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

Sample 1040x Filled Out

Irs 1040 EzFree State Tax Return TurbotaxCan I File My 2012 Taxes OnlineEz Tax Form 2013Tax Form EzHow Do I File A Tax Extension OnlineAmended Tax Return2012.taxhow1040ez FormHow Do You File 2011 Taxes In 2013E File State Taxes Only FreeTurbo TaxIrs Gov Free FileVolunteer Income TaxCan I Efile 2012 TaxesHow Long Does An Amended Tax Return TakeFederal Tax Return 2012Free Federal And State Tax ReturnsH And R Block Free Tax PreparationIrs Forms 1040Ez Tax FormTax Credit For StudentsFile Extension Online1040x Form And InstructionsFree Federal And State Tax Filing OnlineI Need To Amend My TaxesFree H And R BlockWhere Can I File 2011 Taxes For Free1040a Form To Print1040ez Tax Form And BookletForm 1040sFree Online Tax Filing For 2012Tax Planning Us 1040ezH & R Block Free Efile2011 Federal Tax FormH&r Block FreeFederal Income Tax 1040ez OnlineH&r Block Tax SoftwareH&r Block Amended Return 2012Turbo Tax Filing

Sample 1040x Filled Out

Sample 1040x filled out Publication 523 - Introductory Material Table of Contents Future Developments Reminders IntroductionOrdering forms and publications. Sample 1040x filled out Tax questions. Sample 1040x filled out Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 523, such as legislation enacted after it was published, go to www. Sample 1040x filled out irs. Sample 1040x filled out gov/pub523. Sample 1040x filled out Reminders Change of address. Sample 1040x filled out  If you change your mailing address, be sure to notify the Internal Revenue Service (IRS) using Form 8822, Change of Address. Sample 1040x filled out Mail it to the Internal Revenue Service Center for your old address. Sample 1040x filled out (Addresses for the Service Centers are on the back of the form. Sample 1040x filled out ) Home sold with undeducted points. Sample 1040x filled out  If you have not deducted all the points you paid to secure a mortgage on your old home, you may be able to deduct the remaining points in the year of sale. Sample 1040x filled out See Points in Publication 936, Home Mortgage Interest Deduction. Sample 1040x filled out Photographs of missing children. Sample 1040x filled out  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Sample 1040x filled out Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Sample 1040x filled out 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. Sample 1040x filled out Introduction This publication explains the tax rules that apply when you sell your main home. Sample 1040x filled out In most cases, your main home is the one in which you live most of the time. Sample 1040x filled out If you sold your main home in 2013, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases). Sample 1040x filled out See Excluding the Gain , later. Sample 1040x filled out Generally, if you can exclude all the gain, you do not need to report the sale on your tax return. Sample 1040x filled out If you have gain that cannot be excluded, you generally must report it on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D (Form 1040), Capital Gains and Losses. Sample 1040x filled out You may also have to complete Form 4797, Sales of Business Property. Sample 1040x filled out See Reporting the Sale , later. Sample 1040x filled out If you have a loss on the sale, you generally cannot deduct it on your return. Sample 1040x filled out However, you may need to report it. Sample 1040x filled out See Reporting the Sale , later. Sample 1040x filled out The main topics in this publication are: Figuring gain or loss, Basis, Excluding the gain, Ownership and use tests, and Reporting the sale. Sample 1040x filled out Other topics include: Business use or rental of home, Deducting taxes in the year of sale, and Recapturing a federal mortgage subsidy. Sample 1040x filled out Net Investment Income Tax (NIIT). Sample 1040x filled out   If any part of the gain on the sale of a home is not excluded under the rules discussed in this publication, it may be subject to the NIIT. Sample 1040x filled out For more details, see Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, and its instructions. Sample 1040x filled out Worksheets. Sample 1040x filled out   Near the end of this publication you will find worksheets you can use to figure your gain (or loss) and your exclusion. Sample 1040x filled out Use Worksheet 1 to figure the adjusted basis of the home you sold. Sample 1040x filled out Use Worksheet 2 to figure the gain (or loss), the exclusion, and the taxable gain (if any) on the sale. Sample 1040x filled out If you do not qualify for the maximum exclusion, use Worksheet 3 to figure your reduced maximum exclusion. Sample 1040x filled out Date of sale. Sample 1040x filled out    If you received a Form 1099-S, Proceeds From Real Estate Transactions, the date of sale should be shown in box 1. Sample 1040x filled out If you did not receive this form, the date of sale is the earlier of (a) the date title transferred or (b) the date the economic burdens and benefits of ownership shifted to the buyer. Sample 1040x filled out In most cases, these dates are the same. Sample 1040x filled out What is not covered in this publication. Sample 1040x filled out   This publication does not cover the sale of rental property, second homes, or vacation homes. Sample 1040x filled out For information on how to report any gain or loss from those sales, see Publication 544, Sales and Other Dispositions of Assets. Sample 1040x filled out Comments and suggestions. Sample 1040x filled out   We welcome your comments about this publication and your suggestions for future editions. Sample 1040x filled out   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Sample 1040x filled out NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Sample 1040x filled out Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Sample 1040x filled out   You can send your comments from www. Sample 1040x filled out irs. Sample 1040x filled out gov/formspubs/. Sample 1040x filled out Click on “More Information” and then on “Comment on Tax Forms and Publications”. Sample 1040x filled out   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. Sample 1040x filled out Ordering forms and publications. Sample 1040x filled out   Visit www. Sample 1040x filled out irs. Sample 1040x filled out 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. Sample 1040x filled out Internal Revenue Service 1201 N. Sample 1040x filled out Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Sample 1040x filled out   If you have a tax question, check the information available on IRS. Sample 1040x filled out gov or call 1-800-829-1040. Sample 1040x filled out We cannot answer tax questions sent to either of the above addresses. Sample 1040x filled out Useful Items - You may want to see: Publication 527 Residential Rental Property 530 Tax Information for Homeowners 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 551 Basis of Assets 587 Business Use of Your Home 936 Home Mortgage Interest Deduction 4681 Canceled Debts, Foreclosures, Repossessions, and Abandonments Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule D (Form 1040) Capital Gains and Losses 982 Reduction of Tax Attributes Due to Discharge of Indebtedness 1040 U. Sample 1040x filled out S. Sample 1040x filled out Individual Income Tax Return 1040NR U. Sample 1040x filled out S. Sample 1040x filled out Nonresident Alien Income Tax Return 1040X Amended U. Sample 1040x filled out S. Sample 1040x filled out Individual Income Tax Return 1099-S Proceeds From Real Estate Transactions 4797 Sales of Business Property 5405 Repayment of the First-Time Homebuyer Credit 8822 Change of Address 8828 Recapture of Federal Mortgage Subsidy 8939 Allocation of Increase in Basis for Property Acquired From a Decedent 8949 Sales and Other Dispositions of Capital Assets W-2 Wage and Tax Statement See How To Get Tax Help , near the end of this publication, for information about getting these publications and forms. Sample 1040x filled out Prev  Up  Next   Home   More Online Publications
Español

Business Past Features from 2008

Find information that was formerly featured on the USA.gov website in the Business News and Features section during 2008. Due to constantly changing government websites, some links may no longer be available.


The Sample 1040x Filled Out

Sample 1040x filled out 4. Sample 1040x filled out   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. Sample 1040x filled out  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. Sample 1040x filled out For more information, see Publication 505. Sample 1040x filled out Reminders Estimated tax safe harbor for higher income taxpayers. Sample 1040x filled out  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. Sample 1040x filled out Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. Sample 1040x filled out In general, the federal income tax is a pay-as-you-go tax. Sample 1040x filled out There are two ways to pay as you go. Sample 1040x filled out Withholding. Sample 1040x filled out If you are an employee, your employer probably withholds income tax from your pay. Sample 1040x filled out Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. Sample 1040x filled out The amount withheld is paid to the IRS in your name. Sample 1040x filled out Estimated tax. Sample 1040x filled out If you do not pay your tax through withholding, or do not pay enough tax that way, you may have to pay estimated tax. Sample 1040x filled out People who are in business for themselves generally will have to pay their tax this way. Sample 1040x filled out Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. Sample 1040x filled out Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Sample 1040x filled out This chapter explains these methods. Sample 1040x filled out In addition, it also explains the following. Sample 1040x filled out Credit for withholding and estimated tax. Sample 1040x filled out When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. Sample 1040x filled out , and for the estimated tax you paid for 2013. Sample 1040x filled out Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). Sample 1040x filled out Underpayment penalty. Sample 1040x filled out 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. Sample 1040x filled out In most cases, the IRS can figure this penalty for you. Sample 1040x filled out See Underpayment Penalty for 2013 at the end of this chapter. Sample 1040x filled out 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. Sample 1040x filled out This section explains the rules for withholding tax from each of these types of income. Sample 1040x filled out This section also covers backup withholding on interest, dividends, and other payments. Sample 1040x filled out Salaries and Wages Income tax is withheld from the pay of most employees. Sample 1040x filled out Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Sample 1040x filled out It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Sample 1040x filled out See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. Sample 1040x filled out If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Sample 1040x filled out This is explained under Exemption From Withholding , later. Sample 1040x filled out You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Sample 1040x filled out 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 . Sample 1040x filled out Military retirees. Sample 1040x filled out   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. Sample 1040x filled out Household workers. Sample 1040x filled out   If you are a household worker, you can ask your employer to withhold income tax from your pay. Sample 1040x filled out A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Sample 1040x filled out   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Sample 1040x filled out If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Sample 1040x filled out Farmworkers. Sample 1040x filled out   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. Sample 1040x filled out Differential wage payments. Sample 1040x filled out    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Sample 1040x filled out 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. Sample 1040x filled out The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Sample 1040x filled out   The credit employers can claim for differential wages paid to activated military reservists is scheduled to expire for wages paid after December 31, 2013. Sample 1040x filled out 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. Sample 1040x filled out The amount you earn in each payroll period. Sample 1040x filled out The information you give your employer on Form W-4. Sample 1040x filled out Form W-4 includes four types of information that your employer will use to figure your withholding. Sample 1040x filled out Whether to withhold at the single rate or at the lower married rate. Sample 1040x filled out How many withholding allowances you claim (each allowance reduces the amount withheld). Sample 1040x filled out Whether you want an additional amount withheld. Sample 1040x filled out Whether you are claiming an exemption from withholding in 2014. Sample 1040x filled out See Exemption From Withholding , later. Sample 1040x filled out Note. Sample 1040x filled out You must specify a filing status and a number of withholding allowances on Form W-4. Sample 1040x filled out You cannot specify only a dollar amount of withholding. Sample 1040x filled out New Job When you start a new job, you must fill out Form W-4 and give it to your employer. Sample 1040x filled out Your employer should have copies of the form. Sample 1040x filled out If you need to change the information later, you must fill out a new form. Sample 1040x filled out 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. Sample 1040x filled out You may be able to avoid overwithholding if your employer agrees to use the part-year method. Sample 1040x filled out See Part-Year Method in chapter 1 of Publication 505 for more information. Sample 1040x filled out Employee also receiving pension income. Sample 1040x filled out   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Sample 1040x filled out However, you can choose to split your withholding allowances between your pension and job in any manner. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other reason. Sample 1040x filled out Changing your withholding for 2015. Sample 1040x filled out   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. Sample 1040x filled out If the event occurs in December 2014, submit a new Form W-4 within 10 days. Sample 1040x filled out 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. Sample 1040x filled out If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Sample 1040x filled out You should try to have your withholding match your actual tax liability. Sample 1040x filled out 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. Sample 1040x filled out If too much tax is withheld, you will lose the use of that money until you get your refund. Sample 1040x filled out 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. Sample 1040x filled out Note. Sample 1040x filled out You cannot give your employer a payment to cover withholding on salaries and wages for past pay periods or a payment for estimated tax. Sample 1040x filled out Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Sample 1040x filled out The worksheets are for your own records. Sample 1040x filled out Do not give them to your employer. Sample 1040x filled out Multiple jobs. Sample 1040x filled out   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Sample 1040x filled out Then split your allowances between the Forms W-4 for each job. Sample 1040x filled out You cannot claim the same allowances with more than one employer at the same time. Sample 1040x filled out You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Sample 1040x filled out Married individuals. Sample 1040x filled out   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. Sample 1040x filled out Use only one set of worksheets. Sample 1040x filled out You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Sample 1040x filled out   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. Sample 1040x filled out Alternative method of figuring withholding allowances. Sample 1040x filled out   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. Sample 1040x filled out For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. Sample 1040x filled out Personal Allowances Worksheet. Sample 1040x filled out   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. Sample 1040x filled out Deduction and Adjustments Worksheet. Sample 1040x filled out   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. Sample 1040x filled out Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. Sample 1040x filled out Two-Earners/Multiple Jobs Worksheet. Sample 1040x filled out   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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out You accurately complete all the Form W-4 worksheets that apply to you. Sample 1040x filled out You give your employer a new Form W-4 when changes occur. Sample 1040x filled out But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Sample 1040x filled out This is most likely to happen in the following situations. Sample 1040x filled out You are married and both you and your spouse work. Sample 1040x filled out You have more than one job at a time. Sample 1040x filled out You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Sample 1040x filled out You will owe additional amounts with your return, such as self-employment tax. Sample 1040x filled out Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Sample 1040x filled out 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. Sample 1040x filled out You work only part of the year. Sample 1040x filled out You change the number of your withholding allowances during the year. Sample 1040x filled out Cumulative wage method. Sample 1040x filled out   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. Sample 1040x filled out 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. Sample 1040x filled out You must ask your employer in writing to use this method. Sample 1040x filled out   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Sample 1040x filled out ) since the beginning of the year. Sample 1040x filled out Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. Sample 1040x filled out You can use the IRS Withholding Calculator at www. Sample 1040x filled out irs. Sample 1040x filled out 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. Sample 1040x filled out Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Sample 1040x filled out These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Sample 1040x filled out New Form W-4. Sample 1040x filled out   When you start a new job, your employer should have you complete a Form W-4. Sample 1040x filled out Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Sample 1040x filled out   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Sample 1040x filled out 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. Sample 1040x filled out No Form W-4. Sample 1040x filled out   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. Sample 1040x filled out Repaying withheld tax. Sample 1040x filled out   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. Sample 1040x filled out Your employer cannot repay any of the tax previously withheld. Sample 1040x filled out Instead, claim the full amount withheld when you file your tax return. Sample 1040x filled out   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. Sample 1040x filled out Your employer can repay the amount that was withheld incorrectly. Sample 1040x filled out 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. Sample 1040x filled out Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Sample 1040x filled out The exemption applies only to income tax, not to social security or Medicare tax. Sample 1040x filled out You can claim exemption from withholding for 2014 only if both of the following situations apply. Sample 1040x filled out For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Sample 1040x filled out For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Sample 1040x filled out Students. Sample 1040x filled out   If you are a student, you are not automatically exempt. Sample 1040x filled out See chapter 1 to find out if you must file a return. Sample 1040x filled out If you work only part time or only during the summer, you may qualify for exemption from withholding. Sample 1040x filled out Age 65 or older or blind. Sample 1040x filled out   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. Sample 1040x filled out Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Sample 1040x filled out Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. Sample 1040x filled out Claiming exemption from withholding. Sample 1040x filled out   To claim exemption, you must give your employer a Form W-4. Sample 1040x filled out Do not complete lines 5 and 6. Sample 1040x filled out Enter “Exempt” on line 7. Sample 1040x filled out   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. Sample 1040x filled out 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. Sample 1040x filled out   Your claim of exempt status may be reviewed by the IRS. Sample 1040x filled out An exemption is good for only 1 year. Sample 1040x filled out   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Sample 1040x filled out Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Sample 1040x filled out The payer can figure withholding on supplemental wages using the same method used for your regular wages. Sample 1040x filled out 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. Sample 1040x filled out Expense allowances. Sample 1040x filled out   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Sample 1040x filled out   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. Sample 1040x filled out   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. Sample 1040x filled out Penalties You may have to pay a penalty of $500 if both of the following apply. Sample 1040x filled out You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Sample 1040x filled out You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Sample 1040x filled out 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. Sample 1040x filled out The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Sample 1040x filled out 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. Sample 1040x filled out A simple error or an honest mistake will not result in one of these penalties. Sample 1040x filled out 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. Sample 1040x filled out Tips The tips you receive while working on your job are considered part of your pay. Sample 1040x filled out You must include your tips on your tax return on the same line as your regular pay. Sample 1040x filled out However, tax is not withheld directly from tip income, as it is from your regular pay. Sample 1040x filled out Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Sample 1040x filled out See chapter 6 for information on reporting your tips to your employer. Sample 1040x filled out For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. Sample 1040x filled out How employer figures amount to withhold. Sample 1040x filled out   The tips you report to your employer are counted as part of your income for the month you report them. Sample 1040x filled out Your employer can figure your withholding in either of two ways. Sample 1040x filled out By withholding at the regular rate on the sum of your pay plus your reported tips. Sample 1040x filled out By withholding at the regular rate on your pay plus a percentage of your reported tips. Sample 1040x filled out Not enough pay to cover taxes. Sample 1040x filled out   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. Sample 1040x filled out See Giving your employer money for taxes in chapter 6. Sample 1040x filled out Allocated tips. Sample 1040x filled out   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. Sample 1040x filled out Withholding is based only on your pay plus your reported tips. Sample 1040x filled out Your employer should refund to you any incorrectly withheld tax. Sample 1040x filled out See Allocated Tips in chapter 6 for more information. Sample 1040x filled out Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. Sample 1040x filled out Your employer generally must withhold income tax on these benefits from your regular pay. Sample 1040x filled out For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. Sample 1040x filled out 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. Sample 1040x filled out Your employer must notify you if this choice is made. Sample 1040x filled out For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. Sample 1040x filled out 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. Sample 1040x filled out To qualify as sick pay, it must be paid under a plan to which your employer is a party. Sample 1040x filled out If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. Sample 1040x filled out An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. Sample 1040x filled out 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. Sample 1040x filled out See Form W-4S , later. Sample 1040x filled out 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. Sample 1040x filled out Union agreements. Sample 1040x filled out   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. Sample 1040x filled out See your union representative or your employer for more information. Sample 1040x filled out Form W-4S. Sample 1040x filled out   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. Sample 1040x filled out Its instructions contain a worksheet you can use to figure the amount you want withheld. Sample 1040x filled out They also explain restrictions that may apply. Sample 1040x filled out   Give the completed form to the payer of your sick pay. Sample 1040x filled out The payer must withhold according to your directions on the form. Sample 1040x filled out Estimated tax. Sample 1040x filled out   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. Sample 1040x filled out 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. Sample 1040x filled out See Underpayment Penalty for 2013 at the end of this chapter. Sample 1040x filled out Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. Sample 1040x filled out 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. Sample 1040x filled out 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). Sample 1040x filled out Income tax withholding from an ERD is mandatory. Sample 1040x filled out More information. Sample 1040x filled out   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. Sample 1040x filled out For information on IRAs, see chapter 17. Sample 1040x filled out 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. Sample 1040x filled out Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. Sample 1040x filled out Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. Sample 1040x filled out Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. Sample 1040x filled out Any other wager, if the proceeds are at least 300 times the amount of the bet. Sample 1040x filled out It does not matter whether your winnings are paid in cash, in property, or as an annuity. Sample 1040x filled out Winnings not paid in cash are taken into account at their fair market value. Sample 1040x filled out Exception. Sample 1040x filled out   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. Sample 1040x filled out However, you may need to provide the payer with a social security number to avoid withholding. Sample 1040x filled out See Backup withholding on gambling winnings in chapter 1 of Publication 505. Sample 1040x filled out If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. Sample 1040x filled out See Estimated Tax for 2014 , later. Sample 1040x filled out 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. Sample 1040x filled out See Underpayment Penalty for 2013 at the end of this chapter. Sample 1040x filled out Form W-2G. Sample 1040x filled out   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. Sample 1040x filled out Report the tax withheld on line 62 of Form 1040. Sample 1040x filled out Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. Sample 1040x filled out To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Sample 1040x filled out All unemployment compensation is taxable. Sample 1040x filled out So, if you do not have income tax withheld, you may have to pay estimated tax. Sample 1040x filled out See Estimated Tax for 2014 , later. Sample 1040x filled out 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. Sample 1040x filled out For information, see Underpayment Penalty for 2013 at the end of this chapter. Sample 1040x filled out Federal Payments You can choose to have income tax withheld from certain federal payments you receive. Sample 1040x filled out 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. Sample 1040x filled out S. Sample 1040x filled out C. Sample 1040x filled out 1421 et. Sample 1040x filled out seq. Sample 1040x filled out ), 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. Sample 1040x filled out To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Sample 1040x filled out If you do not choose to have income tax withheld, you may have to pay estimated tax. Sample 1040x filled out See Estimated Tax for 2014 , later. Sample 1040x filled out 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. Sample 1040x filled out For information, see Underpayment Penalty for 2013 at the end of this chapter. Sample 1040x filled out More information. Sample 1040x filled out   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. Sample 1040x filled out Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. Sample 1040x filled out Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. Sample 1040x filled out The information return shows how much you were paid during the year. Sample 1040x filled out It also includes your name and taxpayer identification number (TIN). Sample 1040x filled out TINs are explained in chapter 1 under Social Security Number (SSN) . Sample 1040x filled out These payments generally are not subject to withholding. Sample 1040x filled out However, “backup” withholding is required in certain situations. Sample 1040x filled out Backup withholding can apply to most kinds of payments that are reported on Form 1099. Sample 1040x filled out The payer must withhold at a flat 28% rate in the following situations. Sample 1040x filled out You do not give the payer your TIN in the required manner. Sample 1040x filled out The IRS notifies the payer that the TIN you gave is incorrect. Sample 1040x filled out You are required, but fail, to certify that you are not subject to backup withholding. Sample 1040x filled out The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. Sample 1040x filled out The IRS will do this only after it has mailed you four notices over at least a 210-day period. Sample 1040x filled out See Backup Withholding in chapter 1 of Publication 505 for more information. Sample 1040x filled out Penalties. Sample 1040x filled out   There are civil and criminal penalties for giving false information to avoid backup withholding. Sample 1040x filled out The civil penalty is $500. Sample 1040x filled out The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. Sample 1040x filled out Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. Sample 1040x filled out This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. Sample 1040x filled out 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. Sample 1040x filled out To do this, give a new Form W-4 to your employer. Sample 1040x filled out See chapter 1 of Publication 505. Sample 1040x filled out Estimated tax not required. Sample 1040x filled out   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. Sample 1040x filled out You had no tax liability for 2013. Sample 1040x filled out You were a U. Sample 1040x filled out S. Sample 1040x filled out citizen or resident alien for the whole year. Sample 1040x filled out Your 2013 tax year covered a 12-month period. Sample 1040x filled out   You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. Sample 1040x filled out For the definition of “total tax” for 2013, see Publication 505, chapter 2. Sample 1040x filled out Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. Sample 1040x filled out 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. Sample 1040x filled out General rule. Sample 1040x filled out   In most cases, you must pay estimated tax for 2014 if both of the following apply. Sample 1040x filled out You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Sample 1040x filled out 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). Sample 1040x filled out Your 2013 tax return must cover all 12 months. Sample 1040x filled out    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. Sample 1040x filled out Special rules for farmers, fishermen, and higher income taxpayers. Sample 1040x filled out   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. Sample 1040x filled out 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. Sample 1040x filled out See Figure 4-A and Publication 505, chapter 2 for more information. Sample 1040x filled out Figure 4-A. Sample 1040x filled out Do You Have To Pay Estimated Tax? Please click here for the text description of the image. Sample 1040x filled out Figure 4-A Do You Have To Pay Estimated Tax? Aliens. Sample 1040x filled out   Resident and nonresident aliens also may have to pay estimated tax. Sample 1040x filled out Resident aliens should follow the rules in this chapter unless noted otherwise. Sample 1040x filled out Nonresident aliens should get Form 1040-ES (NR), U. Sample 1040x filled out S. Sample 1040x filled out Estimated Tax for Nonresident Alien Individuals. Sample 1040x filled out   You are an alien if you are not a citizen or national of the United States. Sample 1040x filled out You are a resident alien if you either have a green card or meet the substantial presence test. Sample 1040x filled out For more information about the substantial presence test, see Publication 519, U. Sample 1040x filled out S. Sample 1040x filled out Tax Guide for Aliens. Sample 1040x filled out Married taxpayers. Sample 1040x filled out   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. Sample 1040x filled out   You and your spouse can make joint estimated tax payments even if you are not living together. Sample 1040x filled out   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)). Sample 1040x filled out   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. Sample 1040x filled out Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. Sample 1040x filled out 2013 separate returns and 2014 joint return. Sample 1040x filled out   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. Sample 1040x filled out You filed a separate return if you filed as single, head of household, or married filing separately. Sample 1040x filled out 2013 joint return and 2014 separate returns. Sample 1040x filled out   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. Sample 1040x filled out You file a separate return if you file as single, head of household, or married filing separately. Sample 1040x filled out   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. Sample 1040x filled out Then multiply the tax on the joint return by the following fraction. Sample 1040x filled out     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. Sample 1040x filled out Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. Sample 1040x filled out Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. Sample 1040x filled out For 2014, they plan to file married filing separately. Sample 1040x filled out Joe figures his share of the tax on the 2013 joint return as follows. Sample 1040x filled out   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. Sample 1040x filled out 6%     Joe's share of tax on joint return  ($6,386 × 87. Sample 1040x filled out 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. Sample 1040x filled out When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. Sample 1040x filled out Use your 2013 federal tax return as a guide. Sample 1040x filled out You can use Form 1040-ES and Publication 505 to figure your estimated tax. Sample 1040x filled out Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). Sample 1040x filled out You must make adjustments both for changes in your own situation and for recent changes in the tax law. Sample 1040x filled out For a discussion of these changes, visit IRS. Sample 1040x filled out gov. Sample 1040x filled out For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. Sample 1040x filled out When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. Sample 1040x filled out Each period has a specific payment due date. Sample 1040x filled out 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. Sample 1040x filled out The payment periods and due dates for estimated tax payments are shown next. Sample 1040x filled out   For the period: Due date:*     Jan. Sample 1040x filled out 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. Sample 1040x filled out 15     Sept. Sample 1040x filled out 1– Dec. Sample 1040x filled out 31 Jan. Sample 1040x filled out 15, next year     *See Saturday, Sunday, holiday rule and January payment . Sample 1040x filled out Saturday, Sunday, holiday rule. Sample 1040x filled out   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. Sample 1040x filled out January payment. Sample 1040x filled out   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. Sample 1040x filled out Fiscal year taxpayers. Sample 1040x filled out   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. Sample 1040x filled out When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. Sample 1040x filled out 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. Sample 1040x filled out You can pay all your estimated tax at that time, or you can pay it in installments. Sample 1040x filled out If you choose to pay in installments, make your first payment by the due date for the first payment period. Sample 1040x filled out Make your remaining installment payments by the due dates for the later periods. Sample 1040x filled out No income subject to estimated tax during first period. Sample 1040x filled out    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. Sample 1040x filled out 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. Sample 1040x filled out The following chart shows when to make installment payments. Sample 1040x filled out 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. Sample 1040x filled out 15 Jan. Sample 1040x filled out 15 next year April 1–May 31 June 16 Sept. Sample 1040x filled out 15 Jan. Sample 1040x filled out 15 next year June 1–Aug. Sample 1040x filled out 31 Sept. Sample 1040x filled out 15 Jan. Sample 1040x filled out 15 next year After Aug. Sample 1040x filled out 31 Jan. Sample 1040x filled out 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . Sample 1040x filled out How much to pay to avoid a penalty. Sample 1040x filled out   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. Sample 1040x filled out 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. Sample 1040x filled out You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. Sample 1040x filled out These methods are described in chapter 2 of Publication 505. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out Underpayment penalty. Sample 1040x filled out   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. Sample 1040x filled out Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. Sample 1040x filled out See chapter 4 of Publication 505 for more information. Sample 1040x filled out Change in estimated tax. Sample 1040x filled out   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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out How To Pay Estimated Tax There are several ways to pay estimated tax. Sample 1040x filled out Credit an overpayment on your 2013 return to your 2014 estimated tax. Sample 1040x filled out Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. Sample 1040x filled out Send in your payment (check or money order) with a payment voucher from Form 1040-ES. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out Take the amount you have credited into account when figuring your estimated tax payments. Sample 1040x filled out 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. Sample 1040x filled out You also cannot use that overpayment in any other way. Sample 1040x filled out Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. Sample 1040x filled out You can pay using either of the following electronic payment methods. Sample 1040x filled out Direct transfer from your bank account. Sample 1040x filled out Credit or debit card. Sample 1040x filled out To pay your taxes online or for more information, go to www. Sample 1040x filled out irs. Sample 1040x filled out gov/e-pay. Sample 1040x filled out Pay by Phone Paying by phone is another safe and secure method of paying electronically. Sample 1040x filled out Use one of the following methods. Sample 1040x filled out Direct transfer from your bank account. Sample 1040x filled out Credit or debit card. Sample 1040x filled out To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). Sample 1040x filled out 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. Sample 1040x filled out To pay using a credit or debit card, you can call one of the following service providers. Sample 1040x filled out There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. Sample 1040x filled out WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. Sample 1040x filled out payUSAtax. Sample 1040x filled out com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. Sample 1040x filled out officialpayments. Sample 1040x filled out com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. Sample 1040x filled out PAY1040. Sample 1040x filled out com For the latest details on how to pay by phone, go to www. Sample 1040x filled out irs. Sample 1040x filled out gov/e-pay. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out The enclosed payment vouchers will be preprinted with your name, address, and social security number. Sample 1040x filled out Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. Sample 1040x filled out Use the window envelopes that came with your Form 1040-ES package. Sample 1040x filled out 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. Sample 1040x filled out Note. Sample 1040x filled out These criteria can change without notice. Sample 1040x filled out 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. Sample 1040x filled out irs. Sample 1040x filled out gov and print a copy of Form 1040-ES which includes four blank payment vouchers. Sample 1040x filled out Complete one of these and make your payment timely to avoid penalties for paying late. Sample 1040x filled out Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. Sample 1040x filled out 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. Sample 1040x filled out gov. Sample 1040x filled out Follow the instructions to make sure you use the vouchers correctly. Sample 1040x filled out Joint estimated tax payments. Sample 1040x filled out   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. Sample 1040x filled out Change of address. Sample 1040x filled out   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Sample 1040x filled out Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. Sample 1040x filled out 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. Sample 1040x filled out Also take credit for the estimated tax you paid for 2013. Sample 1040x filled out These credits are subtracted from your total tax. Sample 1040x filled out Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Sample 1040x filled out Two or more employers. Sample 1040x filled out   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. Sample 1040x filled out You may be able to claim the excess as a credit against your income tax when you file your return. Sample 1040x filled out See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out Forms W-2 and W-2G. Sample 1040x filled out   If you file a paper return, always file Form W-2 with your income tax return. Sample 1040x filled out File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. Sample 1040x filled out   You should get at least two copies of each form. Sample 1040x filled out If you file a paper return, attach one copy to the front of your federal income tax return. Sample 1040x filled out Keep one copy for your records. Sample 1040x filled out You also should receive copies to file with your state and local returns. Sample 1040x filled out Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Sample 1040x filled out You should receive a separate Form W-2 from each employer you worked for. Sample 1040x filled out 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. Sample 1040x filled out However, your employer must provide or send it to you by January 31, 2014. Sample 1040x filled out 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. Sample 1040x filled out If you have not received your Form W-2 by January 31, you should ask your employer for it. Sample 1040x filled out If you do not receive it by February 15, call the IRS. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Sample 1040x filled out Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Sample 1040x filled out If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Sample 1040x filled out Report the amounts you won on line 21 of Form 1040. Sample 1040x filled out Take credit for the tax withheld on line 62 of Form 1040. Sample 1040x filled out If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Sample 1040x filled out The 1099 Series Most forms in the 1099 series are not filed with your return. Sample 1040x filled out 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). Sample 1040x filled out Unless instructed to file any of these forms with your return, keep them for your records. Sample 1040x filled out 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. Sample 1040x filled out ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. Sample 1040x filled out 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. Sample 1040x filled out See the instructions to these forms for details. Sample 1040x filled out Form 1099-R. Sample 1040x filled out   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. Sample 1040x filled out Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. Sample 1040x filled out You cannot use Form 1040EZ if you received payments reported on Form 1099-R. Sample 1040x filled out Backup withholding. Sample 1040x filled out   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. Sample 1040x filled out Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. Sample 1040x filled out Call the telephone number or write to the address given for the payer on the form. Sample 1040x filled out The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Sample 1040x filled out A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Sample 1040x filled out In certain situations, you will receive two forms in place of the original incorrect form. Sample 1040x filled out 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). Sample 1040x filled out One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Sample 1040x filled out This form will have an “X” in the “CORRECTED” box at the top of the form. Sample 1040x filled out The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Sample 1040x filled out 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. Sample 1040x filled out S. Sample 1040x filled out Individual Income Tax Return. Sample 1040x filled out Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Sample 1040x filled out Do not include any amount withheld from your spouse's income. Sample 1040x filled out However, different rules may apply if you live in a community property state. Sample 1040x filled out Community property states are listed in chapter 2. Sample 1040x filled out For more information on these rules, and some exceptions, see Publication 555, Community Property. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Sample 1040x filled out Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Sample 1040x filled out You must use Form 1040 or Form 1040A if you paid estimated tax. Sample 1040x filled out You cannot use Form 1040EZ. Sample 1040x filled out Name changed. Sample 1040x filled out   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. Sample 1040x filled out The statement should cover payments you made jointly with your spouse as well as any you made separately. Sample 1040x filled out   Be sure to report the change to the Social Security Administration. Sample 1040x filled out This prevents delays in processing your return and issuing any refunds. Sample 1040x filled out 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. Sample 1040x filled out If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out Generally, you will not have to pay a penalty for 2013 if any of the following apply. Sample 1040x filled out 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. Sample 1040x filled out 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. Sample 1040x filled out Your total 2013 tax minus your withholding and refundable credits is less than $1,000. Sample 1040x filled out 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. Sample 1040x filled out See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. Sample 1040x filled out Farmers and fishermen. Sample 1040x filled out   Special rules apply if you are a farmer or fisherman. Sample 1040x filled out See Farmers and Fishermen in chapter 4 of Publication 505 for more information. Sample 1040x filled out IRS can figure the penalty for you. Sample 1040x filled out   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. Sample 1040x filled out Generally, the IRS will figure the penalty for you and send you a bill. Sample 1040x filled out 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. Sample 1040x filled out See chapter 4 of Publication 505. Sample 1040x filled out Prev  Up  Next   Home   More Online Publications