Credit for Withholding and Estimated Tax  
for 2010(p42)

When you file your 2010 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. Also take credit for the estimated tax you paid for 2010. These credits are subtracted from your tax. Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax.

If you had two or more employers in 2010 and were paid wages of more than $106,800, too much social security or tier 1 railroad retirement tax may have been withheld from your wages. You may be able to claim the excess as a credit against your income tax when you file your return. See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37.

If you had income tax withheld during 2010, you should be sent a statement by January 31, 2011, showing your income and the tax withheld. 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.

Always file Form W-2 with your income tax return. File Form W-2G with your return only if it shows any federal income tax withheld from your winnings.

You should get at least two copies of each form you receive. Attach one copy to the front of your federal income tax return. Keep one copy for your records. You also should receive copies to file with your state and local returns.

Your employer is required to provide or send Form W-2 to you no later than January 31, 2011. You should receive a separate Form W-2 from each employer you worked for.

If you stopped working before the end of 2010, your employer could have given you your Form W-2 at any time after you stopped working. However, your employer must provide or send it to you by January 31, 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.

If you have not received your Form W-2 on time, you should ask your employer for it. If you do not receive it by February 15, call the IRS.

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. Include the federal income tax withheld (as shown in box 2 of Form W-2) on:

• Line 61 if you file Form 1040,
• Line 38 if you file Form 1040A, or
• Line 7 if you file Form 1040EZ.

In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay.

If you had gambling winnings in 2010, the payer may have withheld income tax. If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld.

Report the amounts you won on line 21 of Form 1040. Take credit for the tax withheld on line 61 of Form 1040. If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ.

Most forms in the 1099 series are not filed with your return. These forms should be furnished to you by January 31, 2011 (or, for Forms 1099-B, 1099-S, and certain Forms 1099-MISC, by February 15, 2011). Unless instructed to file any of these forms with your return, keep them for your records. There are several different forms in this series, including:

• Form 1099-B, Proceeds From Broker and Barter Exchange Transactions;
• Form 1099-C, Cancellation of Debt;
• Form 1099-DIV, Dividends and Distributions;
• Form 1099-G, Certain Government Payments;
• Form 1099-INT, Interest Income;
• Form 1099-MISC, Miscellaneous Income;
• Form 1099-OID, Original Issue Discount;
• Form 1099-Q, Payments From Qualified Education Programs;
• Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.;
• Form 1099-S, Proceeds From Real Estate Transactions;
• Form SSA-1099, Social Security Benefit Statement; and
• Form RRB-1099, Payments by the Railroad Retirement Board.

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. See the instructions to these forms for details.

Attach Form 1099-R to your return if box 4 shows federal income tax withheld. Include the amount withheld in the total on line 61 of Form 1040 or line 38 of Form 1040A. You cannot use Form 1040EZ if you received payments reported on Form 1099-R.

If you were subject to backup withholding on income you received during 2010, include the amount withheld, as shown in box 4 of your Form 1099, in the total on line 61 of Form 1040, line 38 of Form 1040A, or line 7 of Form 1040EZ.

If you receive a form with incorrect information on it, you should ask the payer for a corrected form. Call the telephone number or write to the address given for the payer on the 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. A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2.

In certain situations, you will receive two forms in place of the original incorrect 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). One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. This form will have an "X" in the "CORRECTED" box at the top of the 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).

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.S. Individual Income Tax Return.

If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Do not include any amount withheld from your spouse's income. However, different rules may apply if you live in a community property state.

Community property states are listed in chapter 2. For more information on these rules, and some exceptions, see Publication 555, Community Property.

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. 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.

Take credit for all your estimated tax payments for 2010 on line 62 of Form 1040 or line 39 of Form 1040A. Include any overpayment from 2009 that you had credited to your 2010 estimated tax. You must use Form 1040 or Form 1040A if you paid estimated tax. You cannot use Form 1040EZ.

If you changed your name, and you made estimated tax payments using your old name, attach a brief statement to the front of your tax return indicating:

• When you made the payments,
• The amount of each payment,
• The IRS address to which you sent the payments,
• Your name when you made the payments, and
• Your social security number.

The statement should cover payments you made jointly with your spouse as well as any you made separately.

If you and your spouse made separate estimated tax payments for 2010 and you file separate returns, you can take credit only for your own payments.

If you made joint estimated tax payments, you must decide how to divide the payments between your returns. 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. If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2010.

If you made joint estimated tax payments for 2010, 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. 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 2010.

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. If you divorced and remarried in 2010, 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 62, or Form 1040A, line 39.