Form Dr 104ep - 2008 Colorado Individual Estimated Income Tax Worksheet printable pdf download

DR 104EP (10/25/07) Web

COLORADO DEPARTMENT OF REVENUE

2008

COLORADO

DENVER, CO 80261-0008

Estimated Tax Vouchers for Individuals

INSTRUCTIONS

1. Who must pay estimated tax. Every resident of Colorado and

•

110% of the preceding year’s net Colorado tax liability

every nonresident with income from Colorado sources must pay

(This amount only applies if the preceding year was a 12-

estimated income tax if it can reasonably be expected that the net

month tax year, and the individual filed a Colorado return.)

Colorado income tax liability for the current taxable year will

The net Colorado tax liability for purposes of estimated tax

exceed the Colorado sales tax refund and withholding credits by

computation is the total Colorado tax, alternative minimum tax

$1,000 or more. See FYI Income 51 for more information.

and recapture of prior year credits reported on the Colorado

individual income tax return Form 104 less all credits other than

2. Due date for filing. Estimated tax payments are due in four equal

installments on April 15, 2008, June 15, 2008, September 15,

the state sales tax refund, withholding credits, and estimated tax

2008 and January 15, 2009. Payments will be credited against the

credits.

earliest quarterly installment that is due for the tax year regardless

8. Penalty for failure to pay estimated tax. The estimated tax

of when the payment is received. If the due date is a Saturday,

penalty will be assessed if the required estimated payments are

Sunday or legal holiday, payment on the next business day is

not paid in a timely manner. The penalty will be the appropriate

accepted as having been made on the due date.

Colorado income tax interest rate times the underpayment for

3. Joint Returns. Any estimated tax payment submitted by a mar-

each quarter times the underpayment period. This penalty is

ried couple that will be filing a joint tax return must list the same

computed on Form 204.

spouse first on both Form 104-EP and Form 104.

The estimated tax penalty will not be assessed if one of the

4. How to compute your estimated tax for 2008. You should

following conditions is met:

compute your 2008 estimated tax in the worksheet provided in

•

No penalty is due if the net Colorado tax liability minus any

this booklet using the 2007 individual income tax instruction

prepayments and credits, other than the estimated tax pay-

booklet as a guide.

ments and credits, is less than $1,000.

5. Annualized income installment method. Taxpayers who do not

•

No penalty is due if the taxpayer is a farmer or fisherman and

receive income evenly during the year (for example, taxpayers

files a return with full payment of any tax due by March 1 of

who own a seasonal business or receive a lump sum payment late

the following tax year.

in the year) may elect to use the annualized income installment

9. Refund of estimated tax. The 2008 estimated tax payments and/

method to compute their estimated tax payments if they elect this

or credits may only be claimed as prepayment credits on the 2008

method for their federal payments. This method allows taxpayers

income tax return. Such payments and/or credits are not subject

to pay estimated tax based on income actually received during

to refund except by the filing of such a return.

the preceding portion of the tax year.

10. Where to file. File estimated tax vouchers with the Colorado

6. Application of 2007 overpayment. An estimated tax credit

Department of Revenue, Denver, Colorado 80261-0008. Make

resulting from an overpayment of tax on your 2007 income tax

checks or money orders payable to the Colorado Department of

return must be applied to the first estimated tax payments due.

Revenue.

7. Required estimated payments. The required annual amount to

11. Additional Information. All forms, FYIs, the Tax

Information Index and other information are available at:

be paid is the lesser of:

•

70% of the actual net Colorado tax liability

or you can call for information at (303)

•

100% of the preceding year’s net Colorado tax liability

238-SERV (7378).

(This amount only applies if the preceding year was a 12-

month tax year, the individual filed a Colorado return and the

federal adjusted gross income for the preceding year was

$150,000 or less, $75,000 or less if married separate)

ONLINE TAX PAYMENTS

Pay your estimated income tax by echeck or credit card. This service will be available during 2008. Please note that there is an additional fee

if you decide to use this electronic payment method. This fee is paid to a third party that provides these services for Colorado.gov. For credit

card transactions, the administrative processing fee is the amount due plus $.75 multiplied by 2.25%. However, if you choose to pay with

cash in the form of an echeck, the administrative processing fee is discounted to $1.00 per transaction. Make your online payment using a

credit card or electronic check at

Form Dr 104ep - 2008 Colorado Individual Estimated Income Tax Worksheet

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