Form 1040-Es - Estimated Tax For Individuals

Deduction for qualified mortgage insurance

married filing jointly or a qualifying widow(er);

Farmers and fishermen. If at least two-thirds

premiums. A homeowner who obtained a

$22,500 if married filing separately).

of your gross income for 2006 or 2007 is from

qualified mortgage during 2007, and whose

farming or fishing, you can do one of the

How To Figure Your Estimated Tax

adjusted gross income is less than $110,000

following.

($55,000 if married filing separately), may be

You will need:

Pay all of your estimated tax by January 15,

able to deduct some of the mortgage

2008.

The 2007 Estimated Tax Worksheet on

insurance premiums paid during the year (as if

page 4.

File your 2007 Form 1040 by March 3, 2008,

they were mortgage interest) as an itemized

and pay the total tax due. In this case, 2007

The Instructions for the 2007 Estimated Tax

deduction.

estimated tax payments are not required to

Worksheet on page 4.

Credit for prior year minimum tax. A partial

avoid a penalty.

The 2007 Tax Rate Schedules on page 3.

credit for AMT paid on a return 4 or more

Fiscal year taxpayers. You are on a fiscal

years ago is available for 2007. To see if you

Your 2006 tax return and instructions to use

year if your 12-month tax period ends on any

qualify and to compute the amount of your

as a guide to figuring your income,

day except December 31. Due dates for fiscal

credit, see Pub. 553.

deductions, and credits (but be sure to

year taxpayers are the 15th day of the 4th, 6th,

consider the items listed under What’s New for

Health Savings Account (HSA). Beginning in

and 9th months of your current fiscal year and

2007 that begins on page 1).

2007:

the 1st month of the following fiscal year. If

Matching estimated tax payments to

You can fund your HSA by making a

any payment date falls on a Saturday, Sunday,

income. If you receive your income unevenly

one-time direct transfer from your IRA to your

or legal holiday, use the next business day.

throughout the year (for example, because you

HSA.

operate your business on a seasonal basis),

Name Change

The maximum deductible contribution is no

you may be able to lower or eliminate the

longer limited to the annual deductible under

If you changed your name because of

amount of your required estimated tax

the high deductible health plan.

marriage, divorce, etc., and you made

payment for one or more periods by using the

estimated tax payments using your former

You are allowed an HSA contribution of

annualized income installment method. See

name, attach a statement to the front of your

$2,850 for single coverage ($5,650 for family

Pub. 505 for details.

2007 tax return. On the statement, explain all

coverage).

Changing your estimated tax. To amend or

of the estimated tax payments you (and your

For more information about changes to

correct your estimated tax, see How To

spouse, if filing jiontly) made for 2007 and the

HSAs, see Pub. 553.

Amend Estimated Tax Payments on this page.

name(s) and SSN(s) under which you made the

Certain credits no longer allowed against

You cannot make joint estimated tax

payments.

alternative minimum tax (AMT). The credit

payments if you or your spouse is a

Be sure to report the change to your local

for child and dependent care expenses, credit

nonresident alien, you are separated

Social Security Administration office before

for the elderly or the disabled, education

under a decree of divorce or

CAUTION

filing your 2007 tax return. This prevents

credits, residential energy credits, mortgage

separate maintenance, or you and

delays in processing your return and issuing

interest credit, and the District of Columbia

your spouse have different tax years.

refunds. It also safeguards your future social

first-time homebuyer credit are no longer

security benefits. For more details, call the

allowed against AMT and a new tax liability

Payment Due Dates

Social Security Administration at

limit applies. For most people, this limit is your

1-800-772-1213.

You may pay all of your estimated tax by April

regular tax minus any tentative minimum tax.

16, 2007, or in four equal amounts by the

Electronic payments. When you e-file your

How To Amend Estimated

dates shown below.

2006 individual tax return, you can schedule

Tax Payments

1st payment

April 16, 2007*

up to four estimated tax payments for 2007

by electronic funds withdrawal. See Pay by

2nd payment

June 15, 2007

To change or amend your estimated tax

Electronic Funds Withdrawal on page 3.

payments, refigure your total estimated tax

3rd payment

Sept. 17, 2007

payments due (line 16a of the worksheet on

4th payment

Jan. 15, 2008**

Extended Tax Benefits

page 4). Then, to figure the payment due for

* If you live in Maine, Maryland,

each remaining payment period, see Amended

The following tax benefits have been

Massachusetts, New Hampshire, New York,

estimated tax under Regular Installment

extended for 2007.

Vermont, or the District of Columbia, you have

Method in chapter 2 of Pub. 505. If an

until April 17, 2007, to make your first

Tuition and fees deduction.

estimated tax payment for a previous period is

estimated tax payment.

less than one-fourth of your amended

Educator expense deduction.

** You do not have to make the payment due

estimated tax, you may owe a penalty when

State and local sales tax deduction.

January 15, 2008, if you file your 2007 tax

you file your return.

Election to include combat pay as earned

return by January 31, 2008, and pay the entire

income for purposes of claiming the earned

When a Penalty Is Applied

balance due with your return.

income credit.

In some cases, you may owe a penalty when

Payments are due by the dates

DC first-time home buyer credit.

you file your return. The penalty is imposed on

indicated whether or not you are

For more information about these and other

each underpayment for the number of days it

outside the United States and

2007 tax changes, see Pub. 553.

remains unpaid. A penalty may be applied if

Puerto Rico.

CAUTION

you did not pay enough estimated tax for the

Expired Tax Benefits

If your payments are late or you did not pay

year or you did not make the payments on

enough, you may be charged a penalty for

time or in the required amount. A penalty may

The following benefits were scheduled to

underpaying your tax. See When a Penalty Is

apply even if you have an overpayment on

expire at the end of 2006.

Applied on this page.

your tax return.

Certain relief granted for hurricanes

No income subject to estimated tax during

The penalty may be waived under certain

Katrina, Wilma, and Rita.

first payment period. If, after March 31,

conditions. See Pub. 505 for details.

2007, you have a large change in income,

Tax-favored treatment of qualified hurricane

How To Pay Estimated Tax

deductions, additional taxes, or credits that

distributions from eligible retirement plans.

requires you to start making estimated tax

Increased limits and delayed repayment on

payments, you should figure the amount of

Pay by Check or Money Order

loans from qualified employer plans.

your estimated tax payments by using the

Using the Estimated Tax

Increased limits for the Hope and lifetime

annualized income installment method,

Payment Voucher

learning credits.

explained in Pub. 505. Although your payment

due dates will be the same as shown above,

There is a separate estimated tax payment

Discharge of nonbusiness indebtedness by

the payment amounts will vary based on your

voucher for each due date. The due date is

reason of Hurricane Katrina.

income, deductions, additional taxes, and

shown in the upper right corner. Please be

Additional exemption for housing individuals

credits for the months ending before each

sure you use the voucher with the correct due

displaced by Hurricane Katrina.

payment due date. As a result, this method

date for each payment you make. Complete

may allow you to skip or lower the amount

and send in the voucher only if you are making

Other benefits.

due for one or more payments. If you use the

a payment by check or money order.

The temporary increase in the AMT

annualized income installment method, file

exemption amounts. For 2007, the exemption

Form 2210, Underpayment of Estimated Tax

amount will decrease to $33,750 ($45,000 if

by Individuals, Estates, and Trusts, with your

2007 tax return, even if no penalty is owed.

Page 2

Form 1040-Es - Estimated Tax For Individuals - 2007 Page 2

Related Articles

Related forms

Related Categories