How to Figure Estimated Tax (continued)

Form 1040ES's Estimated Tax Worksheet helps taxpayers figure their estimated tax by calculating their expected adjusted gross income (AGI), taxable income, taxes, and credits for the current year (next year's tax return). When using the worksheet:

• Consider all available facts that will affect income, deductions, and credits
  
  
• Use last year's tax return as a starting point for estimations
  
  
• Be careful to make adjustments both for:
  
  
  • Anticipated changes in the taxpayer's situation, and
    
    
  • Recent changes in the tax law

	When figuring estimated tax, be sure to include all taxes, such as tax on lump-sum distributions and self-employment tax.