Specific Instructions

Part I—Required Annual Payment

Complete lines 1 through 9 to figure your required annual payment.

If you file an amended return by the due date of your original return, use the amounts shown on your amended return to figure your underpayment. If you file an amended return after the due date, use the amounts shown on the original return.

Exception.   If you and your spouse file a joint return after the due date to replace previously filed separate returns, use the amounts shown on the joint return to figure your underpayment.

Line 1

Enter the amount from Form 1040, line 55; Form 1040A, line 35; Form 1040NR, line 52; or Form 1040NR-EZ, line 15. For an estate or trust, enter the amount from Form 1041, Schedule G, line 3.

Line 2

Enter the total of the following amounts.

IF you file...   THEN include on line 2 the amounts on...
1040   Lines 56, 58 (additional tax on distributions only), 59a*, 59b, and if applicable, the Additional Medicare Tax and/or Net Investment Income Tax, on line 60, and any write-ins on line 60 with the exception of:
  • Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance (identified as “UT”),

  • Tax on excess golden parachute payments (identified as “EPP”),

  • Excise tax on insider stock compensation from an expatriated corporation (identified as “ISC”),

  • Look-back interest due under section 167(g) (identified as “From Form 8866”), and under section 460(b) (identified as “From Form 8697”),

  • Recapture of federal mortgage subsidy (identified as “FMSR”), and

  • Advance payments of the health coverage tax credit when not eligible (identified as “HCTC”).

1040NR   Lines 53, 54, 56 (additional tax on distributions only), 57, 58a*, 58b, and if applicable, Additional Medicare Tax on line 59, and any write-ins on line 59 with the exception of:
  • Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance (identified as “UT”),

  • Tax on excess golden parachute payments (identified as “EPP”),

  • Excise tax on insider stock compensation from an expatriated corporation (identified as “ISC”),

  • Look-back interest due under section 167(g) (identified as “From Form 8866”), and under section 460(b) (identified as “From Form 8697”),

  • Recapture of federal mortgage subsidy (identified as “FMSR”), and

  • Advance payments of the health coverage tax credit when not eligible (identified as “HCTC”).

1041   Schedule G, lines 4, 5, 6*, and any write-ins on line 7 with the exception of:
  • Look-back interest due under section 167(g) (identified as “From Form 8866”), and

  • Look-back interest due under section 460(b) (identified as “From Form 8697”).

* If you are a household employer, include your household employment taxes on line 2 only if you had federal income tax withheld from your income and would be required to make estimated tax payments even if the household employment taxes were not included.

If you file Form 1040NR-EZ or Form 1040A, you will not have an entry on line 2.

Line 3

Enter the total amount of the following refundable credits, if any, that you claim on your tax return.

  • Earned income credit.

  • Additional child tax credit.

  • Refundable American opportunity credit (Form 8863, Line 8).

  • Credit for federal tax paid on fuels.

  • Health coverage tax credit.

  • Credit determined under section 1341(a)(5)(B).

To figure the amount of the section 1341 credit, see Repayments in Pub. 525, Taxable and Nontaxable Income.

Line 6

Enter the taxes withheld from Form 1040, lines 62 and 69; Form 1040A, line 36, plus any excess social security and tier 1 railroad retirement tax (RRTA) included on line 41; Form 1040NR, lines 61a, 61b, 61c, 61d, and 65; or Form 1040NR-EZ, lines 18a and 18b. For an estate or trust, enter the amount from Form 1041, line 24e.

Form 8689 filers.   Also enter on this line the amount(s) from Form 8689, lines 40 and 44, that you entered on line 72 of your 2013 Form 1040.

Line 8

To figure your 2012 tax, first add the amounts listed in (1) later, then subtract from that total amount the refundable credits listed in (2) later that are shown on your 2012 tax return.(1) Add the amounts listed in the chart below based on which tax return you filed for 2012.

IF you filed for 2012...   Add the following amounts shown on your 2012 tax return.
1040   Lines 55, 56, 58 (additional tax on distributions only), 59a*, 59b, and any write-ins on line 60 with the exception of:
  • Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance (identified as “UT”),

  • Tax on excess golden parachute payments (identified as “EPP”),

  • Excise tax on insider stock compensation from an expatriated corporation (identified as “ISC”),

  • Look-back interest due under section 167(g) (identified as “From Form 8866”), and under section 460(b) (identified as “From Form 8697”),

  • Recapture of federal mortgage subsidy (identified as “FMSR”), and

  • Advance payments of the health coverage tax credit when not eligible (identified as “HCTC”).

1040A   Line 35
1040NR   Lines 52, 53, 54, 56 (additional tax on distributions only), 57, 58a*, 58b, and any write-ins on line 59 with the exception of:
  • Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance (identified as “UT”),

  • Tax on excess golden parachute payments (identified as “EPP”),

  • Excise tax on insider stock compensation from an expatriated corporation (identified as “ISC”),

  • Look-back interest due under section 167(g) (identified as “From Form 8866”), and under section 460(b) (identified as “From Form 8697”),

  • Recapture of federal mortgage subsidy (identified as “FMSR”), and

  • Advance payments of the health coverage tax credit when not eligible (identified as “HCTC”).

1040NR-EZ   Line 15
1041   Schedule G, lines 4, 5, 6*, and any write-ins on line 7 with the exception of:
  • Look-back interest due under section 167(g) (identified as “From Form 8866”), and

  • Look-back interest due under section 460(b) (identified as “From Form 8697”).

*If you are a household employer, include your household employment taxes on line 2 only if you had federal income tax withheld from your income and would be required to make estimated tax payments even if the household employment taxes were not included.

 
(2) Subtract refundable credits listed below: 
Subtract the total of the following refundable credits, if any, that you claimed on your 2012 tax return:

  • Your earned income credit.

  • Additional child tax credit.

  • Refundable part of the American opportunity credit (Form 8863, line 14).

  • Credit for federal tax paid on fuels.

  • Refundable credit for prior year minimum tax (Form 8801, line 27).

  • Health coverage tax credit.

  • Credit determined under section 1341(a)(5)(B).

Enter the 2012 tax you figured above unless the AGI on your 2012 return is more than $150,000 ($75,000 if married filing separately for 2013). If the AGI shown on your 2012 tax return is more than $150,000 ($75,000 if married filing separately), enter 110% of the amount of the tax computed earlier.

If you are filing a joint return for 2013, but you did not file a joint return for 2012, add your 2012 tax (as figured earlier) to your spouse's 2012 tax (as figured earlier) and enter the total on line 8.

If you filed a joint return for 2012 but you are not filing a joint return for 2013, see Pub. 505, chapter 4, General Rule, to figure your share of the 2012 tax to enter on line 8.

If you did not file a return for 2012 or your 2012 tax year was less than 12 months, do not complete line 8. Instead, enter the amount from line 5 on line 9. However, see Exceptions to the Penalty, earlier.

Part III—Short Method

If you can use the short method (see Form 2210, Part III, Can You Use the Short Method?), complete lines 10 through 14 to figure your total underpayment for the year, and lines 15 through 17 to figure the penalty.

In certain circumstances, the IRS will waive all or part of the underpayment penalty. See Waiver of Penalty earlier.

Part IV—Regular Method

Use the regular method if you are not eligible to use the short method. See Form 2210, Part III, Must You Use the Regular Method?

If you checked box C in Part II, complete Schedule AI before Part IV.

Form 1040NR or 1040NR-EZ filers.   If you are filing Form 1040NR or 1040NR-EZ and did not receive wages as an employee subject to U.S. income tax withholding, the instructions for completing Part IV are modified as follows.
  1. Skip column (a).

  2. On line 18, column (b), enter one-half of the amount on line 9 of Part I (unless you are using the annualized income installment method).

  3. On line 19, column (b), enter the total tax payments made through June 15, 2013, for the 2013 tax year. If you are treating federal income tax (and excess social security or tier 1 railroad retirement tax) as having been withheld evenly throughout the year, you are considered to have paid one-third of these amounts on each payment due date.

  4. Skip all lines in column (b) that are shaded in column (a).

Section A—Figure Your Underpayment

Line 18

Enter on line 18, columns (a) through (d), the amount of your required installment for the due date shown in each column heading. For most taxpayers, this is one-fourth of the required annual payment shown in Part I, line 9. However, it may be to your benefit to figure your required installments by using the annualized income installment method. See the Schedule AI instructions later.

Line 19

Table 1—List your estimated tax payments for 2013.   Before completing line 19, enter in Table 1 the payments you made for 2013. Include the following payments.
  • Any overpayment from your 2012 return applied to your 2013 estimated tax payments. Generally, treat the payment as made on April 15, 2013.

  • Estimated tax payments you made for the 2013 tax year, plus any federal income tax and excess social security and tier 1 railroad retirement tax withheld.

  • Any payment made on your balance due return for 2013. Use the date you filed (or will file) your return or April 15, 2014, whichever is earlier, as the payment date.

  

Table 1.Estimated Tax Payments

Date Payment  
amount
  Date Payment  
amount
         
         
         
         
         
         

Entries on Form 2210.   Enter on line 19 the following tax payments.
  • Column (a)—payments you made by April 15, 2013.

  • Column (b)—payments you made after April 15, 2013, through June 15, 2013.

  • Column (c)—payments you made after June 15, 2013, through September 15, 2013.

  • Column (d)—payments you made after September 15, 2013, through January 15, 2014.

When figuring your payment dates and the amounts to enter on line 19 of each column, apply the following rules.

  • For withheld federal income tax and excess social security or tier 1 railroad retirement tax (RRTA), you are considered to have paid one-fourth of these amounts on each payment due date unless you can show otherwise. You will find these amounts on Form 1040, lines 62 and 69; Form 1040A, line 36, plus any excess social security and tier 1 RRTA included on line 41; Form 1040NR, lines 61a, 61b, 61c, 61d, and 65; Form 1040NR-EZ, lines 18a and 18b; and Form 1041, line 24e.

    If you treat withholding as paid for estimated tax purposes when it was actually withheld, you must check box D in Part II and complete and attach Form 2210 to your return.

  • Include all estimated tax payments you made for each period. Include any overpayment from your 2012 tax return you elected to apply to your 2013 estimated tax. If your 2012 return was fully paid by the due date, treat the overpayment as a payment made on April 15, 2013. If you mail your estimated tax payments, use the date of the U.S. postmark as the date of payment.

  • If an overpayment is generated on your 2012 return from a payment made after the due date, treat the payment as made on the date of payment. For example, you paid $500 due on your 2012 return on July 1, 2013, and later amended the return and were due a $400 refund which you elected to have applied to your estimated taxes. The $400 overpayment would be treated as paid on July 1.

  • If you file your return and pay the tax due by January 31, 2014, include on line 19, column (d), the amount of tax you pay with your tax return. In this case, you will not owe a penalty for the payment due on January 15, 2014.

    Example 1.

    You filed your 2012 tax return on June 1, 2013, showing a $2,000 refund. You elected to have $1,000 of your 2012 overpayment applied to your 2013 estimated tax payments. In 2013, you had $4,000 of federal income tax withheld from wages. You also made $500 estimated tax payments on 9/15/13 and 1/15/14. On line 19, column (a), enter $2,000 ($1,000 withholding + $1,000 overpayment). In column (b) enter $1,000 (withholding), and in columns (c) and (d), enter $1,500 ($1,000 withholding + $500 estimated tax payment).

Line 25

If line 25 is zero for all payment periods, you do not owe a penalty. But if you checked box C or D in Part II, you must file Form 2210 with your return. If you checked box E, you must file page 1 of Form 2210 with your return.

In certain circumstances, the IRS will waive all or part of the underpayment penalty. See Waiver of Penalty earlier.

Section B—Figure the Penalty

Use the Penalty Worksheet, later, to figure your penalty for each period by applying the appropriate rate against each underpayment shown in Section A, line 25. The penalty is figured for the number of days that each underpayment remains unpaid.

Your payments are applied first to any underpayment balance on an earlier installment even if you designate a payment for a later period. See Example 2.

Use lines 3, 6, 9, and 12 of the Penalty Worksheet to show the number of days an underpayment remained unpaid. Use lines 4, 7, 10, and 13 to figure the actual penalty amount by applying the appropriate rate to an underpayment for the number of days it remained unpaid.

Example 2.

You had a $500 underpayment remaining after your April 15 payment. The June 15 installment required a payment of $1,200. On June 10, you made a payment of $1,200 to cover the June 15 installment. However, $500 of this payment is applied first to the April 15 installment. The penalty for the April 15 installment is figured from April 15 to June 10 (56 days). The amount remaining to be applied to the June 15 installment is $700.

Total days per rate period.   If an underpayment remained unpaid for an entire rate period, use the chart below to determine the number of days to enter in each column. The chart is organized in the same format as the Penalty Worksheet.

Table 2. Chart of Total Days

Rate Period (a) 4/15/13 (b) 6/15/13 (c) 9/15/13 (d) 
1/15/14
4/16/13-6/30/13 76 15
7/1/13-9/30/13 92 92 15
10/1/13-12/31/13 92 92 92
1/1/14-4/15/14 105 105 105 90
For example, if you have an underpayment on line 25, column (a), but Table 1 shows you have no payments until after December 31, 2013, you would enter “76” on line 3, column (a), of the Penalty Worksheet.

  
If you make a payment during a rate period, see Table 4-1 (Pub. 505, chapter 4) for an easy way to figure the number of days the payment is late.

Worksheet for Form 2210, Part IV, Section B—Figure the Penalty

Line 1b.   If more than one payment was applied to fully pay the underpayment amount in a column (line 1a), enter on line 1b the date and amount applied up to the underpayment amount. If a payment was more than the underpayment amount, enter the excess in the next column with the same date.

Worksheet for Form 2210, Part IV, Section B—Figure the Penalty

Complete Rate Period 1 of each column before going to the next column; then go to Rate Periods 2, 3, and 4 in the same manner. If multiple estimated tax payments are applied to the underpayment amount in a column of line 1a, you will need to make more than one computation for that column.

              Payment Due Dates
            (a) 
4/15/13
(b) 
6/15/13
(c) 
9/15/13
(d) 
1/15/14
 
1a
 
Enter your underpayment from Part IV, Section A, line 25
1a        
1b Date and amount of each payment applied to the underpayment in the same column. Do not enter more than the underpayment amount on line 1a for each column (see instructions). 
Note. Your payments are applied in the order made first to any underpayment balance in an earlier column until that underpayment is fully paid.
1b        
Rate Period 1: April 16, 2013—June 30, 2013          
2 Computation starting dates for this period 2 4/15/13 6/15/13    
      Days: Days:    
3 Number of days from the date on line 2 to the date the amount on line 1a was paid or 6/30/13, whichever is earlier 3        
4 Underpayment 
on line 1a
× Number of days 
on line 3
 
365
× .03 4 $ $    
Rate Period 2: July 1, 2013—September 30, 2013          
5 Computation starting dates for this period 5 6/30/13 6/30/13 9/15/13  
      Days: Days: Days:  
6 Number of days from the date on line 5 to the date the amount on line 1a was paid or 9/30/13, whichever is earlier 6        
7 Underpayment 
on line 1a
× Number of days 
on line 6
 
365
× .03 7 $ $ $  
Rate Period 3: October 1, 2013—December 31, 2013          
8 Computation starting dates for this period 8 9/30/13 9/30/13 9/30/13  
      Days: Days: Days:  
9 Number of days from the date on line 8 to the date the amount on line 1a was paid or 12/31/13, whichever is earlier 9        
10 Underpayment 
on line 1a
× Number of days 
on line 9
 
365
× .03 10 $ $ $  
Rate Period 4: January 1, 2014—April 15, 2014          
11 Computation starting dates for this period 11 12/31/13 12/31/13 12/31/13 1/15/14
      Days: Days: Days: Days:
12 Number of days from the date on line 11 to the date the amount on line 1a was paid or 4/15/14, whichever is earlier 12        
13 Underpayment  
on line 1a
× Number of days 
on line 12
 
365
× .03 13 $ $ $ $
14 Penalty. Add all amounts on lines 4, 7, 10, and 13 in all columns. Enter the total here and on line 27 of Part IV, Section B ▶ 14 $

Example 3.

Your required installment for each payment due date is $4,000. You made the following estimated tax payments.

  Date Payments  
  4/30/13 $2,000  
  6/15/13 $3,000  
  9/15/13 $4,000  
  1/15/14 $4,000  

Line 1a, column (a), shows $4,000. You enter “4/30 $2,000” and “6/15 $2,000” on line 1b, column (a). The remaining $1,000 ($3,000 – $2,000) of the June 15 payment is entered on line 1b, column (b), “6/15 $1,000.” Also enter “9/15 $3,000” on line 1b, column (b), because $3,000 of the $4,000 September payment must be used to fully pay the June underpayment. Continue in this manner until all your payments are used.

Line 3.   If more than one payment was applied to an underpayment on line 1a, enter the number of days each payment was late.

Example 4.

Using the same facts as Example 3 above, enter “15” (number of days from 4/15 to 4/30) and “61” (number of days from 4/15 to 6/15) on line 3, column (a) (see illustration under Example 5).

Line 4.   Make the computation requested on line 4 and enter the result. If more than one payment was required to fully satisfy an underpayment amount, make a separate computation for each payment. See Example 5 and the example in chapter 4 of Pub. 505.

Example 5.

Assume the same facts as in Example 3. On line 4, enter the penalty for each underpayment: “2.47” ($2,000 × (15 ÷ 365) × .03) and “$10.03” ($2,000 × (61 ÷ 365) × .03). The entries are illustrated below.

Column (a) is fully paid in the first rate period; therefore, lines 6, 7, 9, 10, 12 and 13 for column (a) would be blank. Continue with the underpayment in columns (b), (c), and (d) in the same manner.

Note.

If an underpayment balance remains for the remaining rate periods, calculate the penalty using the same steps as explained above, but use the dates and interest rates on lines 6 and 7 for rate period 2, lines 9 and 10 for rate period 3, and lines 12 and 13 for rate period 4.

Schedule AI—Annualized Income Installment Method

If your income varied during the year because, for example, you operated your business on a seasonal basis or had a large capital gain late in the year, you may be able to lower or eliminate the amount of one or more required installments by using the annualized income installment method. Use Schedule AI to figure the required installments to enter on Form 2210, Part IV, line 18.

If you use Schedule AI for any payment due date, you must use it for all payment due dates.

To use the annualized income installment method to figure the penalty, you must do all of the following.

  1. Complete Schedule AI, Part I (and Part II, if necessary). Enter the amounts from Schedule AI, Part I, line 25, columns (a) through (d), in the corresponding columns of Form 2210, Part IV, line 18.

  2. Complete Part IV to figure the penalty. This includes completing the Penalty Worksheet in the instructions.

  3. Check box C in Part II.

  4. Attach Form 2210, Parts I, II, IV, and Schedule AI to your return.

Additional information.   See Pub. 505, chapter 4, for more details about the annualized income installment method. Estates and trusts, see Notice 87-32.

Individuals filing Form 1040NR or 1040NR-EZ.   If you are filing Form 1040NR or 1040NR-EZ and you did not receive wages as an employee subject to U.S. income tax withholding, follow these modified instructions for Schedule AI.
  1. Skip column (a).

  2. Beginning with column (b), enter on line 1 your income for the period that is effectively connected with a U.S. trade or business.

  3. Increase the amount on line 17 by the amount determined by multiplying your income for the period that is not effectively connected with a U.S. trade or business by the following.

    • In column (b), 72%.

    • In column (c), 45%.

    • In column (d), 30%.

    However, if you can use a treaty rate lower than 30%, use the percentages determined by multiplying your treaty rate by 2.4, 1.5, and 1, respectively.

  4. Enter on line 22, column (b), one-half of the amount from Form 2210, Part I, line 9. In columns (c) and (d), enter one-fourth of that amount.

  5. Skip column (b) of lines 20 and 23.

Part I—Annualized Income Installments

To figure the amount of each required installment, Schedule AI 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 figuring any earlier installments).

Line 1

For each period (column), figure your total income minus your adjustments to income. Include your share of partnership or S corporation income or loss items for the period.

If you are self-employed, be sure to take into account the deductible part of your self-employment tax. For more information on how to figure this amount for each period, see Pub. 505, chapter 4.

Line 2

Estates and trusts do not use the amounts shown in columns (a) through (d). Instead, use 6, 3, 1.71429, and 1.09091, respectively, as the annualization amounts.

Line 6

If you itemized deductions, multiply line 4 of each column by line 5 and enter the result on line 6. But if line 3 is more than the following amounts based on your filing status, use the Itemized Deductions Worksheet – Line 6 to figure the amount to enter on line 6.

Married filing jointly or Qualifying widow(er) $300,000
Head of household $275,000
Single $250,000
Married filing separately $150,000

Itemized Deductions Worksheet – Line 6

1. Enter line 4 of Schedule AI 1.  
2. Enter the total amount included on line 1 above for medical and dental expenses, investment interest, casualty or theft losses, and gambling losses (after applying the same limits used in line 1) 2.  
3. Subtract line 2 from line 1 3.  
4. Enter line 5 of Schedule AI 4.  
5. Multiply line 1 by line 4 5.  
    Note.If line 3 is zero or less, your deduction is not limited. Stop here and enter line 5 above on Schedule AI, line 6.    
6. Multiply line 3 by line 4 6.  
7. Multiply line 6 by 80% (.80) 7.      
8. Enter line 3 of Schedule AI 8.      
9. Enter:        
   
  • $300,000 if married filing jointly or qualifying widow(er),

  • $275,000 if head of household,

  • $250,000 if single, or

  • $150,000 if married filing separately

9.      
10. Subtract line 9 from line 8 10.      
    Note.If line 10 is zero or less, your deduction is not limited. Stop here and enter line 5 above on Schedule AI, line 6        
11. Multiply line 10 by 3% (.03) 11.      
12. Enter the smaller of line 7 or line 11 12.  
13. Total itemized deductions. Subtract line 12 from line 5. Enter the result here and in the appropriate column of Schedule AI, line 6 13.  

Line 7

If you are a resident of India and a student or business apprentice, enter your standard deduction from Form 1040NR, line 38; or Form 1040NR-EZ, line 11.

Line 10

For each column, multiply $3,900 by your total exemptions. But if line 3 is more than the following amount based on your filing status, use the Deduction for Exemptions Worksheet – Line 10 to figure the amount to enter on line 10.

Married filing jointly or Qualifying widow(er) $300,000
Head of household $275,000
Single $250,000
Married filing separately $150,000

Deduction for Exemptions Worksheet – Line 10

1. Multiply $3,900 by the number of exemptions you plan to claim 1.  
2. Enter line 3 of Schedule AI 2.  
3. Enter the amount shown below for your filing status:        
   
  • $250,000 if single,

  • $300,000 if married filing jointly or qualifying widow(er),

  • $150,000 if married filing separately, or

  • $275,000 if head of household

3.      
4. Subtract line 3 from line 2 4.      
5. Is line 4 more than $122,500 (more than $61,250 if married filing separately)?        
    Yes. Stop here. Enter -0- on lines 5 and 8. Do not complete the rest of this worksheet. 
No. Divide line 4 by $2,500 ($1,250 if married filing separately). If the result is not a whole number, increase it to the next highest whole number (for example, increase 0.0004 to 1)
5.      
6. Multiply line 5 by 2% (.02). Enter the result as a decimal 6.  
7. Multiply line 1 by line 6 7.  
8. Deduction for exemptions. Subtract line 7 from line 1. Enter the result here and in the appropriate column of the Schedule AI, line 10 8.  
Estates, trusts, and Form 1040NR or 1040NR-EZ filers.   Use the exemption amount shown on your return.

Line 12

To compute the tax, use the Tax Table, Tax Computation Worksheet, Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, Foreign Earned Income Tax Worksheet, Schedule J, or Form 8615, as appropriate. See the instructions for your tax return for the applicable Tax Table or worksheet.

Note.

Chapter 4 of Pub. 505 contains a Qualified Dividends and Capital Gain Tax Worksheet and a Foreign Earned Income Tax Worksheet designed for use with Schedule AI.

Line 14

Enter all of the other taxes you owed because of events that occurred during the months shown in the column headings. Include the same taxes used to figure Form 2210, Part I, line 2 (except self-employment tax), plus the tax from Form 4972, Tax on Lump-Sum Distributions; Form 8814, Parents' Election To Report Child's Interest and Dividends; and any alternative minimum tax (AMT).

To figure the AMT, Form 1040 filers use Form 6251, Alternative Minimum Tax—Individuals; Form 1040A filers use the Alternative Minimum Tax Worksheet in the Form 1040A instructions; and estates and trusts use Schedule I (Form 1041), Alternative Minimum Tax—Estates and Trusts. Figure alternative minimum taxable income based on your income and deductions during the periods shown in the column headings. Multiply this amount by the annualization amounts shown for each column on Schedule AI, line 2, before subtracting the AMT exemption.

Line 16

For each column, enter the credits you are entitled to because of events that occurred during the months shown in the column headings. These are the credits you used to arrive at the amounts on lines 1 and 3 of Part I, Required Annual Payment.

When figuring your credits, annualize any item of income or deduction used to figure each credit. For example, if your earned income (and AGI) for the first period (column (a)) is $8,000 and you qualify for the earned income credit (EIC), use your annualized earned income ($32,000) to figure your EIC for column (a).

Part II—Annualized Self-Employment Tax

If you had net earnings from self-employment during any period, complete Part II for that period to figure your annualized self-employment tax.

If you are married and filing a joint return and both you and your spouse had net earnings from self-employment, complete a separate Part II for each spouse. Enter on line 13 of Schedule AI, Part I, the combined amounts from line 34 of each spouse's  
Part II.

Any Additional Medicare Tax on self-employment income will be computed in Part I.

Line 26

Generally, to figure your net earnings from self-employment on line 26, multiply your net profit from all trades or businesses for each period by 92.35% (.9235).

However, if your Form W-2 showed church employee income or you deducted Conservation Reserve Program payments on your Schedule SE, use a separate Schedule SE as a worksheet to calculate net earnings from self-employment for each period. For this purpose, net earnings from self-employment is the amount on line 4 of the Short Schedule SE or line 6 of the Long Schedule SE.

Line 28

If you filed Form 4137 or Form 8919, use the following instructions to figure the additional amount to include in the appropriate columns of line 28.

  • Form 4137: Include the actual unreported tips for the period subject to social security tax. This will be the amount on Form 4137, line 10, when the form is completed for a specific period.

  • Form 8919: Include the actual wages for the period from which the social security tax was not withheld. This will be the amount on Form 8919, line 10, when the form is completed for a specific period.


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