Form 540-Es - Instructions For Form 540-Es Estimated Tax For Individuals

2013 Instructions for Form 540-ES

Estimated Tax For Individuals

General Information

D When to Make Your Estimated Tax Payments

Pay your estimated payments by the dates shown below:

Same- Sex Married Couples – For information regarding estimate tax payments,

get 2012 FTB Pub. 776, Tax Information for Same-Sex Married Couples.

1st payment . . . . . April 15, 2013

2nd payment . . . . June 17, 2013

3rd payment . . . . . September 16, 2013

4th payment . . . . January 15, 2014

Installment Payments – Installments due shall be thirty percent of the required

annual payment for the 1st required installment, forty percent of the required

Filing an Early Return In Place of the 4th Installment. If you file your 2013 tax

annual payment for the 2nd required installment, no installment is due for the 3rd

return by January 31, 2014, and pay the entire balance due, you do not have to

required installment, and thirty percent of the required annual payment for the 4th

make your last estimated tax payment. In addition, you will not owe a penalty for

required installment.

the fourth installment.

You are required to remit all your payments electronically once you make an

Annualization Option. If you do not receive your taxable income evenly during the

estimate or extension payment exceeding $20,000 or you file an original return

year, it may be to your advantage to annualize your income. This method allows

with a total tax liability over $80,000 for any taxable year that begins on or

you to match your estimated tax payments to the actual period when you earned

after January 1, 2009. Once you meet the threshold, all subsequent payments

the income. You may use the annualization schedule included with the 2012 form

regardless of amount, tax type, or taxable year must be remitted electronically.

FTB 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries.

Individuals who do not send the payment electronically will be subject to a one

Farmers and Fishermen. If you are a farmer or fisherman, and at least two-thirds

percent noncompliance penalty. Electronic payments can be made using Web Pay

of your 2012 and 2013 gross income is from farming or fishing, you may do either

on the Franchise Tax Board’s (FTB’s) website, electronic funds withdrawal (EFW)

of the following:

as part of the e-file return, or your credit card. For more information go to

•

Pay all of your estimated tax by January 15, 2014.

ftb.ca.gov and search for mandatory epay.

•

File your tax return for 2013 on or before March 3, 2014, and pay the total tax

A Purpose

due. In this case, you need not make estimated tax payments for 2013. Use

the 2012 form FTB 5805F, Underpayment of Estimated Tax by Farmers and

Use Form 540-ES, Estimated Tax for Individuals, and the 2013 Estimated Tax

Fishermen, to determine if you paid the required estimated tax. If the estimated

Worksheet, to determine if you owe estimated tax for 2013 and to figure the

tax is underpaid, attach the completed form FTB 5805F to the back of your return.

required amounts. Estimated tax is the tax you expect to owe in 2013 after

subtracting the credits you plan to take and tax you expect to have withheld.

Fiscal Year. If you file your return on a fiscal year basis, your due dates will be the

15th day of the 4th, 6th, and 9th months of your fiscal year and the 1st month of

If you need to make a payment for your 2012 tax liability or make a separate

the following fiscal year. If the due date falls on a weekend, or legal holiday, use

payment for any balance due on your 2012 tax return, use form FTB 3519,

the next business day.

Payment for Automatic Extension for Individuals.

Mental Health Services Tax. If your taxable income or nonresident CA source taxable

Certain taxpayers are limited in their use of the prior year’s tax as a basis for

income is more than $1,000,000, complete the worksheet below.

figuring their estimated tax. See paragraph C below for more information. Check for

estimated payments we’ve received at ftb.ca.gov and search for myftb account.

A. Taxable income from Form 540 or Form 540A, line 19,

Increasing your withholding could eliminate the need to make a large payment with

or Long Form 540NR, line 35 . . . . . . . . . . . . . . . . . . . . . . . . . . ____________

your tax return. To increase your withholding, complete Employment Development

B. Less:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$(1,000,000)

Department (EDD) Form DE 4, Employee’s Withholding Allowance Certificate, and

C. Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ____________

-1,000,000.00

give it to your employer’s appropriate payroll staff. You can get this form from your

D. Tax rate – 1% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

x .01

employer, or by calling EDD at 888.745.3886. You can download the Form DE 4

E. Mental Health Services Tax – Multiply line C by line D.

from EDD’s website at edd.ca.gov or go to ftb.ca.gov and search for de 4.

Enter this amount here and on line 17 of the 2013 CA

Form DE 4 specifically adjusts your California state withholding and is not the

-10,000.00

Estimated Tax Worksheet, on the next page. . . . . . . . . . . . . . . ____________

same as the federal Form W-4, Employee’s Withholding Allowance Certificate.

E How to Use Form 540-ES Payment Form

B Who Must Make Estimated Tax Payments

Use the CA Estimated Tax Worksheet and your 2012 California income tax return as a

Generally, you must make estimated tax payments if you expect to owe at least

guide for figuring your 2013 estimated tax. Be sure that the amount shown on line 21

$500 ($250 if married/RDP filing separately) in tax for 2013 (after subtracting

of the CA Estimated Tax Worksheet has been reduced by any overpaid tax on your

withholding and credits) and you expect your withholding and credits to be less

2012 tax return which you chose to apply toward your 2013 estimated tax payment.

than the smaller of:

Note:

1. 90% of the tax shown on your 2013 tax return.

•

If you filed Form 540 2EZ for 2012, do not use the Form 540 2EZ instructions

2. The tax shown on your 2012 tax return including Alternative Minimum Tax

to figure amounts on this worksheet. Instead, get the 2012 California 540/540A

(AMT).

Personal Income Tax Booklet.

Note:

There is a separate payment form for each due date. Please be sure you use the

•

You do not have to make estimated tax payments if you are a nonresident or new

form with the correct due date shown in the top margin of the form. Complete

resident of California in 2013 and did not have a California tax liability in 2012,

Form 540-ES using black or blue ink:

see Section C for more information.

1. Print your name, address, and social security number (SSN) or individual

•

If you are a military servicemember not domiciled in California, do not include

taxpayer identification number (ITIN) in the space provided on Form 540-ES. If

your military pay in your computation of estimated tax payments. If you are the

you have a foreign address, enter the information in the following order: City,

nonmilitary spouse of a servicemember you may or may not need to include

Country, Province/Region, and Postal Code. Follow the country’s practice for

your pay in your computation of estimated tax payments. For more information,

entering the postal code. Do not abbreviate the country name.

get FTB Pub. 1032, Tax Information for Military Personnel.

2. Complete the amount of payment line of the form by entering the amount of

If you and your spouse/RDP paid joint estimated tax payments, but are now filing

the payment that you are sending.

separate income tax returns, either of you may claim all of the amount paid, or you

3. Paying your tax:

may each claim part of the joint estimated payments. If you want the estimated

Web Pay – Make a payment online or schedule a future payment (up to one

tax payments to be divided, notify the FTB before you file the income tax returns

year in advance), go to ftb.ca.gov for more information. Do not mail

so that the payments can be applied to the proper account. The FTB will accept

Forms 540-ES to us.

in writing, any divorce agreement (or court ordered settlement) or a statement

Credit card – Go to ftb.ca.gov and search for pay by credit card or call

showing the allocation of the payments along with a notarized signature of both

800.272.9829. You will be charged a fee for this service.

taxpayers. The statements should be sent to:

Do not mail Forms 540-ES if you pay by credit card.

Check or money order – Using black or blue ink, make your check or money

JOINT ESTIMATE CREDIT ALLOCATION MS F225, TAXPAYER SERVICES

order payable to the “Franchise Tax Board.” Write your SSN or ITIN and

CENTER, FRANCHISE TAX BOARD, PO BOX 942840, SACRAMENTO CA

“2013 Form 540-ES” on it and mail to the address on the form.

94240-0040

Make all checks and money orders payable in U.S. dollars and drawn against a

C Limit on the Use of Prior Year’s Tax

U.S. financial institution.

Individuals who are required to make estimated tax payments, and whose 2012

4. Complete the Record of Estimated Tax Payments on the next page for your files.

California adjusted gross income is more than $150,000 (or $75,000 if married/

5. Fiscal year filers: Enter the month of your fiscal year end (located directly

RDP filing separately), must figure estimated tax based on the lesser of 90% of

below the form’s title).

their tax for 2013 or 110% of their tax for 2012 including AMT. This rule does not

F Failure to Make Estimated Tax Payments

apply to farmers or fishermen.

If you do not make the required estimate payments, if you pay an installment after

Taxpayers with 2013 California adjusted gross income equal to or greater than

the date it is due, or if you underpay any installment, a penalty may be assessed

$1,000,000 (or $500,000 if married/RDP filing separately), must figure estimated

on the portion of estimated tax that was underpaid from the due date of the

tax based on their tax for 2013.

installment to the date of payment or the due date of your tax return, whichever is

earlier. Get the 2012 form FTB 5805 for more information.

Form 540-ES Instructions 2012 Page 1

Form 540-Es - Instructions For Form 540-Es Estimated Tax For Individuals - 2013

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