Form 1040-Es Instructions - Estimated Tax For Individuals

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Your earned income plus $300 (up to the

be one-half of the reduction that applied in

deductions, and credits (but be sure to

standard deduction amount).

2007.

consider the items listed under What’s New

that begins on page 1).

Your standard deduction is increased by

Standard mileage rates. Beginning in

Matching estimated tax payments to

the following amount if, at the end of 2008,

2008, the standard mileage rate for the cost

income. If you receive your income

you are:

of operating your car is:

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unevenly throughout the year (for example,

An unmarried individual (single or head of

cents a mile for all business miles

because you operate your business on a

household) and are:

driven,

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seasonal basis), you may be able to lower

19 cents a mile for the use of your car for

65 or older or blind . . . . . . . . . . . . . . . $1,350

or eliminate the amount of your required

medical reasons,

65 or older and blind . . . . . . . . . . . . . . $2,700

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estimated tax payment for one or more

19 cents a mile for the use of your car for

A married individual (filing jointly or

periods by using the annualized income

a deductible move, and

separately) or a qualifying widow(er) and

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installment method. See chapter 2 of Pub.

14 cents a mile for the use of your car for

are:

505 for details.

charitable reasons.

65 or older or blind . . . . . . . . . . . . . . . $1,050

Changing your estimated tax. To amend

Capital gain tax rate reduced. The 5%

65 or older and blind . . . . . . . . . . . . . . $2,100

or correct your estimated tax, see How To

Both spouses 65 or older . . . . . . . . . . . $2,100*

capital gain tax rate is reduced to zero.

Amend Estimated Tax Payments on page 3.

Both spouses 65 or older and blind . . . . . $4,200*

Tax on child’s investment income. Form

* If married filing separately, these amounts apply

8615 will be required to figure the tax for the

You cannot make joint estimated tax

only if you can claim an exemption for your

following children with investment income of

payments if you or your spouse is a

spouse.

more than $1,800.

nonresident alien, you are separated

CAUTION

under a decree of divorce or separate

1. Children under age 18 at the end of

Your standard deduction is zero if (a)

maintenance, or you and your spouse have

2008.

your spouse itemizes on a separate

different tax years.

2. The following children if their earned

return, or (b) you were a dual-status

CAUTION

income is not more than half their support.

alien and you do not elect to be taxed as a

Payment Due Dates

resident alien for 2008.

a. Children age 18 at the end of 2008.

b. Children over age 18 and under age

You may pay all of your estimated tax by

Credit or exclusion for adoption benefits

24 at the end of 2008 who are full-time

April 15, 2008, or in four equal amounts by

increased. The maximum adoption credit

students.

the dates shown below.

has increased to $11,650. The maximum

exclusion from income for benefits received

The election to report a child’s investment

1st payment . . . . . . . . . . .

April 15, 2008

under an employer’s adoption assistance

2nd payment . . . . . . . . . . .

June 16, 2008

income on a parent’s return and the special

program has increased to $11,650. These

3rd payment . . . . . . . . . . . Sept. 15, 2008

rule for when a child must file Form 6251,

amounts are phased out if your modified

4th payment . . . . . . . . . . . Jan. 15, 2009*

Alternative Minimum Tax — Individuals, also

adjusted gross income (AGI) is between

* You do not have to make the payment due

will apply to the children listed above.

$174,730 and $214,730. You cannot claim

January 15, 2009, if you file your 2008 tax

Extended Tax Benefits

the credit or exclusion if your modified AGI

return by February 2, 2009, and pay the entire

balance due with your return.

is $214,730 or more.

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Deduction for qualified mortgage

Earned income credit (EIC). You may be

insurance premiums.

Payments are due by the dates

able to take the EIC if:

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indicated whether or not you are

Expired Tax Benefits

A child lived with you and you earned less

outside the United States and Puerto

CAUTION

than $38,646 ($41,646 if married filing

Rico.

jointly), or

Legislation pending when this form

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If your payments are late or you did not

A child did not live with you and you

went to print may extend one or

pay enough, you may be charged a penalty

earned less than $12,880 ($15,880 if

more of the following benefits. For

CAUTION

for underpaying your tax. See When a

married filing jointly).

the latest information, see Highlights of

Penalty Is Applied on page 3.

Recent Tax Changes at

The maximum investment income you

No income subject to estimated tax

can have and still get the credit has

The following tax benefits were

during first payment period. If, after

increased to $2,950.

scheduled to expire at the end of 2007.

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March 31, 2008, you have a large change in

Deduction for state and local sales taxes.

For more information, see Publication

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income, deductions, additional taxes, or

Tuition and fees deduction.

596, Earned Income Credit (EIC).

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credits that requires you to start making

Tax-free distributions from individual

Retirement savings plans. The following

estimated tax payments, you should figure

retirement plans for charitable purposes.

paragraphs highlight changes that affect

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the amount of your estimated tax payments

Deduction for educator expenses in

individual retirement arrangements (IRAs)

by using the annualized income installment

figuring AGI.

and pension plans. For more information,

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method, explained in chapter 2 of Pub. 505.

Election to include nontaxable combat

see Publication 590, Individual Retirement

Although your payment due dates will be the

pay as earned income for purposes of the

Arrangements (IRAs).

same as shown above, the payment

EIC.

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Traditional IRA deduction limits

amounts will vary based on your income,

Penalty-free withdrawals from retirement

increased. You and your spouse, if filing

deductions, additional taxes, and credits for

plans for individuals called to active duty.

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jointly, each may be able to deduct up to

the months ending before each payment

DC first-time homebuyer credit (for homes

$5,000 ($6,000 if age 50 or older at the end

due date. As a result, this method may allow

purchased after 2007).

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of the year). You may be able to take an IRA

you to skip or lower the amount due for one

Credit for nonbusiness energy property.

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deduction if you were covered by a

or more payments. If you use the annualized

Tax credit for research and

retirement plan at work and your 2008

income installment method, file Form 2210,

experimentation expenses.

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modified adjusted gross income (AGI) is

Underpayment of Estimated Tax by

Indian employment tax credit.

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less than $63,000 ($105,000 if married filing

Individuals, Estates, and Trusts, with your

Credit for energy efficient appliances.

jointly or a qualifying widow(er)).

2008 tax return, even if no penalty is owed.

How To Figure Your

Income limits increased for retirement

Farmers and fishermen. If at least

savings contributions credit. You may be

two-thirds of your gross income for 2007 or

Estimated Tax

able to claim this credit if your modified AGI

2008 is from farming or fishing, you can do

is not more than $26,500 ($53,000 if married

one of the following.

You will need:

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filing jointly, $39,750 if head of household).

Pay all of your estimated tax by January

The 2008 Estimated Tax Worksheet on

15, 2009.

Personal exemption and itemized

page 4,

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File your 2008 Form 1040 by March 2,

deduction phaseouts reduced.

The Instructions for the 2008 Estimated

2009, and pay the total tax due. In this case,

Taxpayers with adjusted gross income

Tax Worksheet on page 4,

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2008 estimated tax payments are not

above a certain amount may lose part of

The 2008 Tax Rate Schedules on page 5,

required to avoid a penalty.

their deduction for personal exemptions and

and

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itemized deductions. The amount by which

Your 2007 tax return and instructions to

Fiscal year taxpayers. You are on a fiscal

these deductions are reduced in 2008 will

use as a guide to figuring your income,

year if your 12-month tax period ends on

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Form 1040-Es Instructions - Estimated Tax For Individuals - 2008 Page 2

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