Publication 505 - Tax Withholding And Estimated Tax Page 28
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49Second
Third
Fourth
Estimated Tax Worksheet). Because $1,271 is
For the second period, as for the first, the
Jan. 1-
Jan. 1- Jan. 1-
smaller, they enter that amount on lines 25a and
annualized income installment method allows
May 31 Aug. 31 Dec. 31
25b.
the Joneses to pay less than their required pay-
Larry’s salary . . . . .
$11,800 $19,200 $30,200
Larry’s total expected withholding for the
ment under the regular installment method of
Unemployment
year is $5,792. The Joneses can treat
figuring estimated tax payments. They make up
compensation . . . .
600
600
600
one-fourth of that amount, $1,448, as paid on
the difference in the third and fourth periods
Anne’s net profit from
April 15, or they can choose to use Larry’s actual
when their income is higher.
self-employment . . .
6,000
15,850 38,500
withholding for the period, $1,350. The Joneses
Because the Joneses are using the annual-
Net rental income . .
668
2,671
2,671
enter $1,448 on line 25c.
Interest income . . .
850
1,450
2,300
ized income installment method, they will file
Dividends . . . . . . .
674
1,708
3,745
On line 25d, the Joneses’ required estimated
Form 2210 with their tax return for 2003.
Total . . . . . . . . . .
$20,592 $41,479 $78,016
tax payment for the period under the annualized
income installment method is $0 ($1,271 −
They also take into account the following
items for each period:
$1,448). They do not have a Form 1040 – ES
payment-voucher due April 15, 2003.
Second
Third
Fourth
Jan. 1-
Jan. 1-
Jan. 1-
May 31
Aug. 31 Dec. 31
Second, Third, and
Adjustment to
Fourth Periods
income for IRA
contributions . . . .
$ 250
$ 400
$1,000
After the end of each remaining payment period,
Itemized deductions
2,700
6,400
9,200
the Joneses complete the column of the work-
sheet for that period (from the beginning of the
year through the end of that payment period) in
the same way they did for the first period. They
had the following income for each period:
Page 28
Chapter 2 Estimated Tax for 2003
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