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IRS.gov Website
Publication 17
taxmap/pub17/p17-021.htm#en_us_publink100032382

Estimated Tax for 2014(p40)

rule
Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.
Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax, later), you may be charged a penalty even if you are due a refund when you file your tax return. For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter.
taxmap/pub17/p17-021.htm#en_us_publink100032383

Who Does Not Have To Pay Estimated Tax(p41)

rule
If you receive salaries or wages, you can avoid having to pay estimated tax by asking your employer to take more tax out of your earnings. To do this, give a new Form W-4 to your employer. See chapter 1 of Publication 505.
taxmap/pub17/p17-021.htm#en_us_publink100032384

Estimated tax not required.(p41)

rule
You do not have to pay estimated tax for 2014 if you meet all three of the following conditions.
You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. For the definition of "total tax" for 2013, see Publication 505, chapter 2.
taxmap/pub17/p17-021.htm#en_us_publink100032385

Who Must Pay Estimated Tax(p41)

rule
If you owe additional tax for 2013, you may have to pay estimated tax for 2014.
You can use the following general rule as a guide during the year to see if you will have enough withholding, or if you should increase your withholding or make estimated tax payments.
taxmap/pub17/p17-021.htm#en_us_publink100032386

General rule.(p41)

rule
In most cases, you must pay estimated tax for 2014 if both of the following apply.
  1. You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits.
  2. You expect your withholding plus your refundable credits to be less than the smaller of:
    1. 90% of the tax to be shown on your 2014 tax return, or
    2. 100% of the tax shown on your 2013 tax return (but see Special rules for farmers, fishermen, and higher income taxpayers, later). Your 2013 tax return must cover all 12 months.
EIC
If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet in Publication 505 for a more accurate calculation.
taxmap/pub17/p17-021.htm#en_us_publink100032387
Special rules for farmers, fishermen, and higher income taxpayers.(p41)
If at least two-thirds of your gross income for tax year 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under the General rule, earlier. If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing a separate return), substitute 110% for 100% in (2b) under General rule, earlier. See Figure 4-A and Publication 505, chapter 2 for more information.
taxmap/pub17/p17-021.htm#en_us_publink100032393

Figure 4-A. Do You Have To Pay Estimated Tax?

taxmap/pub17/p17-021.htm#en_us_publink1000108663
taxmap/pub17/p17-021.htm#en_us_publink1000210077

Aliens. (p41)

rule
Resident and nonresident aliens also may have to pay estimated tax. Resident aliens should follow the rules in this chapter unless noted otherwise. Nonresident aliens should get Form 1040-ES (NR), U.S. Estimated Tax for Nonresident Alien Individuals.
You are an alien if you are not a citizen or national of the United States. You are a resident alien if you either have a green card or meet the substantial presence test. For more information about the substantial presence test, see Publication 519, U.S. Tax Guide for Aliens.
taxmap/pub17/p17-021.htm#en_us_publink100032389

Married taxpayers.(p41)

rule
If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income.
You and your spouse can make joint estimated tax payments even if you are not living together.
However, you and your spouse cannot make joint estimated tax payments if:
If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014.
taxmap/pub17/p17-021.htm#en_us_publink100032390
2013 separate returns and 2014 joint return.(p41)
If you plan to file a joint return with your spouse for 2014, but you filed separate returns for 2013, your 2013 tax is the total of the tax shown on your separate returns. You filed a separate return if you filed as single, head of household, or married filing separately.
taxmap/pub17/p17-021.htm#en_us_publink100032391
2013 joint return and 2014 separate returns.(p41)
If you plan to file a separate return for 2014 but you filed a joint return for 2013, your 2013 tax is your share of the tax on the joint return. You file a separate return if you file as single, head of household, or married filing separately.
To figure your share of the tax on the joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2013 using the same filing status as for 2014. Then multiply the tax on the joint return by the following fraction.
taxmap/pub17/p17-021.htm#w10311g12

 The tax you would have paid had you filed a separate return 
The total tax you and your spouse would have paid had you filed separate returns
taxmap/pub17/p17-021.htm#en_us_publink100032392

Example.(p42)

Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. For 2014, they plan to file married filing separately. Joe figures his share of the tax on the 2013 joint return as follows.
 Tax on $40,100 based on a separate return $5,960 
 Tax on $8,400 based on a separate return 843 
 Total $6,803 
 Joe's percentage of total ($5,960 ÷ $6,803) 87.6%  
 Joe's share of tax on joint return
($6,386 × 87.6%)
$5,594 
taxmap/pub17/p17-021.htm#en_us_publink100032394

How To Figure
Estimated Tax(p42)

rule
To figure your estimated tax, you must figure your expected adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year.
When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. Use your 2013 federal tax return as a guide. You can use Form 1040-ES and Publication 505 to figure your estimated tax. Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information).
You must make adjustments both for changes in your own situation and for recent changes in the tax law. For a discussion of these changes, visit IRS.gov.
For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505.
taxmap/pub17/p17-021.htm#en_us_publink100032395

When To Pay Estimated Tax(p42)

rule
For estimated tax purposes, the tax year is divided into four payment periods. Each period has a specific payment due date. If you do not pay enough tax by the due date of each payment period, you may be charged a penalty even if you are due a refund when you file your income tax return. The payment periods and due dates for estimated tax payments are shown next.
 For the period: Due date:*   
 Jan. 1 – March 31 April 15 
 April 1 – May 31 June 16 
 June 1 – August 31 Sept. 15 
 Sept. 1– Dec. 31 Jan. 15, next year 
 *See Saturday, Sunday, holiday rule and January payment.
taxmap/pub17/p17-021.htm#en_us_publink100032396

Saturday, Sunday, holiday rule.(p42)

rule
If the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or legal holiday.
taxmap/pub17/p17-021.htm#en_us_publink100032397

January payment.(p42)

rule
If you file your 2014 Form 1040 or Form 1040A by January 31, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015.
taxmap/pub17/p17-021.htm#en_us_publink100032398

Fiscal year taxpayers.(p42)

rule
If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates.
taxmap/pub17/p17-021.htm#en_us_publink100032399

When To Start(p42)

rule
You do not have to make estimated tax payments until you have income on which you will owe income tax. If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. You can pay all your estimated tax at that time, or you can pay it in installments. If you choose to pay in installments, make your first payment by the due date for the first payment period. Make your remaining installment payments by the due dates for the later periods.
taxmap/pub17/p17-021.htm#en_us_publink100032400

No income subject to estimated tax during first period.(p42)

rule
If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. The following chart shows when to make installment payments.
If you first have income on which you must pay estimated tax: Make a
payment
by:*
Make later
installments
by:*
Before April 1 April 15 June 16
Sept. 15
Jan. 15 next year
April 1–May 31June 16 Sept. 15
Jan. 15 next year
June 1–Aug. 31Sept. 15 Jan. 15 next year
After Aug. 31 Jan. 15
next year
(None)
*See Saturday, Sunday, holiday rule and January payment.
taxmap/pub17/p17-021.htm#en_us_publink100032401

How much to pay to avoid a penalty.(p42)

rule
To determine how much you should pay by each payment due date, see How To Figure Each Payment, next.
taxmap/pub17/p17-021.htm#en_us_publink100032402

How To Figure
Each Payment(p42)

rule
You should pay enough estimated tax by the due date of each payment period to avoid a penalty for that period. You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. These methods are described in chapter 2 of Publication 505. If you do not pay enough during each payment period, you may be charged a penalty even if you are due a refund when you file your tax return.
If the earlier discussion of No income subject to estimated tax during first period or the later discussion of Change in estimated tax applies to you, you may benefit from reading Annualized Income Installment Method in chapter 2 of Publication 505 for information on how to avoid a penalty.
taxmap/pub17/p17-021.htm#en_us_publink100032403

Underpayment penalty.(p42)

rule
Under the regular installment method, if your estimated tax payment for any period is less than one-fourth of your estimated tax, you may be charged a penalty for underpayment of estimated tax for that period when you file your tax return. Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. See chapter 4 of Publication 505 for more information.
taxmap/pub17/p17-021.htm#en_us_publink100032404

Change in estimated tax.(p42)

rule
After 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.
taxmap/pub17/p17-021.htm#en_us_publink100032405

Estimated Tax Payments
Not Required(p42)

rule
You do not have to pay estimated tax if your withholding in each payment period is at least as much as: You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you owe with your return under $1,000.
taxmap/pub17/p17-021.htm#en_us_publink100032406

How To Pay Estimated Tax(p42)

rule
There are several ways to pay estimated tax.
taxmap/pub17/p17-021.htm#en_us_publink100032407

Credit an Overpayment(p43)

rule
If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2013, you can apply part or all of it to your estimated tax for 2014. On line 75 of Form 1040, or line 44 of Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. Take the amount you have credited into account when figuring your estimated tax payments.
You cannot have any of the amount you credited to your estimated tax refunded to you until you file your tax return for the following year. You also cannot use that overpayment in any other way.
taxmap/pub17/p17-021.htm#en_us_publink1000189649

Pay Online(p43)

rule
Paying online is convenient and secure and helps make sure we get your payments on time. You can pay using either of the following electronic payment methods.
To pay your taxes online or for more information, go to www.irs.gov/e-pay.
taxmap/pub17/p17-021.htm#en_us_publink1000189650

Pay by Phone(p43)

rule
Paying by phone is another safe and secure method of paying electronically. Use one of the following methods.
To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD can call 1-800-733-4829.
To pay using a credit or debit card, you can call one of the following service providers. There is a convenience fee charged by these providers that varies by provider, card type, and payment amount.

WorldPay
1-888-9-PAY-TAXTM(1-888-972-9829)
www.payUSAtax.com




Official Payments Corporation
1-888-UPAY-TAXTM (1-888-872-9829)
www.officialpayments.com




Link2Gov Corporation
1-888-PAY-1040TM (1-888-729-1040)
www.PAY1040.com


For the latest details on how to pay by phone, go to www.irs.gov/e-pay.
taxmap/pub17/p17-021.htm#en_us_publink100032408

Pay by Check or Money Order Using the Estimated Tax
Payment Voucher(p43)

rule
Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES.
During 2013, if you:
then you should receive a copy of the 2014 Form 1040-ES/V.
The enclosed payment vouchers will be preprinted with your name, address, and social security number. Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs.
Use the window envelopes that came with your Form 1040-ES package. If you use your own envelopes, make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live.
Note.These criteria can change without notice. If you do not receive a Form 1040-ES/V package and you are required to make an estimated tax payment, you should go to www.irs.gov and print a copy of Form 1040-ES which includes four blank payment vouchers. Complete one of these and make your payment timely to avoid penalties for paying late.
EIC
Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments.
If you did not pay estimated tax last year, you can order Form 1040-ES from the IRS (see inside back cover of this publication) or download it from IRS.gov. Follow the instructions to make sure you use the vouchers correctly.
taxmap/pub17/p17-021.htm#en_us_publink1000264736

Joint estimated tax payments.(p43)

rule
If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return.
taxmap/pub17/p17-021.htm#en_us_publink100032410

Change of address.(p43)

rule
You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form.