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
Special rules. There are special rules for
What’s New for 2007
Purpose of This Package
farmers, fishermen, certain household
Use your 2006 tax return as a guide in figuring
Use this package to figure and pay your
employers, and certain higher income
your 2007 estimated tax, but be sure to
estimated tax. If you are not required to make
consider the following changes. For more
estimated tax payments for 2007, you can
Farmers and fishermen. If at least
information on these changes and other
discard this package.
two-thirds of your gross income for 2006 or
changes that may affect your 2007 estimated
Estimated tax is the method used to pay tax
2007 is from farming or fishing, substitute
tax, see Pub. 553.
on income that is not subject to withholding
% for 90% in (1) under General rule,
(for example, earnings from self-employment,
Standard deduction. If you do not itemize
interest, dividends, rents, alimony, etc.). In
your deductions, you can take the 2007
Household employers. When estimating
addition, if you do not elect voluntary
standard deduction listed below for your filing
the tax on your 2007 tax return, include your
withholding, you should make estimated tax
household employment taxes (the amount
payments on unemployment compensation
before subtracting advance EIC payments
and the taxable part of your social security
IF your 2007 filing
THEN your standard
made to your employee(s)) if either of the
benefits. See the 2006 instructions for your tax
status is . . .
deduction is . . .
return for details on income that is taxable.
Married filing jointly or
You will have federal income tax withheld
The estimated tax worksheet on page 4 will
from wages, pensions, annuities, gambling
help you figure the correct amount to pay. If
winnings, or other income.
Head of household
you are paying by check or money order, use
the estimated tax payment vouchers in this
You would be required to make estimated
Single or Married filing
package to ensure your estimated tax
tax payments to avoid a penalty even if you
payments are credited correctly to your
did not include household employment taxes
However, if you can be claimed as a
account. Use the Record of Estimated Tax
when figuring your estimated tax.
dependent on another person’s 2007 return,
Payments on page 6 to keep track of the
Higher income taxpayers. If your adjusted
your standard deduction is the greater of:
payments you have made and the number and
gross income for 2006 was more than
amounts of your remaining payments.
$150,000 ($75,000 if your filing status for
Change of address. File these payment
Your earned income plus $300 (up to the
2007 is married filing separately), substitute
vouchers using your current address. If this is
standard deduction amount).
110% for 100% in (2) under General rule,
a new mailing address, file Form 8822,
earlier. This rule does not apply to farmers or
Your standard deduction is increased by the
Change of Address, with the Internal Revenue
following amount if, at the end of 2007, you
Service Center serving your old address to
Increase your withholding. If you also receive
update your record.
salaries and wages, you may be able to avoid
An unmarried individual (single or head of
Preprinted vouchers. Because you are
having to make estimated tax payments on
household) and are:
making estimated tax payments for 2007,
your other income by asking your employer to
65 or older or blind
estimated tax payment vouchers for 2008 will
take more tax out of your earnings. To do this,
65 or older and blind
be sent to you preprinted with your name,
file a new Form W-4, Employee’s Withholding
A married individual (filing jointly or
address, and social security number, along
Allowance Certificate, with your employer.
separately) or a qualifying widow(er) and are:
with return envelopes and a copy of the
If you receive a pension or annuity, you can
65 or older or blind
use Form W-4P, Withholding Certificate for
65 or older and blind
Pension or Annuity Payments, to start or
If you do not want to receive the
Both spouses 65 or older
change your withholding from these
vouchers and envelopes, simply
Both spouses 65 or older and
begin making your estimated tax
You can also choose to have federal income
* If married filing separately, these amounts
tax withheld from certain government
apply only if you can claim an exemption for
payments. For details, see Form W-4V,
Who Must Make Estimated Tax
Voluntary Withholding Request.
Your standard deduction is zero if
(a) your spouse itemizes on a
The estimated tax rules apply to:
separate return, or (b) you were a
U.S. citizens and resident aliens,
You May Need
dual-status alien and you do not
Residents of Puerto Rico, the U.S. Virgin
elect to be taxed as a resident
You can find most of the information you will
Islands, Guam, the Commonwealth of the
alien for 2007.
need in Pub. 505, Tax Withholding and
Northern Mariana Islands, and American
IRA deduction expanded. You may be able to
take an IRA deduction if you were covered by
Other available information:
Nonresident aliens (use Form 1040-ES (NR)).
a retirement plan and your 2007 modified
Pub. 553, Highlights of 2006 Tax Changes.
General rule. In most cases, you must make
adjusted gross income (AGI) is less than
Instructions for the 2006 Form 1040 or
estimated tax payments if you expect to owe
$62,000 ($103,000 if married filing jointly or
at least $1,000 in tax for 2007 (after
subtracting your withholding and credits) and
Pub. 1460, Highlights of Tax Relief Provided
Deduction for domestic production
you expect your withholding and credits to be
to Taxpayers in Response to Hurricanes
activities. For 2007, the deduction rate will
less than the smaller of:
Katrina, Rita, and Wilma.
increase to 6%.
1. 90% of the tax shown on your 2007 tax
Pub. 4492, Information for Taxpayers
Earned income credit (EIC). You may be
Affected by Hurricanes Katrina, Rita, and
able to take the EIC if:
2. 100% of the tax shown on your 2006 tax
A child lived with you and you earned less
return (but see Higher income taxpayers on
What’s Hot. Go to , click on
than $37,783 ($39,783 if married filing jointly),
More Forms and Publications, and then on
However, if you did not file a 2006 tax return
What’s Hot in forms and publications.
A child did not live with you and you
or if your 2006 return did not cover 12 months,
For details on how to get forms and
earned less than $12,590 ($14,590 if married
item (2) above does not apply.
publications, see page 7 of the instructions for
Exception. You do not have to pay
Form 1040 or 1040A.
Standard mileage rates. The 2007 rate per
estimated tax for 2007 if you were a U.S.
If you have tax questions, call
mile for use of your vehicle is:
citizen or resident alien for all of 2006 and you
1-800-829-1040 for assistance. For TTY/TDD
48.5 cents for business use,
had no tax liability for the full 12-month 2006
help, call 1-800-829-4059.
tax year. You had no tax liability for 2006 if
14 cents for charitable use, and
your total tax was zero or you did not have to
20 cents for medical care and moving.
file an income tax return.
Cat. No. 11340T