Figure 2-E, Annualized Income Installment Method—Illustrated Example 2 (Anne and Larry Jones)

• Under :
• • 1. Adjusted gross income (AGI) for each period. (see instructions). Estates and trusts, enter your taxable income without your exemption for each period. Self-employed: Complete Section B first.
  • • (a) 1/1/09-3/31/09 field contains 14,203
    • (b) 1/1/09-5/31/09 field contains 24,822
    • (c) 1/1/09-8/31/09 field contains 47,704
    • (d) 1/1/09-12/31/09 field contains 85,756
  • 3. Annualized income. Multiply line 1 by line 2
  • -
    • (a) 1/1/09-3/31/09 field contains 56,812
    • (b) 1/1/09-5/31/09 field contains 59,573
    • (c) 1/1/09-8/31/09 field contains 71,556
    • (d) 1/1/09-12/31/09 field contains 85,756
  • 4. If you itemize, enter itemized deductions for period shown in the column headings (see instructions). All others, enter 0 and skip to line 7. Exception: Estates and trusts, skip to line 9 and enter amount from line 3
  • • (a) 1/1/09-3/31/09 field contains 1,375
    • (b) 1/1/09-5/31/09 field contains 3,120
    • (c) 1/1/09-8/31/09 field contains 7,250
    • (d) 1/1/09-12/31/09 field contains 11,825
  • 6. Multiply line 4 by line 5 (see instructions and Worksheet 2-11 if line 3 is more than $83,400)
  • • (a) 1/1/09-3/31/09 field contains 5,500
    • (b) 1/1/09-5/31/09 field contains 7,488
    • (c) 1/1/09-8/31/09 field contains 10,875
    • (d) 1/1/09-12/31/09 field contains 11,825
  • 7. Standard deduction from Worksheet 2-3.
  • • (a) 1/1/09-3/31/09 field contains 11,400
    • (b) 1/1/09-5/31/09 field contains 11,400
    • (c) 1/1/09-8/31/09 field contains 11,400
    • (d) 1/1/09-12/31/09 field contains 11,400
  • 8. Enter the larger of line 6 or line 7
  • • (a) 1/1/09-3/31/09 field contains 11,400
    • (b) 1/1/09-5/31/09 field contains 11,400
    • (c) 1/1/09-8/31/09 field contains 11,400
    • (d) 1/1/09-12/31/09 field contains 11,825
  • 9. Subtract line 8 from line 3
  • • (a) 1/1/09-3/31/09 field contains 45,412
    • (b) 1/1/09-5/31/09 field contains 48,173
    • (c) 1/1/09-8/31/09 field contains 60,156
    • (d) 1/1/09-12/31/09 field contains 73,931
  • 10. In each column, multiply $3,650 by your total expected number of exemptions (see instructions and Worksheet 2-12 if line 3 is more than $125,100 or you expect to house individuals displaced by a Midwestern disaster). (Estates and trusts, see instructions)
  • • (a) 1/1/09-3/31/09 field contains 7,300
    • (b) 1/1/09-5/31/09 field contains 7,300
    • (c) 1/1/09-8/31/09 field contains 7,300
    • (d) 1/1/09-12/31/09 field contains 7,300
  • 11. Subtract line 10 from line 9. If zero or less, enter -0-
  • • (a) 1/1/09-3/31/09 field contains 38,112
    • (b) 1/1/09-5/31/09 field contains 40,873
    • (c) 1/1/09-8/31/09 field contains 52,856
    • (d) 1/1/09-12/31/09 field contains 66,631
  • 12. Figure your tax on the amount on line 11 (see instructions)
  • • (a) 1/1/09-3/31/09 field contains 4,882
    • (b) 1/1/09-5/31/09 field contains 5,296
    • (c) 1/1/09-8/31/09 field contains 7,093
    • (d) 1/1/09-12/31/09 field contains 9,160
  • 13. Self-employment tax from line 37 of Section B.
  • • (a) 1/1/09-3/31/09 field contains 1,695
    • (b) 1/1/09-5/31/09field contains 2,035
    • (c) 1/1/09-8/31/09 field contains 3,391
    • (d) 1/1/09-12/31/09 field contains 5,666
  • 15. Total tax. Add lines 12, 13, and 14
  • • (a) 1/1/09-3/31/09 field contains 6,577
    • (b) 1/1/09-5/31/09 field contains 7,331
    • (c) 1/1/09-8/31/09 field contains 10,484
    • (d) 1/1/09-12/31/09 field contains 14,826
  • 16. Enter credits for each period (see instructions for type of credits allowed). Do not include any income tax withholding on this line
  • • (a) 1/1/09-3/31/09 field contains 800
    • (b) 1/1/09-5/31/09 field contains 800
    • (c) 1/1/09-8/31/09 field contains 800
    • (d) 1/1/09-12/31/09 field contains 800
  • 17. Subtract line 16 from line 15. If zero or less, enter -0-
  • • (a) 1/1/09-3/31/09 field contains 5,777
    • (b) 1/1/09-5/31/09 field contains 6,531
    • (c) 1/1/09-8/31/09 field contains 9,684
    • (d) 1/1/09-12/31/09 field contains 14,026
  • 19. Multiply line 17 by line 18. Complete lines 20–25 of one column before going to line 20 of the next column
  • • (a) 1/1/09-3/31/09 field contains 1,300
    • (b) 1/1/09-5/31/09 field contains 2,939
    • (c) 1/1/09-8/31/09 field contains 6,537
    • (d) 1/1/09-12/31/09 field contains 12,623
  • 20. Enter the total of the amounts in all previous columns of line 25.
  • • (b) 1/1/09-5/31/09 field contains 1,300
    • (c) 1/1/09-8/31/09 field contains 2,939
    • (d) 1/1/09-12/31/09 field contains 6,537
  • 21. Annualized income installment. Subtract line 20 from line 19. If zero or less, enter 0
  • • (a) 1/1/09-3/31/09 field contains 1,300
    • (b) 1/1/09-5/31/09 field contains 1,639
    • (c) 1/1/09-8/31/09 field contains 3,598
    • (d) 1/1/09-12/31/09 field contains 6,086
  • 22. Enter 25% of line 14c of the Form 1040-ES Estimated Tax Worksheet in each column.
  • • (a) 1/1/09-3/31/09 field contains 3,156
    • (b) 1/1/09-5/31/09 field contains 3,156
    • (c) 1/1/09-8/31/09 field contains 3,156
    • (d) 1/1/09-12/31/09 field contains 3,156
  • 23. Subtract line 25 of the previous column from line 24 of that column.
  • • (b) 1/1/09-5/31/09 field contains 1,856
    • (c) 1/1/09-8/31/09 field contains 3,373
    • (d) 1/1/09-12/31/09 field contains 2,931
  • 24. Add lines 22 and 23.
  • • (a) 1/1/09-3/31/09 field contains 3,156
    • (b) 1/1/09-5/31/09 field contains 5,012
    • (c) 1/1/09-8/31/09 field contains 6,529
    • (d) 1/1/09-12/31/09 field contains 6,087
  • 25. Enter the smaller of line 21 or line 24 (see instructions)
  • • (a) 1/1/09-3/31/09 field contains 1,300
    • (b) 1/1/09-5/31/09 field contains 1,639
    • (c) 1/1/09-8/31/09 field contains 3,598
    • (d) 1/1/09-12/31/09 field contains 6,086
  • 26. Total required payments for the period. Add lines 20 and 25.
  • • (a) 1/1/09-3/31/09 field contains 1,300
    • (b) 1/1/09-5/31/09 field contains 2,939
    • (c) 1/1/09-8/31/09 field contains 6,537
    • (d) 1/1/09-12/31/09 field contains 12,623
  • 27. Estimated tax payments made (line 28 of all previous columns) plus tax withholding through the due date for the period.
  • • (a) 1/1/09-3/31/09 field contains 843
    • (b) 1/1/09-5/31/09 field contains 2,143
    • (c) 1/1/09-8/31/09 field contains 3,782
    • (d) 1/1/09-12/31/09 field contains 7,380
  • 28. Estimated tax payment required by the next due date. Subtract line 27 from line 26 and enter the result (but not less than zero) here and on your payment voucher.
    • (a) 1/1/09-3/31/09 field contains 457
    • (b) 1/1/09-5/31/09 field contains 796
    • (c) 1/1/09-8/31/09 field contains 2,755
    • (d) 1/1/09-12/31/09 field contains 5,243

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