Instructions For Form In-114 - Individual Estimated Tax Payment Vouchers

INSTRUCTIONS

When Do I File and Make Payments? Estimated tax payments are

Who Must File An Estimate of Tax Liability? Every individual who

made quarterly. Mail the vouchers and your payments on or before the

expects to incur an income tax liability which exceeds the tax withheld

due dates shown on the front cover. For calendar year taxpayers, the due

and other tax credits. Estimate of tax liability is the method used to pay

dates are April 15, June 15, September 15 and January 15. Fiscal year

tax on income not subject to withholding, such as self-employment earn-

taxpayers file and make payments on or before the 15th day of the

ings, interest, dividends, rents, alimony, or income which is underwith-

fourth, sixth, and ninth month of the current taxable year and the 15th

held.

day of the first month of the following taxable year. When the 15th falls

on a weekend or holiday, the payment is due the next business day. The

How Should I Estimate My Tax Liability? Use the taxpayer’s work-

calendar year due dates on the front are adjusted to this.

sheet included with the vouchers to estimate your 1999 tax liability. If

Use whole dollars when making estimated payments.

you expect to owe tax in excess of your withholding, you must pay the

difference to the Department of Taxes in quarterly installments. You may

What If I Underestimate My Tax Liability or Fail To Make Estimated

apply your 1998 income tax refund toward your 1999 estimated tax lia-

Payments Timely? Vermont’s interest and penalty provisions for under-

bility. Enter the refund amount on your record of payments to determine

payments of estimate tax are not the same as the Federal provisions. The

the next payment amount and due date.

failure to pay 90% of this year’s or 100% of last year’s tax liability may

Example: On April 1, 1999, you estimate 1999 tax liability at $400.

result in interest at the statutory rate and penalty charges of 2% per

You should make an estimated payment of $100 on April 15, 1999. On

month, up to 25%, of the underpayment. If your underpayment of tax is

June 1, 1999 you change jobs and anticipate the 1999 tax liability will

less than $250, no interest or penalty will be assessed. If you make your

now be $500. On June 15, you should make an estimated payment of

Federal estimated payments on an annualized basis, you must also annu-

$150 to bring total payments up to 50% of the revised liability. On

alize for Vermont.

September 15 and January 15, you should make estimated payments of

$125 each. Use the Taxpayer’s worksheet to determine your estimated

payments and make entries on the Record of Payments to show when

you make payments.

Instructions For Form In-114 - Individual Estimated Tax Payment Vouchers - 1999 Page 2