In most cases, you must pay estimated tax for 2013 if both of the following apply.

Note.The percentages in (2a) or (2b) above may be different if you are a farmer, fisherman, or higher income taxpayer. See Special Rules , later.

Figure 2-A takes you through the general rule. You may find this helpful in determining if you must pay estimated tax.

If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income.

You and your spouse can qualify to make joint estimated tax payments even if you are not living together.

However, you and your spouse cannot make joint estimated tax payments if:

If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income.

Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2013.

There are special rules for farmers, fishermen, and certain higher income taxpayers.

Resident and nonresident aliens also may have to pay estimated tax. Resident aliens should follow the rules in this publication, unless noted otherwise. Nonresident aliens should get Form 1040-ES (NR), U.S. Estimated Tax for Nonresident Alien Individuals.

You are an alien if you are not a citizen or national of the United States. You are a resident alien if you either have a green card or meet the substantial presence test.

See Publication 519 for more information about Form 1040-ES (NR) and withholding (chapter 8) and the substantial presence test (chapter 1).

Estates and trusts also must pay estimated tax. However, estates (and certain grantor trusts that receive the residue of the decedent's estate under the decedent's will) are exempt from paying estimated tax for the first 2 years after the decedent's death.

Estates and trusts must use Form 1041-ES, Estimated Income Tax for Estates and Trusts, to figure and pay estimated tax.

Use Worksheet 2-1 to help guide you through the information about completing the 2013 Estimated Tax Worksheet. You can find a blank copy of the worksheet in the Instructions for Form 1040-ES.

Expected AGI—Line 1

Your expected AGI for 2013 (line 1) is your expected total income minus your expected adjustments to income.

Total income.   Include in your total income all the income you expect to receive during the year, even income that is subject to withholding. However, do not include income that is tax exempt.

  Total income includes all income and loss for 2013 that, if you had received it in 2012, would have been included on your 2012 tax return in the total on line 22 of Form 1040, line 15 of Form 1040A, or line 4 of Form 1040EZ.

Social security and railroad retirement benefits. If you expect to receive social security or tier 1 railroad retirement benefits during 2013, use Worksheet 2-2 to figure the amount of expected taxable benefits you should include on line 1.

Adjustments to income.   Be sure to subtract from your expected total income all of the adjustments you expect to take on your 2013 tax return.

Self-employed. If you expect to have income from self-employment, use Worksheet 2-3 to figure your expected self-employment tax and your allowable deduction for self-employment tax. Include the amount from line 11 of Worksheet 2-3 in your expected adjustments to income. If you file a joint return and both you and your spouse have net earnings from self-employment, each of you must complete a separate worksheet.

Expected Taxable Income— Lines 2–5

Reduce your expected AGI for 2013 (line 1) by either your expected itemized deductions or your standard deduction and by your exemptions (lines 2 through 5).

Itemized deductions—line 2.   If you expect to claim itemized deductions on your 2013 tax return, enter the estimated amount on line 2.

  Itemized deductions are the deductions that can be claimed on Schedule A (Form 1040).

  

For 2013, your total itemized deductions may be reduced if your AGI is more than the amount shown next for your filing status.

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

  If you expect your AGI to be more than this amount, use Worksheet 2-5 to figure the amount to enter on line 2.

Standard deduction—line 2.   If you expect to claim the standard deduction on your 2013 tax return, enter the amount on line 2. Use Worksheet 2-4 to figure your standard deduction.

No standard deduction.   The standard deduction for some individuals is zero. Your standard deduction will be zero if you:

• File a separate return and your spouse itemizes deductions,

• Are a dual-status alien, or

• File a return for a period of less than 12 months because you change your accounting period.

Exemptions—line 4.   After you have subtracted either your expected itemized deductions or your standard deduction from your expected AGI, reduce the amount remaining by $3,900 for each exemption you expect to take on your 2013 tax return. If another person (such as your parent) can claim an exemption for you on his or her tax return, you cannot claim your own personal exemption. This is true even if the other person will not claim your exemption or the exemption will be reduced or eliminated under the phaseout rule.

  

For 2013, your deduction for personal exemption is reduced if your AGI is more than the amount shown next for your filing status.

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

  If you expect your AGI to be more than this amount, use Worksheet 2-6 to figure the amount to enter on line 4.

Expected Taxes and Credits—Lines 6–13c

After you have figured your expected taxable income (line 5), follow the steps below to figure your expected taxes, credits, and total tax for 2013. Most people will have entries for only a few of these steps. However, you should check every step to be sure you do not overlook anything.

Step 1.   Figure your expected income tax (line 6). Generally, you will use the 2013 Tax Rate Schedules, later, or in the instructions to Form 1040-ES, to figure your expected income tax.

  However, see below for situations where you must use a different method to compute your estimated tax.

Tax on child's investment income.   You must use a special method to figure tax on the income of the following children who have more than $2,000 of investment income.

1. Children under age 18 at the end of 2013.

2. The following children if their earned income is not more than half their support.

   1. Children age 18 at the end of 2013.

   2. Children who are full-time students over age 18 and under age 24 at the end of 2013.

See Publication 929, Tax Rules for Children and Dependents. Although the ages and dollar amounts in the publication may be different in the 2013 revision, this reference will give you basic information for figuring the tax.

Tax on net capital gain.   The regular income tax rates for individuals do not apply to a net capital gain. Instead, your net capital gain is taxed at a lower maximum rate.

  The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss.

Tax on capital gain and qualified dividends. If the amount on line 1 includes a net capital gain or qualified dividends, use Worksheet 2-7 to figure your tax.

Note.

For 2013, your capital gains and dividends rate will depend on your income.

Tax if excluding foreign earned income or excluding or deducting foreign housing. If you expect to claim the foreign earned income exclusion or the housing exclusion or deduction on Form 2555 or Form 2555-EZ, use Worksheet 2-8 to figure your estimated tax.

Step 2.   Total your expected taxes (line 8). Include on line 8 the sum of the following.

1. Your tax on line 6.

2. Your expected alternative minimum tax (AMT) on line 7 from Form 6251, line 35, or included on Form 1040A, line 28.

3. Your expected additional taxes from Form 8814, Parents' Election To Report Child's Interest and Dividends, and Form 4972, Tax on Lump-Sum Distributions.

4. Any recapture of education credits.

Step 3.   Subtract your expected credits (line 9). If you are using your 2012 return as a guide and filed Form 1040, your total credits for 2012 were shown on line 54. If you filed Form 1040A, your total credits for 2012 were on line 34.

  If your credits on line 9 are more than your taxes on line 8, enter “-0-” on line 10 and go to Step 4.

Step 4.   Add your expected self-employment tax (line 11). You already should have figured your self-employment tax (see Self-employed under Expected AGI—Line 1 earlier).

Step 5.   Add your expected other taxes (line 12).

  Other taxes include the following.

1. Additional tax on early distributions from:

   1. An IRA or other qualified retirement plan,

   2. A tax-sheltered annuity, or

   3. A modified endowment contract entered into after June 20, 1988.

2. Household employment taxes if:

   1. You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income, or

   2. You would be required to make estimated tax payments even if you did not include household employment taxes when figuring your estimated tax.

3. Amounts written on Form 1040 on the line for “other taxes” (line 60 on the 2012 Form 1040). But, do not include recapture of a federal mortgage subsidy; tax on excess golden parachute payments; look-back interest due under section 167(g) or 460(b) of the Internal Revenue Code; excise tax on insider stock compensation from an expatriated corporation; uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance; or additional tax on advance payments of health coverage tax credit when not eligible.

4. Repayment of the first-time homebuyer credit. See Form 5405.

5. Additional Medicare Tax. A 0.9% Additional Medicare Tax applies to your combined Medicare wages and self-employment income and/or your RRTA compensation that exceeds the amount listed in the following chart, based on your filing status.

   Filing Status	Threshold Amount
   Married filing jointly	$250,000
   Married filing separately	$125,000
   Single	$200,000
   Head of household	$200,000
   Qualifying Widow(er)	$200,000

   Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. A self-employment loss should not be considered for purposes of this tax. RRTA compensation should be separately compared to the threshold. Your employer is responsible for withholding the 0.9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2013. You should consider this withholding, if applicable, in determining whether you need to make an estimated payment.

6. Net Investment Income Tax (NIIT). The NIIT is 3.8% of the lesser of your net investment income or the excess of your modified adjusted gross income over the amount listed in the following chart, based on your filing status.

   Filing Status	Threshold Amount
   Married filing jointly	$250,000
   Married filing separately	$125,000
   Single	$200,000
   Head of household	$200,000
   Qualifying Widow(er)	$250,000

Step 6.   Subtract your refundable credit (line 13b).

  To figure your expected fuel tax credit, do not include fuel tax for the first three quarters of the year that you expect to have refunded to you.

  The result of steps 1 through 6 is your total estimated tax for 2013 (line 13c).

You do not have to make estimated tax payments until you have income on which you will owe income tax. If you have income subject to estimated tax during the first payment period, you must make your first payment by the due date for the first payment period. You can pay all your estimated tax at that time, or you can pay it in installments. If you choose to pay in installments, make your first payment by the due date for the first payment period. Make your remaining installment payments by the due dates for the later periods.

If at least two-thirds of your gross income for 2012 or 2013 is from farming or fishing, you have only one payment due date for your 2013 estimated tax, January 15, 2014. The due dates for the first three payment periods, discussed under When To Pay Estimated Tax , earlier, do not apply to you.

If you file your 2013 Form 1040 by March 1, 2014, and pay all the tax you owe at that time, you do not need to make an estimated tax payment.

If your first estimated tax payment is due April 15, 2013, you can figure your required payment for each period by dividing your annual estimated tax due (line 16a of the 2013 Estimated Tax Worksheet) by 4. Enter this amount on line 17. However, use this method only if your income is basically the same throughout the year.

If you do not receive your income evenly throughout the year, your required estimated tax payments may not be the same for each period. See Annualized Income Installment Method .

If you do not receive your income evenly throughout the year (for example, your income from a repair shop you operate is much larger in the summer than it is during the rest of the year), your required estimated tax payment for one or more periods may be less than the amount figured using the regular installment method.

The annualized income installment method annualizes your tax at the end of each period based on a reasonable estimate of your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. To see whether you can pay less for any period, complete the 2013 Annualized Estimated Tax Worksheet (Worksheet 2-9).

Use the result you figure on line 32 of the 2013 Annualized Estimated Tax Worksheet to make your estimated tax payments and complete your payment vouchers.

Instructions for the 2013 Annualized Estimated Tax Worksheet (Worksheet 2-9)

Use Figure 2-D to help you follow these instructions. See Worksheet 2-9 for another worksheet available for your use.

The purpose of this worksheet is to determine your estimated tax liability as your income accumulates throughout the year, rather than dividing your entire year's estimated tax liability by four as if your income was earned equally throughout the year. The top of the worksheet shows the dates for each payment period. The periods build; that is, each period includes all previous periods. After the end of each payment period, complete the corresponding worksheet column to figure the payment due for that period.

Line 1.   Enter your AGI for the period. This is your gross income for the period, including your share of partnership or S corporation income or loss, minus your adjustments to income for that period. See Expected AGI—Line 1 , earlier.

Self-employment income.   If you had self-employment income, first complete Section B of this worksheet. Use the amounts on line 43 when figuring your expected AGI to enter in each column of Section A, line 1.

Line 4.   Be sure to consider all deduction limits figured on Schedule A (Form 1040), such as reducing your medical expenses by 10% (7.5% if either you or your spouse is 65 or older) or reducing certain miscellaneous deductions by 2% of your AGI. Figure your deduction limits using your expected AGI in the corresponding column of line 1 (2013 Annualized Estimated Tax Worksheet (Worksheet 2-9)).

Line 6.   Multiply line 4 by line 5 and enter the result on line 6 unless line 3 is more than $300,000 if married filing jointly or qualifying widow(er), $275,000 if head of household, $250,000 if single, and $150,000 if married filing separately. In that case, use Worksheet 2-10 to figure the amount to enter on line 6. Complete Worksheet 2–10 for each period, as necessary.

Line 7.   If you will not itemize your deductions, use Worksheet 2-4 to figure your standard deduction.

Line 10.   Multiply $3,900 by your total expected exemptions and enter the result on line 10 unless line 3 is more than $300,000 if married filing jointly or qualifying widow(er), $275,000 if head of household, $250,000 if single, and $150,000 if married filing separately.

  In that case, use Worksheet 2-11 to figure the amount to enter on line 10.

Line 12.   Generally, you will use the Tax Rate Schedules or in the instructions to Form 1040-ES to figure the tax on your annualized income. However, see below for situations where you must use a different method to compute your estimated tax.

Tax on child's investment income.   You must use a special method to figure tax on the income of the following children who have more than $2,000 of investment income.

1. Children under age 18 at the end of 2013.

2. The following children if their earned income is not more than half their support.

   1. Children age 18 at the end of 2013.

   2. Children who are full-time students over age 18 and under age 24 at the end of 2013.

See Publication 929.

Tax on net capital gain.   The regular income tax rates for individuals do not apply to a net capital gain. Instead, your net capital gain is taxed at a lower maximum rate.

  The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss.

Tax on qualified dividends and capital gains.   For 2013, your capital gain and dividends rate will depend on your income.

Tax on capital gain or qualified dividends. If the amount on line 1 includes a net capital gain or qualified dividends, use Worksheet 2-12 to figure the amount to enter on line 12.

Tax if excluding foreign earned income or excluding or deducting foreign housing. If you expect to claim the foreign earned income exclusion or the housing exclusion or deduction on Form 2555 or Form 2555-EZ, use Worksheet 2-13 to figure the amount to enter on line 12.

Line 13.   If you file Form 1040, add the tax from Forms 8814, 4972, and 6251 for the period. If you file Form 1040A, add the amount from the Alternative Minimum Tax Worksheet found in the instructions. Also include any recapture of an education credit for each period. You may owe this tax if you claimed an education credit in an earlier year and you received either tax-free educational assistance or a refund of qualifying expenses for the same student after filing your 2012 return.

  Use the 2012 forms or worksheets to see if you will owe any of the taxes discussed above. Figure the tax based on your income and deductions during the period shown in the column headings. Multiply this amount by the annualization amounts shown for each column on line 2 of the 2013 Annualized Estimated Tax Worksheet (Worksheet 2-9). Enter the result on line 13 of this worksheet.

Line 15.   Include all the nonrefundable credits you expect to claim because of events that will occur during the period.

Note.

When figuring your credits for each period, annualize any item of income or deduction to figure each credit. For example, if you need to use your AGI to figure a credit, use line 3 of Worksheet 2-9 to figure the credit for each column.

Line 17.   Enter your self-employment tax for the period from Section B, line 41.

Line 18.   Add your expected other taxes.

  Other taxes include the following.

1. Additional tax on early distributions from:

   1. An IRA or other qualified retirement plan,

   2. A tax-sheltered annuity, or

   3. A modified endowment contract entered into after June 20, 1988.

2. Household employment taxes if:

   1. You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income, or

   2. You would be required to make estimated tax payments even if you did not include household employment taxes when figuring your estimated tax.

3. Amounts on Form 1040 written on the line for “other taxes” (line 60 on the 2012 Form 1040). But do not include recapture of a federal mortgage subsidy; tax on excess golden parachute payments; look-back interest due under section 167(g) or 460(b) of the Internal Revenue Code; excise tax on insider stock compensation from an expatriated corporation; uncollected social security, Medicare, or RRTA tax on tips or group-term life insurance; or additional tax on advance payments of health coverage tax credit when not eligible.

4. Repayment of the first-time homebuyer credit if the home will cease to be your main home in 2013. See Form 5405 for exceptions.

5. Additional Medicare Tax. A 0.9% Additional Medicare Tax applies to your combined Medicare wages and self-employment income and/or your RRTA compensation that exceeds the amount listed in the following chart, based on your filing status.

   Filing Status	Threshold Amount
   Married filing jointly	$250,000
   Married filing separately	$125,000
   Single	$200,000
   Head of household	$200,000
   Qualifying Widow(er)	$200,000

   Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. A self-employment loss should not be considered for purposes of this tax. RRTA compensation should be separately compared to the threshold.

   Your employer is responsible for withholding the 0.9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays you in excess of $200,000 in 2013. You should consider this withholding, if applicable, in determining whether you need to make an estimated payment.

6. Net Investment Income Tax (NIIT). The NIIT is 3.8% of the lesser of your net investment income or the excess of your modified adjusted gross income over a specified threshold amount. Threshold amounts:

   Filing Status	Threshold Amount
   Married filing jointly	$250,000
   Married filing separately	$125,000
   Single	$200,000
   Head of household	$200,000
   Qualifying Widow(er)	$250,000

Line 20.   Include all the refundable credits (other than withholding credits) you can claim because of events that occurred during the period.

Note.

When figuring your refundable credits for each period, annualize any item of income or deduction used to figure each credit.

Line 29.   If line 28 is smaller than line 25 and you are not certain of the estimate of your 2013 tax, you can avoid a penalty by entering the amount from line 25 on line 29.

Line 31.   For each period, include estimated tax payments made and any excess social security and railroad retirement tax.

  Also include estimated federal income tax withholding. One-fourth of your estimated withholding is considered withheld on the due date of each payment period. To figure the amount to include on line 31 for each period, multiply your total expected withholding for 2013 by:

• 25% (.25) for the first period,

• 50% (.50) for the second period,

• 75% (.75) for the third period, and

• 100% (1.00) for the fourth period.

  However, you may choose to include your withholding according to the actual dates on which the amounts will be withheld. For each period, include withholding made from the beginning of the period up to and including the payment due date. You can make this choice separately for the taxes withheld from your wages and all other withholding. For an explanation of what to include in withholding, see Total Estimated Tax Payments Needed—Line 16a , earlier.

Nonresident aliens.   If you will file Form 1040NR and you do not receive wages as an employee subject to U.S. income tax withholding, the instructions for the worksheet are modified as follows.

1. Skip column (a).

2. On line 1, enter your income for the period that is effectively connected with a U.S. trade or business.

3. On line 21, increase your entry 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.

   1. 72% for column (b).

   2. 45% for column (c).

   3. 30% for column (d).

   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. On line 26, enter one-half of the amount from line 16c of the Form 1040-ES (NR) 2013 Estimated Tax Worksheet in column (b), and one-fourth in columns (c) and (d).

5. On lines 24 and 27, skip column (b).

6. On line 31, if you do not use the actual withholding method, include one-half of your total expected withholding in column (b) and one-fourth in columns (c) and (d).

See Publication 519 for more information.

You do not have to pay estimated tax if your withholding in each payment period is at least as much as:

You also do not have to pay estimated tax if you will pay enough through withholding to keep the amount you will owe with your return under $1,000.

If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2012, you can apply part or all of it to your estimated tax for 2013. On line 75 of Form 1040, or line 44 of Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. Take the amount you have credited into account when figuring your estimated tax payments. If you timely file your 2012 return, treat the credit as a payment made on April 15, 2013.

If you are a beneficiary of an estate or trust, and the trustee elects to credit 2013 trust payments of estimated tax to you, you can treat the amount credited as paid by you on January 15, 2014.

If you choose to have an overpayment of tax credited to your estimated tax, you cannot have any of that amount refunded to you until you file your tax return for the following year. You also cannot use that overpayment in any other way.

Paying online is convenient and secure and helps make sure we get your payments on time. You can make your estimated tax payments online when you e-file or at any time during the year. You can pay using either of the following electronic payment methods.

To pay your taxes online or for more information, go to www.irs.gov/e-pay.

Paying by phone is another safe and secure method of paying electronically. Use one of the following methods.

To pay by direct transfer from your bank account, call EFTPS Customer Service at 1-800-555-4477 (English), 1-800-244-4829 (Espanol), or TTY/TDD 1-800-733-4829.

To pay using a credit or debit card, you can call one of the following service providers. There is a convenience fee charged by these providers that varies by provider, card type, and payment amount.

For the latest details on how to pay by phone, go to www.irs.gov/e-pay.

Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. If you use your own envelopes (and not the window envelope that comes with the 1040-ES package), make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live.

If you did not pay estimated tax last year, get a copy of Form 1040-ES from the IRS (see chapter 5). Follow the instructions in the package to make sure you use the vouchers correctly.

Worksheet 2-4.2013 Estimated Tax Worksheet—Line 2 Standard Deduction Worksheet

Caution. Do not complete this worksheet if you expect your spouse to itemize on a separate return or you expect to be a dual-status alien. In either case, your standard deduction will be zero.
1.	Enter the amount shown below for your filing status.
	•Single or married filing separately—$6,100
	•Married filing jointly or Qualifying widow(er)—$12,200
	•Head of household—$8,950					1.
2.	Can you (or your spouse if filing jointly) be claimed as a dependent on someone else's return?
		No.	Skip line 3; enter the amount from line 1 on line 4.
		Yes.	Go to line 3.
3.	Is your earned income* more than $650?
		Yes.	Add $350 to your earned income. Enter the total.
		No.	Enter $1,000			3.
4.	Enter the smaller of line 1 or line 3							4.
5.	Were you (or your spouse if filing jointly) born before January 2, 1949, or blind?
		No.	Go to line 6.
		Yes.	Check if:
			a. You were Born before January 2, 1949 Blind
			b. Your spouse was Born before January 2, 1949 Blind
			c. Total boxes checked in 5a and 5b
		▶	Multiply $1,200 ($1,500 if single or head of household) by the number in the box on line 5c					5.
6.	Standard deduction. Add lines 4 and 5. Enter the result here and on line 2 of your 2013 Estimated Tax Worksheet (or line 7 of your 2013 Annualized Estimated Tax Worksheet (Worksheet 2-9))							6.

* Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any amount received as a scholarship that you must include in your income. Reduce your earned income by your allowed deduction for self-employment tax (Worksheet 2-3, line 11).