Fillable Form Esa - Estimated Tax Annualization Worksheet

General Information on Annualizing

If your income ﬂ uctuates or is seasonal, you may be able to lower the amount of one or more required estimated tax

installments by annualizing your income. To see if you can pay less for any period, ﬁ rst complete the Estimated Income Tax

Worksheet (Form ESW), then complete the Estimated Tax Annualization Worksheet (Form ESA). Complete one column

before continuing on to the next. This worksheet annualizes your tax at the end of each period based on a reasonable

estimate of your income and deductions from the beginning of the tax year through the end of each period. If you use the

annualized income worksheet for any payment due date, you have to use it for all subsequent payment due dates. If you

use the annualized income installment method, you will need to include Form ESA with your tax return if you are ﬁ ling on

paper.

Form ESA Instructions

To ﬁ gure the amount of each required installment, the worksheet selects the smaller of the annualized income installment or

the regular installment (that has been increased by the amount saved by using the annualized income installment method in

ﬁ guring any earlier installments).

Line 1

For each period (column), ﬁ gure your total income including your adjustments to income. Include your share of

partnership or S corporation income or loss items for the period.

Line 4

Enter your estimated 2014 itemized deductions such as contributions, medical, and dental expenses for each

period.

Line 6

If you itemized your deductions, multiply line 4 of each column by line 5 and enter the result on line 6.

Line 7

The standard deduction is 20% of line 3, subject to the following limitations:

• Single or married ﬁ ling separately:

No less than $1,900; no more than $4,270

• Married ﬁ ling jointly or head of household: No less than $3,800; no more than $8,540

Line 12

To compute the tax, use the tax table below.

You can make estimated tax payments using the individual income tax payment voucher available at revenue.mt.gov under

Forms & Resources, or you can pay online at revenue.mt.gov under Online Services.

2013 Montana Individual Income Tax Table

If Your Taxable

Multiply

If Your Taxable

Multiply

But Not

And

This Is

But Not

And

This Is

Income Is

Your Taxable

Income Is

Your Taxable

More Than

Subtract

Your Tax

More Than

Subtract

Your Tax

More Than

Income By

More Than

Income By

$2,800

1% (0.010)

$10,100

$13,000

5% (0.050)

$252

$2,800

$4,900

2% (0.020)

$28

$13,000

$16,700

6% (0.060)

$382

$4,900

$7,400

3% (0.030)

$77

More Than $16,700

6.9% (0.069)

$532

$7,400

$10,100

4% (0.040)

$151

For example:

Taxable income $6,800 X 3% (0.030) = $204.

$204 minus $77 = $127 tax

Standard Deduction Worksheet

A standard deduction worksheet must be completed for each period.

Jan 1 - Mar 31

Jan 1 - May 31

Jan 1 - Aug 31

Jan 1 - Dec 31

1st Period 2014

2nd Period 2014

3rd Period 2014

4th Period 2014

1. Enter the amount from line 3 of Form ESA for applicable period. 1.

2. Enter 20% of line 1 ...................................................................... 2.

3. Enter the amount from below that corresponds to your ﬁ ling

status:

Single or married ﬁ ling separately $4,270

Married ﬁ ling jointly or head of household $8,540 ....................... 3.

4. Enter the amount from either line 2 or line 3, whichever is the

smaller ......................................................................................... 4.

5. Enter the amount from below that corresponds to your ﬁ ling

status:

Single or married ﬁ ling separately $1,900

Married ﬁ ling jointly or head of household $3,800 ....................... 5.

6. Enter the amount from either line 4 or line 5, whichever is the

larger. This is your standard deduction. Transfer this amount to

line 7 on Form ESA for the applicable period .............................. 6.

Administrative Rules of Montana: 42.17.305, 42.17.308 and 42.17.309

Questions? Please call us toll free at (866) 859-2254 (in Helena, 444-6900).

Form Esa - Estimated Tax Annualization Worksheet - 2014 Page 2

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