Fillable Form 1040-Es - Estimated Tax For Individuals

1040-ES

OMB No. 1545-0074

Form

Estimated Tax for Individuals

2006

Department of the Treasury

This package is primarily for first-time filers of estimated tax.

Internal Revenue Service

Purpose of This Package

However, if you did not file a 2005 tax return

Standard Deduction

or that return did not cover 12 months, item (2)

If you do not itemize your deductions, you can

Use this package to figure and pay your

above does not apply.

take the 2006 standard deduction listed below

estimated tax. If you are not required to make

For this purpose, include household

for your filing status.

estimated tax payments for 2006, you can

employment taxes (before subtracting

discard this package.

advance EIC payments made to your

Estimated tax is the method used to pay tax

IF your 2006 filing

THEN your standard

employee(s)) when figuring the tax shown on

on income that is not subject to withholding

status is . . .

deduction is . . .

your tax return if either of the following applies.

(for example, earnings from self-employment,

● You will have federal income tax withheld

Married filing jointly or

interest, dividends, rents, alimony, etc.). In

$10,300

Qualifying widow(er)

from wages, pensions, annuities, gambling

addition, if you do not elect voluntary

winnings, or other income.

withholding, you should make estimated tax

Head of household

$ 7,550

● You would be required to make estimated

payments on unemployment compensation

Single or Married filing

and the taxable part of your social security

tax payments to avoid a penalty even if you

$ 5,150

separately

benefits. See the 2005 instructions for your tax

did not include household employment taxes

return for details on income that is taxable.

when figuring your estimated tax.

However, if you can be claimed as a

The estimated tax worksheet on page 4 will

dependent on another person’s 2006 return,

Exception. You do not have to pay estimated

help you figure the correct amount to pay. The

your standard deduction is the greater of:

tax if you were a U.S. citizen or resident alien

estimated tax payment vouchers in this pack-

● $850, or

for all of 2005 and you had no tax liability for

age are for crediting your estimated tax pay-

the full 12-month 2005 tax year.

● Your earned income plus $300 (up to the

ments to your account correctly if you are

The estimated tax rules apply to:

standard deduction amount).

paying by check or money order. Use the

● U.S. citizens and residents,

Your standard deduction is increased by the

Record of Estimated Tax Payments on page 6

● Residents of Puerto Rico, the Virgin Islands,

following amount if, at the end of 2006, you

to keep track of the payments you have made

are:

Guam, the Commonwealth of the Northern

and the number and amount of your remaining

● An unmarried individual (single or head of

Mariana Islands, and American Samoa, and

payments.

● Nonresident aliens (use Form 1040-ES (NR)).

household) and are:

Do not use any of the vouchers in this

package to notify the IRS of a change of

65 or older or blind

$1,250

If you also receive salaries and wages, you

address. If you have a new address, file Form

65 or older and blind

$2,500

may be able to avoid having to make

8822, Change of Address. The IRS will update

● A married individual (filing jointly or

estimated tax payments on your other income

your record and next year you will receive new

by asking your employer to take more tax out

separately) or a qualifying widow(er) and are:

estimated tax payment vouchers with your

of your earnings. To do this, file a new Form

65 or older or blind

$1,000

name, address, and social security number

W-4, Employee’s Withholding Allowance

65 or older and blind

$2,000

preprinted along with a copy of the

Certificate, with your employer.

Both spouses 65 or older

$2,000 *

instructions, and return envelopes.

You can also choose to have federal income

Both spouses 65 or older and

tax withheld from certain government

If you do not want to receive the

blind

$4,000 *

payments. For details, see Form W-4V,

vouchers and envelopes, simply

* If married filing separately, these amounts

TIP

Voluntary Withholding Request.

begin making your estimated tax

apply only if you can claim an exemption for

payments electronically.

your spouse.

You cannot make joint estimated

tax payments if you or your

Consider paying your estimated taxes

Your standard deduction is zero if

spouse is a nonresident alien, you

electronically. Paying electronically helps to

(a) your spouse itemizes on a

are separated under a decree of

ensure timely receipt of your estimated tax

separate return or (b) you were a

CAUTION

divorce or separate maintenance,

payment. You can pay electronically using the

dual-status alien and you do not

or you and your spouse have different tax

CAUTION

following convenient, safe, and secure

elect to be taxed as a resident

years.

electronic payment options.

alien for 2006.

● Electronic Federal Tax Payment System

Additional Information You

Personal Exemption and Itemized

(EFTPS).

Deduction Phaseouts Reduced

May Need

● Credit card.

The phaseouts of the limitations on personal

● Electronic funds withdrawal.

Most of the information you will need can be

exemptions and itemized deductions are

found in Pub. 505, Tax Withholding and

When you pay taxes electronically, there is

reduced by 33

⁄

%. For details, see Pub. 505.

Estimated Tax.

no check to write and no voucher to mail.

Residential Energy Credits

Other available information:

Payments can be made 24 hours a day, 7

● Pub. 553, Highlights of 2005 Tax Changes.

You may be able to take two new credits, the

days a week. You will receive a confirmation

number or electronic acknowledgement of the

● Instructions for the 2005 Form 1040 or

nonbusiness energy property credit and the

payment. See page 3 for details.

residential energy efficient property credit, for

1040A.

making energy saving improvements to your

● Pub. 4492.

Who Must Make Estimated

home in 2006. For credit purposes, costs are

● What’s Hot at

treated as being paid when the original

Tax Payments

For details on how to get forms and

installation of the item is completed, or in the

In most cases, you must make estimated tax

publications, see page 7 of the instructions for

case of costs connected with the construction

payments if you expect to owe at least $1,000

Form 1040 or 1040A.

or reconstruction of a building, when your

in tax for 2006 (after subtracting your

original use of the constructed or

If you have tax questions, call

withholding and credits) and you expect your

reconstructed building begins. If less than

1-800-829-1040 for assistance. For TTY/TDD

withholding and credits to be less than the

80% of the use of an item is for nonbusiness

help, call 1-800-829-4059.

smaller of:

purposes, only that portion of the expenses

What’s New for 2006

1. 90% of the tax shown on your 2006 tax

that are allocable to the nonbusiness use can

return, or

be used to determine the credit.

Use your 2005 tax return as a guide in figuring

2. The tax shown on your 2005 tax return

A home includes a house, houseboat,

your 2006 estimated tax, but be sure to

(110% of that amount if you are not a farmer

mobile home, cooperative apartment,

consider the following changes. For more

or fisherman and the adjusted gross income

condominium, and certain manufactured

information on these changes and other

shown on that return is more than $150,000

homes. For factors used in determining if a

changes that may affect your 2006 estimated

or, if married filing separately for 2006, more

home is your main home, see Pub. 523. You

tax, see Pub. 553.

than $75,000).

must reduce the basis of your home by the

amount of credit allowed.

Cat. No. 11340T

Form 1040-Es - Estimated Tax For Individuals - 2006

Related Articles

Related forms

Related Categories