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IRS.gov Website
Publication 505
taxmap/pubs/p505-016.htm#en_us_publink10007439

Illustrated Examples(p27)

rule
The following examples show how to figure estimated tax payments under the regular installment method and under the annualized income installment method.
taxmap/pubs/p505-016.htm#en_us_publink10007440

Example 1—Regular  
Installment Method(p27)

rule
Early in 2011, Anne and Larry Jones figure their estimated tax payments for the year. They expect to receive the following income during 2011.
Larry's salary$39,900
State tax refund (they itemized deductions in 2010)600
Anne's net profit from self-employment40,100
Net rental income6,205
Interest income2,784
Total$89,589
  
They also use the following expected items to figure their 2011 estimated tax.
Adjustment to income for IRA contributions$  1,000
Itemized deductions17,825
Deduction for exemptions ($3,700 × 2)7,400
Withholding3,972
The Joneses plan to file a joint return. They use the 2011 Estimated Tax Worksheet included in Form 1040-ES to figure their estimated tax payments. See their filled-in worksheet  
(Figure 2-D) on page 29.
taxmap/pubs/p505-016.htm#en_us_publink10007441

Expected AGI.(p27)

rule
Anne can claim an income tax deduction for part of her self-employment tax as an adjustment to income. So before the Joneses figure their expected AGI, they figure Anne's expected self-employment tax. See their filled-in Worksheet 2-2 on this page. taxmap/pubs/p505-016.htm#en_us_publink1000248761

Worksheet 2-2.  2011 Estimated Tax Worksheet—Lines 1 and 11
Expected Self-Employment Tax and Deduction
—Illustrated (Anne Jones)

1.a.Enter your expected income and profits subject to self-employment tax*1a.$40,100   
 b.If you will have farm income and also receive social security retirement or disability benefits, enter your expected Conservation Reserve Program payments that will be included on Schedule F (Form 1040) or listed on Schedule K-1 (Form 1065) 1b.  
2. Subtract line 1b from line 1a2.40,100   
3. Multiply line 2 by 92.35% (.9235). If less than $400, do not complete this worksheet; you will not owe self-employment tax on your expected net earnings from self-employment 3.37,032   
4. Multiply line 3 by 2.9% (.029)4.1,074 
5. Maximum income subject to social security tax5.$106,800   
6. Enter your expected wages (if subject to social security tax or the 4.2% portion of tier 1 railroad retirement tax)6.-0-     
7. Subtract line 6 from line 57.106,800   
  Note. If line 7 is zero or less, enter -0- on line 9 and skip to line 10.    
8. Enter the smaller of line 3 or line 7 8.37,032   
9. Multiply line 8 by 10.4% (.104)9.3,851 
10. Add line 4 and line 9. Enter the result here and on line 11 of your 2011 Estimated Tax Worksheet (or line 17 of the Annualized Estimated Tax Worksheet (Worksheet 2-6)) 10.$ 4,925 
11. Multiply line 4 by 50% (.50)11.537   
12. Multiply line 9 by 59.6% (.596)12.2,295   
13. Add lines 11 and 12. This is your expected deduction for self-employment tax on Form 1040, line 27. Subtract this amount when figuring your expected AGI on line 1 of your 2011 Estimated Tax Worksheet (or Annualized Estimated Tax Worksheet (Worksheet 2-6)) 13.$ 2,832   
*Your net profit from self-employment is found on Schedule C, line 31; Schedule C-EZ, line 3; Schedule F, line 36; Schedule K-1 (Form 1065), box 14, code A; and Schedule K-1 (Form 1065-B), box 9, code J1.
On line 11 of their 2011 Estimated Tax Worksheet, the Joneses enter $4,925 self-employment tax. They subtract their allowable deduction, $2,832, and their $1,000 adjustment for IRA contributions from their $89,589 total income to find their expected AGI, $85,757. They enter that amount on line 1 of the worksheet.
taxmap/pubs/p505-016.htm#en_us_publink10007442

Expected taxable income.(p27)

rule
The Joneses use Worksheet 2-3 (see page 37) to figure their standard deduction, $11,600. This is smaller than their expected itemized deductions, so they enter $17,825 on line 2 of the worksheet. They subtract the amount on line 2 from the amount on line 1 and enter the result, $67,932, on line 3. They enter their deduction for exemptions, $7,400, on line 4. After subtracting this amount, their expected taxable income on line 5 is $60,532.
taxmap/pubs/p505-016.htm#en_us_publink10007443

Expected taxes and credits.(p27)

rule
The Joneses use the 2011 Tax Rate Schedule Y-1 on page 34 to figure their expected income tax, and enter $8,230 on line 6 of the worksheet. They do not expect to owe any other taxes that would be entered on lines 7 or 12. They do not have any other credits that would be entered on lines 9 or 13b.
The Joneses' total estimated tax on line 13c, after adding Anne's self-employment tax from line 11, is $13,155.
taxmap/pubs/p505-016.htm#en_us_publink10007444

Estimated tax.(p27)

rule
The Joneses multiply their total estimated tax by 90% and enter $11,840 on line 14a of the worksheet. They enter their 2010 tax, $13,123, on line 14b. Their required annual payment on line 14c is the smaller amount, $11,840.
They enter Larry's expected withholding, $3,972, on line 15 and subtract it from their required annual payment. Their estimated tax on line 16a is $7,868.
After completing lines 16a and 16b, the Joneses find they are required to pay estimated tax. This is because their estimated withholding (line 15) is:
taxmap/pubs/p505-016.htm#en_us_publink10007445

Required estimated tax payment.(p27)

rule
The Joneses must pay their first estimated tax payment by April 18, 2011. They enter one-fourth of their estimated tax (line 16a), $2,296, on line 17 of the worksheet and on their Form 1040-ES payment voucher that shows "Due April 18, 2011." They mail the voucher with their payment to the address shown for their area in the Form 1040-ES instructions and record the payment on the Record of Estimated Tax Payments in the instructions.
If their estimated tax does not change during the year, the Joneses also will pay $2,296 estimated tax by June 15 and September 15, 2011, and January 17, 2012.
taxmap/pubs/p505-016.htm#en_us_publink10007446

Example 2—Annualized  
Income Installment Method(p28)

rule
The facts are the same as in Example 1—Regular Installment Method on the previous page, except that the Joneses do not expect to receive their income evenly throughout the year. Anne expects to receive the largest portion of her self-employment income during the last few months of the year, and the Joneses' rental income is from a vacation home rented only from May to mid-October.
After completing their 2011 Estimated Tax Worksheet, the Joneses decide to use the annualized income installment method to see if they can pay less than $2,296 estimated tax for one or more payment periods. They complete the 2011 Annualized Estimated Tax Worksheet (Worksheet 2-6) in this chapter. See their filled-in worksheet ( Figure 2-E) on pages 30 and 31.
taxmap/pubs/p505-016.htm#en_us_publink10007447

First Period(p28)

rule
On April 1, 2011, the Joneses complete the first column of the worksheet for the period January 1 through March 31. They had the following income for the period.
Larry's salary$ 9,975
State tax refund600
Anne's net profit from self-employment3,000
Net rental income-0-
Interest income696
Total$14,271
  
They also take into account the following items for the period.
Adjustment to income for IRA contributions$  150
Itemized deductions2,375
Withholding993
taxmap/pubs/p505-016.htm#en_us_publink10007448

Annualized AGI.(p28)

rule
Before the Joneses figure their AGI for the period, they first figure Anne's self-employment tax in Section B, and then her adjustment to income for self-employment tax.
On line 33 of Section B, they enter $2,771, which is Anne's net profit from self-employment for the period ($3,000 x .9235). The prorated social security tax limit is preprinted on line 34. She has no social security wages, so they enter zero on line 35, and $26,700 on line 36. Anne's annualized social security tax on line 38 is $1,153 ($2,771 × .416). Her annualized Medicare tax on line 40 is $321 ($2,771 × .116). Her total annualized self-employment tax on line 41 is $1,474. They enter that amount on line 17 of Section A.
The Joneses figure their adjustment to income for Anne's self-employment tax on lines 42 through 46 (Section B). That amount is $212 ($848 ÷ 4). They subtract that amount and their $150 IRA contributions from their $14,271 total income and enter their AGI for the period, $13,909, on line 1 of Section A. They multiply that amount by 4 and enter their annualized AGI, $55,636, on line 3.
taxmap/pubs/p505-016.htm#en_us_publink10007449

Annualized taxable income.(p28)

rule
The Joneses figure their annualized itemized deductions ($2,375 × 4) on lines 4 through 6 of Section A. Because the result is smaller than their standard deduction, they enter their $11,600 standard deduction on line 8. After subtracting that amount and their $7,400 deduction for exemptions, the Joneses' annualized taxable income on line 11 is $36,636.
taxmap/pubs/p505-016.htm#en_us_publink10007450

Annualized taxes and credits.(p28)

rule
The Joneses use the 2011 Tax Rate Schedule Y-1 on page 34 to figure their annualized income tax, $4,645, which they enter on line 12 of Section A.
They use their 2010 tax return to see what credits may be included on line 15. These are nonrefundable credits on lines 47 through 53 of Form 1040 or lines 29 through 33 if you filed Form 1040A. They have no credits listed in this section of their tax return and do not think they will have any in 2011, so they leave line 15 blank.
They have no other taxes for the period that would be entered on line 18, so they leave that line blank and enter $6,119 ($4,645 + $1,474) on line 19.
Next, the Joneses look at refundable credits on line 20. The credits on the 2010 Form 1040 that will be available in 2011 are those on lines 64a, 65, 66, 67, and 70, and on Forms 8801, 8839, and 8885. They do not anticipate any refundable credits, so they leave that line blank and enter $6,119 on line 21.
taxmap/pubs/p505-016.htm#en_us_publink10007451

Required estimated tax payment.(p28)

rule
The Joneses' annualized income installment on lines 23 and 25 of Section A is $1,377 ($6,119 × 22.5%). On lines 26 and 28 they enter $2,960, one-fourth of their $11,840 required annual payment (line 14c of their 2011 Estimated Tax Worksheet). Because their annualized income installment ($1,377) is smaller, they enter that amount on lines 29 and 30.
Larry's total expected withholding for the year is $3,972. The Joneses can treat 3 months of that amount ($3,972 ÷ 12 = $331 × 3 months = $993) as paid on April 18, or they can use Larry's actual withholding for the period. The Joneses enter $993 on line 30.
On line 31, the Joneses' required estimated tax payment for the period under the annualized income installment method is $384 ($1,377 − $993). They will send in an estimated tax payment of $384 for the first period.
taxmap/pubs/p505-016.htm#en_us_publink10007452

Second, Third, and Fourth Periods(p28)

rule
After the end of each remaining payment period, the Joneses complete the column of the worksheet for that period (from the beginning of the year through the end of that payment period) in the same way they did for the first period. They had the following income for each period.
 Second
Period
Third
Period
Fourth
Period
 Jan. 1-
May 31
Jan. 1-
Aug. 31
Jan. 1-
Dec. 31
Larry's salary$16,625$26,600$39,900
State tax refund600600600
Anne's net profit from self-employment6,00016,00040,100
Net rental income3654,7456,205
Interest income   1,160  1,856  2,784
Total$24,750$49,801$89,589
    
They also take into account the following items for each period.
 Second
Period
Third
Period
Fourth
Period
 Jan. 1-
May 31
Jan. 1-
Aug. 31
Jan. 1-
Dec. 31
Adjustment to income for IRA contributions$  250$  400$ 1,000
Itemized deductions4,7509,25017,825
Withholding1,6552,6483,972
For the second period, as for the first, the annualized income installment method allows the Joneses to pay less than their required payment under the regular installment method. They make up the difference in the third and fourth periods when their income is higher.
Because the Joneses are using the annualized income installment method, they must file Form 2210 with their tax return for 2011.
taxmap/pubs/p505-016.htm#en_us_publink1000248718
taxmap/pubs/p505-016.htm#en_us_publink1000248719
taxmap/pubs/p505-016.htm#en_us_publink1000248741

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


Worksheet 2-6. 2011 Annualized Estimated Tax Worksheet
Note. For instructions, see Annualized Income Installment Method beginning on page 23.
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)
1/1/11-3/31/11
(b)
1/1/11-5/31/11
(c)
1/1/11-8/31/11
(d)
1/1/11-12/31/11
 1Adjusted 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 113,90924,07648,27185,756
 2Annualization amounts. (Estates and trusts, see instructions)242.41.51
 3Annualized income. Multiply line 1 by line 2355,63657,78272,40785,756
 4If 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 42,3754,7509,25017,825
 5Annualization amounts542.41.51
 6Multiply line 4 by line 5 (see instructions)69,50011,40013,87517,825
 7Standard deduction from Worksheet 2-3711,60011,60011,60011,600
 8Enter the larger of line 6 or line 7 811,60011,60013,87517,825
 9Subtract line 8 from line 3944,03646,18258,53267,931
10In each column, multiply $3,700 by your total expected number of exemptions (see instructions). (Estates and trusts, see instructions)107,4007,4007,4007,400
11Subtract line 10 from line 9. If zero or less, enter -0-1136,63638,78251,13260,531
12Figure your tax on the amount on line 11 (see instructions)124,6454,9676,8208,230
13For each period, enter any tax from Forms 8814, 4972, and 6251. Also include any recapture of education credits (see instructions)13    
14Add lines 12 and 13144,6454,9676,8208,230
15Enter nonrefundable credits for each period (see instructions)15    
16Subtract line 15 from line 14164,6454,9676,8208,230
17Self-employment tax from line 41 of Section B171,4741,7962,9484,925
18Enter other taxes for each period (see instructions)18    
19Total tax. Add lines 16, 17, and 18196,1196,7369,76813,155
20Enter refundable credits for each period (see instructions for type of credits allowed). Do not include any income tax withholding on this line 20    
21Subtract line 20 from line 19. If zero or less, enter -0-216,1196,7369,76813,155
22Applicable percentage2222.5%45%67.5%90%
23Multiply line 21 by line 22231,3773,0316,59311,840
 Complete lines 24 through 29 of one column before going to line 24 of the next column.     
24Enter the total of the amounts in all previous columns of line 2924 1,3773,0316,593
25Annualized income installment. Subtract line 24 from line 23. If zero or less, enter -0-251,3771,6543,5625,247
26Enter 25% (.25) of line 14c of the Form 1040-ES Estimated Tax Worksheet in each column262,9602,9602,9602,960
27Subtract line 29 of the previous column from line 28 of that column27 1,5832,8892,287
28Add lines 26 and 27282,9604,5435,8495,247
29Enter the smaller of line 25 or line 28 (see instructions) 291,3771,6543,5625,247
30 Total required payments for the period. Add lines 24 and 29301,3773,0316,52211,840
31 Estimated tax payments made (line 32 of all previous columns) plus tax withholding through the due date for the period (see instructions) 319932,0394,0247,846
32Estimated 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 323849922,4983,994


taxmap/pubs/p505-016.htm#en_us_publink1000248762

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


Worksheet 2-6. 2011 Annualized Estimated Tax Worksheet(Continued)

Section B (For Figuring Your Annualized Estimated Self-Employment Tax)—Complete each column after end of period shown.
(Form 1040 filers only)(a)
1/1/11-3/31/11
(b)
1/1/11-5/31/11
(c)
1/1/11-8/31/11
(d)
1/1/11-12/31/11
33Net earnings from self-employment for the period (see instructions)332,7715,54114,77637,032
34Prorated social security tax limit34$26,700$44,500$71,200$106,800
35Enter 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
350000
36Subtract line 35 from line 34. If zero or less, enter -0-3626,70044,50071,200106,800
37Annualization amounts370.4160.24960.1560.104
38Multiply line 37 by the smaller of line 33 or line 36 381,1531,3832,3053,851
39Annualization amounts390.1160.06960.04350.029
40Multiply line 33 by line 39403213866431,074
41Add lines 38 and 40. Enter the result here and on line 17 of
Section A
411,4741,7692,9484,925
42Multiply line 38 by 59.6% (.596)426878241,3742,295
43Multiply line 40 by 50% (.50)43161193322537
44Add lines 42 and 43448481,0171,6962,832
45Annualization amounts4542.41.51
46Deduction for self-employment tax. Divide line 44 by line 45. Enter the result here. Use this result to figure your AGI on line 1 462124241,1312,832
  
taxmap/pubs/p505-016.htm#en_us_publink1000248725

Worksheets for Chapter 2

Table 2-2. Where To Find Worksheets

Use the following worksheets and tables to figure your correct estimated tax.

IF you need...THEN use...ON page...
the 2011 Estimated Tax Worksheet (ES Worksheet) 20, 33
2011 Tax Rate Schedules 34
to estimate your taxable social security and railroad retirement benefits—line 1 of ES Worksheet (or Annualized ES Worksheet (Worksheet 2-6)) Worksheet 2-135
to estimate your self-employment (SE) tax and your deduction for SE tax—lines 1 and 11 of ES Worksheet (lines 1 and 17 of Annualized ES Worksheet (Worksheet 2-6)) Worksheet 2-236
to determine your standard deduction—line 2 of ES Worksheet (line 7 of Annualized ES Worksheet (Worksheet 2-6)) Worksheet 2-337
to estimate your income tax if line 1 of your ES Worksheet includes a net capital gain or qualified dividends—line 6 of ES Worksheet Worksheet 2-438
to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing exclusion or deduction on Form 2555 or Form 2555-EZ—line 6 of ES Worksheet Worksheet 2-539
the 2011 Annualized Estimated Tax Worksheet (Annualized ES Worksheet) Worksheet 2-640–41
to estimate your income tax if line 1 of your Annualized ES Worksheet includes a net capital gain or qualified dividends—line 12 of Annualized ES Worksheet Worksheet 2-742
to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing exclusion or deduction on Form 2555 or Form 2555-EZ—line 12 of Annualized ES Worksheet Worksheet 2-843
to refigure (amend) your estimated tax during the year Worksheet 2-943
taxmap/pubs/p505-016.htm#en_us_publink1000248726
taxmap/pubs/p505-016.htm#en_us_publink1000248727
taxmap/pubs/p505-016.htm#en_us_publink1000207460

2011 Tax Rate Schedules

Caution. Do not use these Tax Rate Schedules to figure your 2010 taxes. Use them only to figure your 2011 estimated taxes.

Schedule X—Use if your 2011 filing status is SingleSchedule Z—Use if your 2011 filing status is
Head of household
If line 5 is:The tax is: of the If line 5 is:The tax is: of the
Over—  But not
  over—
    amount over—Over—  But not
  over—
     amount over—
                                                                                                                              
$0$8,500  10% $0$0$12,150  10% $0
8,50034,500$850.00+15% 8,50012,15046,250$1,215.00+15% 12,150
34,50083,6004,750.00+25% 34,50046,250119,4006,330.00+25% 46,250
83,600174,40017,025.00+28% 83,600119,400193,35024,617.50+28% 119,400
174,400379,15042,449.00+33% 174,400193,350379,15045,323.50+33% 193,350
379,150 - - - - - -110,016.50+35% 379,150379,150- - - - - -106,637.50+35% 379,150
Schedule Y-1—Use if your 2011 filing status is
Married filing jointly or Qualifying widow(er)
Schedule Y-2—Use if your 2011 filing status is
Married filing separately
If line 5 is:The tax is: of the If line 5 is:The tax is: of the
Over—  But not
  over—
    amount over—Over—  But not
  over—
     amount over—
                                                                                                                              
$0$17,000  10% $0$0$8,500  10% $0
17,00069,000$1,700.00+15% 17,0008,50034,500$850.00+15% 8,500
69,000139,3509,500.00+25% 69,00034,50069,6754,750.00+25% 34,500
139,350212,30027,087.50+28% 139,35069,675106,15013,543.75+28% 69,675
212,300379,15047,513.50+33% 212,300106,150189,57523,756.75+33% 106,150
379,150- - - - - -102,574.00+35% 379,150189,575 - - - - - -51,287.00+35% 189,575
              
taxmap/pubs/p505-016.htm#en_us_publink1000248721

Worksheet 2-1. 2011 Estimated Tax Worksheet—Line 1
Estimated Taxable Social Security and Railroad Retirement Benefits

Note. If you are using this worksheet to estimate your taxable social security or railroad retirement benefits for Worksheet 2-6, 2011 Annualized Estimated Tax Worksheet, multiply the expected amount of benefits for each period by the annualization amount on line 2 for the same period before entering it on line 1 below.
  
1.Enter your expected social security and railroad retirement benefits1.
2.Enter one-half of line 12.
3.Enter your expected total income. Do not include any social security and railroad retirement benefits, nontaxable interest income, nontaxable IRA distributions, or nontaxable pension distributions 3.
4.Enter your expected nontaxable interest income4.
5.Enter (as a positive amount) the total of any expected exclusions or deductions for:
  • U.S. savings bond interest used for higher education expenses (Form 8815)
  • Employer-provided adoption benefits (Form 8839)
  • Foreign earned income or housing (Form 2555 or 2555-EZ)
  • Income by bona fide residents of American Samoa (Form 4563) or Puerto Rico
5.
6.Add lines 2, 3, 4, and 56.
7.Enter your expected adjustments to income. Do not include any student loan interest deduction, tuition and fees deduction, or domestic production activities deduction 7.
8.Subtract line 7 from line 6. If zero or less, stop here. Do not include any social security or railroad retirement benefits in the amount on line 1 of your 2011 Estimated Tax Worksheet (or Annualized Estimated Tax Worksheet (Worksheet 2-6)) 8.
9.Enter $25,000 ($32,000 if you expect to file married filing jointly; $0 if you expect to file married filing separately and expect to live with your spouse at any time during the year) 9.
10.Subtract line 9 from line 8. If zero or less, stop here. Do not include any social security or railroad retirement benefits in the amount on line 1 of your 2011 Estimated Tax Worksheet (or Annualized Estimated Tax Worksheet (Worksheet 2-6)) 10.
11.Enter $9,000 ($12,000 if you expect to file married filing jointly; $0 if you expect to file married filing separately and expect to live with your spouse at any time during the year) 11.
12.Subtract line 11 from line 10. If zero or less, enter -0-12.
13.Enter the smaller of line 10 or line 11 13.
14.Enter one-half of line 1314.
15.Enter the smaller of line 2 or line 14 15.
16.Multiply line 12 by 85% (.85). If line 12 is zero, enter -0-16.
17.Add lines 15 and 1617.
18.Multiply line 1 by 85% (.85)18.
19.Enter the smaller of line 17 or line 18 19.
20.Expected taxable social security and railroad retirement benefits for the period. Divide line 19 by the annualization amount on line 2 for the same period and enter here. Include this amount in the total on line 1 of your 2011 Estimated Tax Worksheet (or Annualized Estimated Tax Worksheet (Worksheet 2-6)) 20.
taxmap/pubs/p505-016.htm#en_us_publink1000248723

Worksheet 2-2. 2011 Estimated Tax Worksheet—Lines 1 and 11
Estimated Self-Employment Tax and Deduction Worksheet

1.a.Enter your expected income and profits subject to self-employment tax*1a. .
 b.If you will have farm income and also receive social security retirement or disability benefits, enter your expected Conservation Reserve Program payments that will be included on Schedule F (Form 1040) or listed on Schedule K-1 (Form 1065) 1b.  
2. Subtract line 1b from line 1a2.  
3. Multiply line 2 by 92.35% (.9235). If less than $400, do not complete this worksheet; you will not owe self-employment tax on your expected net earnings from self-employment 3.  
4. Multiply line 3 by 2.9% (.029)4.
5. Maximum income subject to social security tax5.$106,800  
6. Enter your expected wages (if subject to social security tax or the
4.2% portion of tier 1 railroad retirement tax)
6.  
7. Subtract line 6 from line 57.  
  Note. If line 7 is zero or less, enter -0- on line 9 and skip to line 10.    
8. Enter the smaller of line 3 or line 7 8.  
9. Multiply line 8 by 10.4% (.104)9.
10. Add line 4 and line 9. Enter the result here and on line 11 of your 2011 Estimated Tax Worksheet (or line 17 of the Annualized Estimated Tax Worksheet (Worksheet 2-6)) 10.
11. Multiply line 4 by 50% (.50)11.  
12. Multiply line 9 by 59.6% (.596)12.  
13. Add lines 11 and 12. This is your expected deduction for self-employment tax on Form 1040, line 27. Subtract this amount when figuring your expected AGI on line 1 of your 2011 Estimated Tax Worksheet (or Annualized Estimated Tax Worksheet (Worksheet 2-6)) 13.  
*Your net profit from self-employment is found on Schedule C, line 31; Schedule F, line 36; Schedule K-1 (Form 1065), box 14, code A; and Schedule K-1 (Form 1065-B), box 9, code J1.
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Worksheet 2-3.  2011 Estimated Tax Worksheet—Line 2
Standard Deduction Worksheet

Caution. Do not complete this worksheet if you expect your spouse to itemize on a separate return or you expect to be a dual-status alien. In either case, your standard deduction will be zero.
1.Enter the amount shown below for your filing status.    
 • Single or married filing separately—$5,800    
 • Married filing jointly or Qualifying widow(er)—$11,600    
 • Head of household—$8,5001.  
2.Can you (or your spouse if filing jointly) be claimed as a dependent on someone else's return?    
  box No.Skip line 3; enter the amount from line 1 on line 4.  
  box Yes. Go to line 3.  
3.Is your earned income* more than $650?     
  box Yes. Add $300 to your earned income. Enter the total.    
  box No.Enter $9503.  
4.Enter the smaller of line 1 or line 3 4.
5.Were you (or your spouse if filing jointly) born before January 2, 1947, or blind?
  box No.Go to line 6.
  box Yes. Check if:
   a. You were   box Born before January 2, 1947  box Blind
   b. Your spouse was   box Born before January 2, 1947  box Blind
   c. Total boxes checked in 5a and 5bbox
  Multiply $1,150 ($1,450 if single or head of household) by the number in the box on line 5c5.
6.Standard deduction. Add lines 4 and 5. Enter the result here and on line 2 of your 2011 Estimated Tax Worksheet (or line 7 of your 2011 Annualized Estimated Tax Worksheet (Worksheet 2-6)) 6.
* Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any amount received as a scholarship that you must include in your income. Reduce your earned income by your allowed deduction for self-employment tax (Worksheet 2-2, line 13).
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Worksheet 2-4. 2011 Estimated Tax Worksheet—Line 6
Qualified Dividends and Capital Gain Tax Worksheet

          
1.Enter the amount from the appropriate worksheet.
  • Line 5 of your 2010 Estimated Tax Worksheet
  • Line 3 of Worksheet 2-5 (use if you will exclude or deduct foreign earned income or housing)
1.  
2.Enter your qualified dividends expected for 201112.      
3.Enter your net capital gain expected for 201113.      
4.Add lines 2 and 3  4.    
5.Enter your 28% rate gain or loss expected for 201125.      
6.Enter your unrecaptured section 1250 gain expected for 20116.      
7.Add lines 5 and 67.      
8.Enter the smaller of line 3 or line 7 8.    
9.Subtract line 8 from line 49.  
10.Subtract line 9 from line 1. If zero or less, enter -0-10.    
11.Enter the smaller of line 1 or $69,000 ($34,500 if single or married filing separately, or $46,250 if head of household) 11.      
12.Enter the smaller of line 10 or line 11 12.      
13.Subtract line 4 from line 1. If zero or less, enter -0-13.      
14.Enter the larger of line 12 or line 13 14.  
 Note. If line 11 and line 12 are the same, skip line 15 and go to line 16.     
15.Subtract line 12 from line 1115.  
 Note. If lines 1 and 11 are the same, skip lines 16 through 28 and go to line 29.   
16.Enter the smaller of line 1 or line 9 16.    
17.Enter the amount from line 15. If line 15 is blank, enter -0-17.    
18.Subtract line 17 from line 16. If zero or less, enter -0-18.  
19.Multiply line 18 by 15% (.15)19.
 Note. If line 6 is zero or blank, skip lines 20 through 25 and go to line 26.   
20.Enter the smaller of line 3 or line 6 20.    
21.Add lines 4 and 1421.      
22.Enter the amount from line 1 above22.      
23.Subtract line 22 from line 21. If zero or less, enter -0-23.    
24.Subtract line 23 from line 20. If zero or less, enter -0-24.  
25.Multiply line 24 by 25% (.25)25.
 Note. If line 5 is zero or blank, skip lines 26 through 28 and go to line 29.   
26.Add lines 14, 15, 18, and 2426.  
27.Subtract line 26 from line 127.  
28.Multiply line 27 by 28% (.28)28.
29.Figure the tax on the amount on line 14 from the 2011 Tax Rate Schedules29.
30.Add lines 19, 25, 28, and 2930.
31.Figure the tax on the amount on line 1 from the 2011 Tax Rate Schedules31.
32.Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 30
or line 31 here and on line 6 of the 2011 Estimated Tax Worksheet (or line 4 of Worksheet 2-5)
32.
1 If you expect to deduct investment interest expense, do not include on this line any qualified dividends or net capital gain that you will elect to treat as investment income.
2 This includes a section 1202 exclusion from eligible gain on qualified small business stock and gain or loss from the sale or exchange of collectibles. See the instructions for Schedule D (Form 1040) for more information.


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Worksheet 2-5. 2011 Estimated Tax Worksheet—Line 6
Foreign Earned Income Tax Worksheet

Before you begin:  If line 5 of your 2011 Estimated Tax Worksheet is zero, do not complete this worksheet.
         
1.Enter the amount from line 5 of your 2011 Estimated Tax Worksheet1.
2.Enter the total foreign earned income and housing amount you (and your spouse if filing jointly) expect to exclude or deduct in 2011 on Form 2555 or Form 2555-EZ 2.
3.Add lines 1 and 23.
4.Tax on the amount on line 3. Use the 2011 Tax Rate Schedules or Worksheet 2-4,* as appropriate 4.
5.Tax on the amount on line 2. Use the 2011 Tax Rate Schedules 5.
6.Subtract line 5 from line 4. Enter the result here and on line 6 of your 2011 Estimated Tax Worksheet. If
zero or less, enter -0-
6.
         
*If using Worksheet 2-4 (Qualified Dividends and Capital Gain Tax Worksheet), enter the amount from line 3 above
on line 1 of Worksheet 2-4. Complete Worksheet 2-4 through line 9. Next, determine if you have a capital gain excess.
Figuring capital gain excess. To find out if you have a capital gain excess, subtract line 5 of your 2011 Estimated Tax
Worksheet from line 9 of Worksheet 2-4. If the result is more than zero, that amount is your capital gain excess.
  No capital gain excess. If you do not have a capital gain excess, complete the rest of Worksheet 2-4 according
to its instructions. Then complete lines 5 and 6 above.
  Capital gain excess. If you have a capital gain excess, complete a second Worksheet 2-4 as instructed above
but in its entirety and with the following additional modifications. Then complete lines 5 and 6 above.
 Make these modifications only for purposes of filling out Worksheet 2-5 above.
 a. Reduce (but not below zero) the amount you otherwise would enter on line 3 of Worksheet 2-4 by your capital
gain excess.
 b. Reduce (but not below zero) the amount you otherwise would enter on line 2 of Worksheet 2-4 by any of your
capital gain excess not used in (a) above.
 c. Reduce (but not below zero) the amount you otherwise would enter on line 5 of Worksheet 2-4 by your capital
gain excess.
 d. Reduce (but not below zero) the amount you otherwise would enter on line 6 of Worksheet 2-4 by your capital
gain excess.
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Worksheet 2-6 2011 Annualized Estimated Tax Worksheet

Note. For instructions, see Annualized Income Installment Method beginning on page 23

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)
1/1/11-3/31/11
(b)
1/1/11-5/31/11
(c)
1/1/11-8/31/11
(d)
1/1/11-12/31/11
 1Adjusted 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 1    
 2Annualization amounts. (Estates and trusts, see instructions)242.41.51
 3Annualized income. Multiply line 1 by line 23    
 4If 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    
 5Annualization amounts542.41.51
 6Multiply line 4 by line 5 (see instructions)6    
 7Standard deduction from Worksheet 2-37    
 8Enter the larger of line 6 or line 7 8    
 9Subtract line 8 from line 39    
10In each column, multiply $3,700 by your total expected number of exemptions (see instructions). (Estates and trusts, see instructions)10    
11Subtract line 10 from line 9. If zero or less, enter -0-11    
12Figure your tax on the amount on line 11 (see instructions)12    
13For each period, enter any tax from Forms 8814, 4972, and 6251. Also include any recapture of education credits (see instructions)13    
14Add lines 12 and 1314    
15Enter nonrefundable credits for each period (see instructions)15    
16Subtract line 15 from line 1416    
17Self-employment tax from line 41 of Section B17    
18Enter other taxes for each period (see instructions)18    
19Total tax. Add lines 16, 17, and 1819    
20Enter refundable credits for each period (see instructions for type of credits allowed). Do not include any income tax withholding on this line 20    
21Subtract line 20 from line 19. If zero or less, enter -0-21    
22Applicable percentage2222.5%45%67.5%90%
23Multiply line 21 by line 2223    
 Complete lines 24 through 29 of one column before going to line 24 of the next column.     
24Enter the total of the amounts in all previous columns of line 2924    
25Annualized income installment. Subtract line 24 from line 23. If zero or less, enter -0-25    
26Enter 25% (.25) of line 14c of the Form 1040-ES Estimated Tax Worksheet in each column26    
27Subtract line 29 of the previous column from line 28 of that column27    
28Add lines 26 and 2728    
29Enter the smaller of line 25 or line 28 (see instructions) 29    
30 Total required payments for the period. Add lines 24 and 2930    
31 Estimated tax payments made (line 32 of all previous columns) plus tax withholding through the due date for the period (see instructions) 31    
32Estimated 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    
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Worksheet 2-6. 2011 Annualized Estimated Tax Worksheet (Continued)

Section B (For Figuring Your Annualized Estimated Self-Employment Tax)—Complete each column after end of period shown.
(Form 1040 filers only)(a)
1/1/11-3/31/11
(b)
1/1/11-5/31/11
(c)
1/1/11-8/31/11
(d)
1/1/11-12/31/11
33Net earnings from self-employment for the period (see instructions)33    
34Prorated social security tax limit34$26,700$44,500$71,200$106,800
35Enter actual wages for the period subject to social security tax or the 4.2% portion of the tier 1 railroad retirement tax.
Exception: If you file Form 4137 or Form 8919, see instructions
35    
36Subtract line 35 from line 34. If zero or less, enter -0-36    
37Annualization amounts370.4160.24960.1560.104
38Multiply line 37 by the smaller of line 33 or line 36 38    
39Annualization amounts390.1160.06960.04350.029
40Multiply line 33 by line 3940    
41Add lines 38 and 40. Enter the result here and on line 17 of
Section A
41    
42Multiply line 38 by 59.6% (.596)42    
43Multiply line 40 by 50% (.50)43    
44Add lines 42 and 4344    
45Annualization amounts4542.41.51
46Deduction for self-employment tax. Divide line 44 by line 45. Enter the result here. Use this result to figure your AGI on line 1 46    
  
  
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Worksheet 2-7. 2011 Annualized Estimated Tax Worksheet—Line 12
Qualified Dividends and Capital Gain Tax Worksheet

Note.  To figure the annualized entries for lines 2, 3, 5, and 6 below, multiply the expected amount for the period by the annualization amount on line 2 of Worksheet 2-6 for the same period.
          
1.Enter the amount from the appropriate worksheet.
  • Line 11 of your 2011 Annualized Estimated Tax Worksheet (Worksheet 2-6)
  • Line 3 of Worksheet 2-8 (use if you will exclude or deduct foreign earned income or housing)
1.  
2.Enter your annualized qualified dividends expected for 201112.      
3.Enter your annualized net capital gain expected
for 20111
3.      
4.Add lines 2 and 3  4.    
5.Enter your annualized 28% rate gain or loss expected for 201125.      
6.Enter your annualized unrecaptured section 1250 gain expected for 20116.      
7.Add lines 5 and 67.      
8.Enter the smaller of line 3 or line 7 8.    
9.Subtract line 8 from line 49.  
10.Subtract line 9 from line 1. If zero or less, enter -0-10.    
11.Enter the smaller of line 1 or $69,000 ($34,500 if single or married filing separately, or $46,250 if head of household) 11.      
12.Enter the smaller of line 10 or line 11 12.      
13.Subtract line 4 from line 1. If zero or less,
enter -0-

13.

      
14.Enter the larger of line 12 or line 13 14.  
 Note. If line 11 and line 12 are the same, skip line 15 and go to line 16.     
15.Subtract line 12 from line 1115.  
 Note. If lines 1 and 11 are the same, skip lines 16 through 28 and go to line 29.  
16.Enter the smaller of line 1 or line 9 16.    
17.Enter the amount from line 15. If line 15 is blank, enter -0-17.    
18.Subtract line 17 from line 16. If zero or less, enter -0-18.  
19.Multiply line 18 by 15% (.15)19.
 Note. If line 6 is zero or blank, skip lines 20 through 25 and go to line 26.   
20.Enter the smaller of line 3 or line 6 20.    
21.Add lines 4 and 1421.      
22.Enter the amount from line 1 above22.      
23.Subtract line 22 from line 21. If zero or less, enter -0-23.    
24.Subtract line 23 from line 20. If zero or less, enter -0-24.  
25.Multiply line 24 by 25% (.25)25.
 Note. If line 5 is zero or blank, skip lines 26 through 28 and go to line 29.   
26.Add lines 14, 15, 18, and 2426.  
27.Subtract line 26 from line 127.  
28.Multiply line 27 by 28% (.28)28.
29.Figure the tax on the amount on line 14 from the 2011 Tax Rate Schedules29.
30.Add lines 19, 25, 28, and 2930.
31.Figure the tax on the amount on line 1 from the 2011 Tax Rate Schedules31.
32.Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 30 or
line 31 here and on line 12 of the appropriate column of the 2011 Annualized Estimated Tax Worksheet (or line 4 of Worksheet 2-8)
32.
1 If you expect to deduct investment interest expense, do not include on this line any qualified dividends or net capital gain that you will elect to treat as investment income.
2 This includes a section 1202 exclusion from eligible gain on qualified small business stock and gain or loss from the sale or exchange of collectibles. See the instructions for Schedule D (Form 1040) for more information.
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Worksheet 2-8. 2011 Annualized Estimated Tax Worksheet—Line 12
Foreign Earned Income Tax Worksheet

Before you begin:If line 11 of Worksheet 2-6 (2011 Annualized Estimated Tax Worksheet) is zero for the period, do not complete this worksheet.
1.Enter the amount from line 11 of your 2011 Annualized Estimated Tax Worksheet for the period1.
2.Enter the annualized amount* of foreign earned income and housing amount you (and your spouse if filing jointly) expect to exclude or deduct for the period on Form 2555 or Form 2555-EZ 2.
3.Add lines 1 and 23.
4.Tax on the amount on line 3. Use the 2011 Tax Rate Schedules or Worksheet 2-7,** as appropriate 4.
5.Tax on the amount on line 2. Use the 2011 Tax Rate Schedules 5.
6.Subtract line 5 from line 4. Enter the result here and on line 12 of your 2011 Annualized Estimated Tax Worksheet (Worksheet 2-6). If zero or less, enter -0- 6.
         
* To figure the annualized amount for line 2, multiply the expected exclusion for the period by the annualization amount
on line 2 of Worksheet 2-6 for the same period.
**If using Worksheet 2-7 (Qualified Dividends and Capital Gain Tax Worksheet), enter the amount from line 3 above on
line 1 of Worksheet 2-7. Complete Worksheet 2-7 through line 9. Next, determine if you have a capital gain excess.
Figuring capital gain excess. To find out if you have a capital gain excess for the appropriate period, subtract line 11
of Worksheet 2-6 from line 9 of Worksheet 2-7. If the result is more than zero, that amount is your capital gain excess.
  No capital gain excess. If you do not have a capital gain excess, complete the rest of Worksheet 2-7 according to its instructions. Then complete lines 5 and 6 above.
  Capital gain excess. If you have a capital gain excess, complete a second Worksheet 2-7 as instructed above but in its entirety and with the following additional modifications. Then complete lines 5 and 6 above.
 Make these modifications only for purposes of filling out Worksheet 2-8 above.
 a. Reduce (but not below zero) the amount you otherwise would enter on line 3 of Worksheet 2-7 by your capital gain excess.
 b. Reduce (but not below zero) the amount you otherwise would enter on line 2 of Worksheet 2-7 by any of your capital gain excess not used in (a) above.
 c. Reduce (but not below zero) the amount you otherwise would enter on line 5 of Worksheet 2-7 by your capital gain excess.
 d. Reduce (but not below zero) the amount you otherwise would enter on line 6 of Worksheet 2-7 by your capital gain excess.
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Worksheet 2-9. Amended Estimated Tax Worksheet

       
1.Amended total estimated tax due1.
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, 20122.  
3.Estimated tax payments made for all previous periods3.  
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.  
 Note. If the payment on line 4 is due January 17, 2012, stop here. Otherwise, go to line 5.    
5.Add lines 3 and 45.
6.Subtract line 5 from line 1 and enter the result (but not less than zero)6.
7.Each following required payment: If the payment on line 4 is due June 15, 2011, enter one-half 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.