Publication 505 - Tax Withholding And Estimated Tax Page 26
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49Worksheet 2.10. (continued) 2002 Annualized Estimated Tax Worksheet
Section B (For Figuring Your Annualized Estimated Self-Employment Tax)—Complete each column after end of period shown.
1/1/01 to
1/1/01 to
1/1/01 to
1/1/01 to
3/31/01
5/31/01
8/31/01
12/31/01
27
Net earnings from self-employment for the period
27
28
Prorated social security tax limit
28
$21,225
$35,375
$56,600
$84,900
29
Enter actual wages for the period subject to social
security tax or the 6.2% portion of the 7.65% railroad
retirement (tier 1) tax
29
30
Subtract line 29 from line 28. If zero or less, enter -0-
30
31
Annualization amounts
31
0.496
0.2976
0.186
0.124
32
Multiply line 31 by the smaller of line 27 or line 30
32
33
Annualization amounts
33
0.116
0.0696
0.0435
0.029
34
Multiply line 27 by line 33
34
35a Add lines 32 and 34. Enter the result here and on
line 13 of Section A
35a
8
4.8
3
2
b Annualization amounts
35b
c Deduction for one-half of self-employment tax. Divide
line 35a by 35b. Enter the result here. Also use this
result to figure your adjusted gross income on line 1
35c
Note. If line 7 is more than line 8, go to
If you filed a 2001 Form 1040, these include:
3) 75% (.75) for the third period, or
line 18.
4) 100% (1.00) for the fourth period.
13. Subtract line 9 from line 8. If zero or
1) Taxes on qualified plans, including IRAs,
less, enter 0 . . . . . . . . . . . . . . . . . .
and other tax favored accounts,
You may choose to include your actual with-
14. Multiply line 13 by 10% (.10) . . . . . . . .
holding through the due date for each period on
15. Enter the amount, if any, of your
2) Advance earned income credit,
qualified 5-year gain. Do not enter more
line 26c. You can make this choice separately
3) Household employment taxes that are re-
than the amount on line 13. . . . . . . . .
for the taxes withheld from your wages and all
16. Multiply line 15 by 2% (.02) . . . . . . . .
ported on your income tax return, and
other withholding. For an explanation of what to
17. Subtract line 16 from line 14 . . . . . . . .
include in withholding, see Total Estimated Tax
4) Write-in amounts on line 58 of Form 1040.
Note. If line 13 minus line 15 is more
Payments under How To Figure Estimated Tax,
than zero and equal to line 6, enter 0 on
Do not include tax on recapture of a federal
lines 20, 25, and 28, and go to line 29.
earlier.
mortgage subsidy, social security and Medicare
18. Enter the smaller of line 1 or line 6 . . .
tax on unreported tip income, and any uncol-
19. Subtract line 13 from line 18 . . . . . . . .
Section B. If you had income from self-em-
20. Multiply line 19 by 20% (.20) . . . . . . . .
lected social security, Medicare, or railroad re-
ployment during any period, complete the work-
Note. If line 4 is zero or blank, skip lines
tirement tax.
21 through 25 and read the note above
sheet column for that period to figure your
If you filed a 2001 Form 1040A, “other tax” is
line 26.
annualized self-employment tax before you
any advance earned income credit payments on
21. Enter the smaller of line 2 or line 4 . . .
complete the worksheet column for that period
line 35 of that form.
22. Add lines 2 and 11 . . . . . . . . . . . . . .
in Section A.
23. Subtract line 1 from line 22. If zero or
Line 16. Include all the credits (other than
less, enter 0 . . . . . . . . . . . . . . . . . .
withholding credits) you can claim because of
24. Subtract line 23 from line 21. If zero or
Nonresident aliens. If you will file Form
events that occurred during the period. If you are
less, enter 0 . . . . . . . . . . . . . . . . . .
1040NR and you do not receive wages as an
25. Multiply line 24 by 25% (.25) . . . . . . . .
using your 2001 return as a guide and filed Form
employee subject to U.S. income tax withhold-
Note. If line 3 is zero or blank, go to line
1040, your 2001 credits included the credits on
ing, the instructions for the worksheet are modi-
29 . . . . . . . . . . . . . . . . . . . . . . . .
lines 61a, 63, and 65, and the credits that are
fied as follows.
26. Add lines 11, 13, 19, and 24 . . . . . . . .
included in the total on line 51. If you filed Form
27. Subtract line 26 from line 1. If zero or
1040A, your 2001 credits included the credits on
less, enter 0 . . . . . . . . . . . . . . . . . .
1) Skip the first column.
28. Multiply line 27 by 28% (.28) . . . . . . . .
lines 39a, and 40.
2) On line 1, enter your income for the period
29. Add lines 12, 17, 20, 25, and 28 . . . . .
Line 26a. If line 24 is smaller than line 21 and
30. Tax on the amount on line 1 from the
that is effectively connected with a U.S.
you are not certain of the estimate of your 2002
2002 Tax Rate Schedule . . . . . . . . . .
trade or business.
31. Tax. Enter the smaller of line 29 or line
tax, you can avoid a penalty by entering the
30 here and on line 12 of the 2002
3) On line 17, increase your entry by the
amount from line 21 on line 26a.
Annualized Estimated Tax Worksheet . .
amount determined by multiplying your in-
Line 26c. Include all estimated tax payments
come for the period that is not effectively
A collectibles gain or loss is any gain or
credited to 2002 and federal income tax with-
connected with a U.S. trade or business by
loss from the sale or exchange of a work of art,
holding through the payment due date for the
the following:
rug, antique, metal, gem, stamp, coin, or alco-
period. Also include excess social security and
holic beverage or other collectible that is a capi-
excess railroad retirement for the period.
a) 72% for the second column,
tal asset and that was held more than one year.
Your withholding is considered paid in four
b) 45% for the third column, and
equal installments, one on the due date of each
Line 13. Enter your self-employment tax for
payment period. To figure the amount to include
c) 30% for the fourth column. However, if
each period from line 35a.
on line 26c for each period, multiply your total
you can use a treaty rate lower than
expected withholding for 2002 by:
30%, use the percentages determined
Line 14. Include all the taxes you will owe
by multiplying your treaty rate by 2.4,
(other than income tax and self-employment tax)
1) 25% (.25) for the first period,
because of events that occurred during the pe-
1.5, and 1, respectively, instead of the
riod.
2) 50% (.50) for the second period,
above percentages.
Page 26
Chapter 2 Estimated Tax for 2002
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