suggestions for future editions. File 2012 taxes electronically   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. File 2012 taxes electronically NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. File 2012 taxes electronically Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. File 2012 taxes electronically   You can send your comments from www. File 2012 taxes electronically irs. File 2012 taxes electronically gov/formspubs/. File 2012 taxes electronically Click on “More Information” and then on “Comment on Tax Forms and Publications”. File 2012 taxes electronically   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. File 2012 taxes electronically Ordering forms and publications. File 2012 taxes electronically   Visit www. File 2012 taxes electronically irs. File 2012 taxes electronically gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. File 2012 taxes electronically Internal Revenue Service 1201 N. File 2012 taxes electronically Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. File 2012 taxes electronically   If you have a tax question, check the information available on IRS. File 2012 taxes electronically gov or call 1-800-829-1040. File 2012 taxes electronically We cannot answer tax questions sent to either of the above addresses. File 2012 taxes electronically Useful Items - You may want to see: Publication 523 Selling Your Home 525 Taxable and Nontaxable Income 550 Investment Income and Expenses 551 Basis of Assets 584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 584-B Business Casualty, Disaster, and   Theft Loss Workbook Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Form 1040NR, Schedule A Itemized Deductions (for nonresident aliens) Schedule D (Form 1040) Capital Gains and Losses 4684 Casualties and Thefts 4797 Sales of Business Property See How To Get Tax Help near the end of this publication for information about getting publications and forms. File 2012 taxes electronically Prev  Up  Next   Home   More Online Publications
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Retirement Topics - Required Minimum Distributions (RMDs)

You cannot keep retirement funds in your account indefinitely. You generally have to start taking withdrawals from your IRA or retirement plan account when you reach age 70½. Roth IRAs do not require withdrawals until after the death of the owner.

Your required minimum distribution is the minimum amount you must withdraw from your account each year.

  • You can withdraw more than the minimum required amount.
  • Your withdrawals will be included in your taxable income except for any part that was taxed before (your basis) or that can be received tax-free (such as qualified distributions from designated Roth accounts).

Calculating the required minimum distribution

The required minimum distribution for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS’s “Uniform Lifetime Table.” A separate table is used if the sole beneficiary is the owner’s spouse who is ten or more years younger than the owner.

Beginning date for your first required minimum distribution

  • IRAs (including SEP and SIMPLE IRAs)
    • April 1 of the year following the calendar year in which you reach age 70½.

  • 401(k), profit-sharing, 403(b), or other defined contribution plan
    Generally, April 1 following the later of the calendar year in which you:
    • reach age 70½, or
    • retire.

See the chart comparing IRA and defined contribution plan RMDs.

Date that you turn 70½

You reach age 70½ on the date that is 6 calendar months after your 70th birthday.

Example: You are retired and your 70th birthday was June 30, 2011. You reached age 70½ on December 30, 2011. You must take your first RMD (for 2011) by April 1, 2012.

Example: You are retired and your 70th birthday was July 1, 2011. You reached age 70½ on January 1, 2012. You do not have an RMD for 2011. You must take your first RMD (for 2012) by April 1, 2013.

Terms of the plan govern

The plan’s terms may allow you to wait until the year you actually retire to take your first RMD (unless you are a 5% owner). Alternatively, a plan may require you to begin receiving distributions by April 1 of the year after you reach age 70½, even if you have not retired.

5% owners

If you own 5% or more of the business sponsoring the plan, then you must begin receiving distributions by April 1 of the year after the calendar year in which you reach age 70½.

Date for receiving subsequent required minimum distributions

For each subsequent year after your required beginning date, you must withdraw your RMD by December 31.

The first year following the year you reach age 70½ you will generally have two required distribution dates: an April 1 withdrawal (for the year you turn 70½), and an additional withdrawal by December 31 (for the year following the year you turn 70½). To avoid having both of these amounts included in your income for the same year, you can make your first withdrawal by December 31 of the year you turn 70½ instead of waiting until April 1 of the following year.

Example: John reached age 70½ on August 20, 2011. He must receive his 2011 required minimum distribution by April 1, 2012, based on his 2010 year-end balance. John must receive his 2012 required minimum distribution by December 31, 2012, based on his 2011 year-end balance.

If John receives his initial required minimum distribution for 2011 on April 1, 2012, then both his 2011 and 2012 distributions will be included in income on his 2012 income tax return.

Consequence for failing to take required minimum distributions

If you do not take any distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required.

  • To report the excise tax, you may have to file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
  • See the Form 5329 instructions for additional information about this tax.

Required minimum distributions after the account owner dies

For the year of the account owner’s death, use the RMD the account owner would have received. For the year following the owner’s death, the RMD will depend on the identity of the designated beneficiary.

Calculating required minimum distributions for designated beneficiaries

Beneficiaries of retirement accounts and IRAs calculate RMDs using the Single Life Table (Table I, Appendix C, Publication 590, Individual Retirement Arrangements (IRAs)). The table shows a life expectancy based on the beneficiary’s age. The account balance is divided by this life expectancy to determine the RMD.

  • Spouses who are the sole designated beneficiary can:
    • treat an IRA as their own, or
    • base RMDs on their own current age,
    • base RMDs on the decedent’s age at death, reducing the distribution period by one each year, or
    • withdraw the entire account balance by the end of the 5th year following the account owner’s death, if the account owner died before the required beginning date.
If the account owner died before the required beginning date, the surviving spouse can wait until the owner would have turned 70½ to begin receiving RMDs
  • Individual beneficiaries other than a spouse can:
    • withdraw the entire account balance by the end of the 5th year following the account owner’s death, if the account owner died before the required beginning date, or
    • calculate RMDs using the distribution period from the Single Life Table based on:
      • If the owner died after RMDs began, the longer of the:
        • beneficiary’s remaining life expectancy determined in the year following the year of the owner’s death reduced by one for each subsequent year or
        • owner’s remaining life expectancy at death, reduced by one for each subsequent year
      • If the account owner died before RMDs began, the beneficiary’s age at year-end following the year of the owner’s death, reducing the distribution period by one for each subsequent year.

See Publication 590, Individual Retirement Arrangements (IRAs), for details on calculating required distributions for beneficiaries.

Chart of required minimum distributions for IRA beneficiaries

Do these rules apply to my retirement plan?

These minimum distribution rules apply to:

  • traditional IRAs,
  • SEP IRAs,
  • SIMPLE IRAs,
  • 401(k) plans
  • 403(b) plans
  • 457(b) plans
  • profit sharing plans, and
  • other defined contribution plans.

Additional resources

 

Page Last Reviewed or Updated: 20-Feb-2014

The File 2012 Taxes Electronically

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