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

Summary: This is an example of Section B (For Figuring Your Annualized Estimated Self-Employment Tax) of the 2009 Annualized Estimated Tax Worksheet for Figure 2-E, Annualized Income Installment Method—Illustrated Example 2 (Anne and Larry Jones). The completed line items are:

- 29. Net earnings from self-employment for the period.
- - (a) 1/1/09-3/31/09 field contains 2,771
  - (b) 1/1/09-5/31/09 field contains 5,541
  - (c) 1/1/09-8/31/09 field contains 14,776
  - (d) 1/1/09-12/31/09 field contains 37,032
- 31. Enter actual wages for the period subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax.
- - (a) 1/1/09-3/31/09 field contains 0
  - (b) 1/1/09-5/31/09 field contains 0
  - (c) 1/1/09-8/31/09 field contains 0
  - (d) 1/1/09-12/31/09 field contains 0
- 32. Subtract line 31 from line 30. If zero or less, enter 0.
- - (a) 1/1/09-3/31/09 field contains 26,700
  - (b) 1/1/09-5/31/09 field contains 44,500
  - (c) 1/1/09-8/31/09 field contains 71,200
  - (d) 1/1/09-12/31/09 field contains 106,800
- 34. Multiply line 33 by the smaller of line 29 or line 32.
- - (a) 1/1/09-3/31/09 field contains 1,374
  - (b) 1/1/09-5/31/09 field contains 1,649
  - (c) 1/1/09-8/31/09 field contains 2,748
  - (d) 1/1/09-12/31/09 field contains 4,592
- 36. Multiply line 29 by line 35.
- - (a) 1/1/09-3/31/09 field contains 321
  - (b) 1/1/09-5/31/09 field contains 386
  - (c) 1/1/09-8/31/09 field contains 643
  - (d) 1/1/09-12/31/09 field contains 1,074
- 37. Add lines 34 and 36. Enter the result here and on line 13 of Section A.
- - (a) 1/1/09-3/31/09 field contains 1,695
  - (b) 1/1/09-5/31/09 field 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
- 39. Deduction for one-half of self-employment tax. Divide line 37 by line 38. Enter the result here. Use this result to figure your AGI on line 1.
- - (a) 1/1/09-3/31/09 field contains 212
  - (b) 1/1/09-5/31/09 field contains 424
  - (c) 1/1/09-8/31/09 field contains 1,130
  - (d) 1/1/09-12/31/09 field contains 2,833

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