Form Rev-414 - Individuals Worksheet - Pa Department Of Revenue (Page 7 of 10) in pdf

REV-413(I) EX (08-16)

PA DEPARTMENT OF REVENUE

InstructIons for EstImatIng

Pa PErsonal IncomE tax (for IndIvIduals only)

Estimated tax is the method used to pay tax on income that is not

Part A and Part B of the REV-414(I) will help you figure the correct

amount to pay. Use the Record of Estimated Tax Payments on the

subject to withholding such as:

REV-414(I) to keep track of the payments you have made and the

• Wages for domestic service;

amount of your remaining payments.

• Tips received from customers;

PART 2. JOINT DECLARATION

• Wages paid to residents who are seamen engaged in interstate

or intercoastal trade or who work in Indiana, Maryland, New

A husband and wife may file a joint return declaration, unless:

Jersey, Ohio, Virginia and West Virginia when PA income tax is

1. They are separated under a decree of divorce or separate

not withheld by the employer;

maintenance;

• Earnings from self-employment or profits made in a trade,

2. They have different taxable years;

profession, business or farming;

3. One spouse is liable for child support;

• Gains from the sale, exchange or disposition of property;

4. One spouse claims one or more credits on PA Schedule OC; or

• Interest and dividends;

• Rents and royalties;

5. One spouse is otherwise required by the department to file a

separate return. See the PA-40 Instruction Booklet for Married,

• Gambling and lottery winnings (except PA Lottery noncash

Filing Separately filing status for details on who must file

winnings); and

separate returns.

• Income derived from estates and trusts.

To avoid problems and delays in processing your income tax return,

PART 1. WHO MUST MAKE ESTIMATED TAX PAYMENTS

a husband and wife should file tax returns in the same manner as

The estimated tax rules apply to:

they made their estimated installment payments. If you and your

spouse made joint estimated payments, file a joint return. If you and

• Residents and part-year residents of Pennsylvania; and

your spouse made separate estimated payments, please file

• Nonresidents of Pennsylvania (or residents of other countries)

separate returns claiming the proper amounts on each return. If you

who expect to have taxable income from sources within

and your spouse need to file differently from the way you submitted

Pennsylvania.

your estimated payments, complete the REV-459B, Consent to

Except for farmers as explained below, you must make PA

Transfer, Adjust or Correct PA Estimated Personal Income Tax

estimated tax payments if:

Account form, to adjust the estimated accounts.

1. You reasonably expect, after subtracting your withholding and

PART 3. PAYMENT DUE DATES

credits, that you would owe at least $246 ($8,000 of income not

Use the following table to determine the due date and the amount

subject to employer withholding) in tax for 2017, and

of each installment. You may pay all of your estimated tax with your

2. You can reasonably expect your withholdings and allowable

first payment or pay in installments when due. You may elect

credits to be less than the smaller of:

to apply your overpayment from your 2016 PA tax return against

your 2017 estimated tax liability. If so, the department will apply your

• Ninety percent of the tax to be shown on your 2017 tax return; or

approved overpayment to the first installment, unless you notify

• The product of multiplying the PA taxable income shown on

the PA Department of Revenue in writing to apply your overpayment

your 2016 PA tax return by 3.07 percent (0.0307). This calcu-

to another installment. When income is earned unevenly throughout

lation can be used only by taxpayers who were full-year PA

the year, complete the REV-1630, Underpayment of Estimated

residents in 2016.

Tax by Individuals form, to determine if you owe estimated

Example: You expect your 2017 tax liability to be $20,000. Ninety

underpayment penalty.

percent of this amount is $18,000. You were a full-year resident in

FARMERS

2016, and your 2016 PA taxable income times the 2017 tax rate of

If at least two-thirds of your gross income for 2017 is from farming,

3.07 percent is $16,000. If you reasonably expect your amount of

you may do one of the following:

2017 tax withheld and other allowable credits to be less than

$16,000, you must make estimated payments. This is because you

• Pay all of your estimated tax by Jan. 15, 2018; or

would owe more than $246 after subtracting your expected withhold-

• File your 2017 PA tax return by March 1, 2018 and pay the total

ings and credits; your expected withholdings and credits would be

tax due. In this case, 2017 estimated tax payments are not

less than 90 percent of your 2017 tax liability; and your expected

required.

withholdings and credits are less than your 2016 taxable income

PART 4. HOW TO COMPLETE AND USE THE DECLARATION OF

times the expected 2017 tax rate of 3.07 percent.

ESTIMATED PERSONAL INCOME TAX FORM

CAUTION

Individuals filing declarations for the first time should use the

A taxpayer cannot use the prior year’s tax liability as this year’s

PA-40ESR(I) forms. Thereafter, the PA Department of Revenue will

estimated tax to avoid underpayment penalty. SEE SAFE HARBOR

supply preprinted PA-40ES(I) forms. Failure to receive department-

RULES

provided forms does not relieve taxpayers from filing and paying

the tax.

Use these instructions and the REV-414(I), Individuals Worksheet,

to determine your estimated tax. Use PA-40ES(I) or PA-40ESR(I),

You can eliminate the need to file a paper PA-40ES (I) form by mak-

Declaration of Estimated Personal Income Tax forms, to declare

ing your estimated payments through electronic funds transfer (EFT)

and pay your estimated tax and credit your estimated tax to your

or by using a debit or credit card. For detailed information, visit

account properly.

And you pay the following percentages of the estimated tax by the date shown or

The number

If you first meet the requirement

the next business day if the due date falls on a Saturday, Sunday or holiday.

of required

to make estimated tax payments:

installments is:

April 15, 2017

June 15, 2017

Sept. 15, 2017

Jan. 15, 2018

Before April 1, 2017

25%

After March 31, 2017, and before

50%

25%

June 1, 2017

After May 31, 2017, and before

75%

25%

Sept. 1, 2017

After Aug. 31, 2017

100%

07 PDR 105016

Form Rev-414 - Individuals Worksheet - Pa Department Of Revenue Page 7

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