Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Tax Act 2012

Tax 2010Late Tax FilingAmended 1040 EzIrs Gov 2012 Tax FormsFile 1040ezFree File State Taxes OnlineFile Taxes 2009Free Tax EfileFree Tax Preparation H&r Block2011 Tax Forms 1040ezIrs Forms 1040ez InstructionsState Income TaxI Need To File 2011 TaxesState Tax Preparation FreeFree State Tax EfileCan I Fill 2010 Taxes This YearFree Tax File 2010Can I E File 1040xAmending My 2011 Tax ReturnFree File State TaxFree Tax UsaFile Taxes Last YearFree Irs Tax FilingIrs Extension Form 2011How To Amend Your Tax Return1040ez Worksheet Line 5File 2012 TaxesAmend Tax Return InstructionsTaxes Online 1040ez2013 1040 EzWhere To File Federal Tax Return 20112012 Tax Amendment FormHr Block Free E FileFiling Taxes With UnemploymentFree Online State And Federal Tax FilingFree FileFree Efile State TaxFederal Tax Amended Return2011 1040ez Tax FormTaxact 2011 Download Free

Tax Act 2012

Tax act 2012 Publication 915 - Introductory Material Table of Contents Reminders IntroductionOrdering forms and publications. Tax act 2012 Tax questions. Tax act 2012 Useful Items - You may want to see: Reminders Future developments. Tax act 2012  The IRS has created a page on IRS. Tax act 2012 gov for information about Publication 915, at www. Tax act 2012 irs. Tax act 2012 gov/pub915. Tax act 2012 Information about any future developments affecting Publication 915 (such as legislation enacted after we release it) will be posted on that page. Tax act 2012 Photographs of missing children. Tax act 2012  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Tax act 2012 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Tax act 2012 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Tax act 2012 Introduction This publication explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits. Tax act 2012 It is prepared through the joint efforts of the Internal Revenue Service (IRS), the Social Security Administration (SSA), and the U. Tax act 2012 S. Tax act 2012 Railroad Retirement Board (RRB). Tax act 2012 Social security benefits include monthly retirement, survivor, and disability benefits. Tax act 2012 They do not include supplemental security income (SSI) payments, which are not taxable. Tax act 2012 Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. Tax act 2012 They are commonly called the social security equivalent benefit (SSEB) portion of tier 1 benefits. Tax act 2012 If you received these benefits during 2013, you should have received a Form SSA-1099, Social Security Benefit Statement, or Form RRB-1099, Payments by the Railroad Retirement Board, showing the amount. Tax act 2012 (If you are a nonresident alien, you should have received Form SSA-1042S, Social Security Benefit Statement, or Form RRB-1042S, Statement for Nonresident Alien Recipients of: Payments by the Railroad Retirement Board. Tax act 2012 ) Note. Tax act 2012 When the term “benefits” is used in this publication, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits. Tax act 2012 What is covered in this publication. Tax act 2012   This publication covers the following topics: Whether any of your benefits are taxable, How much is taxable, How to report taxable benefits, How to treat lump-sum benefit payments, and Deductions related to your benefits, including a deduction or credit you can claim if your repayments are more than your gross benefits. Tax act 2012 The Appendix at the end of this publication explains items shown on your Form SSA-1099, SSA-1042S, RRB-1099, or RRB-1042S. Tax act 2012 What is not covered in this publication. Tax act 2012   This publication does not cover the tax rules for the following railroad retirement benefits: Non-social security equivalent benefit (NSSEB) portion of tier 1 benefits, Tier 2 benefits, Vested dual benefits, and Supplemental annuity benefits. Tax act 2012 For information on these taxable pension benefits, see Publication 575, Pension and Annuity Income. Tax act 2012   This publication also does not cover the tax rules for foreign social security benefits. Tax act 2012 These benefits are taxable as annuities, unless they are exempt from U. Tax act 2012 S. Tax act 2012 tax or treated as a U. Tax act 2012 S. Tax act 2012 social security benefit under a tax treaty. Tax act 2012 Comments and suggestions. Tax act 2012   We welcome your comments about this publication and your suggestions for future editions. Tax act 2012   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Tax act 2012 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Tax act 2012 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Tax act 2012   You can send your comments from www. Tax act 2012 irs. Tax act 2012 gov/formspubs/. Tax act 2012 Click on “More Information” and then on “Comment on Tax Forms and Publications”. Tax act 2012   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Tax act 2012 Ordering forms and publications. Tax act 2012   Visit www. Tax act 2012 irs. Tax act 2012 gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Tax act 2012 Internal Revenue Service 1201 N. Tax act 2012 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Tax act 2012   If you have a tax question, check the information available on IRS. Tax act 2012 gov or call 1-800-829-1040. Tax act 2012 We cannot answer tax questions sent to either of the above addresses. Tax act 2012 Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) Forms (and Instructions) 1040-ES Estimated Tax for Individuals SSA-1099 Social Security Benefit Statement RRB-1099 Payments by the Railroad Retirement Board W-4V Voluntary Withholding Request See How To Get Tax Help near the end of this publication for information about getting these publications and forms. Tax act 2012 Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Letter 1962C Frequently Asked Questions (FAQs)

What is the letter telling me?

This letter confirms your written request for a Direct Debit Installment Agreement has been approved. It explains the fees we charge for establishing your agreement. It also explains what to do if you qualify for a Low Income Fee Reduction.

What do I have to do?

Be sure to have the amount of your payment in your checking account by the due date in the letter.

What happens if the funds are not available?

If you are unable to have sufficient funds in your checking account, you must call us at least 10 days prior to your payment due date.

How much time do I have?

The customer has to make one manual payment before we can begin to take payments electronically.

What happens if I don't take any action?

If you do not ensure there are sufficient funds in your checking account, then your installment agreement will default. Your bank may charge you fees for insufficient funds.

Who should I contact?

The telephone number will be provided in your acknowledgement letter.

What if I don't agree or have already taken corrective action?

If you do not agree with this letter, call us immediately at the number included. We will do our best to help you. If you have called us about this matter before, but we did not correct the problem, you may want to contact the Office of the Taxpayer Advocate.

Page Last Reviewed or Updated: 30-Jan-2014

The Tax Act 2012

Tax act 2012 4. Tax act 2012   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. Tax act 2012  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. Tax act 2012 For more information, see Publication 505. Tax act 2012 Reminders Estimated tax safe harbor for higher income taxpayers. Tax act 2012  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. Tax act 2012 Introduction This chapter discusses how to pay your tax as you earn or receive income during the year. Tax act 2012 In general, the federal income tax is a pay-as-you-go tax. Tax act 2012 There are two ways to pay as you go. Tax act 2012 Withholding. Tax act 2012 If you are an employee, your employer probably withholds income tax from your pay. Tax act 2012 Tax also may be withheld from certain other income, such as pensions, bonuses, commissions, and gambling winnings. Tax act 2012 The amount withheld is paid to the IRS in your name. Tax act 2012 Estimated tax. Tax act 2012 If you do not pay your tax through withholding, or do not pay enough tax that way, you may have to pay estimated tax. Tax act 2012 People who are in business for themselves generally will have to pay their tax this way. Tax act 2012 Also, you may have to pay estimated tax if you receive income such as dividends, interest, capital gains, rent, and royalties. Tax act 2012 Estimated tax is used to pay not only income tax, but self-employment tax and alternative minimum tax as well. Tax act 2012 This chapter explains these methods. Tax act 2012 In addition, it also explains the following. Tax act 2012 Credit for withholding and estimated tax. Tax act 2012 When you file your 2013 income tax return, take credit for all the income tax withheld from your salary, wages, pensions, etc. Tax act 2012 , and for the estimated tax you paid for 2013. Tax act 2012 Also take credit for any excess social security or railroad retirement tax withheld (discussed in chapter 37). Tax act 2012 Underpayment penalty. Tax act 2012 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. Tax act 2012 In most cases, the IRS can figure this penalty for you. Tax act 2012 See Underpayment Penalty for 2013 at the end of this chapter. Tax act 2012 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. Tax act 2012 This section explains the rules for withholding tax from each of these types of income. Tax act 2012 This section also covers backup withholding on interest, dividends, and other payments. Tax act 2012 Salaries and Wages Income tax is withheld from the pay of most employees. Tax act 2012 Your pay includes your regular pay, bonuses, commissions, and vacation allowances. Tax act 2012 It also includes reimbursements and other expense allowances paid under a nonaccountable plan. Tax act 2012 See Supplemental Wages , later, for more information about reimbursements and allowances paid under a nonaccountable plan. Tax act 2012 If your income is low enough that you will not have to pay income tax for the year, you may be exempt from withholding. Tax act 2012 This is explained under Exemption From Withholding , later. Tax act 2012 You can ask your employer to withhold income tax from noncash wages and other wages not subject to withholding. Tax act 2012 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 . Tax act 2012 Military retirees. Tax act 2012   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. Tax act 2012 Household workers. Tax act 2012   If you are a household worker, you can ask your employer to withhold income tax from your pay. Tax act 2012 A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter. Tax act 2012   Tax is withheld only if you want it withheld and your employer agrees to withhold it. Tax act 2012 If you do not have enough income tax withheld, you may have to pay estimated tax, as discussed later under Estimated Tax for 2014 . Tax act 2012 Farmworkers. Tax act 2012   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. Tax act 2012 Differential wage payments. Tax act 2012    When employees are on leave from employment for military duty, some employers make up the difference between the military pay and civilian pay. Tax act 2012 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. Tax act 2012 The wages and withholding will be reported on Form W-2, Wage and Tax Statement. Tax act 2012   The credit employers can claim for differential wages paid to activated military reservists is scheduled to expire for wages paid after December 31, 2013. Tax act 2012 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. Tax act 2012 The amount you earn in each payroll period. Tax act 2012 The information you give your employer on Form W-4. Tax act 2012 Form W-4 includes four types of information that your employer will use to figure your withholding. Tax act 2012 Whether to withhold at the single rate or at the lower married rate. Tax act 2012 How many withholding allowances you claim (each allowance reduces the amount withheld). Tax act 2012 Whether you want an additional amount withheld. Tax act 2012 Whether you are claiming an exemption from withholding in 2014. Tax act 2012 See Exemption From Withholding , later. Tax act 2012 Note. Tax act 2012 You must specify a filing status and a number of withholding allowances on Form W-4. Tax act 2012 You cannot specify only a dollar amount of withholding. Tax act 2012 New Job When you start a new job, you must fill out Form W-4 and give it to your employer. Tax act 2012 Your employer should have copies of the form. Tax act 2012 If you need to change the information later, you must fill out a new form. Tax act 2012 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. Tax act 2012 You may be able to avoid overwithholding if your employer agrees to use the part-year method. Tax act 2012 See Part-Year Method in chapter 1 of Publication 505 for more information. Tax act 2012 Employee also receiving pension income. Tax act 2012   If you receive pension or annuity income and begin a new job, you will need to file Form W-4 with your new employer. Tax act 2012 However, you can choose to split your withholding allowances between your pension and job in any manner. Tax act 2012 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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 Generally, you can submit a new Form W-4 whenever you wish to change the number of your withholding allowances for any other reason. Tax act 2012 Changing your withholding for 2015. Tax act 2012   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. Tax act 2012 If the event occurs in December 2014, submit a new Form W-4 within 10 days. Tax act 2012 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. Tax act 2012 If too much or too little tax is being withheld, you should give your employer a new Form W-4 to change your withholding. Tax act 2012 You should try to have your withholding match your actual tax liability. Tax act 2012 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. Tax act 2012 If too much tax is withheld, you will lose the use of that money until you get your refund. Tax act 2012 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. Tax act 2012 Note. Tax act 2012 You cannot give your employer a payment to cover withholding on salaries and wages for past pay periods or a payment for estimated tax. Tax act 2012 Completing Form W-4 and Worksheets Form W-4 has worksheets to help you figure how many withholding allowances you can claim. Tax act 2012 The worksheets are for your own records. Tax act 2012 Do not give them to your employer. Tax act 2012 Multiple jobs. Tax act 2012   If you have income from more than one job at the same time, complete only one set of Form W-4 worksheets. Tax act 2012 Then split your allowances between the Forms W-4 for each job. Tax act 2012 You cannot claim the same allowances with more than one employer at the same time. Tax act 2012 You can claim all your allowances with one employer and none with the other(s), or divide them any other way. Tax act 2012 Married individuals. Tax act 2012   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. Tax act 2012 Use only one set of worksheets. Tax act 2012 You can divide your total allowances any way, but you cannot claim an allowance that your spouse also claims. Tax act 2012   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. Tax act 2012 Alternative method of figuring withholding allowances. Tax act 2012   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. Tax act 2012 For more information, see Alternative method of figuring withholding allowances under Completing Form W-4 and Worksheets in Publication 505, chapter 1. Tax act 2012 Personal Allowances Worksheet. Tax act 2012   Use the Personal Allowances Worksheet on Form W-4 to figure your withholding allowances based on exemptions and any special allowances that apply. Tax act 2012 Deduction and Adjustments Worksheet. Tax act 2012   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. Tax act 2012 Also, complete this worksheet when you have changes to these items to see if you need to change your withholding. Tax act 2012 Two-Earners/Multiple Jobs Worksheet. Tax act 2012   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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 You accurately complete all the Form W-4 worksheets that apply to you. Tax act 2012 You give your employer a new Form W-4 when changes occur. Tax act 2012 But because the worksheets and withholding methods do not account for all possible situations, you may not be getting the right amount withheld. Tax act 2012 This is most likely to happen in the following situations. Tax act 2012 You are married and both you and your spouse work. Tax act 2012 You have more than one job at a time. Tax act 2012 You have nonwage income, such as interest, dividends, alimony, unemployment compensation, or self-employment income. Tax act 2012 You will owe additional amounts with your return, such as self-employment tax. Tax act 2012 Your withholding is based on obsolete Form W-4 information for a substantial part of the year. Tax act 2012 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. Tax act 2012 You work only part of the year. Tax act 2012 You change the number of your withholding allowances during the year. Tax act 2012 Cumulative wage method. Tax act 2012   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. Tax act 2012 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. Tax act 2012 You must ask your employer in writing to use this method. Tax act 2012   To be eligible, you must have been paid for the same kind of payroll period (weekly, biweekly, etc. Tax act 2012 ) since the beginning of the year. Tax act 2012 Publication 505 To make sure you are getting the right amount of tax withheld, get Publication 505. Tax act 2012 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. Tax act 2012 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. Tax act 2012 If you do not have enough tax withheld, you may have to pay estimated tax, as explained under Estimated Tax for 2014 , later. Tax act 2012 You can use the IRS Withholding Calculator at www. Tax act 2012 irs. Tax act 2012 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. Tax act 2012 Rules Your Employer Must Follow It may be helpful for you to know some of the withholding rules your employer must follow. Tax act 2012 These rules can affect how to fill out your Form W-4 and how to handle problems that may arise. Tax act 2012 New Form W-4. Tax act 2012   When you start a new job, your employer should have you complete a Form W-4. Tax act 2012 Beginning with your first payday, your employer will use the information you give on the form to figure your withholding. Tax act 2012   If you later fill out a new Form W-4, your employer can put it into effect as soon as possible. Tax act 2012 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. Tax act 2012 No Form W-4. Tax act 2012   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. Tax act 2012 Repaying withheld tax. Tax act 2012   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. Tax act 2012 Your employer cannot repay any of the tax previously withheld. Tax act 2012 Instead, claim the full amount withheld when you file your tax return. Tax act 2012   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. Tax act 2012 Your employer can repay the amount that was withheld incorrectly. Tax act 2012 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. Tax act 2012 Exemption From Withholding If you claim exemption from withholding, your employer will not withhold federal income tax from your wages. Tax act 2012 The exemption applies only to income tax, not to social security or Medicare tax. Tax act 2012 You can claim exemption from withholding for 2014 only if both of the following situations apply. Tax act 2012 For 2013 you had a right to a refund of all federal income tax withheld because you had no tax liability. Tax act 2012 For 2014 you expect a refund of all federal income tax withheld because you expect to have no tax liability. Tax act 2012 Students. Tax act 2012   If you are a student, you are not automatically exempt. Tax act 2012 See chapter 1 to find out if you must file a return. Tax act 2012 If you work only part time or only during the summer, you may qualify for exemption from withholding. Tax act 2012 Age 65 or older or blind. Tax act 2012   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. Tax act 2012 Do not use either worksheet if you will itemize deductions, claim exemptions for dependents, or claim tax credits on your 2014 return. Tax act 2012 Instead, see Itemizing deductions or claiming exemptions or credits in chapter 1 of Publication 505. Tax act 2012 Claiming exemption from withholding. Tax act 2012   To claim exemption, you must give your employer a Form W-4. Tax act 2012 Do not complete lines 5 and 6. Tax act 2012 Enter “Exempt” on line 7. Tax act 2012   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. Tax act 2012 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. Tax act 2012   Your claim of exempt status may be reviewed by the IRS. Tax act 2012 An exemption is good for only 1 year. Tax act 2012   You must give your employer a new Form W-4 by February 15 each year to continue your exemption. Tax act 2012 Supplemental Wages Supplemental wages include bonuses, commissions, overtime pay, vacation allowances, certain sick pay, and expense allowances under certain plans. Tax act 2012 The payer can figure withholding on supplemental wages using the same method used for your regular wages. Tax act 2012 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. Tax act 2012 Expense allowances. Tax act 2012   Reimbursements or other expense allowances paid by your employer under a nonaccountable plan are treated as supplemental wages. Tax act 2012   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. Tax act 2012   For more information about accountable and nonaccountable expense allowance plans, see Reimbursements in chapter 26. Tax act 2012 Penalties You may have to pay a penalty of $500 if both of the following apply. Tax act 2012 You make statements or claim withholding allowances on your Form W-4 that reduce the amount of tax withheld. Tax act 2012 You have no reasonable basis for those statements or allowances at the time you prepare your Form W-4. Tax act 2012 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. Tax act 2012 The penalty upon conviction can be either a fine of up to $1,000 or imprisonment for up to 1 year, or both. Tax act 2012 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. Tax act 2012 A simple error or an honest mistake will not result in one of these penalties. Tax act 2012 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. Tax act 2012 Tips The tips you receive while working on your job are considered part of your pay. Tax act 2012 You must include your tips on your tax return on the same line as your regular pay. Tax act 2012 However, tax is not withheld directly from tip income, as it is from your regular pay. Tax act 2012 Nevertheless, your employer will take into account the tips you report when figuring how much to withhold from your regular pay. Tax act 2012 See chapter 6 for information on reporting your tips to your employer. Tax act 2012 For more information on the withholding rules for tip income, see Publication 531, Reporting Tip Income. Tax act 2012 How employer figures amount to withhold. Tax act 2012   The tips you report to your employer are counted as part of your income for the month you report them. Tax act 2012 Your employer can figure your withholding in either of two ways. Tax act 2012 By withholding at the regular rate on the sum of your pay plus your reported tips. Tax act 2012 By withholding at the regular rate on your pay plus a percentage of your reported tips. Tax act 2012 Not enough pay to cover taxes. Tax act 2012   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. Tax act 2012 See Giving your employer money for taxes in chapter 6. Tax act 2012 Allocated tips. Tax act 2012   Your employer should not withhold income tax, Medicare tax, social security tax, or railroad retirement tax on any allocated tips. Tax act 2012 Withholding is based only on your pay plus your reported tips. Tax act 2012 Your employer should refund to you any incorrectly withheld tax. Tax act 2012 See Allocated Tips in chapter 6 for more information. Tax act 2012 Taxable Fringe Benefits The value of certain noncash fringe benefits you receive from your employer is considered part of your pay. Tax act 2012 Your employer generally must withhold income tax on these benefits from your regular pay. Tax act 2012 For information on fringe benefits, see Fringe Benefits under Employee Compensation in chapter 5. Tax act 2012 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. Tax act 2012 Your employer must notify you if this choice is made. Tax act 2012 For more information on withholding on taxable fringe benefits, see chapter 1 of Publication 505. Tax act 2012 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. Tax act 2012 To qualify as sick pay, it must be paid under a plan to which your employer is a party. Tax act 2012 If you receive sick pay from your employer or an agent of your employer, income tax must be withheld. Tax act 2012 An agent who does not pay regular wages to you may choose to withhold income tax at a flat rate. Tax act 2012 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. Tax act 2012 See Form W-4S , later. Tax act 2012 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. Tax act 2012 Union agreements. Tax act 2012   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. Tax act 2012 See your union representative or your employer for more information. Tax act 2012 Form W-4S. Tax act 2012   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. Tax act 2012 Its instructions contain a worksheet you can use to figure the amount you want withheld. Tax act 2012 They also explain restrictions that may apply. Tax act 2012   Give the completed form to the payer of your sick pay. Tax act 2012 The payer must withhold according to your directions on the form. Tax act 2012 Estimated tax. Tax act 2012   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. Tax act 2012 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. Tax act 2012 See Underpayment Penalty for 2013 at the end of this chapter. Tax act 2012 Pensions and Annuities Income tax usually will be withheld from your pension or annuity distributions unless you choose not to have it withheld. Tax act 2012 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. Tax act 2012 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). Tax act 2012 Income tax withholding from an ERD is mandatory. Tax act 2012 More information. Tax act 2012   For more information on taxation of annuities and distributions (including ERDs) from qualified retirement plans, see chapter 10. Tax act 2012 For information on IRAs, see chapter 17. Tax act 2012 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. Tax act 2012 Gambling Winnings Income tax is withheld at a flat 25% rate from certain kinds of gambling winnings. Tax act 2012 Gambling winnings of more than $5,000 from the following sources are subject to income tax withholding. Tax act 2012 Any sweepstakes; wagering pool, including payments made to winners of poker tournaments; or lottery. Tax act 2012 Any other wager, if the proceeds are at least 300 times the amount of the bet. Tax act 2012 It does not matter whether your winnings are paid in cash, in property, or as an annuity. Tax act 2012 Winnings not paid in cash are taken into account at their fair market value. Tax act 2012 Exception. Tax act 2012   Gambling winnings from bingo, keno, and slot machines generally are not subject to income tax withholding. Tax act 2012 However, you may need to provide the payer with a social security number to avoid withholding. Tax act 2012 See Backup withholding on gambling winnings in chapter 1 of Publication 505. Tax act 2012 If you receive gambling winnings not subject to withholding, you may need to pay estimated tax. Tax act 2012 See Estimated Tax for 2014 , later. Tax act 2012 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. Tax act 2012 See Underpayment Penalty for 2013 at the end of this chapter. Tax act 2012 Form W-2G. Tax act 2012   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. Tax act 2012 Report the tax withheld on line 62 of Form 1040. Tax act 2012 Unemployment Compensation You can choose to have income tax withheld from unemployment compensation. Tax act 2012 To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Tax act 2012 All unemployment compensation is taxable. Tax act 2012 So, if you do not have income tax withheld, you may have to pay estimated tax. Tax act 2012 See Estimated Tax for 2014 , later. Tax act 2012 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. Tax act 2012 For information, see Underpayment Penalty for 2013 at the end of this chapter. Tax act 2012 Federal Payments You can choose to have income tax withheld from certain federal payments you receive. Tax act 2012 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. Tax act 2012 S. Tax act 2012 C. Tax act 2012 1421 et. Tax act 2012 seq. Tax act 2012 ), 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. Tax act 2012 To make this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. Tax act 2012 If you do not choose to have income tax withheld, you may have to pay estimated tax. Tax act 2012 See Estimated Tax for 2014 , later. Tax act 2012 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. Tax act 2012 For information, see Underpayment Penalty for 2013 at the end of this chapter. Tax act 2012 More information. Tax act 2012   For more information about the tax treatment of social security and railroad retirement benefits, see chapter 11. Tax act 2012 Get Publication 225, Farmer's Tax Guide, for information about the tax treatment of commodity credit corporation loans or crop disaster payments. Tax act 2012 Backup Withholding Banks or other businesses that pay you certain kinds of income must file an information return (Form 1099) with the IRS. Tax act 2012 The information return shows how much you were paid during the year. Tax act 2012 It also includes your name and taxpayer identification number (TIN). Tax act 2012 TINs are explained in chapter 1 under Social Security Number (SSN) . Tax act 2012 These payments generally are not subject to withholding. Tax act 2012 However, “backup” withholding is required in certain situations. Tax act 2012 Backup withholding can apply to most kinds of payments that are reported on Form 1099. Tax act 2012 The payer must withhold at a flat 28% rate in the following situations. Tax act 2012 You do not give the payer your TIN in the required manner. Tax act 2012 The IRS notifies the payer that the TIN you gave is incorrect. Tax act 2012 You are required, but fail, to certify that you are not subject to backup withholding. Tax act 2012 The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. Tax act 2012 The IRS will do this only after it has mailed you four notices over at least a 210-day period. Tax act 2012 See Backup Withholding in chapter 1 of Publication 505 for more information. Tax act 2012 Penalties. Tax act 2012   There are civil and criminal penalties for giving false information to avoid backup withholding. Tax act 2012 The civil penalty is $500. Tax act 2012 The criminal penalty, upon conviction, is a fine of up to $1,000 or imprisonment of up to 1 year, or both. Tax act 2012 Estimated Tax for 2014 Estimated tax is the method used to pay tax on income that is not subject to withholding. Tax act 2012 This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Tax act 2012 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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 For information on when the penalty applies, see Underpayment Penalty for 2013 at the end of this chapter. Tax act 2012 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. Tax act 2012 To do this, give a new Form W-4 to your employer. Tax act 2012 See chapter 1 of Publication 505. Tax act 2012 Estimated tax not required. Tax act 2012   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. Tax act 2012 You had no tax liability for 2013. Tax act 2012 You were a U. Tax act 2012 S. Tax act 2012 citizen or resident alien for the whole year. Tax act 2012 Your 2013 tax year covered a 12-month period. Tax act 2012   You had no tax liability for 2013 if your total tax was zero or you did not have to file an income tax return. Tax act 2012 For the definition of “total tax” for 2013, see Publication 505, chapter 2. Tax act 2012 Who Must Pay Estimated Tax If you owe additional tax for 2013, you may have to pay estimated tax for 2014. Tax act 2012 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. Tax act 2012 General rule. Tax act 2012   In most cases, you must pay estimated tax for 2014 if both of the following apply. Tax act 2012 You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Tax act 2012 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). Tax act 2012 Your 2013 tax return must cover all 12 months. Tax act 2012    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. Tax act 2012 Special rules for farmers, fishermen, and higher income taxpayers. Tax act 2012   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. Tax act 2012 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. Tax act 2012 See Figure 4-A and Publication 505, chapter 2 for more information. Tax act 2012 Figure 4-A. Tax act 2012 Do You Have To Pay Estimated Tax? Please click here for the text description of the image. Tax act 2012 Figure 4-A Do You Have To Pay Estimated Tax? Aliens. Tax act 2012   Resident and nonresident aliens also may have to pay estimated tax. Tax act 2012 Resident aliens should follow the rules in this chapter unless noted otherwise. Tax act 2012 Nonresident aliens should get Form 1040-ES (NR), U. Tax act 2012 S. Tax act 2012 Estimated Tax for Nonresident Alien Individuals. Tax act 2012   You are an alien if you are not a citizen or national of the United States. Tax act 2012 You are a resident alien if you either have a green card or meet the substantial presence test. Tax act 2012 For more information about the substantial presence test, see Publication 519, U. Tax act 2012 S. Tax act 2012 Tax Guide for Aliens. Tax act 2012 Married taxpayers. Tax act 2012   If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. Tax act 2012   You and your spouse can make joint estimated tax payments even if you are not living together. Tax act 2012   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)). Tax act 2012   If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income. Tax act 2012 Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. Tax act 2012 2013 separate returns and 2014 joint return. Tax act 2012   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. Tax act 2012 You filed a separate return if you filed as single, head of household, or married filing separately. Tax act 2012 2013 joint return and 2014 separate returns. Tax act 2012   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. Tax act 2012 You file a separate return if you file as single, head of household, or married filing separately. Tax act 2012   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. Tax act 2012 Then multiply the tax on the joint return by the following fraction. Tax act 2012     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. Tax act 2012 Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. Tax act 2012 Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. Tax act 2012 For 2014, they plan to file married filing separately. Tax act 2012 Joe figures his share of the tax on the 2013 joint return as follows. Tax act 2012   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. Tax act 2012 6%     Joe's share of tax on joint return  ($6,386 × 87. Tax act 2012 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. Tax act 2012 When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. Tax act 2012 Use your 2013 federal tax return as a guide. Tax act 2012 You can use Form 1040-ES and Publication 505 to figure your estimated tax. Tax act 2012 Nonresident aliens use Form 1040-ES (NR) and Publication 505 to figure estimated tax (see chapter 8 of Publication 519 for more information). Tax act 2012 You must make adjustments both for changes in your own situation and for recent changes in the tax law. Tax act 2012 For a discussion of these changes, visit IRS. Tax act 2012 gov. Tax act 2012 For more complete information on how to figure your estimated tax for 2014, see chapter 2 of Publication 505. Tax act 2012 When To Pay Estimated Tax For estimated tax purposes, the tax year is divided into four payment periods. Tax act 2012 Each period has a specific payment due date. Tax act 2012 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. Tax act 2012 The payment periods and due dates for estimated tax payments are shown next. Tax act 2012   For the period: Due date:*     Jan. Tax act 2012 1 – March 31 April 15     April 1 – May 31 June 16     June 1 – August 31 Sept. Tax act 2012 15     Sept. Tax act 2012 1– Dec. Tax act 2012 31 Jan. Tax act 2012 15, next year     *See Saturday, Sunday, holiday rule and January payment . Tax act 2012 Saturday, Sunday, holiday rule. Tax act 2012   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. Tax act 2012 January payment. Tax act 2012   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. Tax act 2012 Fiscal year taxpayers. Tax act 2012   If your tax year does not start on January 1, see the Form 1040-ES instructions for your payment due dates. Tax act 2012 When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. Tax act 2012 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. Tax act 2012 You can pay all your estimated tax at that time, or you can pay it in installments. Tax act 2012 If you choose to pay in installments, make your first payment by the due date for the first payment period. Tax act 2012 Make your remaining installment payments by the due dates for the later periods. Tax act 2012 No income subject to estimated tax during first period. Tax act 2012    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. Tax act 2012 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. Tax act 2012 The following chart shows when to make installment payments. Tax act 2012 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. Tax act 2012 15 Jan. Tax act 2012 15 next year April 1–May 31 June 16 Sept. Tax act 2012 15 Jan. Tax act 2012 15 next year June 1–Aug. Tax act 2012 31 Sept. Tax act 2012 15 Jan. Tax act 2012 15 next year After Aug. Tax act 2012 31 Jan. Tax act 2012 15 next year (None) *See Saturday, Sunday, holiday rule and January payment . Tax act 2012 How much to pay to avoid a penalty. Tax act 2012   To determine how much you should pay by each payment due date, see How To Figure Each Payment, next. Tax act 2012 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. Tax act 2012 You can figure your required payment for each period by using either the regular installment method or the annualized income installment method. Tax act 2012 These methods are described in chapter 2 of Publication 505. Tax act 2012 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. Tax act 2012 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. Tax act 2012 Underpayment penalty. Tax act 2012   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. Tax act 2012 Under the annualized income installment method, your estimated tax payments vary with your income, but the amount required must be paid each period. Tax act 2012 See chapter 4 of Publication 505 for more information. Tax act 2012 Change in estimated tax. Tax act 2012   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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 How To Pay Estimated Tax There are several ways to pay estimated tax. Tax act 2012 Credit an overpayment on your 2013 return to your 2014 estimated tax. Tax act 2012 Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. Tax act 2012 Send in your payment (check or money order) with a payment voucher from Form 1040-ES. Tax act 2012 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. Tax act 2012 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. Tax act 2012 Take the amount you have credited into account when figuring your estimated tax payments. Tax act 2012 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. Tax act 2012 You also cannot use that overpayment in any other way. Tax act 2012 Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. Tax act 2012 You can pay using either of the following electronic payment methods. Tax act 2012 Direct transfer from your bank account. Tax act 2012 Credit or debit card. Tax act 2012 To pay your taxes online or for more information, go to www. Tax act 2012 irs. Tax act 2012 gov/e-pay. Tax act 2012 Pay by Phone Paying by phone is another safe and secure method of paying electronically. Tax act 2012 Use one of the following methods. Tax act 2012 Direct transfer from your bank account. Tax act 2012 Credit or debit card. Tax act 2012 To pay by direct transfer from your bank account, call 1-800-555-4477 (English), 1-800-244-4829 (Espanol). Tax act 2012 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. Tax act 2012 To pay using a credit or debit card, you can call one of the following service providers. Tax act 2012 There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. Tax act 2012 WorldPay 1-888-9-PAY-TAXTM(1-888-972-9829) www. Tax act 2012 payUSAtax. Tax act 2012 com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. Tax act 2012 officialpayments. Tax act 2012 com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www. Tax act 2012 PAY1040. Tax act 2012 com For the latest details on how to pay by phone, go to www. Tax act 2012 irs. Tax act 2012 gov/e-pay. Tax act 2012 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. Tax act 2012 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. Tax act 2012 The enclosed payment vouchers will be preprinted with your name, address, and social security number. Tax act 2012 Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs. Tax act 2012 Use the window envelopes that came with your Form 1040-ES package. Tax act 2012 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. Tax act 2012 Note. Tax act 2012 These criteria can change without notice. Tax act 2012 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. Tax act 2012 irs. Tax act 2012 gov and print a copy of Form 1040-ES which includes four blank payment vouchers. Tax act 2012 Complete one of these and make your payment timely to avoid penalties for paying late. Tax act 2012 Do not use the address shown in the Form 1040 or Form 1040A instructions for your estimated tax payments. Tax act 2012 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. Tax act 2012 gov. Tax act 2012 Follow the instructions to make sure you use the vouchers correctly. Tax act 2012 Joint estimated tax payments. Tax act 2012   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. Tax act 2012 Change of address. Tax act 2012   You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Tax act 2012 Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. Tax act 2012 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. Tax act 2012 Also take credit for the estimated tax you paid for 2013. Tax act 2012 These credits are subtracted from your total tax. Tax act 2012 Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax. Tax act 2012 Two or more employers. Tax act 2012   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. Tax act 2012 You may be able to claim the excess as a credit against your income tax when you file your return. Tax act 2012 See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld in chapter 37. Tax act 2012 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. Tax act 2012 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. Tax act 2012 Forms W-2 and W-2G. Tax act 2012   If you file a paper return, always file Form W-2 with your income tax return. Tax act 2012 File Form W-2G with your return only if it shows any federal income tax withheld from your winnings. Tax act 2012   You should get at least two copies of each form. Tax act 2012 If you file a paper return, attach one copy to the front of your federal income tax return. Tax act 2012 Keep one copy for your records. Tax act 2012 You also should receive copies to file with your state and local returns. Tax act 2012 Form W-2 Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Tax act 2012 You should receive a separate Form W-2 from each employer you worked for. Tax act 2012 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. Tax act 2012 However, your employer must provide or send it to you by January 31, 2014. Tax act 2012 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. Tax act 2012 If you have not received your Form W-2 by January 31, you should ask your employer for it. Tax act 2012 If you do not receive it by February 15, call the IRS. Tax act 2012 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. Tax act 2012 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. Tax act 2012 In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Tax act 2012 Form W-2G If you had gambling winnings in 2013, the payer may have withheld income tax. Tax act 2012 If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld. Tax act 2012 Report the amounts you won on line 21 of Form 1040. Tax act 2012 Take credit for the tax withheld on line 62 of Form 1040. Tax act 2012 If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ. Tax act 2012 The 1099 Series Most forms in the 1099 series are not filed with your return. Tax act 2012 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). Tax act 2012 Unless instructed to file any of these forms with your return, keep them for your records. Tax act 2012 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. Tax act 2012 ; Form 1099-S, Proceeds From Real Estate Transactions; Form RRB-1099, Payments by the Railroad Retirement Board. Tax act 2012 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. Tax act 2012 See the instructions to these forms for details. Tax act 2012 Form 1099-R. Tax act 2012   Attach Form 1099-R to your paper return if box 4 shows federal income tax withheld. Tax act 2012 Include the amount withheld in the total on line 62 of Form 1040 or line 36 of Form 1040A. Tax act 2012 You cannot use Form 1040EZ if you received payments reported on Form 1099-R. Tax act 2012 Backup withholding. Tax act 2012   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. Tax act 2012 Form Not Correct If you receive a form with incorrect information on it, you should ask the payer for a corrected form. Tax act 2012 Call the telephone number or write to the address given for the payer on the form. Tax act 2012 The corrected Form W-2G or Form 1099 you receive will have an “X” in the “CORRECTED” box at the top of the form. Tax act 2012 A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2. Tax act 2012 In certain situations, you will receive two forms in place of the original incorrect form. Tax act 2012 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). Tax act 2012 One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. Tax act 2012 This form will have an “X” in the “CORRECTED” box at the top of the form. Tax act 2012 The second new form should have all the correct information, prepared as though it is the original (the “CORRECTED” box will not be checked). Tax act 2012 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. Tax act 2012 S. Tax act 2012 Individual Income Tax Return. Tax act 2012 Separate Returns If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Tax act 2012 Do not include any amount withheld from your spouse's income. Tax act 2012 However, different rules may apply if you live in a community property state. Tax act 2012 Community property states are listed in chapter 2. Tax act 2012 For more information on these rules, and some exceptions, see Publication 555, Community Property. Tax act 2012 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. Tax act 2012 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. Tax act 2012 Estimated Tax Take credit for all your estimated tax payments for 2013 on line 63 of Form 1040 or line 37 of Form 1040A. Tax act 2012 Include any overpayment from 2012 that you had credited to your 2013 estimated tax. Tax act 2012 You must use Form 1040 or Form 1040A if you paid estimated tax. Tax act 2012 You cannot use Form 1040EZ. Tax act 2012 Name changed. Tax act 2012   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. Tax act 2012 The statement should cover payments you made jointly with your spouse as well as any you made separately. Tax act 2012   Be sure to report the change to the Social Security Administration. Tax act 2012 This prevents delays in processing your return and issuing any refunds. Tax act 2012 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. Tax act 2012 If you made joint estimated tax payments, you must decide how to divide the payments between your returns. Tax act 2012 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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 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. Tax act 2012 Generally, you will not have to pay a penalty for 2013 if any of the following apply. Tax act 2012 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. Tax act 2012 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. Tax act 2012 Your total 2013 tax minus your withholding and refundable credits is less than $1,000. Tax act 2012 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. Tax act 2012 See Publication 505, chapter 4, for a definition of “total tax” for 2012 and 2013. Tax act 2012 Farmers and fishermen. Tax act 2012   Special rules apply if you are a farmer or fisherman. Tax act 2012 See Farmers and Fishermen in chapter 4 of Publication 505 for more information. Tax act 2012 IRS can figure the penalty for you. Tax act 2012   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. Tax act 2012 Generally, the IRS will figure the penalty for you and send you a bill. Tax act 2012 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. Tax act 2012 See chapter 4 of Publication 505. Tax act 2012 Prev  Up  Next   Home   More Online Publications