Form 104ep - Estimated Tax-Individuals Worksheer

INDIVIDUAL ESTIMATED INCOME TAX

INSTRUCTIONS

Calculating the Payment

Estimated tax is the method used to pay tax on income that is

Use the provided Worksheet to calculate the amount of estimated

not subject to withholding. Wages typically have withholding, but

tax owed. Reference the previous year Colorado Income Tax

earnings from self-employment, interest, dividends, rents, etc. would

be subject to estimated tax. You might also pay estimated tax if

Return form and instructions for help determining taxable income.

Those who file joint returns should take care to make the payment

your withholdings are not enough to be excluded from the General

Rule below. If you file forms 1040-ES with the IRS, typically you

under the taxpayer name and ID number that will be listed first

would pay estimated tax to the Colorado Department of Revenue.

on the income tax return. Remit payments according to the due

See Publication FYI — Income 51 for more information, which is

date table provided.

available at

Penalties

General Rule

Failure to timely remit estimated tax as necessary will result in

In most cases, you will pay estimated tax if you expect to owe more

an estimated tax penalty. Exceptions will be given to farmers or

fishermen who file and remit full payment by March 1. Otherwise,

than $1,000 in tax for 2012, after subtracting any withholding or

refundable credits you might have.

penalty will be calculated for each missed or late payment. For

calculation specifics, or to remit this penalty before being billed,

Required payments

see DR 204.

The required annual amount to be paid is the smaller of:

Refunds

a. 70% of the actual net Colorado tax liability

Estimated tax payments can only be claimed as prepayment credit

b. 100% of the preceding year’s net Colorado tax liability. This

on the 2012 Colorado income tax return. Therefore, estimated

rule only applies if the preceding year was a 12-month tax

payments cannot be refunded in any manner until such time that

year, the individual filed a Colorado return, and the federal

the Colorado income tax return is filed.

adjusted gross income on that return was $150,000 or less

(or, if married filing separately, $75,000 or less).

Go Green with Revenue Online

T h e d e p a r t m e n t h a s l a u n c h e d a n e w We b s i t e a t

c. 110% of the preceding year’s net Colorado tax liability. This

that allows taxpayers to submit

amount only applies if the preceding year was a 12-month year,

and the individual filed a Colorado return.

various forms, remit payments and to monitor their tax account. Form

104EP is not required if electronic payment is remitted through this

Annualized Installment Method

site. Please be advised that a nominal processing fee may apply

For those who do not receive income evenly throughout the year may

to electronic payments.

elect to file using this method. Specific instructions for the annualized

Pay by Electronic Funds Transfer

installment method are available in Publication FYI – Income 51.

Options are free services of the department. EFT services

Carryforward — of Estimated Overpayment

require preregistration before payments can be made. Visit

Any overpayment designated for Carryforward on your Colorado

for more information.

income tax return from the previous year must be applied to the first

Forms, FYI publications and additional information is available at

estimated tax payment due for this tax period.

, or you can call 303-238-SERV (7378)

for assistance.

Form 104ep - Estimated Tax-Individuals Worksheer - 2012 Page 2

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