Publication 505
taxmap/pubs/p505014.htm#en_us_publink10007394After you have figured your total estimated tax, figure how much
you must pay by the due date of each payment period. You should pay enough by
each due date to avoid a penalty for that period. If you do not pay enough
during any payment period, you may be charged a penalty even if you are due a
refund when you file your tax return. The penalty is discussed in
chapter 4.
 2010 rollovers or conversions to a Roth IRA or account.
If you did not elect to include the taxable amount of your 2010 rollover or
conversion to a Roth IRA or account in your 2010 income, you must report half
the income in 2011 and half in 2012. For estimated tax purposes, the income from
the 2010 rollover or conversion that you must report in 2011 and 2012 will be
treated as having been received in an equal amount for each quarter of 2011 and
2012. 
taxmap/pubs/p505014.htm#en_us_publink10007395If your first estimated tax payment is due April 18, 2011, you
can figure your required payment for each period by dividing your annual
estimated tax due (line 16a of the 2011 Estimated Tax Worksheet) by 4. Enter
this amount on line 17. However, use this method only if your income is
basically the same throughout the year.
taxmap/pubs/p505014.htm#en_us_publink10007397After 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. 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.
If you do not receive your income evenly throughout the year,
your required estimated tax payments may not be the same for each period. See
Annualized Income Installment Method on this page.
 Amended estimated tax.
If you refigure your estimated tax during the year, or if your first estimated
tax payment is due after April 18, 2011, figure your required payment for each
remaining payment period using
Worksheet 29 on page 43.

taxmap/pubs/p505014.htm#en_us_publink10007399Early in 2011, Mira Roberts figures that her estimated tax due
is $1,800. She makes estimated tax payments on April 18 and June 15 of $450 each
($1,800 ÷ 4).
On July 10, she sells investment property at a gain. Her refigured
estimated tax is $4,100. Her required estimated tax payment for the third
payment period is $2,175, as shown in her filledin
Worksheet 29 below.
If Mira's estimated tax does not change again, her required estimated
tax payment for the fourth payment period will be $1,025.
taxmap/pubs/p505014.htm#en_us_publink1000248759
Worksheet 29. Amended Estimated Tax Worksheet—Illustrated
       1.  Amended total estimated tax due  1.  $4,100  2.  Multiply line 1 by:       50% (.50) if next payment is due June 15, 2011       75% (.75) if next payment is due September 15,
2011
      100% (1.00) if next payment is due January 17,
2012
 2.  3,075    3.  Estimated tax payments for all previous periods  3.  900    4.  Next required payment:
Subtract line 3 from line 2 and enter the result (but
not less than zero) here and on your payment voucher for your next required
payment
 4.  $2,175     Note.
If the payment on line 4 is due January 17, 2012,
stop here. Otherwise, go to line 5.      5.  Add lines 3 and 4  5.  3,075  6.  Subtract line 5 from line 1 and enter the result (but
not less than zero)  6.  1,025  7.  Each following required payment:
If the payment on line 4 is due June 15, 2011, enter
onehalf of the amount on line 6 here and on the payment vouchers for your
payments due September 15, 2011, and January 17, 2012. If the amount on line 4
is due September 15, 2011, enter the full amount on line 6 here and on the
payment voucher for your payment due January 17, 2012
 7.  $1,025 

taxmap/pubs/p505014.htm#en_us_publink10007400The penalty is figured separately for each payment period. If
you figure your payments using the regular installment method and later refigure
your payments because of an increase in income, you may be charged a penalty for
underpayment of estimated tax for the period(s) before you changed your
payments. To see how you may be able to avoid or reduce this penalty, see
Annualized Income Installment Method (Schedule AI) in chapter 4.
taxmap/pubs/p505014.htm#en_us_publink10007401If you do not receive your income evenly throughout the year
(for example, your income from a repair shop you operate is much larger in the
summer than it is during the rest of the year), your required estimated tax
payment for one or more periods may be less than the amount figured using the
regular installment method.
The annualized income installment method annualizes your tax
at the end of each period based on a reasonable estimate of your income,
deductions, and other items relating to events that occurred from the beginning
of the tax year through the end of the period. To see whether you can pay less
for any period, complete the 2011 Annualized Estimated Tax Worksheet (
Worksheet 26) beginning on page 40.
 You first must complete the 2011 Estimated Tax Worksheet
through line 16b. (See page 33 for a blank worksheet.) 
Use the result you figure on line 32 of the 2011 Annualized Estimated
Tax Worksheet to make your estimated tax payments and complete your payment
vouchers.
See
Example 2, beginning on page 28 to see how the worksheet is completed.
taxmap/pubs/p505014.htm#en_us_publink10007404  Use
Figure 2C, beginning on page 25, to help you follow these instructions.
Another worksheet is available for your use on pages 40 and 41. 
The purpose of this worksheet is to determine your estimated
tax liability as your income accumulates throughout the year, rather than
dividing your entire year's estimated tax liability by four as if your income
was earned equally throughout the year. The top of the worksheet (see page 25)
shows the dates for each payment period. The periods build; that is, each period
includes all previous periods. After the end of each payment period, complete
the corresponding worksheet column to figure the payment due for that period.
taxmap/pubs/p505014.htm#en_us_publink10007407Enter your AGI for the period. This is your gross income for
the period, including your share of partnership or S corporation income or loss,
minus your adjustments to income for that period. See
Expected AGI—Line 1 on page 19.
taxmap/pubs/p505014.htm#en_us_publink1000256134If you elected to report half the income in 2011 and half in
2012, treat that income as received in an equal amount for each quarter.
taxmap/pubs/p505014.htm#en_us_publink10007408If you had selfemployment income, first complete Section B of
this worksheet. Use the amounts on line 46 when figuring your expected AGI to
enter in each column of Section A, line 1.
taxmap/pubs/p505014.htm#en_us_publink10007409Be sure to consider all deduction limits figured on Schedule
A (Form 1040), such as reducing your medical expenses by 7.5% of your AGI, or
reducing certain miscellaneous deductions by 2% of your AGI. Figure your
deduction limits using your expected AGI in the corresponding column of line 1
(2011 Annualized Estimated Tax Worksheet
(Worksheet 26)).
taxmap/pubs/p505014.htm#en_us_publink10007410Multiply line 4 by line 5 and enter the result on line 6.
taxmap/pubs/p505014.htm#en_us_publink10007411If you will not itemize your deductions, use
Worksheet 23 (see page 37) to figure your standard deduction.
taxmap/pubs/p505014.htm#en_us_publink10007412Multiply $3,700 by your total expected exemptions and enter the
result on line 10.
taxmap/pubs/p505014.htm#en_us_publink10007413Generally, you will use the
2011 Tax Rate Schedules
on page 34 or in the instructions to Form 1040ES to figure the tax on your
annualized income. However, see below for situations where you must use a
different method to compute your estimated tax.
taxmap/pubs/p505014.htm#en_us_publink10007414You must use a special method to figure tax on the income of
the following children who have more than $1,900 of investment income.
 Children under age 18 at the end of 2011.
 The following children if their earned income is not more
than half their support.
 Children age 18 at the end of 2011.
 Children who are fulltime students over age 18 and under
age 24 at the end of 2011.
See Publication 929.
taxmap/pubs/p505014.htm#en_us_publink10007415The regular income tax rates for individuals do not apply to
a net capital gain. Instead, your net capital gain is taxed at a lower maximum
rate.
The term "net capital gain" means the amount by which your net
longterm capital gain for the year is more than your net shortterm capital
loss.
taxmap/pubs/p505014.htm#en_us_publink1000256217Generally, the maximum tax rate for qualified dividends is 15%
(0% for people whose other income is taxed at the 10% or 15% rate).
 Tax on capital gain or qualified dividends.
If the amount on line 1 includes a net capital gain or qualified dividends, use
Worksheet 27 on page 42 to figure the amount to enter on line 12. 
 Tax if excluding foreign earned income or excluding or
deducting foreign housing.
If you expect to claim the foreign earned income exclusion or the housing
exclusion or deduction on Form 2555 or Form 2555EZ, use
Worksheet 28 on page 43 to figure the amount to enter on line 12. 
taxmap/pubs/p505014.htm#en_us_publink1000240672
If you file Form 1040, add the tax from Forms 8814, 4972, and 6251 for the
period. If you file Form 1040A, add the amount from the Alternative Minimum Tax
Worksheet found in the instructions. Also include any recapture of an education
credit for each period. You may owe this tax if you claimed an education credit
in an earlier year and you received either taxfree educational assistance or a
refund of qualifying expenses for the same student after filing your 2010
return.
Use the 2010 forms or worksheets to see if you will owe any of
the taxes discussed above. Figure the tax based on your income and deductions
during the period shown in the column headings. Multiply this amount by the
annualization amounts shown for each column on line 2 of the 2011 Annualized
Estimated Tax Worksheet (
Worksheet 26). Enter the result on line 13 of this worksheet.
taxmap/pubs/p505014.htm#en_us_publink1000210096Include all the nonrefundable credits you expect to claim because
of events that will occur during the period. If you are using your 2010 return
as a guide and filed Form 1040, your 2010 credits were entered on lines 47
through 53. If you filed Form 1040A, your credits were on lines 29 through 33.
Note.
When figuring your credits for each period, annualize any item of income or
deduction to figure each credit. For example, if you need to use your AGI to
figure a credit, use line 3 of
Worksheet 26 to figure the credit for each column.
taxmap/pubs/p505014.htm#en_us_publink10007419Enter your selfemployment tax for the period from Section B,
line 41.
taxmap/pubs/p505014.htm#en_us_publink10007420Add your expected other taxes.
Other taxes include the following.
 Additional tax on early distributions from:
 An IRA or other qualified retirement plan,
 A taxsheltered annuity, or
 A modified endowment contract entered into after June 20,
1988.
 Household employment taxes if:
 You will have federal income tax withheld from wages, pensions,
annuities, gambling winnings, or other income, or
 You would be required to make estimated tax payments even
if you did not include household employment taxes when figuring your estimated
tax.
 Amounts on Form 1040 written in on the line for "total tax"
(line 60 on the 2010 Form 1040). But
do not include
recapture of a federal mortgage subsidy; tax on excess golden
parachute payments; lookback interest due under section 167(g) or 460(b) of the
Internal Revenue Code; excise tax on insider stock compensation from an
expatriated corporation; uncollected social security, Medicare, or RRTA tax on
tips or groupterm life insurance; or additional tax on advance payments of
health coverage tax credit when not eligible.
 Repayment of the firsttime homebuyer credit if the home will
cease to be your main home in 2011. See Form 5405 for exceptions.
taxmap/pubs/p505014.htm#en_us_publink10007423Include all the refundable credits (other than withholding credits)
you can claim because of events that occurred during the period. If you are
using your 2010 return as a guide and filed Form 1040, include the credits on
lines 64a, 65, 66, 67, 70 (boxes b, c, and d), and 71. If you filed Form 1040A,
include the credits on lines 41a, 42, and 43. If you filed Form 1040EZ, include
line 9a.
Note.
When figuring your refundable credits for each period, annualize any item of
income or deduction used to figure each credit.
taxmap/pubs/p505014.htm#en_us_publink10007424If line 28 is smaller than line 25 and you are not certain of
the estimate of your 2011 tax, you can avoid a penalty by entering the amount
from line 25 on line 29.
taxmap/pubs/p505014.htm#en_us_publink10007425For each period, include estimated tax payments made and any
excess social security and railroad retirement tax.
Also include estimated federal income tax withholding. Onefourth
of your estimated withholding is considered withheld on the due date of each
payment period. To figure the amount to include on line 31 for each period,
multiply your total expected withholding for 2011 by:
 25% (.25) for the first period,
 50% (.50) for the second period,
 75% (.75) for the third period, and
 100% (1.00) for the fourth period.
However, you may choose to include your withholding according
to the actual dates on which the amounts will be withheld. For each period,
include withholding made from the beginning of the period up to and including
the payment due date. You can make this choice separately for the taxes withheld
from your wages and all other withholding. For an explanation of what to include
in withholding, see
Total Estimated Tax Payments Needed—Line 16a on page 22.
taxmap/pubs/p505014.htm#en_us_publink10007427If you will file Form 1040NR and you do not receive wages as
an employee subject to U.S. income tax withholding, the instructions for the
worksheet are modified as follows.
 Skip column (a).
 On line 1, enter your income for the period that is effectively
connected with a U.S. trade or business.
 On line 21, increase your entry by the amount determined by
multiplying your income for the period that is not effectively connected with a
U.S. trade or business by the following.
 72% for column (b).
 45% for column (c).
 30% for column (d).
However, if you can use a treaty rate lower than 30%, use
the percentages determined by multiplying your treaty rate by 2.4, 1.5, and 1,
respectively.
 On line 26, enter onehalf of the amount from line 16c of
the Form 1040ES (NR) 2011 Estimated Tax Worksheet in column (b), and onefourth
in columns (c) and (d).
 On lines 24 and 27, skip column (b).
 On line 31, if you do not use the actual withholding method,
include onehalf of your total expected withholding in column (b) and onefourth
in columns (c) and (d).
See Publication 519 for more information.
taxmap/pubs/p505014.htm#en_us_publink10007428You do not have to pay estimated tax if your withholding in each
payment period is at least as much as:
 Onefourth of your required annual payment, or
 Your required annualized income installment for that period.
You also do not have to pay estimated tax if you will pay enough
through withholding to keep the amount you will owe with your return under
$1,000.
Figure 2C.
Annualized Income Installment Method
Section A (For Figuring Your Annualized Estimated Tax Payments)—Complete each column after end of period shown.

Estates and trusts: Use the following ending dates in columns
(a) through (d):
2/28/2011, 4/30/2011, 7/31/2011, 11/30/2011.
 (a) 1/1/113/31/11
 (b) 1/1/115/31/11
 (c) 1/1/118/31/11
 (d) 1/1/1112/31/11

1  Adjusted gross income (AGI) for each period (see instructions).
Estates and trusts, enter your taxable income without your exemption for each
period. Selfemployed: Complete Section B first
 1     
2  Annualization amounts. (Estates and trusts, see instructions)  2  4  2.4  1.5  1 
3  Annualized income. Multiply line 1 by line 2  3     
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
 4     
5  Annualization amounts  5  4  2.4  1.5  1 
6  Multiply line 4 by line 5 (see instructions)  6     
7  Standard deduction from Worksheet 23  7     
8  Enter the
larger
of line 6 or line 7
 8     
9  Subtract line 8 from line 3  9     
10  In each column, multiply $3,700 by your total expected number
of exemptions (see instructions). (Estates and trusts, see instructions)  10     
11  Subtract line 10 from line 9. If zero or less, enter 0  11     
12  Figure your tax on the amount on line 11 (see instructions)  12     
13  For each period, enter any tax from Forms 8814, 4972, and
6251. Also include any recapture of education credits (see instructions)  13     
14  Add lines 12 and 13  14     
15  Enter nonrefundable credits for each period (see instructions)  15     
16  Subtract line 15 from line 14  16     
17  Selfemployment tax from line 41 of Section B  17     
18  Enter other taxes for each period (see instructions)  18     
19  Total tax. Add lines 16, 17, and 18  19     
20  Enter refundable credits for each period (see instructions
for type of credits allowed).
Do not
include any income tax withholding on this line
 20     
21  Subtract line 20 from line 19. If zero or less, enter 0  21     
22  Applicable percentage  22  22.5%  45%  67.5%  90% 
23  Multiply line 21 by line 22  23     
 Complete lines 24 through 29 of one column before going
to line 24 of the next column.      
24  Enter the total of the amounts in all previous columns of
line 29  24     
25  Annualized income installment. Subtract line 24 from line
23. If zero or less, enter 0  25     
26  Enter 25% (.25) of line 14c of the Form 1040ES Estimated
Tax Worksheet in each column  26     
27  Subtract line 29 of the previous column from line 28 of that
column  27     
28  Add lines 26 and 27  28     
29  Enter the
smaller of line 25 or line 28 (see instructions)
 29     
30  Total required payments for the period. Add lines 24 and
29  30     
31  Estimated tax payments made (line 32 of all previous columns)
plus tax withholding through the due date for the period (see instructions)
 31     
32  Estimated tax payment required by the next due date. Subtract
line 31 from line 30 and enter the result (but not less than zero) here and on
your payment voucher
 32     
taxmap/pubs/p505014.htm#en_us_publink1000248760
Figure 2C. Annualized Income Installment Method (Continued)
Worksheet 26. 2011 Annualized Estimated Tax Worksheet (Continued)
Section B (For Figuring Your Annualized Estimated SelfEmployment
Tax)—Complete each column after end of period shown.  (Form 1040 filers only)  (a) 1/1/113/31/11
 (b) 1/1/115/31/11
 (c) 1/1/118/31/11
 (d) 1/1/1112/31/11
 33  Net earnings from selfemployment for the period (see
instructions)  33      34  Prorated social security tax limit  34  $26,700  $44,500  $71,200  $106,800  35  Enter actual wages for the period subject to social security
tax or the 4.2% portion of tier 1 railroad retirement tax. Exception: If you file Form 4137 or Form 8919, see instructions
 35      36  Subtract line 35 from line 34. If zero or less, enter
0  36      37  Annualization amounts  37  0.416  0.2496  0.156  0.104  38  Multiply line 37 by the
smaller of line 33 or line 36
 38      39  Annualization amounts  39  0.116  0.0696  0.0435  0.029  40  Multiply line 33 by line 39  40      41  Add lines 38 and 40. Enter the result here and on
line 17 of Section A
 41      42  Multiply line 38 by 59.6% (.596)  42      43  Multiply line 40 by 50% (.50)  43      44  Add lines 42 and 43  44      45  Annualization amounts  45  4  2.4  1.5  1  46  Deduction for selfemployment tax. Divide line 44 by line
45. Enter the result here. Use this result to figure your AGI on line 1
 46     
