Form 1040-Es Instructions - Estimated Tax For Individuals

2 0 08

Department of the Treasury

Internal Revenue Service

Form 1040-ES

Estimated Tax for Individuals

2. 100% of the tax shown on your 2007

Other available information:

Purpose of This Package

•

tax return (but see Higher income taxpayers

Pub. 553, Highlights of 2007 Tax

Use this package to figure and pay your

below).

Changes.

•

estimated tax. If you are not required to

Instructions for the 2007 Form 1040 or

However, if you did not file a 2007 tax

make estimated tax payments for 2008, you

1040A.

return or if your 2007 return did not cover 12

•

can discard this package.

What’s Hot. Go to , click on

months, item (2) above does not apply.

More Forms and Publications, and then on

Estimated tax is the method used to pay

Exception. You do not have to pay

What’s Hot in forms and publications.

tax on income that is not subject to

estimated tax for 2008 if you were a U.S.

withholding (for example, earnings from

For details on how to get forms and

citizen or resident alien for all of 2007 and

self-employment, interest, dividends, rents,

publications, see page 82 of the instructions

you had no tax liability for the full 12-month

alimony, etc.). In addition, if you do not elect

for Form 1040 or page 73 of the Form

2007 tax year. You had no tax liability for

voluntary withholding, you should make

1040A instructions.

2007 if your total tax was zero or you did not

estimated tax payments on other taxable

If you have tax questions, call

have to file an income tax return.

income, such as unemployment

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

compensation and the taxable part of your

Special rules. There are special rules for

TDD help, call 1-800-829-4059.

social security benefits. See the 2007

farmers, fishermen, certain household

instructions for your tax return for details on

employers, and certain higher income

What’s New

income that is taxable.

taxpayers.

Use your 2007 tax return as a guide in

The estimated tax worksheet on page 4

Farmers and fishermen. If at least

figuring your 2008 estimated tax, but be

will help you figure the correct amount to

two-thirds of your gross income for 2007 or

sure to consider the following changes. For

pay. If you are paying by check or money

2008 is from farming or fishing, substitute

more information on these changes and

order, use the estimated tax payment

% for 90% in (1) under General rule,

other changes that may affect your 2008

vouchers in this package to ensure your

earlier.

estimated tax, see Pub. 553.

estimated tax payments are credited

Household employers. When

Forgiveness of mortgage debt. A law

correctly to your account. Use the Record of

estimating the tax on your 2008 tax return,

Estimated Tax Payments on page 6 to keep

was just passed that may allow you to

include your household employment taxes if

track of the payments you have made and

exclude from income part or all of the

either of the following applies.

•

the due dates and amounts of your

mortgage debt forgiven on your principal

You will have federal income tax withheld

remaining payments.

residence. This applies for debt forgiven in

from wages, pensions, annuities, gambling

2007 through 2009. See Pub. 553 for more

Change of address. File these payment

winnings, or other income.

•

details.

vouchers using your current address. If this

You would be required to make estimated

is a new mailing address, file Form 8822,

Volunteer firefighters and emergency

tax payments to avoid a penalty even if you

Change of Address, to update your record.

did not include household employment taxes

medical responders. Certain qualified

payments and other State and local tax

when figuring your estimated tax.

Preprinted vouchers. Because you are

benefits are not included in taxable income.

making estimated tax payments for 2008,

Higher income taxpayers. If your

For more information, see Pub. 553.

estimated tax payment vouchers for 2009

adjusted gross income for 2007 was more

will be sent to you preprinted with your

than $150,000 ($75,000 if your filing status

Special rule for sales of principal

name, address, and social security number,

for 2008 is married filing separately),

residences by surviving spouses. A

along with return envelopes and a copy of

surviving spouse who sells his or her

substitute 110% for 100% in (2) under

the instructions.

principal residence within 2 years after the

General rule, above. This rule does not

spouse’s date of death may be allowed to

apply to farmers or fishermen.

If you do not want to receive the

exclude up to $500,000 of qualified gain

Increase your withholding. If you also

TIP

vouchers and envelopes, simply

instead of $250,000. See Pub. 553 for more

receive salaries and wages, you may be

begin making your estimated tax

information.

able to avoid having to make estimated tax

payments electronically or file your return

payments on your other income by asking

Standard deduction. If you do not itemize

electronically.

your employer to take more tax out of your

your deductions, you can take the 2008

Who Must Make Estimated

earnings. To do this, file a new Form W-4,

standard deduction listed below for your

Employee’s Withholding Allowance

filing status.

Tax Payments

Certificate, with your employer.

The estimated tax rules apply to:

Generally, if you receive a pension or

THEN your

•

U.S. citizens and resident aliens,

IF your 2008 filing

standard

annuity you can use Form W-4P,

•

Residents of Puerto Rico, the U.S. Virgin

status is...

deduction is...

Withholding Certificate for Pension or

Islands, Guam, the Commonwealth of the

Annuity Payments, to start or change your

Married filing jointly

Northern Mariana Islands, and American

withholding from these payments.

or Qualifying

$10,900

Samoa, and

You can also choose to have federal

•

widow(er)

Nonresident aliens (use Form 1040-ES

income tax withheld from certain

(NR)).

government payments. For details, see

Head of household

$8,000

General rule. In most cases, you must

Form W-4V, Voluntary Withholding Request.

Single or Married

make estimated tax payments if you expect

filing separately

$5,450

to owe at least $1,000 in tax for 2008 (after

Additional Information You

subtracting your withholding and credits)

May Need

and you expect your withholding and credits

However, if you can be claimed as a

to be less than the smaller of:

You can find most of the information you will

dependent on another person’s 2008 return,

1. 90% of the tax shown on your 2008

need in Pub. 505, Tax Withholding and

your standard deduction is the greater of:

•

tax return, or

Estimated Tax.

$900, or

Cat. No. 11340T

Form 1040-Es Instructions - Estimated Tax For Individuals - 2008

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