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1040 Tax Form

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1040 Tax Form

1040 tax form Publication 970 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionComparison table. 1040 tax form Ordering forms and publications. 1040 tax form Tax questions. 1040 tax form Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 970, such as legislation enacted after it was published, go to www. 1040 tax form irs. 1040 tax form gov/pub970. 1040 tax form What's New Lifetime learning credit. 1040 tax form  For 2013, the amount of your lifetime learning credit is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $53,000 and $63,000 ($107,000 and $127,000 if you file a joint return). 1040 tax form You cannot claim a credit if your MAGI is $63,000 or more ($127,000 or more if you file a joint return). 1040 tax form This is an increase from the 2012 limits of $52,000 and $62,000 ($104,000 and $124,000 if filing a joint return). 1040 tax form For more information, see chapter 3, Lifetime Learning Credit . 1040 tax form Business deduction for work-related education. 1040 tax form  For 2013, if you drive your car to and from school and qualify to deduct transportation expenses, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013 is 56. 1040 tax form 5 cents per mile. 1040 tax form See chapter 12, Business Deduction for Work-Related Education , for more information. 1040 tax form Reminders Form 1098-T, Tuition Statement. 1040 tax form  When figuring an education credit or the tuition and fees deduction, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses. 1040 tax form In most cases, the student should receive Form 1098-T from the eligible educational institution by January 31, 2014. 1040 tax form An institution my choose to report either payments received during calendar year 2013 (box 1), or amounts billed during the calendar year 2013 (box 2), for qualified education expenses. 1040 tax form However, the amounts in boxes 1 and 2 of Form 1098-T might be different than the amount you actually paid and are deemed to have paid. 1040 tax form In addition, the Form 1098-T should give you other information for that institution, such as adjustments made for prior years, the amount of scholarships or grants, reimbursements, or refunds, and whether the student was enrolled at least half-time or was a graduate student. 1040 tax form The eligible educational institution may ask for a completed Form W-9S, Request for Student's or Borrower's Taxpayer Identification Number and Certification, or similar statement to obtain the student's name, address, and taxpayer identification number. 1040 tax form Hope Scholarship Credit. 1040 tax form  For 2013, the Hope Scholarship Credit is not available. 1040 tax form However, you may be able to claim an American opportunity or lifetime learning credit. 1040 tax form See chapter 2, American Opportunity Credit , and chapter 3, Lifetime Learning Credit , for more information. 1040 tax form Estimated tax payments. 1040 tax form  If you have taxable income from any of your education benefits and the payer does not withhold enough income tax, you may need to make estimated tax payments. 1040 tax form For more information, see Publication 505, Tax Withholding and Estimated Tax. 1040 tax form Photographs of missing children. 1040 tax form  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 1040 tax form Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 1040 tax form You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. 1040 tax form Introduction This publication explains tax benefits that may be available to you if you are saving for or paying education costs for yourself or, in many cases, another student who is a member of your immediate family. 1040 tax form Most benefits apply only to higher education. 1040 tax form What is in this publication. 1040 tax form    Chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions , explains the tax treatment of various types of educational assistance, including scholarships, fellowships, and tuition reductions. 1040 tax form   Two tax credits for which you may be eligible are explained in chapter 2, American Opportunity Credit , and chapter 3, Lifetime Learning Credit . 1040 tax form These benefits, which reduce the amount of income tax you may have to pay, are: The American opportunity credit, and The lifetime learning credit. 1040 tax form    Ten other types of benefits are explained in chapters 4 through 12. 1040 tax form These benefits, which reduce the amount of income tax you may have to pay, are: Deduct student loan interest; Receive tax-free treatment of a canceled student loan; Receive tax-free student loan repayment assistance; Deduct tuition and fees for education; Establish and contribute to a Coverdell education savings account (ESA), which features tax-free earnings; Participate in a qualified tuition program (QTP), which features tax-free earnings; Take early distributions from any type of individual retirement arrangement (IRA) for education costs without paying the 10% additional tax on early distributions; Cash in savings bonds for education costs without having to pay tax on the interest; Receive tax-free educational benefits from your employer; and Take a business deduction for work-related education. 1040 tax form Note. 1040 tax form You generally cannot claim more than one of the benefits described in the list above for the same qualifying education expense. 1040 tax form Comparison table. 1040 tax form   Some of the features of these benefits are highlighted in Appendix B, Highlights of Education Tax Benefits for Tax Year 2013 , later, in this publication. 1040 tax form This general comparison table may guide you in determining which benefits you may be eligible for and which chapters you may want to read. 1040 tax form When you figure your taxes, you may want to compare these tax benefits so you can choose the method(s) that gives you the lowest tax liability. 1040 tax form If you qualify, you may find that a combination of credit(s) and deduction(s) gives you the lowest tax. 1040 tax form Analyzing your tax withholding. 1040 tax form   After you estimate your education tax benefits for the year, you may be able to reduce the amount of your federal income tax withholding. 1040 tax form Also, you may want to recheck your withholding during the year if your personal or financial situation changes. 1040 tax form See Publication 919, How Do I Adjust My Tax Withholding, for more information. 1040 tax form Glossary. 1040 tax form   In this publication, wherever appropriate, we have tried to use the same or similar terminology when referring to the basic components of each education benefit. 1040 tax form Some of the terms used are: Qualified education expenses, Eligible educational institution, and Modified adjusted gross income. 1040 tax form   Even though the same term, such as qualified education expenses, is used to label a basic component of many of the education benefits, the same expenses are not necessarily allowed for each benefit. 1040 tax form For example, the cost of room and board is a qualified education expense for the qualified tuition program, but not for the education savings bond program. 1040 tax form   Many of the terms used in the publication are defined in the glossary near the end of the publication. 1040 tax form The glossary is not intended to be a substitute for reading the chapter on a particular education benefit, but it will give you an overview of how certain terms are used in discussing the different benefits. 1040 tax form Comments and suggestions. 1040 tax form   We welcome your comments about this publication and your suggestions for future editions. 1040 tax form   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 1040 tax form NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 1040 tax form Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 1040 tax form   You can send your comments from www. 1040 tax form irs. 1040 tax form gov/formspubs/. 1040 tax form Click on “More Information” and then on “Comment on Tax Forms and Publications”. 1040 tax form   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. 1040 tax form Ordering forms and publications. 1040 tax form   Visit www. 1040 tax form irs. 1040 tax form gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 1040 tax form Internal Revenue Service 1201 N. 1040 tax form Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 1040 tax form   If you have a tax question, check the information available on IRS. 1040 tax form gov or call 1-800-829-1040. 1040 tax form We cannot answer tax questions sent to either of the above addresses. 1040 tax form Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 550 Investment Income and Expenses 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1040 U. 1040 tax form S. 1040 tax form Individual Income Tax Return 1040A U. 1040 tax form S. 1040 tax form Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. 1040 tax form S. 1040 tax form Nonresident Alien Income Tax Return 1040NR-EZ U. 1040 tax form S. 1040 tax form Income Tax Return for Certain Nonresident Aliens With No Dependents 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 5329 Additional Taxes on Qualified Plans and Other Tax-Favored Accounts 8815 Exclusion of Interest From Series EE and I U. 1040 tax form S. 1040 tax form Savings Bonds Issued After 1989 8863 Education Credits 8917 Tuition and Fees Deduction Schedule A (Form 1040) Itemized Deductions  See chapter 13, How To Get Tax Help , for information about getting these publications and forms. 1040 tax form Prev  Up  Next   Home   More Online Publications
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Not all work-at-home opportunities deliver on their promises. Some classic work-at-home schemes are medical billing, envelope stuffing and assembly or craftwork. Ads for these businesses say: "Be part of one of America's fastest growing industries. Earn thousands of dollars a month from home!" Legitimate work-at-home program promoters should tell you, in writing, what's involved in the program they are selling. Here are some questions you might ask a promoter:

  • What tasks will I have to perform? (Ask the program sponsor to list every step of the job.)
  • Will I be paid a salary or will my pay be based on commission?
  • Who will pay me?
  • When will I get my first paycheck?
  • What is the total cost of the work-at home program, including supplies, equipment and membership fees? What will I get for my money?

The answers to these questions may help you determine whether a work-at-home program is appropriate for your circumstances, and whether it is legitimate.

Multi-Level Marketing

Some multilevel marketing plans are legitimate. However, others are illegal pyramid schemes. In pyramids, commissions are based on the number of distributors recruited.

Most of the product sales are made to these distributors, not to consumers in general. The underlying goods and services, which vary from vitamins to car leases, serve only to make the schemes look legitimate. Most people end up with nothing to show for their money except the expensive products or marketing materials they were pressured to buy.

If you're thinking about joining what appears to be a legitimate multilevel marketing plan, take time to learn about the plan.

  • What is the company's track record?
  • What products does it sell?
  • Does it sell products to the public-at-large?
  • Does it have evidence to back up the claims it makes about its product?
  • Is the product competitively priced?
  • Is it likely to appeal to a large customer base?
  • How much does it cost to join the plan?
  • Are minimum monthly sales required to earn a commission?
  • Will you be required to recruit new distributors to earn your commission?

Net Based Business Opportunities

The Federal Trade Commission's Work-at-Home Schemes publication says that many Internet business opportunities are schemes that promise more than they can deliver. The companies lure would-be entrepreneurs with false promises of big earnings for little effort. Some tips to finding a legitimate opportunity:

  • Consider the promotion carefully.
  • Get earnings claims in writing and compare them with the experience of previous franchise and business opportunity owners.
  • Study the business opportunity's franchise disclosure document.
  • Visit previous franchise and business opportunity owners in person, preferably at their place of business.
  • Check out the company with the local consumer protection agency and Better Business Bureau. See if there is any record of unresolved complaints.
  • If the business opportunity involves selling products from well-known companies, verify the relationship with the legal department of the company whose merchandise would be promoted.
  • Consult an attorney, accountant or other business advisor before you put any money down or sign any papers.
  • Take your time. Promoters of fraudulent business opportunities are likely to use high-pressure sales tactics to get you to buy in. If the business opportunity is legitimate, it'll still be around when you're ready to decide.

Mystery Shopper Jobs

Mystery shopper jobs may seem easy and lucrative, but they may be fraudulent. According to the FTC, some scams require you to pay a fee for the privilege of working for the company. Other companies send you a fake cashier's check to deposit; then they instruct you to send most of the money to another address and use only a small amount for the shopping trip. When the bank discovers that the check is not legal, you will be liable for repaying the money. For more information on mystery shopping, check your local bookstore, library or the Mystery Shopping Providers Association.

The 1040 Tax Form

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