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Form D-40es Instructions - Estimated Payment For Individual Income Tax (2007) - Office Of Tax And Revenue - District Of Columbia Page 3

Could you be charged a penalty or fee?

If the due date falls on a weekend or holiday, it is automatically ex-

If you underestimate your taxes:

tended to the next business day.

You will be charged an underpayment rate of 10% per year compounded

How do you determine your estimated tax?

daily, if your withholdings, credits and estimated tax payments do not

If you expect your taxes and withholding for 2007 to be

equal:

approximately the same as last year, your estimated tax is the amount of

• At least 90% of your 2007 DC income tax, or

tax you owed in 2006. Divide this amount by four installments.

• 100% of your 2006 DC income tax for a 12-month period.

If you expect this year’s income to be different from last year, use the

worksheet on page 6 to estimate your 2007 DC taxes.

If you falsely state your estimated taxes:

Can you apply an overpayment from your DC return?

You will be charged a penalty if any statement made on the voucher is

You can apply the full amount of any overpayment from your prior

not true and accurate to the best of your knowledge.

year’s DC income tax return to the ﬁ rst payment of your estimated taxes

Dishonored check

or you can spread it across the four installments any way you choose.

You will be charged a $65 fee if your check is returned to us.

You may not use this if you have requested or received a refund of this

What if your estimated taxes change during the year?

overpayment.

If you have ﬁ led one or more vouchers and you ﬁ nd that your estimated

You can use the record of payments worksheet on page 9 to plan how

tax liability has changed substantially, use the calculation on page 7 to

much overpayment you will apply to each installment.

recalculate your estimated tax payment.

Form D-40es Instructions - Estimated Payment For Individual Income Tax (2007) - Office Of Tax And Revenue - District Of Columbia Page 3