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How To Amend Tax

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How To Amend Tax

How to amend tax 31. How to amend tax   Tax on Unearned Income of Certain Children Table of Contents What's New Introduction Useful Items - You may want to see: Which Parent's Return To UseParents Who Do Not File a Joint Return Parent's Election To Report Child's Interest and DividendsEffect of Making the Election Figuring Child's Income Figuring Additional Tax Tax for Certain Children Who Have Unearned IncomeProviding Parental Information (Form 8615, lines A–C) Step 1. How to amend tax Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. How to amend tax Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. How to amend tax Figuring the Child's Tax (Form 8615, Part III) What's New Net Investment Income Tax. How to amend tax . How to amend tax  For tax years beginning after December 31, 2012, a child whose tax is figured on Form 8615 may be subject to the Net Investment Income Tax (NIIT). How to amend tax NIIT is a 3. How to amend tax 8% tax on the lesser of the net investment income or the excess of the child's modified adjusted gross income (MAGI) over the threshold amount. How to amend tax Use Form 8960, Net Investment Income Tax, to figure this tax. How to amend tax For more information on NIIT, go to www. How to amend tax irs. How to amend tax gov and enter “Net Investment Income Tax” in the search box. How to amend tax Introduction This chapter discusses the following two rules that may affect the tax on unearned income of certain children. How to amend tax If the child's interest and dividend income (including capital gain distributions) total less than $10,000, the child's parent may be able to choose to include that income on the parent's return rather than file a return for the child. How to amend tax (See Parent's Election To Report Child's Interest and Dividends , later. How to amend tax ) If the child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. How to amend tax (See Tax for Certain Children Who Have Unearned Income , later. How to amend tax ) For these rules, the term “child” includes a legally adopted child and a stepchild. How to amend tax These rules apply whether or not the child is a dependent. How to amend tax Useful Items - You may want to see: Publication 929 Tax Rules for Children and Dependents Form (and Instructions) 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends Which Parent's Return To Use If a child's parents are married to each other and file a joint return, use the joint return to figure the tax on the child's unearned income. How to amend tax The tax rate and other return information from that return are used to figure the child's tax as explained later under Tax for Certain Children Who Have Unearned Income . How to amend tax Parents Who Do Not File a Joint Return For parents who do not file a joint return, the following discussions explain which parent's tax return must be used to figure the tax. How to amend tax Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . How to amend tax Parents are married. How to amend tax   If the child's parents file separate returns, use the return of the parent with the greater taxable income. How to amend tax Parents not living together. How to amend tax   If the child's parents are married to each other but not living together, and the parent with whom the child lives (the custodial parent) is considered unmarried, use the return of the custodial parent. How to amend tax If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. How to amend tax   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in chapter 2. How to amend tax Parents are divorced. How to amend tax   If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent. How to amend tax Custodial parent remarried. How to amend tax   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. How to amend tax Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. How to amend tax Do not use the return of the noncustodial parent. How to amend tax   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. How to amend tax If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. How to amend tax Parents never married. How to amend tax   If a child's parents have never been married to each other, but lived together all year, use the return of the parent with the greater taxable income. How to amend tax If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. How to amend tax Widowed parent remarried. How to amend tax   If a widow or widower remarries, the new spouse is treated as the child's other parent. How to amend tax The rules explained earlier under Custodial parent remarried apply. How to amend tax Parent's Election To Report Child's Interest and Dividends You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. How to amend tax If you do, your child will not have to file a return. How to amend tax You can make this election only if all the following conditions are met. How to amend tax Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. How to amend tax Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). How to amend tax The child's gross income was less than $10,000. How to amend tax The child is required to file a return unless you make this election. How to amend tax The child does not file a joint return for the year. How to amend tax No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and social security number. How to amend tax No federal income tax was taken out of your child's income under the backup withholding rules. How to amend tax You are the parent whose return must be used when applying the special tax rules for children. How to amend tax (See Which Parent's Return To Use , earlier. How to amend tax ) These conditions are also shown in Figure 31-A. How to amend tax Certain January 1 birthdays. How to amend tax   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. How to amend tax You cannot make this election for such a child unless the child was a full-time student. How to amend tax   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. How to amend tax You cannot make this election for such a child. How to amend tax Full-time student. How to amend tax   A full-time student is a child who during some part of each of any 5 calendar months of the year was enrolled as a full-time student at a school, or took a full-time on-farm training course given by a school or a state, county, or local government agency. How to amend tax A school includes a technical, trade, or mechanical school. How to amend tax It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. How to amend tax How to make the election. How to amend tax   Make the election by attaching Form 8814 to your Form 1040. How to amend tax (If you make this election, you cannot file Form 1040A or Form 1040EZ. How to amend tax ) Attach a separate Form 8814 for each child for whom you make the election. How to amend tax You can make the election for one or more children and not for others. How to amend tax Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. How to amend tax Rate may be higher. How to amend tax   If your child received qualified dividends or capital gain distributions, you may pay up to $100 more tax if you make this election instead of filing a separate tax return for the child. How to amend tax This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. How to amend tax However, if you file a separate return for the child, the tax rate may be as low as 0% (zero percent) because of the preferential tax rates for qualified dividends and capital gain distributions. How to amend tax Deductions you cannot take. How to amend tax   By making the Form 8814 election, you cannot take any of the following deductions that the child would be entitled to on his or her return. How to amend tax The additional standard deduction if the child is blind. How to amend tax The deduction for a penalty on an early withdrawal of your child's savings. How to amend tax Itemized deductions (such as your child's investment expenses or charitable contributions). How to amend tax Reduced deductions or credits. How to amend tax   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return including the following. How to amend tax Deduction for contributions to a traditional individual retirement arrangement (IRA). How to amend tax Deduction for student loan interest. How to amend tax Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. How to amend tax Credit for child and dependent care expenses. How to amend tax Child tax credit. How to amend tax Education tax credits. How to amend tax Earned income credit. How to amend tax Penalty for underpayment of estimated tax. How to amend tax   If you make this election for 2013 and did not have enough tax withheld or pay enough estimated tax to cover the tax you owe, you may be subject to a penalty. How to amend tax If you plan to make this election for 2014, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. How to amend tax See chapter 4 for more information. How to amend tax Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. How to amend tax Only the amount over $2,000 is added to your income. How to amend tax The amount over $2,000 is shown on Form 8814, line 6. How to amend tax Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. How to amend tax Include the amount from Form 8814, line 12, on Form 1040, line 21. How to amend tax Enter “Form 8814” on the dotted line next to line 21. How to amend tax If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040, line 21. How to amend tax Capital gain distributions and qualified dividends. How to amend tax   If your child's dividend income included any capital gain distributions, see Capital gain distributions under Figuring Child's Income in Publication 929, Part 2. How to amend tax If your child's dividend income included any qualified dividends, see Qualified dividends under Figuring Child's Income in Publication 929, Part 2. How to amend tax Figuring Additional Tax Use Form 8814, Part II, to figure the tax on the $2,000 of your child's interest and dividends that you do not include in your income. How to amend tax This tax is added to the tax figured on your income. How to amend tax This additional tax is the smaller of: 10% × (your child's gross income − $1,000), or $100. How to amend tax Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44. How to amend tax Check box a on Form 1040, line 44. How to amend tax Figure 31-A. How to amend tax Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. How to amend tax Figure 31–A. How to amend tax Can You Include Your Child's Income On Your Tax Return? Tax for Certain Children Who Have Unearned Income If a child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. How to amend tax If the parent does not or cannot choose to include the child's income on the parent's return, use Form 8615 to figure the child's tax. How to amend tax Attach the completed form to the child's Form 1040 or Form 1040A. How to amend tax When Form 8615 must be filed. How to amend tax   Form 8615 must be filed for a child if all of the following statements are true. How to amend tax The child's investment income was more than $2,000. How to amend tax The child is required to file a return for 2013. How to amend tax The child either: Was under age 18 at the end of the year, Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or Was over age 18 and under age 24 at the end of the year, was a full-time student, and did not have earned income that was more than half of his or her support. How to amend tax At least one of the child's parents was alive at the end of 2013. How to amend tax The child does not file a joint return for 2013. How to amend tax These conditions are also shown in  Figure 31-B. How to amend tax Earned income. How to amend tax   Earned income includes salaries, wages, tips, and other payments received for personal services performed. How to amend tax It does not include unearned income as defined later in this chapter. How to amend tax Support. How to amend tax   Your child's support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. How to amend tax To figure your child's support, count support provided by you, your child, and others. How to amend tax However, a scholarship received by your child is not considered support if your child is a full-time student. How to amend tax See chapter 3 for details about support. How to amend tax Certain January 1 birthdays. How to amend tax   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. How to amend tax Figure 31-B. How to amend tax Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. How to amend tax Figure 31-B. How to amend tax Do You Have To Use Form 8615 To Figure Your Child's Tax?    IF a child was born on. How to amend tax . How to amend tax . How to amend tax THEN, at the end of 2013, the child is considered to be. How to amend tax . How to amend tax . How to amend tax January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. How to amend tax The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. How to amend tax  **This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. How to amend tax  ***Do not use Form 8615 for this child. How to amend tax Providing Parental Information (Form 8615, lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. How to amend tax (If the parents filed a joint return, enter the name and social security number listed first on the joint return. How to amend tax ) On line C, check the box for the parent's filing status. How to amend tax See Which Parent's Return To Use at the beginning of this chapter for information on which parent's return information must be used on Form 8615. How to amend tax Parent with different tax year. How to amend tax   If the parent and the child do not have the same tax year, complete Form 8615 using the information on the parent's return for the tax year that ends in the child's tax year. How to amend tax Parent's return information not known timely. How to amend tax   If the information needed from the parent's return is not known by the time the child's return is due (usually April 15), you can file the return using estimates. How to amend tax   You can use any reasonable estimate. How to amend tax This includes using information from last year's return. How to amend tax If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. How to amend tax    When you get the correct information, file an amended return on Form 1040X, Amended U. How to amend tax S. How to amend tax Individual Income Tax Return. How to amend tax   Instead of using estimates, you can get an automatic 6-month extension of time to file if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. How to amend tax S. How to amend tax Individual Income Tax Return. How to amend tax Extensions are discussed in chapter 1. How to amend tax Step 1. How to amend tax Figuring the Child's Net Unearned Income (Form 8615, Part I) The first step in figuring a child's tax using Form 8615 is to figure the child's net unearned income. How to amend tax To do that, use Form 8615, Part I. How to amend tax Line 1 (unearned income). How to amend tax   If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. How to amend tax Adjusted gross income is shown on Form 1040, line 38, or Form 1040A, line 22. How to amend tax Form 1040EZ cannot be used if Form 8615 must be filed. How to amend tax   If the child had earned income, figure the amount to enter on Form 8615, line 1, by using the worksheet in the instructions for the form. How to amend tax   However, if the child has: excluded any foreign earned income, deducted either a loss from self-employment, or deducted a net operating loss from another year, then use the Alternate Worksheet for Form 8615, Line 1, in Publication 929 to figure the amount to enter on Form 8615, line 1. How to amend tax Unearned income defined. How to amend tax   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually done. How to amend tax It includes taxable interest, dividends (including capital gain distributions), capital gains, unemployment compensation, the taxable part of social security and pension payments, and certain distributions from trusts. How to amend tax Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages). How to amend tax Nontaxable income. How to amend tax   For this purpose, unearned income includes only amounts the child must include in total income. How to amend tax Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. How to amend tax Income from property received as a gift. How to amend tax   A child's unearned income includes all income produced by property belonging to the child. How to amend tax This is true even if the property was transferred to the child, regardless of when the property was transferred or purchased or who transferred it. How to amend tax   A child's unearned income includes income produced by property given as a gift to the child. How to amend tax This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. How to amend tax Example. How to amend tax Amanda Black, age 13, received the following income. How to amend tax Dividends — $800 Wages — $2,100 Taxable interest — $1,200 Tax-exempt interest — $100 Net capital gains — $100 The dividends were qualified dividends on stock given to her by her grandparents. How to amend tax Amanda's unearned income is $2,100. How to amend tax This is the total of the dividends ($800), taxable interest ($1,200), and net capital gains ($100). How to amend tax Her wages are earned (not unearned) income because they are received for work actually done. How to amend tax Her tax-exempt interest is not included because it is nontaxable. How to amend tax Trust income. How to amend tax   If a child is the beneficiary of a trust, distributions of taxable interest, dividends, capital gains, and other unearned income from the trust are unearned income to the child. How to amend tax   However, for purposes of completing Form 8615, a taxable distribution from a qualified disability trust is considered earned income, not unearned income. How to amend tax Line 2 (deductions). How to amend tax   If the child does not itemize deductions on Schedule A (Form 1040), enter $2,000 on line 2. How to amend tax   If the child does itemize deductions, enter on line 2 the larger of: $1,000 plus the portion of the child's itemized deductions on Schedule A (Form 1040), line 29, that are directly connected with the production of unearned income entered on line 1, or $2,000. How to amend tax Directly connected. How to amend tax   Itemized deductions are directly connected with the production of unearned income if they are for expenses paid to produce or collect taxable income or to manage, conserve, or maintain property held for producing income. How to amend tax These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. How to amend tax   These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). How to amend tax Only the amount greater than 2% of the child's adjusted gross income can be deducted. How to amend tax See chapter 28 for more information. How to amend tax Example 1. How to amend tax Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 (net of the 2% limit) that are directly connected with his unearned income. How to amend tax His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. How to amend tax Roger enters $2,000 on line 2 because that is more than the total of $1,000 plus his directly connected itemized deductions of $300. How to amend tax Example 2. How to amend tax Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. How to amend tax She has no other income. How to amend tax She has itemized deductions of $1,050 (net of the 2% limit) that are directly connected with the production of her unearned income. How to amend tax Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). How to amend tax The amount on line 2 is $2,050. How to amend tax This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. How to amend tax Line 3. How to amend tax   Subtract line 2 from line 1 and enter the result on this line. How to amend tax If zero or less, do not complete the rest of the form. How to amend tax However, you must still attach Form 8615 to the child's tax return. How to amend tax Figure the tax on the child's taxable income in the normal manner. How to amend tax Line 4 (child's taxable income). How to amend tax   Enter on line 4 the child's taxable income from Form 1040, line 43, or Form 1040A, line 27. How to amend tax   However, if the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, see the Form 8615 instructions or Pub. How to amend tax 929. How to amend tax Line 5 (net unearned income). How to amend tax   A child's net unearned income cannot be more than his or her taxable income. How to amend tax Enter on Form 8615, line 5, the smaller of line 3 or line 4. How to amend tax This is the child's net unearned income. How to amend tax   If zero or less, do not complete the rest of the form. How to amend tax However, you must still attach Form 8615 to the child's tax return. How to amend tax Figure the tax on the child's taxable income in the normal manner. How to amend tax Step 2. How to amend tax Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's tax rate. How to amend tax The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it. How to amend tax When figuring the tentative tax at the parent's tax rate on Form 8615, do not refigure any of the exclusions, deductions, or credits on the parent's return because of the child's net unearned income. How to amend tax For example, do not refigure the medical expense deduction. How to amend tax Figure the tentative tax on Form 8615, lines 6 through 13. How to amend tax Note. How to amend tax If the child or parent has any capital gains or losses, get Publication 929 for help in completing Form 8615, Part II. How to amend tax Line 6 (parent's taxable income). How to amend tax   Enter on line 6 the parent's taxable income from Form 1040, line 43, Form 1040A, line 27, or Form 1040EZ, line 6. How to amend tax   If the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) was used to figure the parent's tax, enter the amount from line 3 of that worksheet instead of the parent's taxable income. How to amend tax Line 7 (net unearned income of other children). How to amend tax   If the tax return information of the parent is also used on any other child's Form 8615, enter on line 7 the total of the amounts from line 5 of all the other children's Forms 8615. How to amend tax Do not include the amount from line 5 of the Form 8615 being completed. How to amend tax Example. How to amend tax Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. How to amend tax The children's net unearned income amounts on line 5 of their Forms 8615 are: Sharon — $800 Jerry — $600 Mike — $1,000 Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 8615. How to amend tax Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). How to amend tax Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). How to amend tax Other children's information not available. How to amend tax   If the net unearned income of the other children is not available when the return is due, either file the return using estimates or get an extension of time to file. How to amend tax See Parent's return information not known timely , earlier. How to amend tax Line 11 (tentative tax). How to amend tax   Subtract line 10 from line 9 and enter the result on this line. How to amend tax This is the tentative tax. How to amend tax   If line 7 is blank, skip lines 12a and 12b and enter the amount from line 11 on line 13. How to amend tax Also skip the discussion for lines 12a and 12b that follows. How to amend tax Lines 12a and 12b (dividing the tentative tax). How to amend tax   If an amount is entered on line 7, divide the tentative tax shown on line 11 among the children according to each child's share of the total net unearned income. How to amend tax This is done on lines 12a, 12b, and 13. How to amend tax Add the amount on line 7 to the amount on line 5 and enter the total on line 12a. How to amend tax Divide the amount on line 5 by the amount on line 12a and enter the result, as a decimal, on line 12b. How to amend tax Example. How to amend tax In the earlier example under Line 7 (net unearned income of other children), Sharon's Form 8615 shows $1,600 on line 7. How to amend tax The amount entered on line 12a is $2,400, the total of the amounts on lines 5 and 7 ($800 + $1,600). How to amend tax The decimal on line 12b is  . How to amend tax 333, figured as follows and rounded to three places. How to amend tax   $800 = . How to amend tax 333     $2,400   Step 3. How to amend tax Figuring the Child's Tax (Form 8615, Part III) The final step in figuring a child's tax using Form 8615 is to determine the larger of: The total of: The child's share of the tentative tax based on the parent's tax rate, plus The tax on the child's taxable income in excess of net unearned income, figured at the child's tax rate, or The tax on the child's taxable income, figured at the child's tax rate. How to amend tax This is the child's tax. How to amend tax It is figured on Form 8615, lines 14 through 18. How to amend tax Alternative minimum tax. How to amend tax   A child may be subject to alternative minimum tax (AMT) if he or she has certain items given preferential treatment under the tax law. How to amend tax See Alternative Minimum Tax (AMT) in chapter 30. How to amend tax    For more information on who is liable for AMT and how to figure it, see Form 6251, Alternative Minimum Tax—Individuals. How to amend tax For information on special limits that apply to a child who files Form 6251, see Certain Children Under Age 24 in the Instructions for Form 6251. How to amend tax Prev  Up  Next   Home   More Online Publications
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Research Your Options

  • Learn what rights you have when buying a used car. Contact your state or local consumer protection office.
  • Find out in advance what paperwork you will need to register a vehicle. Contact your state's motor vehicle department.
  • Check prices of similar models using the NADA Official Used Car Guide published by the National Automobile Dealer Association or the Kelley Blue Book. These guides are usually available at local libraries.
  • Research the vehicle's history. Ask the seller for details concerning past owners, use, and maintenance. Next, find out whether the car has been damaged in a flood, involved in a crash, been labeled a lemon or had its odometer rolled back. The vehicle identification number (VIN) will help you do this.
  • Your state motor vehicle department can research the car's title history. Inspect the title for "salvage," "rebuilt", or similar notations.
  • The National Highway Traffic Safety Administration lists VINs of its crash-test vehicles and will let you search an online database of manufacturer service bulletins.
  • Vehiclehistory.gov and the National Insurance Crime Bureau’s free database are centralized places for consumers to buy information on the history of vehicles gathered from state motor vehicle departments and other sources. These reports are helpful but do not guarantee that a vehicle is accident-free.
  • The Center for Auto Safety provides information on safety defects, recalls, and lemons, as well as service bulletins.
  • Make sure any mileage disclosures match the odometer reading on the car.
  • Check the warranty. If a manufacturer's warranty is still in effect, contact the manufacturer to make sure you can use the coverage.
  • Ask about the dealer's return policy. Get it in writing and read it carefully.
  • Have the car inspected by your mechanic. Talk to the seller and agree in advance that you'll pay for the examination if the car passes inspection, but the seller will pay if significant problems are discovered. A qualified mechanic should check the vehicle's frame, tires, air bags and undercarriage, as well as the engine.
  • Examine dealer documents carefully. Make sure you are buying- not leasing- the vehicle. Leases use terms such as "balloon payment" and "base mileage" disclosures.

The How To Amend Tax

How to amend tax 4. How to amend tax   Tax Withholding and Estimated Tax Table of Contents What's New for 2014 Reminders Introduction Useful Items - You may want to see: Tax Withholding for 2014Salaries and Wages Tips Taxable Fringe Benefits Sick Pay Pensions and Annuities Gambling Winnings Unemployment Compensation Federal Payments Backup Withholding Estimated Tax for 2014Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated Tax How To Figure Estimated Tax When To Pay Estimated Tax How To Figure Each Payment How To Pay Estimated Tax Credit for Withholding and Estimated Tax for 2013Withholding Estimated Tax Underpayment Penalty for 2013 What's New for 2014 Tax law changes for 2014. How to amend tax  When you figure how much income tax you want withheld from your pay and when you figure your estimated tax, consider tax law changes effective in 2014. How to amend tax For more information, see Publication 505. How to amend tax Reminders Estimated tax safe harbor for higher income taxpayers. How to amend tax  If your 2013 adjusted gross income was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2014 or 110% of the tax shown on your 2013 return to avoid an estimated tax penalty. How to amend tax Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. How to amend tax In general, the federal income tax is a pay-as-you-go tax. How to amend tax There are two ways to pay as you go. How to amend tax Withholding. How to amend tax If you are an employee, your employer probably withholds income tax from your pay. How to amend tax Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. How to amend tax The amount withheld is paid to the IRS in your name. How to amend tax Estimated tax. How to amend tax If you do not pay your tax through withholding, or do not pay enough tax that way, you may have to pay estimated tax. How to amend tax People who are in business for themselves generally will have to pay their tax this way. How to amend tax Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. How to amend tax Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. How to amend tax This chapter explains these methods. How to amend tax In addition, it also explains the following. How to amend tax Credit for withholding and estimated tax. How to amend tax When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. How to amend tax , and for the estimated tax you paid for 2013. How to amend tax Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). How to amend tax Underpayment penalty. How to amend tax If you did not pay enough tax during the year, either through withholding or by making estimated tax payments, you may have to pay a penalty. How to amend tax In most cases, the IRS can figure this penalty for you. How to amend tax See Underpayment Penalty for 2013 at the end of this chapter. How to amend tax Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) W-4 Employee's Withholding Allowance Certificate W-4P Withholding Certificate for Pension or Annuity Payments W-4S Request for Federal Income Tax Withholding From Sick Pay W-4V Voluntary Withholding Request 1040-ES Estimated Tax for Individuals 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen Tax Withholding for 2014 This section discusses income tax withholding on: Salaries and wages, Tips, Taxable fringe benefits, Sick pay, Pensions and annuities, Gambling winnings, Unemployment compensation, and Certain federal payments. How to amend tax This section explains the rules for withholding tax from each of these types of income. How to amend tax This section also covers backup withholding on interest, dividends, and other payments. How to amend tax Salaries and Wages Income tax is withheld from the pay of most employees. How to amend tax Your pay includes your regular pay, bonuses, commissions, and vacation allowances. How to amend tax It also includes reimbursements and other expense allowances paid under a nonaccountable plan. How to amend tax See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. How to amend tax If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. How to amend tax This is explained under Exemption From Withholding , later. How to amend tax You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. How to amend tax If your employer does not agree to withhold tax, or if not enough is withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . How to amend tax Military retirees. How to amend tax   Military retirement pay is treated in the same manner as regular pay for income tax withholding purposes, even though it is treated as a pension or annuity for other tax purposes. How to amend tax Household workers. How to amend tax   If you are a household worker, you can ask your employer to withhold income tax from your pay. How to amend tax A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. How to amend tax   Tax is withheld only if you want it withheld and your employer agrees to withhold it. How to amend tax If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . How to amend tax Farmworkers. How to amend tax   Generally, income tax is withheld from your cash wages for work on a farm unless your employer does both of these: Pays you cash wages of less than $150 during the year, and Has expenditures for agricultural labor totaling less than $2,500 during the year. How to amend tax Differential wage payments. How to amend tax    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. How to amend tax Payments to an employee who is on active duty for a period of more than 30 days will be subject to income tax withholding, but not subject to social security or Medicare taxes. How to amend tax The wages and withholding will be reported on Form W-2, Wage and Tax Statement. How to amend tax   The credit employers can claim for differential wages paid to activated military reservists is scheduled to expire for wages paid after December 31, 2013. How to amend tax Determining Amount of Tax Withheld Using Form W-4 The amount of income tax your employer withholds from your regular pay depends on two things. How to amend tax The amount you earn in each payroll period. How to amend tax The information you give your employer on Form W-4. How to amend tax Form W-4 includes four types of information that your employer will use to figure your withholding. How to amend tax Whether to withhold at the single rate or at the lower married rate. How to amend tax How many withholding allowances you claim (each allowance reduces the amount withheld). How to amend tax Whether you want an additional amount withheld. How to amend tax Whether you are claiming an exemption from withholding in 2014. How to amend tax See Exemption From Withholding , later. How to amend tax Note. How to amend tax You must specify a filing status and a number of withholding allowances on Form W-4. How to amend tax You cannot specify only a dollar amount of withholding. How to amend tax New Job When you start a new job, you must fill out Form W-4 and give it to your employer. How to amend tax Your employer should have copies of the form. How to amend tax If you need to change the information later, you must fill out a new form. How to amend tax If you work only part of the year (for example, you start working after the beginning of the year), too much tax may be withheld. How to amend tax You may be able to avoid overwithholding if your employer agrees to use the part-year method. How to amend tax See Part-Year Method in chapter 1 of Publication 505 for more information. How to amend tax Employee also receiving pension income. How to amend tax   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. How to amend tax However, you can choose to split your withholding allowances between your pension and job in any manner. How to amend tax Changing Your Withholding During the year changes may occur to your marital status, exemptions, adjustments, deductions, or credits you expect to claim on your tax return. How to amend tax When this happens, you may need to give your employer a new Form W-4 to change your withholding status or your number of allowances. How to amend tax If the changes reduce the number of allowances you are claiming or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days. How to amend tax Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other reason. How to amend tax Changing your withholding for 2015. How to amend tax   If events in 2014 will decrease the number of your withholding allowances for 2015, you must give your employer a new Form W-4 by December 1, 2014. How to amend tax If the event occurs in December 2014, submit a new Form W-4 within 10 days. How to amend tax Checking Your Withholding After you have given your employer a Form W-4, you can check to see whether the amount of tax withheld from your pay is too little or too much. How to amend tax If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. How to amend tax You should try to have your withholding match your actual tax liability. How to amend tax If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. How to amend tax If too much tax is withheld, you will lose the use of that money until you get your refund. How to amend tax Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability. How to amend tax Note. How to amend tax You cannot give your employer a payment to cover withholding on salaries and wages for past pay periods or a payment for estimated tax. How to amend tax Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. How to amend tax The worksheets are for your own records. How to amend tax Do not give them to your employer. How to amend tax Multiple jobs. How to amend tax   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. How to amend tax Then split your allowances between the Forms W-4 for each job. How to amend tax You cannot claim the same allowances with more than one employer at the same time. How to amend tax You can claim all your allowances with one employer and none with the other(s), or divide them any other way. How to amend tax Married individuals. How to amend tax   If both you and your spouse are employed and expect to file a joint return, figure your withholding allowances using your combined income, adjustments, deductions, exemptions, and credits. How to amend tax Use only one set of worksheets. How to amend tax You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. How to amend tax   If you and your spouse expect to file separate returns, figure your allowances using separate worksheets based on your own individual income, adjustments, deductions, exemptions, and credits. How to amend tax Alternative method of figuring withholding allowances. How to amend tax   You do not have to use the Form W-4 worksheets if you use a more accurate method of figuring the number of withholding allowances. How to amend tax For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. How to amend tax Personal Allowances Worksheet. How to amend tax   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. How to amend tax Deduction and Adjustments Worksheet. How to amend tax   Use the Deduction and Adjustments Worksheet on Form W-4 if you plan to itemize your deductions, claim certain credits, or claim adjustments to the income on your 2014 tax return and you want to reduce your withholding. How to amend tax Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. How to amend tax Two-Earners/Multiple Jobs Worksheet. How to amend tax   You may need to complete the Two-Earners/Multiple Jobs Worksheet on Form W-4 if you have more than one job, a working spouse, or are also receiving a pension. How to amend tax Also, on this worksheet you can add any additional withholding necessary to cover any amount you expect to owe other than income tax, such as self-employment tax. How to amend tax Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will be close to the tax you figure on your return if you follow these two rules. How to amend tax You accurately complete all the Form W-4 worksheets that apply to you. How to amend tax You give your employer a new Form W-4 when changes occur. How to amend tax But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. How to amend tax This is most likely to happen in the following situations. How to amend tax You are married and both you and your spouse work. How to amend tax You have more than one job at a time. How to amend tax You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. How to amend tax You will owe additional amounts with your return, such as self-employment tax. How to amend tax Your withholding is based on obsolete Form W-4 information for a substantial part of the year. How to amend tax Your earnings are more than the amount shown under Check your withholding in the instructions at the top of page 1 of Form W-4. How to amend tax You work only part of the year. How to amend tax You change the number of your withholding allowances during the year. How to amend tax Cumulative wage method. How to amend tax   If you change the number of your withholding allowances during the year, too much or too little tax may have been withheld for the period before you made the change. How to amend tax You may be able to compensate for this if your employer agrees to use the cumulative wage withholding method for the rest of the year. How to amend tax You must ask your employer in writing to use this method. How to amend tax   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. How to amend tax ) since the beginning of the year. How to amend tax Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. How to amend tax It will help you compare the total tax to be withheld during the year with the tax you can expect to figure on your return. How to amend tax It also will help you determine how much, if any, additional withholding is needed each payday to avoid owing tax when you file your return. How to amend tax If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. How to amend tax You can use the IRS Withholding Calculator at www. How to amend tax irs. How to amend tax gov/Individuals, instead of Publication 505 or the worksheets included with Form W-4, to determine whether you need to have your withholding increased or decreased. How to amend tax Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. How to amend tax These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. How to amend tax New Form W-4. How to amend tax   When you start a new job, your employer should have you complete a Form W-4. How to amend tax Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. How to amend tax   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. How to amend tax The deadline for putting it into effect is the start of the first payroll period ending 30 or more days after you turn it in. How to amend tax No Form W-4. How to amend tax   If you do not give your employer a completed Form W-4, your employer must withhold at the highest rate, as if you were single and claimed no withholding allowances. How to amend tax Repaying withheld tax. How to amend tax   If you find you are having too much tax withheld because you did not claim all the withholding allowances you are entitled to, you should give your employer a new Form W-4. How to amend tax Your employer cannot repay any of the tax previously withheld. How to amend tax Instead, claim the full amount withheld when you file your tax return. How to amend tax   However, if your employer has withheld more than the correct amount of tax for the Form W-4 you have in effect, you do not have to fill out a new Form W-4 to have your withholding lowered to the correct amount. How to amend tax Your employer can repay the amount that was withheld incorrectly. How to amend tax If you are not repaid, your Form W-2 will reflect the full amount actually withheld, which you would claim when you file your tax return. How to amend tax Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. How to amend tax The exemption applies only to income tax, not to social security or Medicare tax. How to amend tax You can claim exemption from withholding for 2014 only if both of the following situations apply. How to amend tax For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. How to amend tax For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. How to amend tax Students. How to amend tax   If you are a student, you are not automatically exempt. How to amend tax See chapter 1 to find out if you must file a return. How to amend tax If you work only part time or only during the summer, you may qualify for exemption from withholding. How to amend tax Age 65 or older or blind. How to amend tax   If you are 65 or older or blind, use Worksheet 1-3 or 1-4 in chapter 1 of Publication 505, to help you decide if you qualify for exemption from withholding. How to amend tax Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. How to amend tax Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. How to amend tax Claiming exemption from withholding. How to amend tax   To claim exemption, you must give your employer a Form W-4. How to amend tax Do not complete lines 5 and 6. How to amend tax Enter “Exempt” on line 7. How to amend tax   If you claim exemption, but later your situation changes so that you will have to pay income tax after all, you must file a new Form W-4 within 10 days after the change. How to amend tax If you claim exemption in 2014, but you expect to owe income tax for 2015, you must file a new Form W-4 by December 1, 2014. How to amend tax   Your claim of exempt status may be reviewed by the IRS. How to amend tax An exemption is good for only 1 year. How to amend tax   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. How to amend tax Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. How to amend tax The payer can figure withholding on supplemental wages using the same method used for your regular wages. How to amend tax However, if these payments are identified separately from your regular wages, your employer or other payer of supplemental wages can withhold income tax from these wages at a flat rate. How to amend tax Expense allowances. How to amend tax   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. How to amend tax   Reimbursements or other expense allowances paid under an accountable plan that are more than your proven expenses are treated as paid under a nonaccountable plan if you do not return the excess payments within a reasonable period of time. How to amend tax   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. How to amend tax Penalties You may have to pay a penalty of $500 if both of the following apply. How to amend tax You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. How to amend tax You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. How to amend tax There is also a criminal penalty for willfully supplying false or fraudulent information on your Form W-4 or for willfully failing to supply information that would increase the amount withheld. How to amend tax The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. How to amend tax These penalties will apply if you deliberately and knowingly falsify your Form W-4 in an attempt to reduce or eliminate the proper withholding of taxes. How to amend tax A simple error or an honest mistake will not result in one of these penalties. How to amend tax For example, a person who has tried to figure the number of withholding allowances correctly, but claims seven when the proper number is six, will not be charged a W-4 penalty. How to amend tax Tips The tips you receive while working on your job are considered part of your pay. How to amend tax You must include your tips on your tax return on the same line as your regular pay. How to amend tax However, tax is not withheld directly from tip income, as it is from your regular pay. How to amend tax Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. How to amend tax See chapter 6 for information on reporting your tips to your employer. How to amend tax For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. How to amend tax How employer figures amount to withhold. How to amend tax   The tips you report to your employer are counted as part of your income for the month you report them. How to amend tax Your employer can figure your withholding in either of two ways. How to amend tax By withholding at the regular rate on the sum of your pay plus your reported tips. How to amend tax By withholding at the regular rate on your pay plus a percentage of your reported tips. How to amend tax Not enough pay to cover taxes. How to amend tax   If your regular pay is not enough for your employer to withhold all the tax (including income tax and social security and Medicare taxes (or the equivalent railroad retirement tax)) due on your pay plus your tips, you can give your employer money to cover the shortage. How to amend tax See Giving your employer money for taxes in chapter 6. How to amend tax Allocated tips. How to amend tax   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. How to amend tax Withholding is based only on your pay plus your reported tips. How to amend tax Your employer should refund to you any incorrectly withheld tax. How to amend tax See Allocated Tips in chapter 6 for more information. How to amend tax Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. How to amend tax Your employer generally must withhold income tax on these benefits from your regular pay. How to amend tax For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. How to amend tax Although the value of your personal use of an employer-provided car, truck, or other highway motor vehicle is taxable, your employer can choose not to withhold income tax on that amount. How to amend tax Your employer must notify you if this choice is made. How to amend tax For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. How to amend tax Sick Pay Sick pay is a payment to you to replace your regular wages while you are temporarily absent from work due to sickness or personal injury. How to amend tax To qualify as sick pay, it must be paid under a plan to which your employer is a party. How to amend tax If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. How to amend tax An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. How to amend tax However, if you receive sick pay from a third party who is not acting as an agent of your employer, income tax will be withheld only if you choose to have it withheld. How to amend tax See Form W-4S , later. How to amend tax If you receive payments under a plan in which your employer does not participate (such as an accident or health plan where you paid all the premiums), the payments are not sick pay and usually are not taxable. How to amend tax Union agreements. How to amend tax   If you receive sick pay under a collective bargaining agreement between your union and your employer, the agreement may determine the amount of income tax withholding. How to amend tax See your union representative or your employer for more information. How to amend tax Form W-4S. How to amend tax   If you choose to have income tax withheld from sick pay paid by a third party, such as an insurance company, you must fill out Form W-4S. How to amend tax Its instructions contain a worksheet you can use to figure the amount you want withheld. How to amend tax They also explain restrictions that may apply. How to amend tax   Give the completed form to the payer of your sick pay. How to amend tax The payer must withhold according to your directions on the form. How to amend tax Estimated tax. How to amend tax   If you do not request withholding on Form W-4S, or if you do not have enough tax withheld, you may have to make estimated tax payments. How to amend tax If you do not pay enough tax, either through estimated tax or withholding, or a combination of both, you may have to pay a penalty. How to amend tax See Underpayment Penalty for 2013 at the end of this chapter. How to amend tax Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. How to amend tax This rule applies to distributions from: A traditional individual retirement arrangement (IRA); A life insurance company under an endowment, annuity, or life insurance contract; A pension, annuity, or profit-sharing plan; A stock bonus plan; and Any other plan that defers the time you receive compensation. How to amend tax The amount withheld depends on whether you receive payments spread out over more than 1 year (periodic payments), within 1 year (nonperiodic payments), or as an eligible rollover distribution (ERD). How to amend tax Income tax withholding from an ERD is mandatory. How to amend tax More information. How to amend tax   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. How to amend tax For information on IRAs, see chapter 17. How to amend tax For more information on withholding on pensions and annuities, including a discussion of Form W-4P, see Pensions and Annuities in chapter 1 of Publication 505. How to amend tax Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. How to amend tax Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. How to amend tax Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. How to amend tax Any other wager, if the proceeds are at least 300 times the amount of the bet. How to amend tax It does not matter whether your winnings are paid in cash, in property, or as an annuity. How to amend tax Winnings not paid in cash are taken into account at their fair market value. How to amend tax Exception. How to amend tax   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. How to amend tax However, you may need to provide the payer with a social security number to avoid withholding. How to amend tax See Backup withholding on gambling winnings in chapter 1 of Publication 505. How to amend tax If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. How to amend tax See Estimated Tax for 2014 , later. How to amend tax 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. How to amend tax See Underpayment Penalty for 2013 at the end of this chapter. How to amend tax Form W-2G. How to amend tax   If a payer withholds income tax from your gambling winnings, you should receive a Form W-2G, Certain Gambling Winnings, showing the amount you won and the amount withheld. How to amend tax Report the tax withheld on line 62 of Form 1040. How to amend tax Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. How to amend tax To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. How to amend tax All unemployment compensation is taxable. How to amend tax So, if you do not have income tax withheld, you may have to pay estimated tax. How to amend tax See Estimated Tax for 2014 , later. How to amend tax 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. How to amend tax For information, see Underpayment Penalty for 2013 at the end of this chapter. How to amend tax Federal Payments You can choose to have income tax withheld from certain federal payments you receive. How to amend tax These payments are: Social security benefits, Tier 1 railroad retirement benefits, Commodity credit corporation loans you choose to include in your gross income, Payments under the Agricultural Act of 1949 (7 U. How to amend tax S. How to amend tax C. How to amend tax 1421 et. How to amend tax seq. How to amend tax ), as amended, or title II of the Disaster Assistance Act of 1988, that are treated as insurance proceeds and that you receive because: Your crops were destroyed or damaged by drought, flood, or any other natural disaster, or You were unable to plant crops because of a natural disaster described in (a), and Any other payment under Federal law as determined by the Secretary. How to amend tax To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. How to amend tax If you do not choose to have income tax withheld, you may have to pay estimated tax. How to amend tax See Estimated Tax for 2014 , later. How to amend tax 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. How to amend tax For information, see Underpayment Penalty for 2013 at the end of this chapter. How to amend tax More information. How to amend tax   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. How to amend tax Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. How to amend tax Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. How to amend tax The information return shows how much you were paid during the year. How to amend tax It also includes your name and taxpayer identification number (TIN). How to amend tax TINs are explained in chapter 1 under Social Security Number (SSN) . How to amend tax These payments generally are not subject to withholding. How to amend tax However, “backup” withholding is required in certain situations. How to amend tax Backup withholding can apply to most kinds of payments that are reported on Form 1099. How to amend tax The payer must withhold at a flat 28% rate in the following situations. How to amend tax You do not give the payer your TIN in the required manner. How to amend tax The IRS notifies the payer that the TIN you gave is incorrect. How to amend tax You are required, but fail, to certify that you are not subject to backup withholding. How to amend tax The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. How to amend tax The IRS will do this only after it has mailed you four notices over at least a 210-day period. How to amend tax See Backup Withholding in chapter 1 of Publication 505 for more information. How to amend tax Penalties. How to amend tax   There are civil and criminal penalties for giving false information to avoid backup withholding. How to amend tax The civil penalty is $500. How to amend tax The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. How to amend tax Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. How to amend tax This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. How to amend tax 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. How to amend tax 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. How to amend tax 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. How to amend tax 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. How to amend tax For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. How to amend tax Who Does Not Have To Pay Estimated Tax 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. How to amend tax To do this, give a new Form W-4 to your employer. How to amend tax See chapter 1 of Publication 505. How to amend tax Estimated tax not required. How to amend tax   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. How to amend tax You had no tax liability for 2013. How to amend tax You were a U. How to amend tax S. How to amend tax citizen or resident alien for the whole year. How to amend tax Your 2013 tax year covered a 12-month period. How to amend tax   You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. How to amend tax For the definition of “total tax” for 2013, see Publication 505, chapter 2. How to amend tax Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. How to amend tax 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. How to amend tax General rule. How to amend tax   In most cases, you must pay estimated tax for 2014 if both of the following apply. How to amend tax You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. How to amend tax You expect your withholding plus your refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return (but see Special rules for farmers, fishermen, and higher income taxpayers, later). How to amend tax Your 2013 tax return must cover all 12 months. How to amend tax    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. How to amend tax Special rules for farmers, fishermen, and higher income taxpayers. How to amend tax   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. How to amend tax 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. How to amend tax See Figure 4-A and Publication 505, chapter 2 for more information. How to amend tax Figure 4-A. How to amend tax Do You Have To Pay Estimated Tax? Please click here for the text description of the image. How to amend tax Figure 4-A Do You Have To Pay Estimated Tax? Aliens. How to amend tax   Resident and nonresident aliens also may have to pay estimated tax. How to amend tax Resident aliens should follow the rules in this chapter unless noted otherwise. How to amend tax Nonresident aliens should get Form 1040-ES (NR), U. How to amend tax S. How to amend tax Estimated Tax for Nonresident Alien Individuals. How to amend tax   You are an alien if you are not a citizen or national of the United States. How to amend tax You are a resident alien if you either have a green card or meet the substantial presence test. How to amend tax For more information about the substantial presence test, see Publication 519, U. How to amend tax S. How to amend tax Tax Guide for Aliens. How to amend tax Married taxpayers. How to amend tax   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. How to amend tax   You and your spouse can make joint estimated tax payments even if you are not living together. How to amend tax   However, you and your spouse cannot make joint estimated tax payments if:  You are legally separated under a decree of divorce or separate maintenance, You and your spouse have different tax years, or Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes (see chapter 1 of Publication 519)). How to amend tax   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. How to amend tax Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. How to amend tax 2013 separate returns and 2014 joint return. How to amend tax   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. How to amend tax You filed a separate return if you filed as single, head of household, or married filing separately. How to amend tax 2013 joint return and 2014 separate returns. How to amend tax   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. How to amend tax You file a separate return if you file as single, head of household, or married filing separately. How to amend tax   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. How to amend tax Then multiply the tax on the joint return by the following fraction. How to amend tax     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 Example. How to amend tax Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. How to amend tax Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. How to amend tax For 2014, they plan to file married filing separately. How to amend tax Joe figures his share of the tax on the 2013 joint return as follows. How to amend tax   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. How to amend tax 6%     Joe's share of tax on joint return  ($6,386 × 87. How to amend tax 6%) $5,594   How To Figure Estimated Tax To figure your estimated tax, you must figure your expected adjusted gross income (AGI), taxable income, taxes, deductions, and credits for the year. How to amend tax When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. How to amend tax Use your 2013 federal tax return as a guide. How to amend tax You can use Form 1040-ES and Publication 505 to figure your estimated tax. How to amend tax Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). How to amend tax You must make adjustments both for changes in your own situation and for recent changes in the tax law. How to amend tax For a discussion of these changes, visit IRS. How to amend tax gov. How to amend tax For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. How to amend tax When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. How to amend tax Each period has a specific payment due date. How to amend tax 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. How to amend tax The payment periods and due dates for estimated tax payments are shown next. How to amend tax   For the period: Due date:*     Jan. How to amend tax 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. How to amend tax 15     Sept. How to amend tax 1– Dec. How to amend tax 31 Jan. How to amend tax 15, next year     *See Saturday, Sunday, holiday rule and January payment . How to amend tax Saturday, Sunday, holiday rule. How to amend tax   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. How to amend tax January payment. How to amend tax   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. How to amend tax Fiscal year taxpayers. How to amend tax   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. How to amend tax When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. How to amend 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. How to amend tax You can pay all your estimated tax at that time, or you can pay it in installments. How to amend tax If you choose to pay in installments, make your first payment by the due date for the first payment period. How to amend tax Make your remaining installment payments by the due dates for the later periods. How to amend tax No income subject to estimated tax during first period. How to amend tax    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. How to amend tax 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. How to amend tax The following chart shows when to make installment payments. How to amend tax 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. How to amend tax 15 Jan. How to amend tax 15 next year April 1–May 31 June 16 Sept. How to amend tax 15 Jan. How to amend tax 15 next year June 1–Aug. How to amend tax 31 Sept. How to amend tax 15 Jan. How to amend tax 15 next year After Aug. How to amend tax 31 Jan. How to amend tax 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . How to amend tax How much to pay to avoid a penalty. How to amend tax   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. How to amend tax How To Figure Each Payment You should pay enough estimated tax by the due date of each payment period to avoid a penalty for that period. How to amend tax You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. How to amend tax These methods are described in chapter 2 of Publication 505. How to amend tax 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. How to amend tax 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. How to amend tax Underpayment penalty. How to amend tax   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. How to amend tax Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. How to amend tax See chapter 4 of Publication 505 for more information. How to amend tax Change in estimated tax. How to amend tax   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. How to amend 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. How to amend tax Estimated Tax Payments Not Required You do not have to pay estimated tax if your withholding in each payment period is at least as much as: One-fourth of your required annual payment, or Your required annualized income installment for that period. How to amend tax 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. How to amend tax How To Pay Estimated Tax There are several ways to pay estimated tax. How to amend tax Credit an overpayment on your 2013 return to your 2014 estimated tax. How to amend tax Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. How to amend tax Send in your payment (check or money order) with a payment voucher from Form 1040-ES. How to amend tax Credit an Overpayment 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. How to amend tax 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. How to amend tax Take the amount you have credited into account when figuring your estimated tax payments. How to amend tax 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. How to amend tax You also cannot use that overpayment in any other way. How to amend tax Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. How to amend tax You can pay using either of the following electronic payment methods. How to amend tax Direct transfer from your bank account. How to amend tax Credit or debit card. How to amend tax To pay your taxes online or for more information, go to www. How to amend tax irs. How to amend tax gov/e-pay. How to amend tax Pay by Phone Paying by phone is another safe and secure method of paying electronically. How to amend tax Use one of the following methods. How to amend tax Direct transfer from your bank account. How to amend tax Credit or debit card. How to amend tax To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). How to amend tax 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. How to amend tax To pay using a credit or debit card, you can call one of the following service providers. How to amend tax There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. How to amend tax WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. How to amend tax payUSAtax. How to amend tax com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. How to amend tax officialpayments. How to amend tax com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. How to amend tax PAY1040. How to amend tax com For the latest details on how to pay by phone, go to www. How to amend tax irs. How to amend tax gov/e-pay. How to amend tax Pay by Check or Money Order Using the Estimated Tax Payment Voucher Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. How to amend tax During 2013, if you: made at least one estimated tax payment but not by electronic means, did not use software or a paid preparer to prepare or file your return,  then you should receive a copy of the 2014 Form 1040-ES/V. How to amend tax The enclosed payment vouchers will be preprinted with your name, address, and social security number. How to amend tax Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. How to amend tax Use the window envelopes that came with your Form 1040-ES package. How to amend tax 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. How to amend tax Note. How to amend tax These criteria can change without notice. How to amend tax 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. How to amend tax irs. How to amend tax gov and print a copy of Form 1040-ES which includes four blank payment vouchers. How to amend tax Complete one of these and make your payment timely to avoid penalties for paying late. How to amend tax Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. How to amend tax 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. How to amend tax gov. How to amend tax Follow the instructions to make sure you use the vouchers correctly. How to amend tax Joint estimated tax payments. How to amend tax   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. How to amend tax Change of address. How to amend tax   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. How to amend tax Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. How to amend tax Credit for Withholding and Estimated Tax for 2013 When you file your 2013 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. How to amend tax Also take credit for the estimated tax you paid for 2013. How to amend tax These credits are subtracted from your total tax. How to amend tax Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. How to amend tax Two or more employers. How to amend tax   If you had two or more employers in 2013 and were paid wages of more than $113,700, too much social security or tier 1 railroad retirement tax may have been withheld from your pay. How to amend tax You may be able to claim the excess as a credit against your income tax when you file your return. How to amend tax See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. How to amend tax Withholding If you had income tax withheld during 2013, you should be sent a statement by January 31, 2014, showing your income and the tax withheld. How to amend tax 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. How to amend tax Forms W-2 and W-2G. How to amend tax   If you file a paper return, always file Form W-2 with your income tax return. How to amend tax File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. How to amend tax   You should get at least two copies of each form. How to amend tax If you file a paper return, attach one copy to the front of your federal income tax return. How to amend tax Keep one copy for your records. How to amend tax You also should receive copies to file with your state and local returns. How to amend tax Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. How to amend tax You should receive a separate Form W-2 from each employer you worked for. How to amend tax If you stopped working before the end of 2013, your employer could have given you your Form W-2 at any time after you stopped working. How to amend tax However, your employer must provide or send it to you by January 31, 2014. How to amend tax 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. How to amend tax If you have not received your Form W-2 by January 31, you should ask your employer for it. How to amend tax If you do not receive it by February 15, call the IRS. How to amend tax 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. How to amend tax Include the federal income tax withheld (as shown in box 2 of Form W-2) on: Line 62 if you file Form 1040, Line 36 if you file Form 1040A, or Line 7 if you file Form 1040EZ. How to amend tax In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. How to amend tax Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. How to amend 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. How to amend tax Report the amounts you won on line 21 of Form 1040. How to amend tax Take credit for the tax withheld on line 62 of Form 1040. How to amend tax If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. How to amend tax The 1099 Series Most forms in the 1099 series are not filed with your return. How to amend tax These forms should be furnished to you by January 31, 2014 (or, for Forms 1099-B, 1099-S, and certain Forms 1099-MISC, by February 15, 2014). How to amend tax Unless instructed to file any of these forms with your return, keep them for your records. How to amend tax There are several different forms in this series, including: Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-DIV, Dividends and Distributions; Form 1099-G, Certain Government Payments; Form 1099-INT, Interest Income; Form 1099-K, Payment Card and Third Party Network Transactions; Form 1099-MISC, Miscellaneous Income; Form 1099-OID, Original Issue Discount; Form 1099-PATR, Taxable Distributions Received from Cooperatives; Form 1099-Q, Payments From Qualified Education Programs; Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. How to amend tax ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. How to amend tax 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. How to amend tax See the instructions to these forms for details. How to amend tax Form 1099-R. How to amend tax   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. How to amend tax Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. How to amend tax You cannot use Form 1040EZ if you received payments reported on Form 1099-R. How to amend tax Backup withholding. How to amend tax   If you were subject to backup withholding on income you received during 2013, include the amount withheld, as shown on your Form 1099, in the total on line 62 of Form 1040, line 36 of Form 1040A, or line 7 of Form 1040EZ. How to amend tax Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. How to amend tax Call the telephone number or write to the address given for the payer on the form. How to amend tax The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. How to amend tax A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. How to amend tax In certain situations, you will receive two forms in place of the original incorrect form. How to amend tax 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). How to amend tax One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. How to amend tax This form will have an “X” in the “CORRECTED” box at the top of the form. How to amend tax The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). How to amend tax Form Received After Filing 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. How to amend tax S. How to amend tax Individual Income Tax Return. How to amend tax Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. How to amend tax Do not include any amount withheld from your spouse's income. How to amend tax However, different rules may apply if you live in a community property state. How to amend tax Community property states are listed in chapter 2. How to amend tax For more information on these rules, and some exceptions, see Publication 555, Community Property. How to amend tax Fiscal Years 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. How to amend tax 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. How to amend tax Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. How to amend tax Include any overpayment from 2012 that you had credited to your 2013 estimated tax. How to amend tax You must use Form 1040 or Form 1040A if you paid estimated tax. How to amend tax You cannot use Form 1040EZ. How to amend tax Name changed. How to amend tax   If you changed your name, and you made estimated tax payments using your old name, attach a brief statement to the front of your paper tax return indicating: When you made the payments, The amount of each payment, Your name when you made the payments, and Your social security number. How to amend tax The statement should cover payments you made jointly with your spouse as well as any you made separately. How to amend tax   Be sure to report the change to the Social Security Administration. How to amend tax This prevents delays in processing your return and issuing any refunds. How to amend tax Separate Returns If you and your spouse made separate estimated tax payments for 2013 and you file separate returns, you can take credit only for your own payments. How to amend tax If you made joint estimated tax payments, you must decide how to divide the payments between your returns. How to amend tax 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. How to amend tax If you cannot agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2013. How to amend tax Divorced Taxpayers If you made joint estimated tax payments for 2013, 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. How to amend tax 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 2013. How to amend tax 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. How to amend tax If you divorced and remarried in 2013, 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 63, or Form 1040A, line 37. How to amend tax Underpayment Penalty for 2013 If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have an underpayment of estimated tax and you may have to pay a penalty. How to amend tax Generally, you will not have to pay a penalty for 2013 if any of the following apply. How to amend tax The total of your withholding and estimated tax payments was at least as much as your 2012 tax (or 110% of your 2012 tax if your AGI was more than $150,000, $75,000 if your 2013 filing status is married filing separately) and you paid all required estimated tax payments on time. How to amend tax The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. How to amend tax Your total 2013 tax minus your withholding and refundable credits is less than $1,000. How to amend tax You did not have a tax liability for 2012 and your 2012 tax year was 12 months, or You did not have any withholding taxes and your current year tax less any household employment taxes is less than $1,000. How to amend tax See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. How to amend tax Farmers and fishermen. How to amend tax   Special rules apply if you are a farmer or fisherman. How to amend tax See Farmers and Fishermen in chapter 4 of Publication 505 for more information. How to amend tax IRS can figure the penalty for you. How to amend tax   If you think you owe the penalty but you do not want to figure it yourself when you file your tax return, you may not have to. How to amend tax Generally, the IRS will figure the penalty for you and send you a bill. How to amend tax However, if you think you are able to lower or eliminate your penalty, you must complete Form 2210 or Form 2210-F and attach it to your paper return. How to amend tax See chapter 4 of Publication 505. How to amend tax Prev  Up  Next   Home   More Online Publications