Figure 2-D, Regular Installment Method—Illustrated Example 1 (Anne and Larry Jones)

• 1. Adjusted gross income you expect in 2012 (see instructions) field contains 85,757
• 2. If you plan to itemize deductions, enter the estimated total of your itemized deductions. If you do not plan to itemize deductions, enter your standard deduction from page 2 field contains 17,825
• 3. Subtract line 2 from line 1 field contains 67,932
• 4. Exemptions. Multiply $3,800 by the number of personal exemptions. field contains 7,600
• 5. Subtract line 4 from line 3 field contains 60,332
• 6. Tax. Figure your tax on the amount on line 5 by using the 2012 Tax Rate Schedules. Caution: If you will have qualified dividends or a net capital gain, or expect to claim the foreign earned income exclusion or housing exclusion, see chapter 2 of Pub. 505 to figure the tax field contains 8,180
• 7. Alternative minimum tax from Form 6251 field is blank
• 8. Add lines 6 and 7. Add to this amount any other taxes you expect to include in the total on Form 1040, line 44 field contains 8,180
• 9. Credits (see instructions). Do not include any income tax withholding on this line field is blank
• 10. Subtract line 9 from line 8. If zero or less, enter 0 field contains 8,180
• 11. Self-employment tax (see instructions) field contains 4,925
• 12. Other taxes (see instructions) field is blank
• 13a. Add lines 10 through 12 field contains 13,105
• 13b. Earned income credit, additional child tax credit, fuel tax credit, refundable American Opportunity credit, and refundable credits from Forms 8801 and 8885 field is blank
• 13c. Total 2012 estimated tax. Subtract line 13b from line 13a. If zero or less, enter 0 field contains 13,105
• 14a. Multiply line 13c by 90% (66 2/3% for farmers and fishermen) field contains 11,795
• 14b. Required annual payment based on prior year's tax (see instructions) field contains 13,105
• 14c. Required annual payment to avoid a penalty. Enter the smaller of line 14a or 14b. Caution: Generally, if you do not prepay (through income tax withholding and estimated tax payments) at least the amount on line 14c, you may owe a penalty for not paying enough estimated tax. To avoid a penalty, make sure your estimate on line 13c is as accurate as possible. Even if you pay the required annual payment, you may still owe tax when you file your return. If you prefer, you can pay the amount shown on line 13c. For details, chapter 2 of see Pub. 505 field contains 11,795
• 15. Income tax withheld and estimated to be withheld during 2012 (including income tax withholding on pensions, annuities, certain deferred income, etc.) field contains 3,924
• 16a. Subtract line 15 from line 14c. Is the result zero or less Checkbox Yes. Stop here. You are not required to make estimated tax payments. Checkbox No. Go to line 16b field contains 7,871
• 16b. Subtract line 15 from line 13c. Is the result less than $1,000? Checkbox Yes. Stop here. You are not required to make estimated tax payments. Checkbox No. Go to line 17 to figure your required payment. field contains 9,181
• 17. If the first payment you are required to make is due April 17, 2012, enter 1/4 of line 16a (minus any 2011 overpayment that you are applying to this installment) here, and on your estimated tax payment voucher or vouchers if you are paying by check or money order. field 1,968

Close Window