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

Tax Debt Help

Tax Return 2011 DeadlineAmended 1040xMilitary Tax Return1040nr Ez Online Filing1040x 2011Where Can I File 2011 Taxes1040x CalculatorFree Tax Filing Back TaxesFederal Tax Form 1040 Ez1040ez 2010 File OnlineFile Taxes 2007Soon Can I File My 2013 TaxesFile Amended Tax Return FreeWhere File 1040x2011 Irs Form 1040ezWalmart Free Tax Preparation 2013Amending A Federal Tax ReturnFree 2007 Taxes OnlineH&r Block Free FilingHow To Amend My 2012 Tax ReturnFree Efile State Taxes1040ez 2010 InstructionsH&r Block 1040ez Free 2013Amended Federal Tax ReturnFile State Taxes Only For FreeHow To File A 1040xFile 2005 Tax ReturnIrs Gov Forms 1040xInstructions For Filing An Amended Tax ReturnHow Do I Amend My TaxesWww Myfreetaxes Com Unitedwayhoco OrgH&r Block 1040ez FreeIrs Forms 2012File Taxes OnlineFree Irs Extension Form2011 Irs Form 1040Irs 2011 Tax ReturnMilitary State Tax ExemptionsFile Taxes Online For FreeIncome Tax Form 1040ez

Tax Debt Help

Tax debt help Index A Accelerated cost recovery system (ACRS):, ACRS Defined Alternate method, Alternate ACRS Method (Modified Straight Line Method) Classes of recovery property, Classes of Recovery Property Deduction, short tax year, ACRS Deduction in Short Tax Year Defined, ACRS Defined Dispositions, Early dispositions of ACRS property other than 15-, 18-, or 19-year real property. Tax debt help Recovery periods, Recovery Periods Unadjusted basis, Unadjusted Basis B Basis: Adjusted, Adjusted basis. Tax debt help Unadjusted, ACRS, Unadjusted Basis C Changing methods, How To Change Methods D Declining balance method, Declining Balance Method Deduction: ACRS, How To Figure the Deduction How to figure, How To Figure the Deduction Dispositions, Dispositions, Dispositions I Income forecast method, Income Forecast Method L Listed property:, Listed Property Defined 5% owner, 5% owner. Tax debt help Computers, related equipment, Computers and Related Peripheral Equipment Defined, Listed Property Defined Entertainment use, Entertainment Use Leased, Leased Property Other transportation property, Other Property Used for Transportation Predominant use test, Predominant Use Test Qualified business use, Qualified Business Use Recordkeeping, What Records Must Be Kept, Adequate Records Related person, Related person. Tax debt help Reporting on Form 4562, Reporting Information on Form 4562 Use by employee, Employees M Methods of figuring depreciation:, Income Forecast Method ACRS, How To Figure the Deduction Declining Balance, Declining Balance Method Income forecast, Income Forecast Method Straight line, Straight Line Method P Passenger automobile: Defined, Passenger Automobile Defined Predominant use test, applying, Applying the Predominant Use Test Property: ACRS, What Can and Cannot Be Depreciated Under ACRS Intangible, Intangible property. Tax debt help R Recapture: Depreciation, Depreciation Recapture Excess depreciation, listed property, Recapture of excess depreciation. Tax debt help Recordkeeping: For listed property, What Records Must Be Kept S Salvage value, Salvage Value Straight line method, Straight Line Method U Useful life, Useful Life V Videocassettes, Videocassettes. Tax debt help Prev  Up     Home   More Online Publications
Print - Click this link to Print this page

Understanding Your CP53B Notice

We tried to direct deposit your refund, but the financial institution couldn’t process it. We are researching your account, but it will take 8 to 10 weeks to complete our review and verify this refund.


What you need to do

  • You don’t need to do anything at this time.

You may want to

  • Call us at the toll-free number on the notice if you don’t receive your refund check or a follow-up letter within 10 weeks
  • Monitor your financial accounts

If you notice any suspicious or unusual activity, you should:

  • Notify your financial institutions
  • Contact the fraud department of one of the three major credit bureaus
  • Report any fraudulent activity to your local police or sheriff's department
  • File a complaint with the Federal Trade Commission
  • Submit a Form 14039, Identity Theft Affidavit

Answers to Common Questions

Q. What should I do if I didn’t file a return?

A. Submit a Form 14039, Identity Theft Affidavit, to the IRS address in the Form 14039 instructions.

Q. Can I direct part of my refund into my tax professional’s checking or savings account to pay my tax preparation fee?

A. No. You can direct your refund to any of your checking or savings accounts. You can’t direct your refund to someone else’s account (except for your spouse’s account when you have a joint refund).

Q. Why will it take up to 10 weeks to receive my refund?

A. We must research your account to determine if you are entitled to the refund. We try to balance customer service and tax compliance when we review tax returns.  Refund timeframes are also affected by:

  • Bankruptcy
  • An open audit
  • A balance due on a related account (such as a different tax year)

Q. Will calling the IRS give me additional information or speed my refund?

A. No, calling us won’t speed up your refund. You don’t need to call us unless we send you a letter that asks you to contact us. Our telephone assistors won’t be able to provide any additional information.


Tips for next year

If you request a direct deposit refund, be sure the account you specify is in your name (or your spouse’s if you have a joint refund).

If you changed your name as a result of a recent marriage or divorce, be sure the name on your tax return matches the name registered with the Social Security Administration.

Never direct your refund to an account that belongs to a relative, friend, or tax return preparer.

 

Page Last Reviewed or Updated: 21-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Tax Debt Help

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