OMB No. 1545-0074
Estimated Tax for Individuals
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
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
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
● 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
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
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
● 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
If you also receive salaries and wages, you
address. If you have a new address, file Form
65 or older and blind
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
name, address, and social security number
W-4, Employee’s Withholding Allowance
65 or older and blind
preprinted along with a copy of the
Certificate, with your employer.
Both spouses 65 or older
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
payments. For details, see Form W-4V,
vouchers and envelopes, simply
* If married filing separately, these amounts
Voluntary Withholding Request.
begin making your estimated tax
apply only if you can claim an exemption for
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
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
following convenient, safe, and secure
elect to be taxed as a resident
electronic payment options.
alien for 2006.
● Electronic Federal Tax Payment System
Additional Information You
Personal Exemption and Itemized
Deduction Phaseouts Reduced
● 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.
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
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
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.
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
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.
must reduce the basis of your home by the
amount of credit allowed.
Cat. No. 11340T