Instructions For Form Rev-414(I) - Estimating Pa Personal Income Tax (For Individuals Only)

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REV-413(I) EX (08-12)
INSTRUCTIONS FOR ESTIMATING
PA DEPARTMENT OF REVENUE
PA PERSONAL INCOME TAX (FOR INDIVIDUALS ONLY)
Estimated tax is the method used to pay tax on income that is not
pay your estimated tax and credit your estimated tax to your account
properly.
subject to withholding such as:
Part A and Part B of the REV-414(I) will help you figure the correct
• Wages for domestic service;
amount to pay. Use the Record of Estimated Tax Payments on the
• Tips received from customers;
REV-414(I) to keep track of the payments you have made and the
• Wages paid to residents who are seamen engaged in interstate
amount of your remaining payments.
or intercoastal trade or who work in Indiana, Maryland, New
PART 2. JOINT DECLARATION
Jersey, Ohio, Virginia and West Virginia when PA income tax is
not withheld by the employer;
A husband and wife may file a joint return declaration, unless:
• Earnings from self-employment or profits made in a trade,
1. They are separated under a decree of divorce or separate
profession, business or farming;
maintenance;
• Gains from the sale, exchange or disposition of property;
2. They have different taxable years;
• Interest and dividends;
3. One spouse is liable for child support;
• Rents and royalties;
4. One spouse claims one or more credits on PA Schedule OC; or
• Gambling and lottery winnings (except PA Lottery winnings); and
5. One spouse is otherwise required by the department to file a
• Income derived from estates and trusts.
separate return. See the PA-40 Instruction Booklet for
Married, Filing Separately filing status for details on who must
PART 1. WHO MUST MAKE ESTIMATED TAX PAYMENTS
file separate returns.
The estimated tax rules apply to:
To avoid problems and delays in processing your income tax return,
• Residents and part-year residents of Pennsylvania; and
a husband and wife should file tax returns in the same manner as they
• Nonresidents of Pennsylvania (or residents of other countries)
made their estimated installment payments. If you and your spouse
who expect to have taxable income from sources within
made joint estimated payments, file a joint return. If you and your
spouse made separate estimated payments, please file separate
Pennsylvania.
returns claiming the proper amounts on each return. If you and your
Except for farmers as explained below, you must make PA estimated
spouse need to file differently from the way you submitted your
tax payments if:
estimated payments, complete the REV-459B, Consent to Transfer,
1. You reasonably expect, after subtracting your withholding and
Adjust or Correct PA Estimated Personal Income Tax Account form,
credits, that you would owe at least $246 ($8,000 of income not
to adjust the estimated accounts.
subject to employer withholding) in tax for 2013, and
PART 3. PAYMENT DUE DATES
2. You can reasonably expect your withholdings and allowable
Use the following table to determine the due date and the amount of
credits to be less than the smaller of:
each installment. You may pay all of your estimated tax with your first
• Ninety percent of the tax to be shown on your 2013 tax return;
payment or pay in installments when due. You may elect to apply
or
your overpayment from your 2012 PA tax return against your 2013
• The product of multiplying the PA taxable income shown on your
estimated tax liability. If so, the department will apply your approved
2012 PA tax return by 3.07 percent (0.0307). This calculation
overpayment to the first installment, unless you notify the PA
can be used only by taxpayers who were full-year PA residents
Department of Revenue in writing to apply your overpayment to
in 2012.
another installment. When income is earned unevenly throughout the
year, complete the REV-1630, Underpayment of Estimated Tax by
Example: You expect your 2013 tax liability to be $20,000. Ninety
Individuals form, to determine if you owe estimated underpayment
percent of this amount is $18,000. You were a full-year resident in
penalty.
2012, and your 2012 PA taxable income times the 2013 tax rate of
3.07 percent is $16,000. If you reasonably expect your amount of
FARMERS
2013 tax withheld and other allowable credits to be less than
If at least two-thirds of your gross income for 2013 is from farming,
$16,000, you must make estimated payments. This is because you
you may do one of the following:
would owe more than $246 after subtracting your expected withhold-
• Pay all of your estimated tax by Jan. 15, 2014; or
ings and credits; your expected withholdings and credits would be
less than 90 percent of your 2013 tax liability; and your expected
• File your 2013 PA tax return by March 1, 2014 and pay the total tax
withholdings and credits are less than your 2012 taxable income
due. In this case, 2013 estimated tax payments are not required.
times the expected 2013 tax rate of 3.07 percent.
PART 4. HOW TO COMPLETE AND USE THE DECLARATION OF
CAUTION
ESTIMATED PERSONAL INCOME TAX FORM
A taxpayer cannot use the prior year’s tax liability as this year’s
Individuals filing declarations for the first time should use the
estimated tax to avoid underpayment penalty.
PA-40ESR(I) forms. Thereafter, the PA Department of Revenue will
Use these instructions and the REV-414(I), Individuals Worksheet,
supply preprinted PA-40ES(I) forms. Failure to receive department-
to determine your estimated tax. Use PA-40ES(I) or PA-40ESR(I),
provided forms does not relieve taxpayers from filing and paying the
Declaration of Estimated Personal Income Tax forms, to declare and
tax.
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, 2013
June 15, 2013
Sept. 15, 2013
Jan. 15, 2014
Before April 1, 2013
4
25%
25%
25%
25%
After March 31, 2013, and before
3
50%
25%
25%
June 1, 2013
After May 31, 2013, and before
2
75%
25%
Sept. 1, 2013
After Aug. 31, 2013
1
100%
07PDR084581

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