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How To File Taxes Student

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How To File Taxes Student

How to file taxes student Other Methods of Depreciation Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: How To Figure the DeductionBasis Useful Life Salvage Value Methods To UseStraight Line Method Declining Balance Method Income Forecast Method How To Change Methods DispositionsSale or exchange. How to file taxes student Property not disposed of or abandoned. How to file taxes student Special rule for normal retirements from item accounts. How to file taxes student Abandoned property. How to file taxes student Single item accounts. How to file taxes student Multiple property account. How to file taxes student Topics - This chapter discusses: How to figure the deduction Methods to use How to change methods Dispositions Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization Schedule C (Form 1040) Profit or Loss From Business If your property is being depreciated under ACRS, you must continue to use rules for depreciation that applied when you placed the property in service. How to file taxes student If your property qualified for MACRS, you must depreciate it under MACRS. How to file taxes student See Publication 946. How to file taxes student However, you cannot use MACRS for certain property because of special rules that exclude it from MACRS. How to file taxes student Also, you can elect to exclude certain property from being depreciated under MACRS. How to file taxes student Property that you cannot depreciate using MACRS includes: Intangible property, Property you can elect to exclude from MACRS that you properly depreciate under a method that is not based on a term of years, Certain public utility property, Any motion picture film or video tape, Any sound recording, and Certain real and personal property placed in service before 1987. How to file taxes student Intangible property. How to file taxes student   You cannot depreciate intangible property under ACRS or MACRS. How to file taxes student You depreciate intangible property using any other reasonable method, usually, the straight line method. How to file taxes student Note. How to file taxes student The cost of certain intangible property that you acquire after August 10, 1993, must be amortized over a 15-year period. How to file taxes student For more information, see chapter 12 of Publication 535. How to file taxes student Public utility property. How to file taxes student   The law excludes from MACRS any public utility property for which the taxpayer does not use a normalization method of accounting. How to file taxes student This type of property is subject to depreciation under a special rule. How to file taxes student Videocassettes. How to file taxes student   If you are in the videocassette rental business, you can depreciate those videocassettes purchased for rental. How to file taxes student You can depreciate the cost less salvage value of those videocassettes that have a useful life over one year using either: The straight line method, or The income forecast method. How to file taxes student The straight line method, salvage value, and useful life are discussed later under Methods To Use. How to file taxes student You can deduct in the year of purchase as a business expense the cost of any cassette that has a useful life of one year or less. How to file taxes student How To Figure the Deduction Two other reasonable methods can be used to figure your deduction for property not covered under ACRS or MACRS. How to file taxes student These methods are straight line and declining balance. How to file taxes student To figure depreciation using these methods, you must generally determine three things about the property you intend to depreciate. How to file taxes student They are: The basis, The useful life, and The estimated salvage value at the end of its useful life. How to file taxes student The amount of the deduction in any year also depends on which method of depreciation you choose. How to file taxes student Basis To deduct the proper amount of depreciation each year, first determine your basis in the property you intend to depreciate. How to file taxes student The basis used for figuring depreciation is the same as the basis that would be used for figuring the gain on a sale. How to file taxes student Your original basis is usually the purchase price. How to file taxes student However, if you acquire property in some other way, such as inheriting it, getting it as a gift, or building it yourself, you have to figure your original basis in a different way. How to file taxes student Adjusted basis. How to file taxes student   Events will often change the basis of property. How to file taxes student When this occurs, the changed basis is called the adjusted basis. How to file taxes student Some events, such as improvements you make, increase basis. How to file taxes student Events such as deducting casualty losses and depreciation decrease basis. How to file taxes student If basis is adjusted, the depreciation deduction may also have to be changed, depending on the reason for the adjustment and the method of depreciation you are using. How to file taxes student   Publication 551 explains how to figure basis for property acquired in different ways. How to file taxes student It also discusses what items increase and decrease basis, how to figure adjusted basis, and how to allocate cost if you buy several pieces of property at one time. How to file taxes student Useful Life The useful life of a piece of property is an estimate of how long you can expect to use it in your trade or business, or to produce income. How to file taxes student It is the length of time over which you will make yearly depreciation deductions of your basis in the property. How to file taxes student It is how long it will continue to be useful to you, not how long the property will last. How to file taxes student Many things affect the useful life of property, such as: Frequency of use, Age when acquired, Your repair policy, and Environmental conditions. How to file taxes student The useful life can also be affected by technological improvements, progress in the arts, reasonably foreseeable economic changes, shifting of business centers, prohibitory laws, and other causes. How to file taxes student Consider all these factors before you arrive at a useful life for your property. How to file taxes student The useful life of the same type of property varies from user to user. How to file taxes student When you determine the useful life of your property, keep in mind your own experience with similar property. How to file taxes student You can use the general experience of the industry you are in until you are able to determine a useful life of your property from your own experience. How to file taxes student Change in useful life. How to file taxes student   You base your estimate of useful life on certain facts. How to file taxes student If these facts change significantly, you can adjust your estimate of the remaining useful life. How to file taxes student However, you redetermine the estimated useful life only when the change is substantial and there is a clear reason for making the change. How to file taxes student Salvage Value It is important for you to accurately determine the correct salvage value of the property you want to depreciate. How to file taxes student You generally cannot depreciate property below a reasonable salvage value. How to file taxes student Determining salvage value. How to file taxes student   Salvage value is the estimated value of property at the end of its useful life. How to file taxes student It is what you expect to get for the property if you sell it after you can no longer use it productively. How to file taxes student You must estimate the salvage value of a piece of property when you first acquire it. How to file taxes student   Salvage value is affected both by how you use the property and how long you use it. How to file taxes student If it is your policy to dispose of property that is still in good operating condition, the salvage value can be relatively large. How to file taxes student However, if your policy is to use property until it is no longer usable, its salvage value can be its junk value. How to file taxes student Changing salvage value. How to file taxes student   Once you determine the salvage value for property, you should not change it merely because prices have changed. How to file taxes student However, if you redetermine the useful life of property, as discussed earlier under Change in useful life, you can also redetermine the salvage value. How to file taxes student When you redetermine the salvage value, take into account the facts that exist at the time. How to file taxes student Net salvage. How to file taxes student   Net salvage is the salvage value of property minus what it costs to remove it when you dispose of it. How to file taxes student You can choose either salvage value or net salvage when you figure depreciation. How to file taxes student You must consistently use the one you choose and the treatment of the costs of removal must be consistent with the practice adopted. How to file taxes student However, if the cost to remove the property is more than the estimated salvage value, then net salvage is zero. How to file taxes student Your salvage value can never be less than zero. How to file taxes student Ten percent rule. How to file taxes student   If you acquire personal property that has a useful life of 3 years or more, you can use an amount for salvage value that is less than your actual estimate. How to file taxes student You can subtract from your estimate of salvage value an amount equal to 10% of your basis in the property. How to file taxes student If salvage value is less than 10% of basis, you can ignore salvage value when you figure depreciation. How to file taxes student Methods To Use Two methods of depreciation are the straight line and declining balance methods. How to file taxes student If ACRS or MACRS does not apply, you can use one of these methods. How to file taxes student The straight line and declining balance methods discussed in this section are not figured in the same way as straight line or declining balance methods under MACRS. How to file taxes student Straight Line Method Before 1981, you could use any reasonable method for every kind of depreciable property. How to file taxes student One of these methods was the straight line method. How to file taxes student This method was also used for intangible property. How to file taxes student It lets you deduct the same amount of depreciation each year. How to file taxes student To figure your deduction, determine the adjusted basis of your property, its salvage value, and its estimated useful life. How to file taxes student Subtract the salvage value, if any, from the adjusted basis. How to file taxes student The balance is the total amount of depreciation you can take over the useful life of the property. How to file taxes student Divide the balance by the number of years remaining in the useful life. How to file taxes student This gives you the amount of your yearly depreciation deduction. How to file taxes student Unless there is a big change in adjusted basis, or useful life, this amount will stay the same throughout the time you depreciate the property. How to file taxes student If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. How to file taxes student Example. How to file taxes student In April 1994, Frank bought a franchise for $5,600. How to file taxes student It expires in 10 years. How to file taxes student This property is intangible property that cannot be depreciated under MACRS. How to file taxes student Frank depreciates the franchise under the straight line method, using a 10-year useful life and no salvage value. How to file taxes student He takes the $5,600 basis and divides that amount by 10 years ($5,600 ÷ 10 = $560, a full year's use). How to file taxes student He must prorate the $560 for his 9 months of use in 1994. How to file taxes student This gives him a deduction of $420 ($560 ÷ 9/12). How to file taxes student In 1995, Frank can deduct $560 for the full year. How to file taxes student Declining Balance Method The declining balance method allows you to recover a larger amount of the cost of the property in the early years of your use of the property. How to file taxes student The rate cannot be more than twice the straight line rate. How to file taxes student Rate of depreciation. How to file taxes student   Under this method, you must determine your declining balance rate of depreciation. How to file taxes student The initial step is to: Divide the number 1 by the useful life of your property to get a straight line rate. How to file taxes student (For example, if property has a useful life of 5 years, its normal straight line rate of depreciation is ⅕, or 20%. How to file taxes student ) Multiply this straight line rate by a number that is more than 1 but not more than 2 to determine the declining balance rate. How to file taxes student Unless there is a change in the useful life during the time you depreciate the property, the rate of depreciation generally will not change. How to file taxes student Depreciation deductions. How to file taxes student   After you determine the rate of depreciation, multiply the adjusted basis of the property by it. How to file taxes student This gives you the amount of your deduction. How to file taxes student For example, if your adjusted basis at the beginning of the first year is $10,000, and your declining balance rate is 20%, your depreciation deduction for the first year is $2,000 ($10,000 ÷ 20%). How to file taxes student To figure your depreciation deduction in the second year, you must first adjust the basis for the amount of depreciation you deducted in the first year. How to file taxes student Subtract the previous year's depreciation from your basis ($10,000 - $2,000 = $8,000). How to file taxes student Multiply this amount by the rate of depreciation ($8,000 ÷ 20% = $1,600). How to file taxes student Your depreciation deduction for the second year is $1,600. How to file taxes student   As you can see from this example, your adjusted basis in the property gets smaller each year. How to file taxes student Also, under this method, deductions are larger in the earlier years and smaller in the later years. How to file taxes student You can make a change to the straight line method without consent. How to file taxes student Salvage value. How to file taxes student   Do not subtract salvage value when you figure your yearly depreciation deductions under the declining balance method. How to file taxes student However, you cannot depreciate the property below its reasonable salvage value. How to file taxes student Determine salvage value using the rules discussed earlier, including the special 10% rule. How to file taxes student Example. How to file taxes student If your adjusted basis has been decreased to $1,000 and the rate of depreciation is 20%, your depreciation deduction should be $200. How to file taxes student But if your estimate of salvage value was $900, you can only deduct $100. How to file taxes student This is because $100 is the amount that would lower your adjusted basis to equal salvage value. How to file taxes student Income Forecast Method The income forecast method requires income projections for each videocassette or group of videocassettes. How to file taxes student You can group the videocassettes by title for making this projection. How to file taxes student You determine the depreciation by applying a fraction to the cost less salvage value of the cassette. How to file taxes student The numerator is the income from the videocassette for the tax year and the denominator is the total projected income for the cassette. How to file taxes student For more information on the income forecast method, see Revenue Ruling 60-358 in Cumulative Bulletin 1960, Volume 2, on page 68. How to file taxes student How To Change Methods In some cases, you may change your method of depreciation for property depreciated under a reasonable method. How to file taxes student If you change your method of depreciation, it is generally a change in your method of accounting. How to file taxes student You must get IRS consent before making the change. How to file taxes student However, you do not need permission for certain changes in your method of depreciation. How to file taxes student The rules discussed in this section do not apply to property depreciated under ACRS or MACRS. How to file taxes student For information on ACRS elections,see Revocation of election, in chapter 1 under Alternate ACRS Method. How to file taxes student Change to the straight line method. How to file taxes student   You can change from the declining balance method to the straight line method at any time during the useful life of your property without IRS consent. How to file taxes student However, if you have a written agreement with the IRS that prohibits a change, you must first get IRS permission. How to file taxes student When the change is made, figure depreciation based on your adjusted basis in the property at that time. How to file taxes student Your adjusted basis takes into account all previous depreciation deductions. How to file taxes student Use the estimated remaining useful life of your property at the time of change and its estimated salvage value. How to file taxes student   You can change from the declining balance method to straight line only on the original tax return for the year you first use the straight line method. How to file taxes student You cannot make the change on an amended return filed after the due date of the original return (including extensions). How to file taxes student   When you make the change, attach a statement to your tax return showing: When you acquired the property, Its original cost or other original basis, The total amount claimed for depreciation and other allowances since you acquired it, Its salvage value and remaining useful life, and A description of the property and its use. How to file taxes student   After you change to straight line, you cannot change back to the declining balance method or to any other method for a period of 10 years without written permission from the IRS. How to file taxes student Changes that require permission. How to file taxes student   For most other changes in method of depreciation, you must get permission from the IRS. How to file taxes student To request a change in method of depreciation, file Form 3115. How to file taxes student File the application within the first 180 days of the tax year the change is to become effective. How to file taxes student In most cases, there is a user fee that must accompany Form 3115. How to file taxes student See the instructions for Form 3115 to determine if a fee is required. How to file taxes student Changes granted automatically. How to file taxes student   The IRS automatically approves certain changes of a method of depreciation. How to file taxes student But, you must file Form 3115 for these automatic changes. How to file taxes student   However, IRS can deny permission if Form 3115 is not filed on time. How to file taxes student For more information on automatic changes, see Revenue Procedure 74-11, 1974-1 C. How to file taxes student B. How to file taxes student 420. How to file taxes student Changes for which approval is not automatic. How to file taxes student   The automatic change procedures do not apply to: Property or an account where you made a change in depreciation within the last 10 tax years (unless the change was made under the Class Life System), Class Life Asset Depreciation Range System, and Public utility property. How to file taxes student   You must request and receive permission for these changes. How to file taxes student To make the request, file Form 3115 during the first 180 days of the tax year for which you want the change to be effective. How to file taxes student Change from an improper method. How to file taxes student   If the IRS disallows the method you are using, you do not need permission to change to a proper method. How to file taxes student You can adopt the straight line method, or any other method that would have been permitted if you had used it from the beginning. How to file taxes student If you file your tax return using an improper method, but later file an amended return, you can use a proper method on the amended return without getting IRS permission. How to file taxes student However, you must file the amended return before the filing date for the next tax year. How to file taxes student Dispositions Retirement is the permanent withdrawal of depreciable property from use in your trade or business or for the production of income. How to file taxes student You can do this by selling, exchanging, or abandoning the item of property. How to file taxes student You can also withdraw it from use without disposing of it. How to file taxes student For example, you could place it in a supplies or scrap account. How to file taxes student Retirements can be either normal or abnormal depending on all facts and circumstances. How to file taxes student The rules discussed next do not apply to MACRS and ACRS property. How to file taxes student Normal retirement. How to file taxes student   A normal retirement is a permanent withdrawal of depreciable property from use if the following apply: The retirement is made within the useful life you estimated originally, and The property has reached a condition at which you customarily retire or would retire similar property from use. How to file taxes student A retirement is generally considered normal unless you can show that you retired the property because of a reason you did not consider when you originally estimated the useful life of the property. How to file taxes student Abnormal retirement. How to file taxes student   A retirement can be abnormal if you withdraw the property early or under other circumstances. How to file taxes student For example, if the property is damaged by a fire or suddenly becomes obsolete and is now useless. How to file taxes student Gain or loss on retirement. How to file taxes student   There are special rules for figuring the gain or loss on retirement of property. How to file taxes student The gain or loss will depend on several factors. How to file taxes student These include the type of withdrawal, if the withdrawal was from a single property or multiple property account, and if the retirement was normal or abnormal. How to file taxes student A single property account contains only one item of property. How to file taxes student A multiple property account is one in which several items have been combined with a single rate of depreciation assigned to the entire account. How to file taxes student Sale or exchange. How to file taxes student   If property is retired by sale or exchange, you figure gain or loss by the usual rules that apply to sales or other dispositions of property. How to file taxes student See Publication 544. How to file taxes student Property not disposed of or abandoned. How to file taxes student   If property is retired permanently, but not disposed of or physically abandoned, you do not recognize gain. How to file taxes student You are allowed a loss in such a case, but only if the retirement is: An abnormal retirement, A normal retirement from a single property account in which you determined the life of each item of property separately, or A normal retirement from a multiple property account in which the depreciation rate is based on the maximum expected life of the longest lived item of property and the loss occurs before the expiration of the full useful life. How to file taxes student However, you are not allowed a loss if the depreciation rate is based on the average useful life of the items of property in the account. How to file taxes student   To figure your loss, subtract the estimated salvage or fair market value of the property at the date of retirement, whichever is more, from its adjusted basis. How to file taxes student Special rule for normal retirements from item accounts. How to file taxes student   You can generally deduct losses upon retirement of a few depreciable items of property with similar useful lives, if: You account for each one in a separate account, and You use the average useful life to figure depreciation. How to file taxes student However, you cannot deduct losses if you use the average useful life to figure depreciation and they have a wide range of useful lives. How to file taxes student   If you have a large number of depreciable property items and use average useful lives to figure depreciation, you cannot deduct the losses upon normal retirements from these accounts. How to file taxes student Abandoned property. How to file taxes student   If you physically abandon property, you can deduct as a loss the adjusted basis of the property at the time of its abandonment. How to file taxes student However, your intent must be to discard the property so that you will not use it again or retrieve it for sale, exchange, or other disposition. How to file taxes student Basis of property retired. How to file taxes student   The basis for figuring gain or loss on the retirement of property is its adjusted basis at the time of retirement, as determined in the following discussions. How to file taxes student Single item accounts. How to file taxes student   If an item of property is accounted for in a single item account, the adjusted basis is the basis you would use to figure gain or loss for a sale or exchange of the property. How to file taxes student This is generally the cost or other basis of the item of property less depreciation. How to file taxes student See Publication 551. How to file taxes student Multiple property account. How to file taxes student   For a normal retirement from a multiple property account, if you figured depreciation using the average expected useful life, the adjusted basis is the salvage value estimated for the item of property when it was originally acquired. How to file taxes student If you figured depreciation using the maximum expected useful life of the longest lived item of property in the account, you must use the depreciation method used for the multiple property account and a rate based on the maximum expected useful life of the item of property retired. How to file taxes student   You make the adjustment for depreciation for an abnormal retirement from a multiple property account at the rate that would be proper if the item of property was depreciated in a single property account. How to file taxes student The method of depreciation used for the multiple property account is used. How to file taxes student You base the rate on either the average expected useful life or the maximum expected useful life of the retired item of property, depending on the method used to determine the depreciation rate for the multiple property account. How to file taxes student Prev  Up  Next   Home   More Online Publications
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The How To File Taxes Student

How to file taxes student 4. How to file taxes student   Underpayment Penalty for 2013 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: General RuleFarmers and fishermen. How to file taxes student Higher income taxpayers. How to file taxes student Minimum required for higher income taxpayers. How to file taxes student Estate or trust payments of estimated tax. How to file taxes student Lowering or eliminating the penalty. How to file taxes student ExceptionsLess Than $1,000 Due No Tax Liability Last Year Figuring Your Required Annual Payment (Part I) Short Method for Figuring the Penalty (Part III) Regular Method for Figuring the Penalty (Part IV)Figuring Your Underpayment (Part IV, Section A) Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Annualized Income Installment Method (Schedule AI) Farmers and Fishermen Waiver of PenaltyFarmers and fishermen. How to file taxes student Introduction If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have underpaid your estimated tax and may have to pay a penalty. How to file taxes student You may understand this chapter better if you can refer to a copy of your latest federal income tax return. How to file taxes student No penalty. How to file taxes student   Generally, you will not have to pay a penalty for 2013 if any of the following apply. How to file taxes student The total of your withholding and timely estimated tax payments was at least as much as your 2012 tax. How to file taxes student (See Special rules for certain individuals for higher income taxpayers and farmers and fishermen. How to file taxes student ) 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 file taxes student Your total tax for 2013 (defined later) minus your withholding is less than $1,000. How to file taxes student You did not have a tax liability for 2012. How to file taxes student You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000. How to file taxes student IRS can figure the penalty for you. How to file taxes student   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 file taxes student Generally, the IRS will figure the penalty for you and send you a bill. How to file taxes student   You only need to figure your penalty in the following three situations. How to file taxes student You are requesting a waiver of part, but not all, of the penalty. How to file taxes student You are using the annualized income installment method to figure the penalty. How to file taxes student You are treating the federal income tax withheld from your income as paid on the dates actually withheld. How to file taxes student However, if these situations do not apply to you, and you think you can lower or eliminate your penalty, complete Form 2210 or Form 2210-F and attach it to your return. How to file taxes student See Form 2210 , later. How to file taxes student Topics - This chapter discusses: The general rule for the underpayment penalty, Special rules for certain individuals, Exceptions to the underpayment penalty, How to figure your underpayment and the amount of your penalty on Form 2210, and How to ask the IRS to waive the penalty. How to file taxes student Useful Items - You may want to see: Form (and Instructions) 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen See chapter 5 for information about getting these forms. How to file taxes student General Rule In general, you may owe a penalty for 2013 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of: 90% of your 2013 tax, or 100% of your 2012 tax. How to file taxes student (Your 2012 tax return must cover a 12-month period. How to file taxes student ) Your 2013 tax, for this purpose, is defined under Total tax for 2013 , later. How to file taxes student Special rules for certain individuals. How to file taxes student   There are special rules for farmers and fishermen and certain higher income taxpayers. How to file taxes student Farmers and fishermen. How to file taxes student   If at least two-thirds of your gross income for 2012 or 2013 is from farming or fishing, substitute  662/3% for 90% in (1) above. How to file taxes student   See Farmers and Fishermen , later. How to file taxes student Higher income taxpayers. How to file taxes student   If your AGI for 2012 was more than $150,000 ($75,000 if your 2013 filing status is married filing a separate return), substitute 110% for 100% in (2) under General Rule . How to file taxes student This rule does not apply to farmers or fishermen. How to file taxes student   For 2012, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. How to file taxes student Penalty figured separately for each period. How to file taxes student   Because the penalty is figured separately for each payment period, you may owe a penalty for an earlier payment period even if you later paid enough to make up the underpayment. How to file taxes student This is true even if you are due a refund when you file your income tax return. How to file taxes student Example. How to file taxes student You did not make estimated tax payments for 2013 because you thought you had enough tax withheld from your wages. How to file taxes student Early in January 2014, you made an estimate of your total 2013 tax. How to file taxes student Then you realized that your withholding was $2,000 less than the amount needed to avoid a penalty for underpayment of estimated tax. How to file taxes student On January 10, you made an estimated tax payment of $3,000, which is the difference between your withholding and your estimate of your total tax. How to file taxes student Your final return shows your total tax to be $50 less than your estimate, so you are due a refund. How to file taxes student You do not owe a penalty for your payment due January 15, 2014. How to file taxes student However, you may owe a penalty through January 10, 2014, the day you made the $3,000 payment, for your underpayments for the earlier payment periods. How to file taxes student Minimum required each period. How to file taxes student   You will owe a penalty for any 2013 payment period for which your estimated tax payment plus your withholding for the period and overpayments applied from previous periods was less than the smaller of: 22. How to file taxes student 5% of your 2013 tax, or 25% of your 2012 tax. How to file taxes student (Your 2012 tax return must cover a 12-month period. How to file taxes student ) Minimum required for higher income taxpayers. How to file taxes student   If you are subject to the rule for higher income taxpayers, discussed above, substitute 27. How to file taxes student 5% for 25% in (2) under General Rule . How to file taxes student When penalty is charged. How to file taxes student   If you miss a payment or you paid less than the minimum required in a period, you may be charged an underpayment penalty from the date the amount was due to the date the payment is made. How to file taxes student If a payment is mailed, the date of the U. How to file taxes student S. How to file taxes student postmark is considered the date of payment. How to file taxes student   If a payment is made electronically, the date the payment is shown on your payment account (checking, savings, etc. How to file taxes student ) is considered to be the date of payment. How to file taxes student Estate or trust payments of estimated tax. How to file taxes student   If you have estimated taxes credited to you from an estate or trust (Schedule K-1 (Form 1041)), treat the payment as made by you on January 15, 2014. How to file taxes student Amended returns. How to file taxes student    If you file an amended return by the due date of your original return, use the tax shown on your amended return to figure your required estimated tax payments. How to file taxes student If you file an amended return after the due date of the original return, use the tax shown on the original return. How to file taxes student   However, if you and your spouse file a joint return after the due date to replace separate returns you originally filed by the due date, use the tax shown on the joint return to figure your required estimated tax payments. How to file taxes student This rule applies only if both original separate returns were filed on time. How to file taxes student 2012 separate returns and 2013 joint return. How to file taxes student    If you file a joint return with your spouse for 2013, but you filed separate returns for 2012, your 2012 tax is the total of the tax shown on your separate returns. How to file taxes student You filed a separate return if you filed as single, head of household, or married filing separately. How to file taxes student 2012 joint return and 2013 separate returns. How to file taxes student    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, your 2012 tax is your share of the tax on the joint return. How to file taxes student You are filing a separate return if you file as single, head of household, or married filing separately. How to file taxes student   To figure your share of the taxes on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2012 using the same filing status as for 2013. How to file taxes student Then multiply the tax on the joint return by the following fraction. How to file taxes student   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 file taxes student Lisa and Paul filed a joint return for 2012 showing taxable income of $49,000 and a tax of $6,484. How to file taxes student Of the $49,000 taxable income, $41,000 was Lisa's and the rest was Paul's. How to file taxes student For 2013, they file married filing separately. How to file taxes student Lisa figures her share of the tax on the 2012 joint return as follows. How to file taxes student 2012 tax on $41,000 based on a separate return $ 6,286 2012 tax on $8,000 based on a  separate return 803 Total $ 7,089 Lisa's percentage of total tax  ($6,286 ÷ $ 7,089) 88. How to file taxes student 67% Lisa's part of tax on joint return ($6,484 × 88. How to file taxes student 67%) $ 5,749 Form 2210. How to file taxes student   In most cases, you do not need to file Form 2210. How to file taxes student The IRS will figure the penalty for you and send you a bill. How to file taxes student If you want us to figure the penalty for you, leave the penalty line on your return blank. How to file taxes student Do not file Form 2210. How to file taxes student   To determine if you should file Form 2210, see Part II of Form 2210. How to file taxes student If you decide to figure your penalty, complete Part I, Part II, and either Part III or Part IV of the form and the Penalty Worksheet in the Instructions for Form 2210. How to file taxes student If you use Form 2210, you cannot file Form 1040EZ. How to file taxes student   On Form 1040, enter the amount of your penalty on line 77. How to file taxes student If you owe tax on line 76, add the penalty to your tax due and show your total payment on line 76. How to file taxes student If you are due a refund, subtract the penalty from the overpayment and enter the result on line 73. How to file taxes student   On Form 1040A, enter the amount of your penalty on line 46. How to file taxes student If you owe tax on line 45, add the penalty to your tax due and show your total payment on line 45. How to file taxes student If you are due a refund, subtract the penalty from the overpayment and enter the result on line 42. How to file taxes student Lowering or eliminating the penalty. How to file taxes student    You may be able to lower or eliminate your penalty if you file Form 2210. How to file taxes student You must file Form 2210 with your return if any of the following applies. How to file taxes student You request a waiver. How to file taxes student See Waiver of Penalty , later. How to file taxes student You use the annualized income installment method. How to file taxes student See the explanation of this method under Annualized Income Installment Method (Schedule AI) . How to file taxes student You use your actual withholding for each payment period for estimated tax purposes. How to file taxes student See Actual withholding method under Figuring Your Underpayment (Part IV, Section A). How to file taxes student You base any of your required installments on the tax shown on your 2012 return and you filed or are filing a joint return for either 2012 or 2013, but not for both years. How to file taxes student Exceptions Generally, you do not have to pay an underpayment penalty if either: Your total tax is less than $1,000, or You had no tax liability last year. How to file taxes student Less Than $1,000 Due You do not owe a penalty if the total tax shown on your return minus the amount you paid through withholding (including excess social security and tier 1 railroad retirement (RRTA) tax withholding) is less than $1,000. How to file taxes student Total tax for 2013. How to file taxes student   For 2013, your total tax on Form 1040 is the amount on line 61 reduced by the following. How to file taxes student    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). How to file taxes student Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. How to file taxes student The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. How to file taxes student Any refundable credit amounts listed on lines 64a, 65, 66, 70, and any credit from Form 8885 included on line 71. How to file taxes student   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. How to file taxes student   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. How to file taxes student Note. How to file taxes student When figuring the amount on line 60, include household employment taxes only if you had federal income tax withheld from your income or you would owe the penalty even if you did not include those taxes. How to file taxes student Paid through withholding. How to file taxes student    For 2013, the amount you paid through withholding on Form 1040 is the amount on line 62 plus any excess social security or tier 1 RRTA tax withholding on line 69. How to file taxes student Add to that any write-in amount on line 72 identified as “Form 8689. How to file taxes student ” On Form 1040A, the amount you paid through withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included on line 41. How to file taxes student On Form 1040EZ, it is the amount on line 7. How to file taxes student No Tax Liability Last Year You do not owe a penalty if you had no tax liability last year and you were a U. How to file taxes student S. How to file taxes student citizen or resident for the whole year. How to file taxes student For this rule to apply, your tax year must have included all 12 months of the year. How to file taxes student You had no tax liability for 2012 if your total tax was zero or you were not required to file an income tax return. How to file taxes student Example. How to file taxes student Ray, who is single and 22 years old, was unemployed for a few months during 2012. How to file taxes student He earned $6,700 in wages before he was laid off, and he received $1,400 in unemployment compensation afterwards. How to file taxes student He had no other income. How to file taxes student Even though he had gross income of $8,100, he did not have to pay income tax because his gross income was less than the filing requirement for a single person under age 65 ($9,750 for 2012). How to file taxes student He filed a return only to have his withheld income tax refunded to him. How to file taxes student In 2013, Ray began regular work as an independent contractor. How to file taxes student Ray made no estimated tax payments in 2013. How to file taxes student Even though he did owe tax at the end of the year, Ray does not owe the underpayment penalty for 2013 because he had no tax liability in 2012. How to file taxes student Total tax for 2012. How to file taxes student   For 2012, your total tax on Form 1040 is the amount on line 61 reduced by the following. How to file taxes student    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). How to file taxes student Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. How to file taxes student The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. How to file taxes student Any refundable credit amounts listed on lines 64a, 65, 66, 70, and credits from Forms 8801 (line 27 only), and 8885 included on line 71. How to file taxes student   If you filed Form 1040A, your 2012 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. How to file taxes student   If you filed Form 1040EZ, your 2012 total tax is the amount on line 11 reduced by the amount on line 8a. How to file taxes student Figuring Your Required Annual Payment (Part I) Figure your required annual payment in Part I of Form 2210, following the line-by-line instructions. How to file taxes student If you rounded the entries on your tax return to whole dollars, you can round on Form 2210. How to file taxes student Example. How to file taxes student The tax on Lori Lane's 2012 return was $12,400. How to file taxes student Her AGI was not more than $150,000 for either 2012 or 2013. How to file taxes student The tax on her 2013 return (Form 1040, line 55) is $13,044. How to file taxes student Line 56 (self-employment tax) is $8,902. How to file taxes student Her 2013 total tax is $21,946. How to file taxes student For 2013, Lori had $1,600 income tax withheld and made four equal estimated tax payments ($1,000 each). How to file taxes student 90% of her 2013 tax is $19,751. How to file taxes student Because she paid less than her 2012 tax ($12,400) and less than 90% of her 2013 tax ($19,751), and does not meet an exception, Lori knows that she owes a penalty for underpayment of estimated tax. How to file taxes student The IRS will figure the penalty for Lori, but she decides to figure it herself on Form 2210 and pay it with her taxes when she files her tax return. How to file taxes student Lori's required annual payment is $12,400 (100% of 2012 tax) because that is smaller than 90% of her 2013 tax. How to file taxes student Different 2012 filing status. How to file taxes student    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, see 2012 joint return and 2013 separate returns , earlier, to figure the amount to enter as your 2012 tax on line 8 of Form 2210. How to file taxes student Short Method for Figuring the Penalty (Part III) You may be able to use the short method in Part III of Form 2210 to figure your penalty for underpayment of estimated tax. How to file taxes student If you qualify to use this method, it will result in the same penalty amount as the regular method. How to file taxes student However, either the annualized income installment method or the actual withholding method, explained later, may result in a smaller penalty. How to file taxes student You can use the short method only if you meet one of the following requirements. How to file taxes student You made no estimated tax payments for 2013 (it does not matter whether you had income tax withholding). How to file taxes student You paid the same amount of estimated tax on each of the four payment due dates. How to file taxes student If you do not meet either requirement, figure your penalty using the regular method in Part IV of Form 2210 and the Penalty Worksheet in the instructions. How to file taxes student Note. How to file taxes student If any payment was made before the due date, you can use the short method, but the penalty may be less if you use the regular method. How to file taxes student However, if the payment was only a few days early, the difference is likely to be small. How to file taxes student You cannot use the short method if any of the following apply. How to file taxes student You made any estimated tax payments late. How to file taxes student You checked box C or D in Part II of Form 2210. How to file taxes student You are filing Form 1040NR or 1040NR-EZ and you did not receive wages as an employee subject to U. How to file taxes student S. How to file taxes student income tax withholding. How to file taxes student If you use the short method, you cannot use the annualized income installment method to figure your underpayment for each payment period. How to file taxes student Also, you cannot use your actual withholding during each period to figure your payments for each period. How to file taxes student These methods, which may give you a smaller penalty amount, are explained under Figuring Your Underpayment (Part IV, Section A). How to file taxes student Complete Part III of Form 2210 following the line-by-line instructions in the Instructions for Form 2210. How to file taxes student Regular Method for Figuring the Penalty (Part IV) You can use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if you paid one or more estimated tax payments earlier than the due date. How to file taxes student You must use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if any of the following apply to you. How to file taxes student You paid one or more estimated tax payments on a date after the due date. How to file taxes student You paid at least one, but less than four, installments of estimated tax. How to file taxes student You paid estimated tax payments in un- equal amounts. How to file taxes student You use the annualized income installment method to figure your underpayment for each payment period. How to file taxes student You use your actual withholding during each payment period to figure your payments. How to file taxes student Under the regular method, figure your underpayment for each payment period in Section A, then figure your penalty using the Penalty Worksheet in the Instructions for Form 2210. How to file taxes student Enter the results on line 27 of Section B. How to file taxes student Figuring Your Underpayment (Part IV, Section A) Figure your underpayment of estimated tax for each payment period in Section A following the line-by-line instructions in the Instructions for Form 2210. How to file taxes student Complete lines 20 through 26 of the first column before going to line 20 of the next column. How to file taxes student Required installments—line 18. How to file taxes student   Your required payment for each payment period (line 18) is usually one-fourth of your required annual payment (Part I, line 9). How to file taxes student This method—the regular method—is the one to use if you received your income evenly throughout the year. How to file taxes student   However, if you did not receive your income evenly throughout the year, you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. How to file taxes student First complete Schedule AI (Form 2210), then enter the amounts from line 25 of that schedule on line 18 of Form 2210, Part IV. How to file taxes student See Annualized Income Installment Method (Schedule AI), later. How to file taxes student Payments made—line 19. How to file taxes student   Enter in each column the total of: Your estimated tax paid after the due date for the previous column and by the due date shown at the top of the column, and One-fourth of your withholding. How to file taxes student For special rules for figuring your payments, see Form 2210 instructions for line 19. How to file taxes student   If you file Form 1040, your withholding is the amount on line 62, plus any excess social security or tier 1 RRTA tax withholding on line 69. How to file taxes student If you file Form 1040A, your withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included in line 41. How to file taxes student Actual withholding method. How to file taxes student    Instead of using one-fourth of your withholding for each quarter, you can choose to use the amounts actually withheld by each due date. How to file taxes student You can make this choice separately for the tax withheld from your wages and for all other withholding. How to file taxes student This includes any excess social security and tier 1 RRTA tax withheld. How to file taxes student   Using your actual withholding may result in a smaller penalty if most of your withholding occurred early in the year. How to file taxes student   If you use your actual withholding, you must check box D in Form 2210, Part II. How to file taxes student Then complete Form 2210 using the regular method (Part IV) and file it with your return. How to file taxes student Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Figure the amount of your penalty for Section B using the Penalty Worksheet in the Form 2210 instructions. How to file taxes student The penalty is imposed on each underpayment amount shown on Form 2210, Section A, line 25, for the number of days that it remained unpaid. How to file taxes student For 2013, there are four rate periods—April 16 through June 30, July 1 through September 30, October 1 through December 31, and January 1, 2014 through April 15, 2014. How to file taxes student A 3% rate applies to all four periods. How to file taxes student Payments. How to file taxes student    Before completing the Penalty Worksheet, it may be helpful to make a list of the payments you made and income tax withheld after the due date (or the last day payments could be made on time) for the earliest payment period an underpayment occurred. How to file taxes student For example, if you had an underpayment for the first payment period, list your payments after April 15, 2013. How to file taxes student You can use the table in the Form 2210 instructions to make your list. How to file taxes student Follow those instructions for listing income tax withheld and payments made with your return. How to file taxes student Use the list to determine when each underpayment was paid. How to file taxes student   If you mail your estimated tax payments, use the date of the U. How to file taxes student S. How to file taxes student postmark as the date of payment. How to file taxes student Line 1b. How to file taxes student   Apply the payments listed to underpayment balance in the first column until it is fully paid. How to file taxes student Apply payments in the order made. How to file taxes student Figuring the penalty. How to file taxes student   If an underpayment was paid in two or more payments on different dates, you must figure the penalty separately for each payment. How to file taxes student On line 3 of the Penalty Worksheet enter the number of days between the due date (line 2) and the date of each payment on line 1b. How to file taxes student On line 4 figure the penalty for the amount of each payment applied on line 1b or the amount remaining unpaid. How to file taxes student If no payments are applied, figure the penalty on the amount on line 1a. How to file taxes student Aid for counting days. How to file taxes student    Table 4-1 provides a simple method for counting the number of days between a due date and a payment date. How to file taxes student Find the number for the date the payment was due by going across to the column of the month the payment was due and moving down the column to the due date. How to file taxes student In the same manner, find the number for the date the payment was made. How to file taxes student Subtract the due date “number” from the payment date “number. How to file taxes student ”   For example, if a payment was due on June 15 (61), but was not paid until September 1 (139), the payment was 78 (139 – 61) days late. How to file taxes student Table 4-1. How to file taxes student Calendar To Determine the Number of Days a Payment Is Late Instructions. How to file taxes student Use this table with Form 2210 if you are completing Part IV, Section B. How to file taxes student First, find the number for the payment due date by going across to the column of the month the payment was due and moving down the column to the due date. How to file taxes student Then, in the same manner, find the number for the date the payment was made. How to file taxes student Finally, subtract the due date number from the payment date number. How to file taxes student The result is the number of days the payment is late. How to file taxes student Example. How to file taxes student The payment due date is June 15 (61). How to file taxes student The payment was made on November 4 (203). How to file taxes student The payment is 142 days late (203 – 61). How to file taxes student Tax Year 2013 Day of 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 Month April May June July Aug. How to file taxes student Sept. How to file taxes student Oct. How to file taxes student Nov. How to file taxes student Dec. How to file taxes student Jan. How to file taxes student Feb. How to file taxes student Mar. How to file taxes student Apr. How to file taxes student 1   16 47 77 108 139 169 200 230 261 292 320 351 2   17 48 78 109 140 170 201 231 262 293 321 352 3   18 49 79 110 141 171 202 232 263 294 322 353 4   19 50 80 111 142 172 203 233 264 295 323 354 5   20 51 81 112 143 173 204 234 265 296 324 355 6   21 52 82 113 144 174 205 235 266 297 325 356 7   22 53 83 114 145 175 206 236 267 298 326 357 8   23 54 84 115 146 176 207 237 268 299 327 358 9   24 55 85 116 147 177 208 238 269 300 328 359 10   25 56 86 117 148 178 209 239 270 301 329 360 11   26 57 87 118 149 179 210 240 271 302 330 361 12   27 58 88 119 150 180 211 241 272 303 331 362 13   28 59 89 120 151 181 212 242 273 304 332 363 14   29 60 90 121 152 182 213 243 274 305 333 364 15 0 30 61 91 122 153 183 214 244 275 306 334 365 16 1 31 62 92 123 154 184 215 245 276 307 335   17 2 32 63 93 124 155 185 216 246 277 308 336   18 3 33 64 94 125 156 186 217 247 278 309 337   19 4 34 65 95 126 157 187 218 248 279 310 338   20 5 35 66 96 127 158 188 219 249 280 311 339   21 6 36 67 97 128 159 189 220 250 281 312 340   22 7 37 68 98 129 160 190 221 251 282 313 341   23 8 38 69 99 130 161 191 222 252 283 314 342   24 9 39 70 100 131 162 192 223 253 284 315 343   25 10 40 71 101 132 163 193 224 254 285 316 344   26 11 41 72 102 133 164 194 225 255 286 317 345   27 12 42 73 103 134 165 195 226 256 287 318 346   28 13 43 74 104 135 166 196 227 257 288 319 347   29 14 44 75 105 136 167 197 228 258 289   348   30 15 45 76 106 137 168 198 229 259 290   349   31   46   107 138   199   260 291   350   Annualized Income Installment Method (Schedule AI) If you did not receive your income evenly throughout the year (for example, your income from a shop you operated at a marina was much larger in the summer than it was during the rest of the year), you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. How to file taxes student Under this method, your required installment (Part IV, line 18) for one or more payment periods may be less than one-fourth of your required annual payment. How to file taxes student To figure your underpayment using this method, complete Form 2210, Schedule AI. How to file taxes student Schedule AI annualizes your tax at the end of each payment period based on your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. How to file taxes student If you use the annualized income installment method, you must check box C in Part II of Form 2210. How to file taxes student Also, you must attach Form 2210 and Schedule AI to your return. How to file taxes student If you use Schedule AI for any payment due date, you must use it for all payment due dates. How to file taxes student Completing Schedule AI. How to file taxes student   Follow the Form 2210 instructions to complete Schedule AI. How to file taxes student For each period shown on Schedule AI, figure your income and deductions based on your method of accounting. How to file taxes student If you use the cash method of accounting (used by most people), include all income actually or constructively received during the period and all deductions actually paid during the period. How to file taxes student Note. How to file taxes student Each period includes amounts from the previous period(s). How to file taxes student Period (a) includes items for January 1 through March 31. How to file taxes student Period (b) includes items for January 1 through May 31. How to file taxes student Period (c) includes items for January 1 through August 31. How to file taxes student Period (d) includes items for the entire year. How to file taxes student Farmers and Fishermen If you are a farmer or fisherman, the following special rules for underpayment of estimated tax apply to you. How to file taxes student The penalty for underpaying your 2013 estimated tax will not apply if you file your return and pay all the tax due by March 3, 2014. How to file taxes student If you are a fiscal year taxpayer, the penalty will not apply if you file your return and pay the tax due by the first day of the third month after the end of your tax year. How to file taxes student Any penalty you owe for underpaying your 2013 estimated tax will be figured from one payment due date, January 15, 2014. How to file taxes student The underpayment penalty for 2013 is figured on the difference between the amount of 2013 withholding plus estimated tax paid by the due date and the smaller of: 662/3% (rather than 90%) of your 2013 tax, or 100% of the tax shown on your 2012 return. How to file taxes student Even if these special rules apply to you, you will not owe the penalty if you meet either of the two conditions discussed under Exceptions . How to file taxes student See Who Must Pay Estimated Tax in chapter 2 for the definition of a farmer or fisherman who is eligible for these special rules. How to file taxes student Form 2210-F. How to file taxes student   Use Form 2210-F to figure any underpayment penalty. How to file taxes student Do not attach it to your return unless you check a box in Part I. How to file taxes student However, if none of the boxes apply to you and you owe a penalty, you do not need to attach Form 2210-F. How to file taxes student Enter the amount from line 16 on Form 1040, line 77 and add the penalty to any balance due on your return or subtract it from your refund. How to file taxes student Keep your filled-in Form 2210-F for your records. How to file taxes student    If none of the boxes on Form 2210-F apply to you and you owe a penalty, the IRS can figure your penalty and send you a bill. How to file taxes student Waiver of Penalty The IRS can waive the penalty for underpayment if either of the following applies. How to file taxes student You did not make a payment because of a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty. How to file taxes student You retired (after reaching age 62) or became disabled in 2012 or 2013 and both the following requirements are met. How to file taxes student You had a reasonable cause for not making the payment. How to file taxes student Your underpayment was not due to willful neglect. How to file taxes student How to request a waiver. How to file taxes student   To request a waiver, see the Instructions for Form 2210. How to file taxes student Farmers and fishermen. How to file taxes student   To request a waiver, see the Instructions for Form 2210-F. How to file taxes student Federally declared disaster. How to file taxes student   Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster. How to file taxes student During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief. How to file taxes student Do not file Form 2210 or 2210-F if your underpayment was due to a federally declared disaster. How to file taxes student If you still owe a penalty after the automatic waiver is applied, we will send you a bill. How to file taxes student   Individuals, estates, and trusts not in a covered disaster area but whose books, records, or tax professionals' offices are in a covered area are also entitled to relief. How to file taxes student Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. How to file taxes student If you meet either of these eligibility requirements, you must call the IRS disaster hotline at 1-866-562-5227 and identify yourself as eligible for this relief. How to file taxes student   Details on the applicable disaster postponement period can be found at IRS. How to file taxes student gov. How to file taxes student Enter Tax Relief in Disaster Situations. How to file taxes student Select the federally declared disaster that affected you. How to file taxes student    Worksheet 4-1. How to file taxes student 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Note. How to file taxes student To figure the annualized entries for lines 2, 3, and 5 below, multiply the expected amount for the period by the  annualization amount on line 2 of Schedule AI for the same period. How to file taxes student                   1. How to file taxes student Enter line 11 of your Schedule AI, or line 3 from Worksheet 4-2 1. How to file taxes student       2. How to file taxes student Enter your annualized qualified dividends for the period 2. How to file taxes student           3. How to file taxes student Are you filing Schedule D?               □ Yes. How to file taxes student Enter the smaller of your annualized amount from line 15 or line 16 of Schedule D. How to file taxes student If either line 15 or line 16 is blank or a loss, enter -0-. How to file taxes student 3. How to file taxes student             □ No. How to file taxes student Enter your annualized capital gain distributions from Form 1040, line 13             4. How to file taxes student Add lines 2 and 3   4. How to file taxes student           5. How to file taxes student If you are claiming investment interest expense on Form 4952, enter your annualized amount from line 4g of that form. How to file taxes student Otherwise, enter -0-   5. How to file taxes student           6. How to file taxes student Subtract line 5 from line 4. How to file taxes student If zero or less, enter -0- 6. How to file taxes student       7. How to file taxes student Subtract line 6 from line 1. How to file taxes student If zero or less, enter -0- 7. How to file taxes student       8. How to file taxes student Enter: $36,900 if single or married filing separately, $73,800 if married filing jointly or qualifying widow(er), $49,400 if head of household. How to file taxes student 8. How to file taxes student       9. How to file taxes student Enter the smaller of line 1 or line 8 9. How to file taxes student       10. How to file taxes student Enter the smaller of line 7 or line 9 10. How to file taxes student       11. How to file taxes student Subtract line 10 from line 9. How to file taxes student This amount is taxed at 0% 11. How to file taxes student       12. How to file taxes student Enter the smaller of line 1 or line 6 12. How to file taxes student       13. How to file taxes student Enter the amount from line 11 13. How to file taxes student       14. How to file taxes student Subtract line 13 from line 12 14. How to file taxes student       15. How to file taxes student Multiply line 14 by 15% (. How to file taxes student 15) 15. How to file taxes student   16. How to file taxes student Figure the tax on the amount on line 7. How to file taxes student If the amount on line 7 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. How to file taxes student If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 16. How to file taxes student   17. How to file taxes student Add lines 15 and 16 17. How to file taxes student   18. How to file taxes student Figure the tax on the amount on line 1. How to file taxes student If the amount on line 1 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. How to file taxes student If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 18. How to file taxes student   19. How to file taxes student Tax on all taxable income. How to file taxes student Enter the smaller of line 17 or line 18. How to file taxes student Also enter this amount on line 12 of Schedule AI in the appropriate column. How to file taxes student However, if you are using this worksheet to figure the tax on the amount on line 3 of Worksheet 4-2, enter the amount from line 19 on Worksheet 4-2, line 4 19. How to file taxes student   Worksheet 4-2. How to file taxes student 2013 Form 2210, Schedule AI—Line 12 Foreign Earned Income Tax Worksheet Before you begin:If Schedule AI, line 11, is zero for the period, do not complete this worksheet. How to file taxes student             1. How to file taxes student Enter the amount from line 11 of Schedule AI for the period 1. How to file taxes student   2. How to file taxes student Enter the annualized amount* of foreign earned income and housing amount excluded or deducted (from  Form 2555, lines 45 and 50, or Form 2555-EZ, line 18) in figuring the amount entered for the period on line 1  of Schedule AI 2. How to file taxes student   3. How to file taxes student Add lines 1 and 2 3. How to file taxes student   4. How to file taxes student Tax on the amount on line 3. How to file taxes student Use the Tax Table, Tax Computation Worksheet, Form 8615**, Qualified Dividends and Capital Gain Tax Worksheet***, or Schedule D Tax Worksheet***, whichever applies. How to file taxes student See the 2013 Instructions for Form 1040, line 44, to find out which tax computation method to use. How to file taxes student (Note. How to file taxes student You do not have to use the same method for each period on Schedule AI. How to file taxes student ) 4. How to file taxes student   5. How to file taxes student Tax on the amount on line 2. How to file taxes student If the amount on line 2 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. How to file taxes student If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 5. How to file taxes student   6. How to file taxes student Subtract line 5 from line 4. How to file taxes student Enter the result here and on line 12 of Schedule AI. How to file taxes student If zero or less,  enter -0- 6. How to file taxes student             * To figure the annualized amount for line 2, multiply the exclusion or deduction for the period by the annualization amount on line 2 of Schedule AI for the same period. How to file taxes student     ** If you use Form 8615 to figure the tax on line 4 above, enter the amount from line 3 above on line 4 of Form 8615. How to file taxes student If the child's parent files Form 2555 or 2555-EZ, enter the amounts from lines 3 and 4 of the parent's Foreign Earned Income Tax Worksheet on lines 6 and 10, respectively, of Form 8615. How to file taxes student Complete the rest of Form 8615 according to its instructions. How to file taxes student Then complete lines 5 and 6 above. How to file taxes student     *** Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet (or Worksheet 4-1 in this chapter) or the Schedule D Tax Worksheet, whichever worksheet you use to figure the tax on line 4 above. How to file taxes student Complete that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). How to file taxes student Next, determine if you have a capital gain excess. How to file taxes student     Figuring capital gain excess. How to file taxes student To find out if you have a capital gain excess for the appropriate period, subtract line 11 of Schedule AI from line 6 of Worksheet 4-1 or your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). How to file taxes student If the result is more than zero, that amount is your capital gain excess. How to file taxes student     No capital gain excess. How to file taxes student If you do not have a capital gain excess, complete the rest of Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or the Schedule D Tax Worksheet according to the worksheet's instructions. How to file taxes student Then complete lines 5 and 6 above. How to file taxes student     Capital gain excess. How to file taxes student If you have a capital gain excess, complete a second Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. How to file taxes student Then complete lines 5 and 6 above. How to file taxes student     Make the modifications below only for purposes of filling out Worksheet 4-2 above. How to file taxes student     a. How to file taxes student Reduce (but not below zero) the amount you otherwise would enter on line 3 of your Worksheet 4-1, line 3 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 9 of your Schedule D Tax Worksheet by your capital gain excess. How to file taxes student     b. How to file taxes student Reduce (but not below zero) the amount you otherwise would enter on line 2 of your Worksheet 4-1, line 2 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (a) above. How to file taxes student     c. How to file taxes student Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess. How to file taxes student     d. How to file taxes student Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet in the 2013 Instructions for Schedule D (Form 1040). 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