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Taxslayer 2011

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Taxslayer 2011

Taxslayer 2011 4. Taxslayer 2011   Limit on Elective Deferrals Table of Contents Excess elective deferrals. Taxslayer 2011 General Limit 15-Year RuleYears of Service Figuring the Limit on Elective DeferralsExample The second and final component of MAC is the limit on elective deferrals. Taxslayer 2011 This is a limit on the amount of contributions that can be made to your account through a salary reduction agreement. Taxslayer 2011 A salary reduction agreement is an agreement between you and your employer that allows for a portion of your compensation to be directly invested in a 403(b) account on your behalf. Taxslayer 2011 You can enter into more than one salary reduction agreement during a year. Taxslayer 2011 More than one 403(b) account. Taxslayer 2011 If, for any year, elective deferrals are contributed to more than one 403(b) account for you (whether or not with the same employer), you must combine all the elective deferrals to determine whether the total is more than the limit for that year. Taxslayer 2011 403(b) plan and another retirement plan. Taxslayer 2011 If, during the year, contributions in the form of elective deferrals are made to other retirement plans on your behalf, you must combine all of the elective deferrals to determine if they are more than your limit on elective deferrals. Taxslayer 2011 The limit on elective deferrals applies to amounts contributed to: 401(k) plans, to the extent excluded from income, Roth contribution programs, Section 501(c)(18) plans, to the extent excluded from income, Savings incentive match plan for employees (SIMPLE plans), Simplified employee pension (SEP) plans, and All 403(b) plans. Taxslayer 2011 Roth contribution program. Taxslayer 2011   Your 403(b) plan may allow you to designate all or a portion of your elective deferrals as Roth contributions. Taxslayer 2011 Elective deferrals designated as Roth contributions must be maintained in a separate Roth account and are not excludable from your gross income. Taxslayer 2011   The maximum amount of contributions allowed under a Roth contribution program is your limit on elective deferrals, less your elective deferrals not designated as Roth contributions. Taxslayer 2011 For more information on the Roth contribution program, see Publication 560, Retirement Plans for Small Business. Taxslayer 2011 Excess elective deferrals. Taxslayer 2011   If the amount contributed is more than the allowable limit, you must include the excess that is not a Roth contribution in your gross income for the year contributed. Taxslayer 2011 General Limit Under the general limit on elective deferrals, the most that can be contributed to your 403(b) account through a salary reduction agreement is $17,500 for 2013 and 2014. Taxslayer 2011 This limit applies without regard to community property laws. Taxslayer 2011 15-Year Rule If you have at least 15 years of service with an educational organization (such as a public or private school), hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization), the limit on elective deferrals to your 403(b) account is increased by the least of: $3,000, $15,000, reduced by the sum of: The additional pre-tax elective deferrals made in prior years because of this rule, plus The aggregate amount of designated Roth contributions permitted for prior years because of this rule, or $5,000 times the number of your years of service for the organization, minus the total elective deferrals made by your employer on your behalf for earlier years. Taxslayer 2011 If you qualify for the 15-year rule, your elective deferrals under this limit can be as high as $20,500 for 2013 and 2014. Taxslayer 2011 To determine whether you have 15 years of service with your employer, see Years of Service , next. Taxslayer 2011 Years of Service To determine if you are eligible for the increased limit on elective deferrals, you will first need to figure your years of service. Taxslayer 2011 How you figure your years of service depends on whether you were a full-time or a part-time employee, whether you worked for the full year or only part of the year, and whether you have worked for your employer for an entire year. Taxslayer 2011 You must figure years of service for each year during which you worked for the employer who is maintaining your 403(b) account. Taxslayer 2011 If more than one employer maintains a 403(b) account for you in the same year, you must figure years of service separately for each employer. Taxslayer 2011 Definition Your years of service are the total number of years you have worked as a full time employee for the employer maintaining your 403(b) account as of the end of the year. Taxslayer 2011 Figuring Your Years of Service Take the following rules into account when figuring your years of service. Taxslayer 2011 Status of employer. Taxslayer 2011   Your years of service include only periods during which your employer was a qualified employer. Taxslayer 2011 Your plan administrator can tell you whether or not your employer was qualified during all your periods of service. Taxslayer 2011 Service with one employer. Taxslayer 2011   Generally, you cannot count service for any employer other than the one who maintains your 403(b) account. Taxslayer 2011 Church employee. Taxslayer 2011   If you are a church employee, treat all of your years of service with related church organizations as years of service with the same employer. Taxslayer 2011 For more information about church employees, see chapter 5. Taxslayer 2011 Self-employed ministers. Taxslayer 2011   If you are a self-employed minister, your years of service include full and part years in which you have been treated as employed by a tax-exempt organization that is a qualified employer. Taxslayer 2011 Total years of service. Taxslayer 2011   When figuring prior years of service, figure each year individually and then add the individual years of service to determine your total years of service. Taxslayer 2011 Example. Taxslayer 2011 The annual work period for full-time teachers employed by ABC Public Schools is September through December and February through May. Taxslayer 2011 Marsha began working with ABC schools in September 2009. Taxslayer 2011 She has always worked full-time for each annual work period. Taxslayer 2011 At the end of 2013, Marsha had 4. Taxslayer 2011 5 years of service with ABC Public Schools, as shown in Table 4-1. Taxslayer 2011 Table 4-1. Taxslayer 2011 Marsha's Years of Service Note. Taxslayer 2011 This table shows how Marsha figures her years of service, as explained in the previous example. Taxslayer 2011 Year Period Worked Portion of Work Period Years of Service 2009 Sept. Taxslayer 2011 –Dec. Taxslayer 2011 . Taxslayer 2011 5 year . Taxslayer 2011 5 year 2010 Feb. Taxslayer 2011 –May . Taxslayer 2011 5 year 1 year Sept. Taxslayer 2011 –Dec. Taxslayer 2011 . Taxslayer 2011 5 year 2011 Feb. Taxslayer 2011 –May . Taxslayer 2011 5 year 1 year Sept. Taxslayer 2011 –Dec. Taxslayer 2011 . Taxslayer 2011 5 year 2012 Feb. Taxslayer 2011 –May . Taxslayer 2011 5 year 1 year Sept. Taxslayer 2011 –Dec. Taxslayer 2011 . Taxslayer 2011 5 year 2013 Feb. Taxslayer 2011 –May . Taxslayer 2011 5 year 1 year Sept. Taxslayer 2011 –Dec. Taxslayer 2011 . Taxslayer 2011 5 year Total years of service 4. Taxslayer 2011 5 years Full-time or part-time. Taxslayer 2011   To figure your years of service, you must analyze each year individually and determine whether you worked full-time for the full year or something other than full-time. Taxslayer 2011 When determining whether you worked full-time or something other than full-time, use your employer's annual work period as the standard. Taxslayer 2011 Employer's annual work period. Taxslayer 2011   Your employer's annual work period is the usual amount of time an individual working full-time in a specific position is required to work. Taxslayer 2011 Generally, this period of time is expressed in days, weeks, months, or semesters, and can span 2 calendar years. Taxslayer 2011 Note. Taxslayer 2011 You cannot accumulate more than 1 year of service in a 12-month period. Taxslayer 2011 Example. Taxslayer 2011 All full-time teachers at ABC Public Schools are required to work both the September through December semester and the February through May semester. Taxslayer 2011 Therefore, the annual work period for full-time teachers employed by ABC Public Schools is September through December and February through May. Taxslayer 2011 Teachers at ABC Public Schools who work both semesters in the same calendar year are considered working a full year of service in that calendar year. Taxslayer 2011 Full-Time Employee for the Full Year Count each full year during which you were employed full-time as 1 year of service. Taxslayer 2011 In determining whether you were employed full-time, compare the amount of work you were required to perform with the amount of work normally required of others who held the same position with the same employer and who generally received most of their pay from the position. Taxslayer 2011 How to compare. Taxslayer 2011   You can use any method that reasonably and accurately reflects the amount of work required. Taxslayer 2011 For example, if you are a teacher, you can use the number of hours of classroom instruction as a measure of the amount of work required. Taxslayer 2011   In determining whether positions with the same employer are the same, consider all of the facts and circumstances concerning the positions, including the work performed, the methods by which pay is determined, and the descriptions (or titles) of the positions. Taxslayer 2011 Example. Taxslayer 2011 An assistant professor employed in the English department of a university will be considered a full-time employee if the amount of work that he or she is required to perform is the same as the amount of work normally required of assistant professors of English at that university who get most of their pay from that position. Taxslayer 2011   If no one else works for your employer in the same position, compare your work with the work normally required of others who held the same position with similar employers or similar positions with your employer. Taxslayer 2011 Full year of service. Taxslayer 2011   A full year of service for a particular position means the usual annual work period of anyone employed full-time in that general type of work at that place of employment. Taxslayer 2011 Example. Taxslayer 2011 If a doctor works for a hospital 12 months of a year except for a 1-month vacation, the doctor will be considered as employed for a full year if the other doctors at that hospital also work 11 months of the year with a 1-month vacation. Taxslayer 2011 Similarly, if the usual annual work period at a university consists of the fall and spring semesters, an instructor at that university who teaches these semesters will be considered as working a full year. Taxslayer 2011 Other Than Full-Time for the Full Year If, during any year, you were employed full-time for only part of your employer's annual work period, part-time for the entire annual work period, or part-time for only part of the work period, your year of service for that year is a fraction of your employer's annual work period. Taxslayer 2011 Full-time for part of the year. Taxslayer 2011   If, during a year, you were employed full-time for only part of your employer's annual work period, figure the fraction for that year as follows: The numerator (top number) is the number of weeks, months, or semesters you were a full-time employee. Taxslayer 2011 The denominator (bottom number) is the number of weeks, months, or semesters considered the normal annual work period for the position. Taxslayer 2011 Example. Taxslayer 2011 Jason was employed as a full-time instructor by a local college for the 4 months of the 2013 spring semester (February 2013 through May 2013). Taxslayer 2011 The annual work period for the college is 8 months (February through May and July through October). Taxslayer 2011 Given these facts, Jason was employed full-time for part of the annual work period and provided ½ of a year of service. Taxslayer 2011 Jason's years of service computation for 2013 is as follows: Number of months Jason worked = 4 = 1 Number of months in annual work period 8 2 Part-time for the full year. Taxslayer 2011   If, during a year, you were employed part-time for the employer's entire annual work period, you figure the fraction for that year as follows: The numerator (top number) is the number of hours or days you worked. Taxslayer 2011 The denominator (bottom number) is the number of hours or days normally required of someone holding the same position who works full-time. Taxslayer 2011 Example. Taxslayer 2011 Vance teaches one course at a local medical school. Taxslayer 2011 He teaches 3 hours per week for two semesters. Taxslayer 2011 Other faculty members at the same school teach 9 hours per week for two semesters. Taxslayer 2011 The annual work period of the medical school is two semesters. Taxslayer 2011 An instructor teaching 9 hours a week for two semesters is considered a full-time employee. Taxslayer 2011 Given these facts, Vance has worked part-time for a full annual work period. Taxslayer 2011 Vance has completed 1/3 of a year of service, figured as shown below. Taxslayer 2011 Number of hours per week Vance worked = 3 = 1 Number of hours per week considered full-time 9 3 Part-time for part of the year. Taxslayer 2011   If, during any year, you were employed part-time for only part of your employer's annual work period, you figure your fraction for that year by multiplying two fractions. Taxslayer 2011   Figure the first fraction as though you had worked full-time for part of the annual work period. Taxslayer 2011 The fraction is as follows: The numerator (top number) is the number of weeks, months, or semesters you were a full-time employee. Taxslayer 2011 The denominator (bottom number) is the number of weeks, months, or semesters considered the normal annual work period for the position. Taxslayer 2011   Figure the second fraction as though you had worked part-time for the entire annual work period. Taxslayer 2011 The fraction is as follows: The numerator (top number) is the number of hours or days you worked. Taxslayer 2011 The denominator (bottom number) is the number of hours or days normally required of someone holding the same position who works full-time. Taxslayer 2011   Once you have figured these two fractions, multiply them together to determine the fraction representing your partial year of service for the year. Taxslayer 2011 Example. Taxslayer 2011 Maria, an attorney, teaches a course for one semester at a law school. Taxslayer 2011 She teaches 3 hours per week. Taxslayer 2011 The annual work period for teachers at the school is two semesters. Taxslayer 2011 All full-time instructors at the school are required to teach 12 hours per week. Taxslayer 2011 Based on these facts, Maria is employed part-time for part of the annual work period. Taxslayer 2011 Her year of service for this year is determined by multiplying two fractions. Taxslayer 2011 Her computation is as follows: Maria's first fraction Number of semesters Maria worked = 1 Number of semesters in annual work period 2 Maria's second fraction Number of hours Maria worked per week = 3 = 1 Number of hours per week considered full-time 12 4 Maria would multiply these fractions to obtain the fractional year of service: 1 x 1 = 1         2 4 8         Figuring the Limit on Elective Deferrals You can use Part II of Worksheet 1 in chapter 9 to figure the limit on elective deferrals. Taxslayer 2011 Example Floyd has figured his limit on annual additions. Taxslayer 2011 The only other component needed before he can determine his MAC for 2014 is his limit on elective deferrals. Taxslayer 2011 Figuring Floyd's limit on elective deferrals. Taxslayer 2011   Floyd has been employed with his current employer for less than 15 years. Taxslayer 2011 He is not eligible for the special 15-year increase. Taxslayer 2011 Therefore, his limit on elective deferrals for 2014 is $17,500 as shown in Table 4-2. Taxslayer 2011 Floyd's employer will not make any nonelective contributions to his 403(b) account and Floyd will not make any after-tax contributions. Taxslayer 2011 Additionally, Floyd's employer does not offer a Roth contribution program. Taxslayer 2011 Figuring Floyd's MAC Floyd has determined that his limit on annual additions for 2014 is $52,000 and his limit on elective deferrals is $17,500. Taxslayer 2011 Because elective deferrals are the only contributions made to Floyd's account, the maximum amount that can be contributed to a 403(b) account on Floyd's behalf in 2014 is $17,500, the lesser of both limits. Taxslayer 2011 Table 4-2. Taxslayer 2011 Worksheet 1. Taxslayer 2011 Maximum Amount Contributable (MAC) Note. Taxslayer 2011 Use this worksheet to figure your MAC. Taxslayer 2011 Part I. Taxslayer 2011 Limit on Annual Additions     1. Taxslayer 2011 Enter your includible compensation for your most recent year of service 1. Taxslayer 2011 $70,475 2. Taxslayer 2011 Maximum: For 2013 enter $51,000 For 2014 enter $52,000 2. Taxslayer 2011 52,000 3. Taxslayer 2011 Enter the lesser of line 1 or line 2. Taxslayer 2011 This is your limit on annual additions 3. Taxslayer 2011 52,000   Caution: If you had only nonelective contributions, skip Part II and enter the amount from line 3 on line 18. Taxslayer 2011     Part II. Taxslayer 2011 Limit on Elective Deferrals     4. Taxslayer 2011 Maximum contribution: For 2013, enter $17,500 For 2014, enter $17,500 4. Taxslayer 2011 17,500   Note. Taxslayer 2011 If you have at least 15 years of service with a qualifying organization, complete lines 5 through 17. Taxslayer 2011 If not, enter zero (-0-) on line 16 and go to line 17. Taxslayer 2011     5. Taxslayer 2011 Amount per year of service 5. Taxslayer 2011 5,000 6. Taxslayer 2011 Enter your years of service 6. Taxslayer 2011   7. Taxslayer 2011 Multiply line 5 by line 6 7. Taxslayer 2011   8. Taxslayer 2011 Enter the total of all elective deferrals made for you by the qualifying organization for prior years 8. Taxslayer 2011   9. Taxslayer 2011 Subtract line 8 from line 7. Taxslayer 2011 If zero or less, enter zero (-0-) 9. Taxslayer 2011   10. Taxslayer 2011 Maximum increase in limit for long service 10. Taxslayer 2011 15,000 11. Taxslayer 2011 Enter the total of additional pre-tax elective deferrals made in prior years under the 15-year rule 11. Taxslayer 2011   12. Taxslayer 2011 Enter the aggregate amount of all designated Roth contributions permitted for prior years under the 15-year rule 12. Taxslayer 2011   13. Taxslayer 2011 Add lines 11 and 12 13. Taxslayer 2011   14. Taxslayer 2011 Subtract line 13 from line 10 14. Taxslayer 2011   15. Taxslayer 2011 Maximum additional contributions 15. Taxslayer 2011 3,000 16. Taxslayer 2011 Enter the least of lines 9, 14, or 15. Taxslayer 2011 This is your increase in the limit for long service 16. Taxslayer 2011 -0- 17. Taxslayer 2011 Add lines 4 and 16. Taxslayer 2011 This is your limit on elective deferrals 17. Taxslayer 2011 17,500   Part III. Taxslayer 2011 Maximum Amount Contributable     18. Taxslayer 2011 If you had only nonelective contributions, enter the amount from line 3. Taxslayer 2011 This is your MAC. Taxslayer 2011    If you had only elective deferrals, enter the lesser of lines 3 or 17. Taxslayer 2011 This is your MAC. Taxslayer 2011    If you had both elective deferrals and nonelective contributions, enter the amount from line 3. Taxslayer 2011 This is your MAC. Taxslayer 2011 (Use the amount on line 17 to determine if you have excess elective deferrals as explained in chapter 7. Taxslayer 2011 ) 18. Taxslayer 2011 $17,500 Prev  Up  Next   Home   More Online Publications
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The Taxslayer 2011

Taxslayer 2011 4. Taxslayer 2011   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. Taxslayer 2011  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. Taxslayer 2011 For more information, see Publication 505. Taxslayer 2011 Reminders Estimated tax safe harbor for higher income taxpayers. Taxslayer 2011  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. Taxslayer 2011 Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. Taxslayer 2011 In general, the federal income tax is a pay-as-you-go tax. Taxslayer 2011 There are two ways to pay as you go. Taxslayer 2011 Withholding. Taxslayer 2011 If you are an employee, your employer probably withholds income tax from your pay. Taxslayer 2011 Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. Taxslayer 2011 The amount withheld is paid to the IRS in your name. Taxslayer 2011 Estimated tax. Taxslayer 2011 If you do not pay your tax through withholding, or do not pay enough tax that way, you may have to pay estimated tax. Taxslayer 2011 People who are in business for themselves generally will have to pay their tax this way. Taxslayer 2011 Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. Taxslayer 2011 Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Taxslayer 2011 This chapter explains these methods. Taxslayer 2011 In addition, it also explains the following. Taxslayer 2011 Credit for withholding and estimated tax. Taxslayer 2011 When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. Taxslayer 2011 , and for the estimated tax you paid for 2013. Taxslayer 2011 Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). Taxslayer 2011 Underpayment penalty. Taxslayer 2011 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. Taxslayer 2011 In most cases, the IRS can figure this penalty for you. Taxslayer 2011 See Underpayment Penalty for 2013 at the end of this chapter. Taxslayer 2011 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. Taxslayer 2011 This section explains the rules for withholding tax from each of these types of income. Taxslayer 2011 This section also covers backup withholding on interest, dividends, and other payments. Taxslayer 2011 Salaries and Wages Income tax is withheld from the pay of most employees. Taxslayer 2011 Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Taxslayer 2011 It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Taxslayer 2011 See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. Taxslayer 2011 If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Taxslayer 2011 This is explained under Exemption From Withholding , later. Taxslayer 2011 You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Taxslayer 2011 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 . Taxslayer 2011 Military retirees. Taxslayer 2011   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. Taxslayer 2011 Household workers. Taxslayer 2011   If you are a household worker, you can ask your employer to withhold income tax from your pay. Taxslayer 2011 A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Taxslayer 2011   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Taxslayer 2011 If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Taxslayer 2011 Farmworkers. Taxslayer 2011   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. Taxslayer 2011 Differential wage payments. Taxslayer 2011    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Taxslayer 2011 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. Taxslayer 2011 The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Taxslayer 2011   The credit employers can claim for differential wages paid to activated military reservists is scheduled to expire for wages paid after December 31, 2013. Taxslayer 2011 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. Taxslayer 2011 The amount you earn in each payroll period. Taxslayer 2011 The information you give your employer on Form W-4. Taxslayer 2011 Form W-4 includes four types of information that your employer will use to figure your withholding. Taxslayer 2011 Whether to withhold at the single rate or at the lower married rate. Taxslayer 2011 How many withholding allowances you claim (each allowance reduces the amount withheld). Taxslayer 2011 Whether you want an additional amount withheld. Taxslayer 2011 Whether you are claiming an exemption from withholding in 2014. Taxslayer 2011 See Exemption From Withholding , later. Taxslayer 2011 Note. Taxslayer 2011 You must specify a filing status and a number of withholding allowances on Form W-4. Taxslayer 2011 You cannot specify only a dollar amount of withholding. Taxslayer 2011 New Job When you start a new job, you must fill out Form W-4 and give it to your employer. Taxslayer 2011 Your employer should have copies of the form. Taxslayer 2011 If you need to change the information later, you must fill out a new form. Taxslayer 2011 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. Taxslayer 2011 You may be able to avoid overwithholding if your employer agrees to use the part-year method. Taxslayer 2011 See Part-Year Method in chapter 1 of Publication 505 for more information. Taxslayer 2011 Employee also receiving pension income. Taxslayer 2011   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Taxslayer 2011 However, you can choose to split your withholding allowances between your pension and job in any manner. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other reason. Taxslayer 2011 Changing your withholding for 2015. Taxslayer 2011   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. Taxslayer 2011 If the event occurs in December 2014, submit a new Form W-4 within 10 days. Taxslayer 2011 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. Taxslayer 2011 If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Taxslayer 2011 You should try to have your withholding match your actual tax liability. Taxslayer 2011 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. Taxslayer 2011 If too much tax is withheld, you will lose the use of that money until you get your refund. Taxslayer 2011 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. Taxslayer 2011 Note. Taxslayer 2011 You cannot give your employer a payment to cover withholding on salaries and wages for past pay periods or a payment for estimated tax. Taxslayer 2011 Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Taxslayer 2011 The worksheets are for your own records. Taxslayer 2011 Do not give them to your employer. Taxslayer 2011 Multiple jobs. Taxslayer 2011   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Taxslayer 2011 Then split your allowances between the Forms W-4 for each job. Taxslayer 2011 You cannot claim the same allowances with more than one employer at the same time. Taxslayer 2011 You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Taxslayer 2011 Married individuals. Taxslayer 2011   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. Taxslayer 2011 Use only one set of worksheets. Taxslayer 2011 You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Taxslayer 2011   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. Taxslayer 2011 Alternative method of figuring withholding allowances. Taxslayer 2011   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. Taxslayer 2011 For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. Taxslayer 2011 Personal Allowances Worksheet. Taxslayer 2011   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. Taxslayer 2011 Deduction and Adjustments Worksheet. Taxslayer 2011   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. Taxslayer 2011 Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. Taxslayer 2011 Two-Earners/Multiple Jobs Worksheet. Taxslayer 2011   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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 You accurately complete all the Form W-4 worksheets that apply to you. Taxslayer 2011 You give your employer a new Form W-4 when changes occur. Taxslayer 2011 But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Taxslayer 2011 This is most likely to happen in the following situations. Taxslayer 2011 You are married and both you and your spouse work. Taxslayer 2011 You have more than one job at a time. Taxslayer 2011 You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Taxslayer 2011 You will owe additional amounts with your return, such as self-employment tax. Taxslayer 2011 Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Taxslayer 2011 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. Taxslayer 2011 You work only part of the year. Taxslayer 2011 You change the number of your withholding allowances during the year. Taxslayer 2011 Cumulative wage method. Taxslayer 2011   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. Taxslayer 2011 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. Taxslayer 2011 You must ask your employer in writing to use this method. Taxslayer 2011   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Taxslayer 2011 ) since the beginning of the year. Taxslayer 2011 Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. Taxslayer 2011 You can use the IRS Withholding Calculator at www. Taxslayer 2011 irs. Taxslayer 2011 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. Taxslayer 2011 Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Taxslayer 2011 These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Taxslayer 2011 New Form W-4. Taxslayer 2011   When you start a new job, your employer should have you complete a Form W-4. Taxslayer 2011 Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Taxslayer 2011   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Taxslayer 2011 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. Taxslayer 2011 No Form W-4. Taxslayer 2011   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. Taxslayer 2011 Repaying withheld tax. Taxslayer 2011   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. Taxslayer 2011 Your employer cannot repay any of the tax previously withheld. Taxslayer 2011 Instead, claim the full amount withheld when you file your tax return. Taxslayer 2011   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. Taxslayer 2011 Your employer can repay the amount that was withheld incorrectly. Taxslayer 2011 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. Taxslayer 2011 Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Taxslayer 2011 The exemption applies only to income tax, not to social security or Medicare tax. Taxslayer 2011 You can claim exemption from withholding for 2014 only if both of the following situations apply. Taxslayer 2011 For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Taxslayer 2011 For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Taxslayer 2011 Students. Taxslayer 2011   If you are a student, you are not automatically exempt. Taxslayer 2011 See chapter 1 to find out if you must file a return. Taxslayer 2011 If you work only part time or only during the summer, you may qualify for exemption from withholding. Taxslayer 2011 Age 65 or older or blind. Taxslayer 2011   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. Taxslayer 2011 Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Taxslayer 2011 Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. Taxslayer 2011 Claiming exemption from withholding. Taxslayer 2011   To claim exemption, you must give your employer a Form W-4. Taxslayer 2011 Do not complete lines 5 and 6. Taxslayer 2011 Enter “Exempt” on line 7. Taxslayer 2011   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. Taxslayer 2011 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. Taxslayer 2011   Your claim of exempt status may be reviewed by the IRS. Taxslayer 2011 An exemption is good for only 1 year. Taxslayer 2011   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Taxslayer 2011 Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Taxslayer 2011 The payer can figure withholding on supplemental wages using the same method used for your regular wages. Taxslayer 2011 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. Taxslayer 2011 Expense allowances. Taxslayer 2011   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Taxslayer 2011   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. Taxslayer 2011   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. Taxslayer 2011 Penalties You may have to pay a penalty of $500 if both of the following apply. Taxslayer 2011 You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Taxslayer 2011 You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Taxslayer 2011 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. Taxslayer 2011 The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Taxslayer 2011 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. Taxslayer 2011 A simple error or an honest mistake will not result in one of these penalties. Taxslayer 2011 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. Taxslayer 2011 Tips The tips you receive while working on your job are considered part of your pay. Taxslayer 2011 You must include your tips on your tax return on the same line as your regular pay. Taxslayer 2011 However, tax is not withheld directly from tip income, as it is from your regular pay. Taxslayer 2011 Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Taxslayer 2011 See chapter 6 for information on reporting your tips to your employer. Taxslayer 2011 For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. Taxslayer 2011 How employer figures amount to withhold. Taxslayer 2011   The tips you report to your employer are counted as part of your income for the month you report them. Taxslayer 2011 Your employer can figure your withholding in either of two ways. Taxslayer 2011 By withholding at the regular rate on the sum of your pay plus your reported tips. Taxslayer 2011 By withholding at the regular rate on your pay plus a percentage of your reported tips. Taxslayer 2011 Not enough pay to cover taxes. Taxslayer 2011   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. Taxslayer 2011 See Giving your employer money for taxes in chapter 6. Taxslayer 2011 Allocated tips. Taxslayer 2011   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. Taxslayer 2011 Withholding is based only on your pay plus your reported tips. Taxslayer 2011 Your employer should refund to you any incorrectly withheld tax. Taxslayer 2011 See Allocated Tips in chapter 6 for more information. Taxslayer 2011 Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. Taxslayer 2011 Your employer generally must withhold income tax on these benefits from your regular pay. Taxslayer 2011 For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. Taxslayer 2011 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. Taxslayer 2011 Your employer must notify you if this choice is made. Taxslayer 2011 For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. Taxslayer 2011 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. Taxslayer 2011 To qualify as sick pay, it must be paid under a plan to which your employer is a party. Taxslayer 2011 If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. Taxslayer 2011 An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. Taxslayer 2011 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. Taxslayer 2011 See Form W-4S , later. Taxslayer 2011 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. Taxslayer 2011 Union agreements. Taxslayer 2011   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. Taxslayer 2011 See your union representative or your employer for more information. Taxslayer 2011 Form W-4S. Taxslayer 2011   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. Taxslayer 2011 Its instructions contain a worksheet you can use to figure the amount you want withheld. Taxslayer 2011 They also explain restrictions that may apply. Taxslayer 2011   Give the completed form to the payer of your sick pay. Taxslayer 2011 The payer must withhold according to your directions on the form. Taxslayer 2011 Estimated tax. Taxslayer 2011   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. Taxslayer 2011 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. Taxslayer 2011 See Underpayment Penalty for 2013 at the end of this chapter. Taxslayer 2011 Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. Taxslayer 2011 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. Taxslayer 2011 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). Taxslayer 2011 Income tax withholding from an ERD is mandatory. Taxslayer 2011 More information. Taxslayer 2011   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. Taxslayer 2011 For information on IRAs, see chapter 17. Taxslayer 2011 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. Taxslayer 2011 Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. Taxslayer 2011 Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. Taxslayer 2011 Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. Taxslayer 2011 Any other wager, if the proceeds are at least 300 times the amount of the bet. Taxslayer 2011 It does not matter whether your winnings are paid in cash, in property, or as an annuity. Taxslayer 2011 Winnings not paid in cash are taken into account at their fair market value. Taxslayer 2011 Exception. Taxslayer 2011   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. Taxslayer 2011 However, you may need to provide the payer with a social security number to avoid withholding. Taxslayer 2011 See Backup withholding on gambling winnings in chapter 1 of Publication 505. Taxslayer 2011 If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. Taxslayer 2011 See Estimated Tax for 2014 , later. Taxslayer 2011 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. Taxslayer 2011 See Underpayment Penalty for 2013 at the end of this chapter. Taxslayer 2011 Form W-2G. Taxslayer 2011   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. Taxslayer 2011 Report the tax withheld on line 62 of Form 1040. Taxslayer 2011 Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. Taxslayer 2011 To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Taxslayer 2011 All unemployment compensation is taxable. Taxslayer 2011 So, if you do not have income tax withheld, you may have to pay estimated tax. Taxslayer 2011 See Estimated Tax for 2014 , later. Taxslayer 2011 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. Taxslayer 2011 For information, see Underpayment Penalty for 2013 at the end of this chapter. Taxslayer 2011 Federal Payments You can choose to have income tax withheld from certain federal payments you receive. Taxslayer 2011 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. Taxslayer 2011 S. Taxslayer 2011 C. Taxslayer 2011 1421 et. Taxslayer 2011 seq. Taxslayer 2011 ), 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. Taxslayer 2011 To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Taxslayer 2011 If you do not choose to have income tax withheld, you may have to pay estimated tax. Taxslayer 2011 See Estimated Tax for 2014 , later. Taxslayer 2011 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. Taxslayer 2011 For information, see Underpayment Penalty for 2013 at the end of this chapter. Taxslayer 2011 More information. Taxslayer 2011   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. Taxslayer 2011 Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. Taxslayer 2011 Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. Taxslayer 2011 The information return shows how much you were paid during the year. Taxslayer 2011 It also includes your name and taxpayer identification number (TIN). Taxslayer 2011 TINs are explained in chapter 1 under Social Security Number (SSN) . Taxslayer 2011 These payments generally are not subject to withholding. Taxslayer 2011 However, “backup” withholding is required in certain situations. Taxslayer 2011 Backup withholding can apply to most kinds of payments that are reported on Form 1099. Taxslayer 2011 The payer must withhold at a flat 28% rate in the following situations. Taxslayer 2011 You do not give the payer your TIN in the required manner. Taxslayer 2011 The IRS notifies the payer that the TIN you gave is incorrect. Taxslayer 2011 You are required, but fail, to certify that you are not subject to backup withholding. Taxslayer 2011 The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. Taxslayer 2011 The IRS will do this only after it has mailed you four notices over at least a 210-day period. Taxslayer 2011 See Backup Withholding in chapter 1 of Publication 505 for more information. Taxslayer 2011 Penalties. Taxslayer 2011   There are civil and criminal penalties for giving false information to avoid backup withholding. Taxslayer 2011 The civil penalty is $500. Taxslayer 2011 The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. Taxslayer 2011 Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. Taxslayer 2011 This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. Taxslayer 2011 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. Taxslayer 2011 To do this, give a new Form W-4 to your employer. Taxslayer 2011 See chapter 1 of Publication 505. Taxslayer 2011 Estimated tax not required. Taxslayer 2011   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. Taxslayer 2011 You had no tax liability for 2013. Taxslayer 2011 You were a U. Taxslayer 2011 S. Taxslayer 2011 citizen or resident alien for the whole year. Taxslayer 2011 Your 2013 tax year covered a 12-month period. Taxslayer 2011   You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. Taxslayer 2011 For the definition of “total tax” for 2013, see Publication 505, chapter 2. Taxslayer 2011 Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. Taxslayer 2011 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. Taxslayer 2011 General rule. Taxslayer 2011   In most cases, you must pay estimated tax for 2014 if both of the following apply. Taxslayer 2011 You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Taxslayer 2011 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). Taxslayer 2011 Your 2013 tax return must cover all 12 months. Taxslayer 2011    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. Taxslayer 2011 Special rules for farmers, fishermen, and higher income taxpayers. Taxslayer 2011   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. Taxslayer 2011 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. Taxslayer 2011 See Figure 4-A and Publication 505, chapter 2 for more information. Taxslayer 2011 Figure 4-A. Taxslayer 2011 Do You Have To Pay Estimated Tax? Please click here for the text description of the image. Taxslayer 2011 Figure 4-A Do You Have To Pay Estimated Tax? Aliens. Taxslayer 2011   Resident and nonresident aliens also may have to pay estimated tax. Taxslayer 2011 Resident aliens should follow the rules in this chapter unless noted otherwise. Taxslayer 2011 Nonresident aliens should get Form 1040-ES (NR), U. Taxslayer 2011 S. Taxslayer 2011 Estimated Tax for Nonresident Alien Individuals. Taxslayer 2011   You are an alien if you are not a citizen or national of the United States. Taxslayer 2011 You are a resident alien if you either have a green card or meet the substantial presence test. Taxslayer 2011 For more information about the substantial presence test, see Publication 519, U. Taxslayer 2011 S. Taxslayer 2011 Tax Guide for Aliens. Taxslayer 2011 Married taxpayers. Taxslayer 2011   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. Taxslayer 2011   You and your spouse can make joint estimated tax payments even if you are not living together. Taxslayer 2011   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)). Taxslayer 2011   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. Taxslayer 2011 Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. Taxslayer 2011 2013 separate returns and 2014 joint return. Taxslayer 2011   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. Taxslayer 2011 You filed a separate return if you filed as single, head of household, or married filing separately. Taxslayer 2011 2013 joint return and 2014 separate returns. Taxslayer 2011   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. Taxslayer 2011 You file a separate return if you file as single, head of household, or married filing separately. Taxslayer 2011   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. Taxslayer 2011 Then multiply the tax on the joint return by the following fraction. Taxslayer 2011     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. Taxslayer 2011 Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. Taxslayer 2011 Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. Taxslayer 2011 For 2014, they plan to file married filing separately. Taxslayer 2011 Joe figures his share of the tax on the 2013 joint return as follows. Taxslayer 2011   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. Taxslayer 2011 6%     Joe's share of tax on joint return  ($6,386 × 87. Taxslayer 2011 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. Taxslayer 2011 When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. Taxslayer 2011 Use your 2013 federal tax return as a guide. Taxslayer 2011 You can use Form 1040-ES and Publication 505 to figure your estimated tax. Taxslayer 2011 Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). Taxslayer 2011 You must make adjustments both for changes in your own situation and for recent changes in the tax law. Taxslayer 2011 For a discussion of these changes, visit IRS. Taxslayer 2011 gov. Taxslayer 2011 For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. Taxslayer 2011 When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. Taxslayer 2011 Each period has a specific payment due date. Taxslayer 2011 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. Taxslayer 2011 The payment periods and due dates for estimated tax payments are shown next. Taxslayer 2011   For the period: Due date:*     Jan. Taxslayer 2011 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. Taxslayer 2011 15     Sept. Taxslayer 2011 1– Dec. Taxslayer 2011 31 Jan. Taxslayer 2011 15, next year     *See Saturday, Sunday, holiday rule and January payment . Taxslayer 2011 Saturday, Sunday, holiday rule. Taxslayer 2011   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. Taxslayer 2011 January payment. Taxslayer 2011   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. Taxslayer 2011 Fiscal year taxpayers. Taxslayer 2011   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. Taxslayer 2011 When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. Taxslayer 2011 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. Taxslayer 2011 You can pay all your estimated tax at that time, or you can pay it in installments. Taxslayer 2011 If you choose to pay in installments, make your first payment by the due date for the first payment period. Taxslayer 2011 Make your remaining installment payments by the due dates for the later periods. Taxslayer 2011 No income subject to estimated tax during first period. Taxslayer 2011    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. Taxslayer 2011 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. Taxslayer 2011 The following chart shows when to make installment payments. Taxslayer 2011 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. Taxslayer 2011 15 Jan. Taxslayer 2011 15 next year April 1–May 31 June 16 Sept. Taxslayer 2011 15 Jan. Taxslayer 2011 15 next year June 1–Aug. Taxslayer 2011 31 Sept. Taxslayer 2011 15 Jan. Taxslayer 2011 15 next year After Aug. Taxslayer 2011 31 Jan. Taxslayer 2011 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . Taxslayer 2011 How much to pay to avoid a penalty. Taxslayer 2011   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. Taxslayer 2011 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. Taxslayer 2011 You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. Taxslayer 2011 These methods are described in chapter 2 of Publication 505. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 Underpayment penalty. Taxslayer 2011   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. Taxslayer 2011 Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. Taxslayer 2011 See chapter 4 of Publication 505 for more information. Taxslayer 2011 Change in estimated tax. Taxslayer 2011   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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 How To Pay Estimated Tax There are several ways to pay estimated tax. Taxslayer 2011 Credit an overpayment on your 2013 return to your 2014 estimated tax. Taxslayer 2011 Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. Taxslayer 2011 Send in your payment (check or money order) with a payment voucher from Form 1040-ES. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 Take the amount you have credited into account when figuring your estimated tax payments. Taxslayer 2011 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. Taxslayer 2011 You also cannot use that overpayment in any other way. Taxslayer 2011 Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. Taxslayer 2011 You can pay using either of the following electronic payment methods. Taxslayer 2011 Direct transfer from your bank account. Taxslayer 2011 Credit or debit card. Taxslayer 2011 To pay your taxes online or for more information, go to www. Taxslayer 2011 irs. Taxslayer 2011 gov/e-pay. Taxslayer 2011 Pay by Phone Paying by phone is another safe and secure method of paying electronically. Taxslayer 2011 Use one of the following methods. Taxslayer 2011 Direct transfer from your bank account. Taxslayer 2011 Credit or debit card. Taxslayer 2011 To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). Taxslayer 2011 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. Taxslayer 2011 To pay using a credit or debit card, you can call one of the following service providers. Taxslayer 2011 There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. Taxslayer 2011 WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. Taxslayer 2011 payUSAtax. Taxslayer 2011 com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. Taxslayer 2011 officialpayments. Taxslayer 2011 com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. Taxslayer 2011 PAY1040. Taxslayer 2011 com For the latest details on how to pay by phone, go to www. Taxslayer 2011 irs. Taxslayer 2011 gov/e-pay. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 The enclosed payment vouchers will be preprinted with your name, address, and social security number. Taxslayer 2011 Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. Taxslayer 2011 Use the window envelopes that came with your Form 1040-ES package. Taxslayer 2011 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. Taxslayer 2011 Note. Taxslayer 2011 These criteria can change without notice. Taxslayer 2011 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. Taxslayer 2011 irs. Taxslayer 2011 gov and print a copy of Form 1040-ES which includes four blank payment vouchers. Taxslayer 2011 Complete one of these and make your payment timely to avoid penalties for paying late. Taxslayer 2011 Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. Taxslayer 2011 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. Taxslayer 2011 gov. Taxslayer 2011 Follow the instructions to make sure you use the vouchers correctly. Taxslayer 2011 Joint estimated tax payments. Taxslayer 2011   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. Taxslayer 2011 Change of address. Taxslayer 2011   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Taxslayer 2011 Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. Taxslayer 2011 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. Taxslayer 2011 Also take credit for the estimated tax you paid for 2013. Taxslayer 2011 These credits are subtracted from your total tax. Taxslayer 2011 Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Taxslayer 2011 Two or more employers. Taxslayer 2011   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. Taxslayer 2011 You may be able to claim the excess as a credit against your income tax when you file your return. Taxslayer 2011 See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 Forms W-2 and W-2G. Taxslayer 2011   If you file a paper return, always file Form W-2 with your income tax return. Taxslayer 2011 File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. Taxslayer 2011   You should get at least two copies of each form. Taxslayer 2011 If you file a paper return, attach one copy to the front of your federal income tax return. Taxslayer 2011 Keep one copy for your records. Taxslayer 2011 You also should receive copies to file with your state and local returns. Taxslayer 2011 Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Taxslayer 2011 You should receive a separate Form W-2 from each employer you worked for. Taxslayer 2011 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. Taxslayer 2011 However, your employer must provide or send it to you by January 31, 2014. Taxslayer 2011 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. Taxslayer 2011 If you have not received your Form W-2 by January 31, you should ask your employer for it. Taxslayer 2011 If you do not receive it by February 15, call the IRS. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Taxslayer 2011 Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Taxslayer 2011 If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Taxslayer 2011 Report the amounts you won on line 21 of Form 1040. Taxslayer 2011 Take credit for the tax withheld on line 62 of Form 1040. Taxslayer 2011 If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Taxslayer 2011 The 1099 Series Most forms in the 1099 series are not filed with your return. Taxslayer 2011 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). Taxslayer 2011 Unless instructed to file any of these forms with your return, keep them for your records. Taxslayer 2011 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. Taxslayer 2011 ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. Taxslayer 2011 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. Taxslayer 2011 See the instructions to these forms for details. Taxslayer 2011 Form 1099-R. Taxslayer 2011   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. Taxslayer 2011 Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. Taxslayer 2011 You cannot use Form 1040EZ if you received payments reported on Form 1099-R. Taxslayer 2011 Backup withholding. Taxslayer 2011   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. Taxslayer 2011 Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. Taxslayer 2011 Call the telephone number or write to the address given for the payer on the form. Taxslayer 2011 The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Taxslayer 2011 A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Taxslayer 2011 In certain situations, you will receive two forms in place of the original incorrect form. Taxslayer 2011 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). Taxslayer 2011 One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Taxslayer 2011 This form will have an “X” in the “CORRECTED” box at the top of the form. Taxslayer 2011 The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Taxslayer 2011 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. Taxslayer 2011 S. Taxslayer 2011 Individual Income Tax Return. Taxslayer 2011 Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Taxslayer 2011 Do not include any amount withheld from your spouse's income. Taxslayer 2011 However, different rules may apply if you live in a community property state. Taxslayer 2011 Community property states are listed in chapter 2. Taxslayer 2011 For more information on these rules, and some exceptions, see Publication 555, Community Property. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Taxslayer 2011 Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Taxslayer 2011 You must use Form 1040 or Form 1040A if you paid estimated tax. Taxslayer 2011 You cannot use Form 1040EZ. Taxslayer 2011 Name changed. Taxslayer 2011   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. Taxslayer 2011 The statement should cover payments you made jointly with your spouse as well as any you made separately. Taxslayer 2011   Be sure to report the change to the Social Security Administration. Taxslayer 2011 This prevents delays in processing your return and issuing any refunds. Taxslayer 2011 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. Taxslayer 2011 If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 Generally, you will not have to pay a penalty for 2013 if any of the following apply. Taxslayer 2011 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. Taxslayer 2011 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. Taxslayer 2011 Your total 2013 tax minus your withholding and refundable credits is less than $1,000. Taxslayer 2011 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. Taxslayer 2011 See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. Taxslayer 2011 Farmers and fishermen. Taxslayer 2011   Special rules apply if you are a farmer or fisherman. Taxslayer 2011 See Farmers and Fishermen in chapter 4 of Publication 505 for more information. Taxslayer 2011 IRS can figure the penalty for you. Taxslayer 2011   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. Taxslayer 2011 Generally, the IRS will figure the penalty for you and send you a bill. Taxslayer 2011 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. Taxslayer 2011 See chapter 4 of Publication 505. Taxslayer 2011 Prev  Up  Next   Home   More Online Publications