Table of Contents
Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from selfemployment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.
Estimated tax is used to pay both income tax and selfemployment tax, as well as other taxes and amounts reported on your tax return. If you do not pay enough tax, either through withholding or estimated tax, or a combination of both, you may have to pay a penalty. If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax ), you may be charged a penalty even if you are due a refund when you file your tax return. For information on when the penalty applies, see chapter 4.
It would be helpful for you to have a copy of your 2015 tax return and an estimate of your 2016 income nearby while reading this chapter.
Who must pay estimated tax,

How to figure estimated tax (including illustrated examples),

When to pay estimated tax,

How to figure each payment, and

How to pay estimated tax.
See chapter 5 for information about how to get this publication and form.
If you receive salaries and wages, you may be able to avoid paying estimated tax by asking your employer to take more tax out of your earnings. To do this, file a new Form W4 with your employer. See chapter 1.

You had no tax liability for 2015.

You were a U.S. citizen or resident alien for the whole year.

Your 2015 tax year covered a 12month period.
If you owed additional tax for 2015, you may have to pay estimated tax for 2016.
You can use the following general rule as a guide during the year to see if you will have enough withholding, or should increase your withholding or make estimated tax payments.
In most cases, you must pay estimated tax for 2016 if both of the following apply.

You expect to owe at least $1,000 in tax for 2016, after subtracting your withholding and refundable credits.

You expect your withholding and refundable credits to be less than the smaller of:

90% of the tax to be shown on your 2016 tax return, or

100% of the tax shown on your 2015 tax return. Your 2015 tax return must cover all 12 months.

Note. The percentages in (2a) or (2b) just listed may be different if you are a farmer, fisherman, or higher income taxpayer. See Special Rules .
If the result from using the general rule above suggests that you will not have enough withholding, complete the 2016 Estimated Tax Worksheet for a more accurate calculation.Figure 2A takes you through the general rule. You may find this helpful in determining if you must pay estimated tax.
If all your income will be subject to income tax withholding, you probably do not need to pay estimated tax.Example 1.
Jane Smart uses Figure 2A and the following information to figure whether she should pay estimated tax for 2016. She files as head of household claiming her dependent son, takes the standard deduction, and expects no refundable credits for 2016.
Expected adjusted gross income (AGI) for 2016  $95,250 
AGI for 2015  $74,325 
Total tax on 2015 return (Form 1040, line 63) 
$ 8,591 
Total 2016 estimated tax (line 13c of the 2015 Estimated Tax Worksheet)  $11,015 
Tax expected to be withheld in 2016 
$10,000 
Jane's answer to Figure 2A, box 1, is YES; she expects to owe at least $1,000 for 2016 after subtracting her withholding from her expected total tax ($11,015 − $10,000 = $1,015). Her answer to box 2a is YES; she expects her income tax withholding ($10,000) to be at least 90% of the tax to be shown on her 2016 return ($11,015 × 90% (0.90) = $9,913.50). Jane does not need to pay estimated tax.
Example 2.
The facts are the same as in Example 1, except that Jane expects only $8,500 tax to be withheld in 2016. Because that is less than $9,913.50, her answer to box 2a is NO.
Jane's answer to box 2b is also NO; she does not expect her income tax withholding ($8,500) to be at least 100% of the total tax shown on her 2015 return ($8,591). Jane must increase her withholding or pay estimated tax for 2016.
If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income.
You and your spouse can make joint estimated tax payments even if you are not living together.
However, you and your spouse cannot make joint estimated tax payments if:

You are legally separated under a decree of divorce or separate maintenance,

You and your spouse have different tax years, or

Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes). See Choosing Resident Alien Status in Publication 519.
Note.
Individuals of the same sex and opposite sex who are in registered domestic partnerships, civil unions, or other similar formal relationships that are not marriages under state law cannot make joint estimated tax payments. These individuals can take credit only for the estimated tax payments that he or she made.
If you and your spouse cannot 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 2016.
The tax you would have paid had you filed a separate return  
The total tax you and your spouse would have paid had you filed separate returns 
Example.
Joe and Heather filed a joint return for 2015 showing taxable income of $48,500 and a tax of $6,356. Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. For 2016, they plan to file married filing separately. Joe figures his share of the tax on the 2015 joint return as follows:
Tax on $40,100 based on separate return  $5,825  
Tax on $8,400 based on separate return  843  
Total  $6,888  
Joe's percentage of total ($5,825 ÷ $6,888)  87.4%  
Joe's share of tax on joint return ($6,356 × 87.4% (0.874)) 
$5,555 
There are special rules for farmers, fishermen, and certain higher income taxpayers.
If at least twothirds of your gross income for 2015 or 2016 is from farming or fishing, substitute 66^{2}/_{3}% for 90% in (2a) under General Rule .

Income from operating a stock, dairy, poultry, bee, fruit, or truck farm.

Income from a plantation, ranch, nursery, range, orchard, or oyster bed.

Crop shares for the use of your land.

Gains from sales of draft, breeding, dairy, or sporting livestock.

Schedule F (Form 1040), Profit or Loss From Farming, line 9.

Form 4835, Farm Rental Income and Expenses, line 7.

Your share of the gross farming income from a partnership, S corporation, estate or trust, from: Schedule K1 (Form 1065), Schedule K1 (Form 1120S), or Schedule K1 (Form 1041).

Your gains from sales of draft, breeding, dairy, or sporting livestock shown on Form 4797, Sales of Business Property.

Schedule C (Form 1040), Profit or Loss From Business, line 7.

Income for services as an officer or crew member of a vessel while the vessel is engaged in fishing.

Your share of the gross fishing income from a partnership, S corporation, estate or trust, from: Schedule K1 (Form 1065), Schedule K1 (Form 1120S), or Schedule K1 (Form 1041).

Certain taxable interest and punitive damage awards received in connection with the Exxon Valdez litigation.

Income for services normally performed in connection with fishing.

Shore service as an officer or crew member of a vessel engaged in fishing, and

Services that are necessary for the immediate preservation of the catch, such as cleaning, icing, and packing the catch.
If your AGI for 2015 was more than $150,000 ($75,000 if your filing status for 2016 is married filing a separate return), substitute 110% for 100% in (2b) under General Rule .
For 2015, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4.
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 1040ES (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.
For more information about withholding, the substantial presence test, and Form 1040ES (NR), see Publication 519.
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 1041ES, Estimated Income Tax for Estates and Trusts, to figure and pay estimated tax.
To figure your estimated tax, you must figure your expected AGI, taxable income, taxes, deductions, and credits for the year.
When figuring your 2016 estimated tax, it may be helpful to use your income, deductions, and credits for 2015 as a starting point. Use your 2015 federal tax return as a guide. You can use Form 1040ES to figure your estimated tax. Nonresident aliens use Form 1040ES (NR) to figure estimated tax.
You must make adjustments both for changes in your own situation and for recent changes in the tax law. Some of these changes are discussed under What's New for 2016 . For information about these and other changes in the law, visit the IRS website at IRS.gov.
The instructions for Form 1040ES include a worksheet to help you figure your estimated tax. Keep the worksheet for your records.
Use Worksheet 21 to help guide you through the information about completing the 2016 Estimated Tax Worksheet. You can also find a copy of the worksheet in the instructions for Form 1040ES.
Your expected AGI for 2016 (line 1) is your expected total income minus your expected adjustments to income.
Reduce your expected AGI for 2016 (line 1) by either your expected itemized deductions or your standard deduction and by your exemptions (lines 2 through 5).
Single  $259,400 
Married filing jointly or qualifying widow(er)  $311,300 
Married filing separately  $155,650 
Head of household  $285,350 

File a separate return and your spouse itemizes deductions,

Are a dualstatus alien, or

File a return for a period of less than 12 months because you change your accounting period.
Single  $259,400  
Married filing jointly or qualifying widow(er)  $311,300  
Married filing separately  $155,650  
Head of household  $285,350 
After you have figured your expected taxable income (line 5), follow the steps next to figure your expected taxes, credits, and total tax for 2016. 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.

Children under age 18 at the end of 2016.

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

Children age 18 at the end of 2016.

Children who are fulltime students at least age 19 but under age 24 at the end of 2016.


Your tax on line 6.

Your expected alternative minimum tax (AMT) from Form 6251, or included on Form 1040A.

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

Any recapture of education credits.

Additional tax on early distributions from:

An IRA or other qualified retirement plan,

A taxsheltered annuity, or

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


Household employment taxes if:

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

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


Amounts written on Form 1040 on the line for “other taxes” (line 62 on the 2015 Form 1040). But, do not include recapture of a federal mortgage subsidy; tax on excess golden parachute payments; lookback interest due under section 167(g) or 460(b) of the Internal Revenue Code; excise tax on insider stock compensation from an expatriated corporation; additional tax on advance payments of health coverage tax credit when not eligible; or uncollected social security and Medicare tax or RRTA tax on tips or groupterm life insurance.

Repayment of the firsttime homebuyer credit. See Form 5405.

Additional Medicare Tax. A 0.9% Additional Medicare Tax applies to your combined Medicare wages and selfemployment 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) $250,000 Medicare wages and selfemployment income are combined to determine if your income exceeds the threshold. A selfemployment 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 2016. You should consider this withholding, if applicable, in determining whether you need to make an estimated payment.

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
On lines 14a through 14c, figure the total amount you must pay for 2016, through withholding and estimated tax payments, to avoid paying a penalty.

90% of your total expected tax for 2016, or

100% of the total tax shown on your 2015 return. Your 2015 tax return must cover all 12 months.
For 2015, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4.

66^{2}/_{3}% (0.6667) of your total tax for 2016, or

100% of the total tax shown on your 2015 return. (Your 2015 tax return must cover all 12 months.)

Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 58).

The following amounts from Form 5329 included on line 59.

Any tax on excess contributions to an IRA, Archer MSA, Coverdell education savings account, health savings account, and ABLE account.

Any tax on excess accumulations in qualified retirement plans.


The following writeins on line 62.

Excise tax on excess golden parachute payments (identified as “EPP”).

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

Lookback interest due under section 167(g) (identified as “From Form 8866”).

Lookback interest due under section 460(b) (identified as “From Form 8697”).

Recapture of federal mortgage subsidy (identified as “FMSR”).

Uncollected social security and Medicare tax or RRTA tax on tips or groupterm life insurance (identified as “UT”).

Additional tax on advance payments of health coverage tax credit when not eligible (identified as "HCTC").


Any shared responsibility payment on line 61.

Any refundable credit amounts on lines 66a, 67, 68, 69, and 72 and credit from Form 8885 included on line 73.
Use lines 15 and 16a to figure the total estimated tax you may be required to pay for 2016. Subtract your expected withholding from your required annual payment (line 14c). You usually must pay this difference in four equal installments. See When To Pay Estimated Tax and How To Figure Each Payment .
You do not have to pay estimated tax if:

Line 14c minus line 15 is zero or less, or

Line 13c minus line 15 is less than $1,000.
For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return.
If a payment is mailed, the date of the U.S. postmark is considered the date of payment. The payment periods and due dates for estimated tax payments are shown next. For exceptions to the dates listed, see Saturday, Sunday, holiday rule .
For the period:  Due date:  
Jan. 1^{1} – March 31  April 18  
April 1 – May 31  June 15  
June 1 – Aug. 31  Sept. 15  
Sept. 1 – Dec. 31  Jan. 17, next year^{2}  
^{1}If your tax year does not begin on January 1, see Fiscal year taxpayers . 

^{2}See January payment . 
Example.
Janet Adams does not pay any estimated tax for 2016. She files her 2016 income tax return and pays the balance due shown on her return on January 26, 2017.
Janet's estimated tax for the fourth payment period is considered to have been paid on time. However, she may owe a penalty for not making the first three estimated tax payments, if required. Any penalty for not making those payments will be figured up to January 26, 2017.

The 15th day of the 4th month of your fiscal year,

The 15th day of the 6th month of your fiscal year,

The 15th day of the 9th month of your fiscal year, and

The 15th day of the 1st month after the end of your fiscal year.
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 have several options when paying estimated taxes. You can:

Apply an overpayment from the previous tax year,

Pay all your estimated tax by the due date of your first payment, or

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.
To avoid any estimated tax penalties, all installments must be paid by their due date and for the required amount.
Table 21. General Due Dates for Estimated Tax Installment Payments
If you first have income on which you must pay estimated tax:  Make a payment by:* 
Make later installments by:* 
Before April 1  April 15  June 15 
Sept. 15  
Jan. 15 next year  
April 1–May 31  June 15  Sept. 15 
Jan. 15 next year  
June 1–Aug. 31  Sept. 15  Jan. 15 next year 
After Aug. 31  Jan. 15 next year 
(None) 
*See January payment and Saturday, Sunday, holiday rule . 
If at least twothirds of your gross income for 2015 or 2016 is from farming or fishing, you have only one payment due date for your 2016 estimated tax, January 17, 2017. The due dates for the first three payment periods, discussed under When To Pay Estimated Tax do not apply to you.
If you file your 2016 Form 1040 by March 1, 2017, and pay all the tax you owe at that time, you do not need to make an estimated tax payment.

Pay all your estimated tax by the 15th day after the end of your tax year, or

File your return and pay all the tax you owe by the 1st day of the 3rd month after the end of your tax year.
After you have figured your total estimated tax, figure how much you must pay by the due date of each payment period. You should pay enough by each due date to avoid a penalty for that period. If you do not pay enough during any payment period, you may be charged a penalty even if you are due a refund when you file your tax return. The penalty is discussed in chapter 4.
If your first estimated tax payment is due April 18, 2016, you can figure your required payment for each period by dividing your annual estimated tax due (line 16a of the 2016 Estimated Tax Worksheet (Worksheet 21)) 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 .
Amended estimated tax. If you refigure your estimated tax during the year, or if your first estimated tax payment is due after April 18, 2016, figure your required payment for each remaining payment period using Worksheet 214.Example.
Early in 2016, Mira Roberts figures that her estimated tax due is $1,800. She makes estimated tax payments on April 18 and June 15 of $450 each ($1,800 ÷ 4).
On July 10, she sells investment property at a gain. Her refigured estimated tax is $4,100. Her required estimated tax payment for the third payment period is $2,175, as shown in her filledin Worksheet 214.
If Mira's estimated tax does not change again, her required estimated tax payment for the fourth payment period will be $1,025.
1.  Amended total estimated tax due  1.  $4,100  
2.  Multiply line 1 by:  
50% (0.50) if next payment is due June 15, 2016  
75% (0.75) if next payment is due September 15, 2016 

100% (1.00) if next payment is due January 17, 2017 
2.  3,075  
3.  Estimated tax payments for all previous periods  3.  900  
4.  Next required payment: Subtract line 3 from line 2 and enter the result (but not less than zero) here and on your payment voucher for your next required payment  4.  $2,175  
Note. If the payment on line 4 is due January 17, 2017, stop here. Otherwise, go to line 5.  
5.  Add lines 3 and 4  5.  3,075  
6.  Subtract line 5 from line 1 and enter the result (but not less than zero)  6.  1,025  
7.  Each following required payment: If the payment on line 4 is due June 15, 2016, enter onehalf of the amount on line 6 here and on the payment vouchers for your payments due September 15, 2016, and January 17, 2017. If the amount on line 4 is due September 15, 2016, enter the amount from line 6 here and on the payment voucher for your payment due January 17, 2017  7.  $1,025 
1.  Amended total estimated tax due  1.  
2.  Multiply line 1 by:  
50% (0.50) if next payment is due June 15, 2016  
75% (0.75) if next payment is due September 16, 2016 

100% (1.00) if next payment is due January 17, 2017 
2.  
3.  Estimated tax payments for all previous periods  3.  
4.  Next required payment: Subtract line 3 from line 2 and enter the result (but not less than zero) here and on your payment voucher for your next required payment  4.  
Note. If the payment on line 4 is due January 17, 2017, stop here. Otherwise, go to line 5.  
5.  Add lines 3 and 4  5.  
6.  Subtract line 5 from line 1 and enter the result (but not less than zero)  6.  
7.  Each following required payment: If the payment on line 4 is due June 15, 2016, enter onehalf of the amount on line 6 here and on the payment vouchers for your payments due September 15, 2016, and January 17, 2017. If the amount on line 4 is due September 15, 2016, enter the amount from line 6 here and on the payment voucher for your payment due January 17, 2017  7. 
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 2016 Annualized Estimated Tax Worksheet (Worksheet 29).
You first must complete the 2016 Estimated Tax Worksheet (Worksheet 21) through line 16b.Use the result you figure on line 32 of Worksheet 29 to make your estimated tax payments and complete your payment vouchers.
Note.
If you use the annualized income installment method to figure your estimated tax payments, you must file Form 2210 with your 2016 tax return. See Annualized Income Installment Method (Schedule AI) in chapter 4 for more information.
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.

Children under age 18 at the end of 2016.

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

Children age 18 at the end of 2016.

Children who are fulltime students at least age 19 but under age 24 at the end of 2016.

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 29 to figure the credit for each column.

Additional tax on early distributions from:

An IRA or other qualified retirement plan,

A taxsheltered annuity, or

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


Household employment taxes if:

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

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


Amounts on Form 1040 written on the line for “other taxes” (line 62 on the 2015 Form 1040). But do not include recapture of a federal mortgage subsidy; tax on excess golden parachute payments; lookback 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 groupterm life insurance, or additional tax on advance payments of health coverage tax credit when not eligible.

Repayment of the firsttime homebuyer credit if the home will cease to be your main home in 2016. See Form 5405 for exceptions.

Additional Medicare Tax. A 0.9% Additional Medicare Tax applies to your combined Medicare wages and selfemployment 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) $250,000 Medicare wages and selfemployment income are combined to determine if your income exceeds the threshold. A selfemployment 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 2016. You should consider this withholding, if applicable, in determining whether you need to make an estimated payment.

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

25% (0.25) for the first period,

50% (0.50) for the second period,

75% (0.75) for the third period, and

100% (1.00) for the fourth period.

Skip column (a).

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

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.

72% for column (b).

45% for column (c).

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.


On line 26, enter onehalf of the amount from line 16c of the Form 1040ES (NR) 2016 Estimated Tax Worksheet in column (b), and onefourth in columns (c) and (d) of Worksheet 29.

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

On line 31, if you do not use the actual withholding method, include onehalf of your total expected withholding in column (b) and onefourth in columns (c) and (d).
You do not have to pay estimated tax if your withholding in each payment period is at least as much as:

Onefourth of your required annual payment, or

Your required annualized income installment for that period.
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.
There are several ways to pay estimated tax.

Credit an overpayment on your 2015 return to your 2016 estimated tax.

Pay by direct transfer from your bank account, or pay by debit or credit card using a paybyphone system or the Internet.

Send in your payment (check or money order) with a payment voucher from Form 1040ES.
If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2015, you can apply part or all of it to your estimated tax for 2016. On Form 1040, or 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 2015 return, treat the credit as a payment made on April 15, 2016.
If you are a beneficiary of an estate or trust, and the trustee elects to credit 2016 trust payments of estimated tax to you, you can treat the amount credited as paid by you on January 15, 2017.
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.
Example.
When Kathleen finished filling out her 2015 tax return, she saw that she had overpaid her taxes by $750. Kathleen knew she would owe additional tax in 2016. She credited $600 of the overpayment to her 2016 estimated tax and had the remaining $150 refunded to her.
In September, she amended her 2015 return by filing Form 1040X, Amended U.S. Individual Income Tax Return. It turned out that she owed $250 more in tax than she had thought. This reduced her 2015 overpayment from $750 to $500. Because the $750 had already been applied to her 2016 estimated tax or refunded to her, the IRS billed her for the additional $250 she owed, plus penalties and interest. Kathleen could not use any of the $600 she had credited to her 2016 estimated tax to pay this bill.
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 efile or at any time during the year. You can pay using either of the following electronic payment methods.

Direct transfer from your bank account using Direct Pay. Go to www.irs.gov/directpay.

Debit or credit card.
To pay your taxes online or for more information, go to www.irs.gov/payments.
Paying by phone is another safe and secure method of paying electronically. Use one of the following methods.

Direct transfer from your bank account using Electronic Federal Tax Payment System (EFTPS).

Debit or credit card.
Link2GOV Corporation
1888PAY1040^{TM} (18887291040)
www.PAY1040.com
WorldPay US, Inc.
1844PAYTAX8^{TM} (18447298298)
www.payUSAtax.com
Official Payments Corporation
1888UPAYTAX^{TM} (18888729829)
www.officialpayments.com
Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040ES. If you use your own envelopes (and not the window envelope that comes with the 1040ES package), make sure you mail your payment vouchers to the address shown in the Form 1040ES instructions for the place where you live.
Do not use the address shown in the Form 1040 or Form 1040A instructions.If you did not pay estimated tax last year, get a copy of Form 1040ES from the IRS (see chapter 5). Follow the instructions to make sure you use the vouchers correctly.
Use the following worksheets and tables to figure your correct estimated tax.

IF you need...  THEN use... 
2016 Tax Rate Schedules  2016 Tax Rate Schedules 
the 2016 Estimated Tax Worksheet  Worksheet 21 
to estimate your taxable social security and railroad retirement benefits—line 1 of ES Worksheet (or Annualized ES Worksheet (Worksheet 29))  Worksheet 22 
to estimate your selfemployment (SE) tax and your deduction for SE tax—lines 1 and 11 of ES Worksheet (lines 1 and 17 of Annualized ES Worksheet (Worksheet 29))  Worksheet 23 
to estimate your standard deduction—line 2 of ES Worksheet (line 7 of Annualized ES Worksheet (Worksheet 29))  Worksheet 24 
to reduce your itemized deductions because your estimated AGI is more than $155,650—line 2 of ES Worksheet  Worksheet 25 
to reduce your exemption amount because your estimated AGI is more than $155,650—line 4 of ES Worksheet  Worksheet 26 
to estimate your income tax if line 1 of your ES Worksheet includes a net capital gain or qualified dividends—line 6 of ES Worksheet  Worksheet 27 
to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing exclusion or deduction on Form 2555 or Form 2555EZ—line 6 of ES Worksheet  Worksheet 28 
the 2016 Annualized Estimated Tax Worksheet (Annualized ES Worksheet)  Worksheet 29 
to reduce your itemized deductions because your estimated annualized AGI is more than $155,650—line 6 of Annualized ES Worksheet  Worksheet 210 
to reduce your exemption amount because your estimated annualized AGI is more than $155,650—line 10 of Annualized ES Worksheet  Worksheet 211 
to estimate your income tax if line 1 of your Annualized ES Worksheet includes a net capital gain or qualified dividends—line 12 of Annualized ES Worksheet  Worksheet 212 
to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing exclusion or deduction on Form 2555 or Form 2555EZ—line 12 of Annualized ES Worksheet  Worksheet 213 
to refigure (amend) your estimated tax during the year  Worksheet 214 
Do not use these Tax Rate Schedules to figure your 2015 taxes. Use them only to figure your 2016 estimated taxes.

Schedule X—Use if your 2016 filing status is Single 
Schedule Z— Use if your 2016 filing status is Head of household 

If line 5 is:  The tax is:  If line 5 is:  The tax is:  
Over—  But not over— 
of the amount over— 
Over—  But not over— 
of the amount over— 

$0  $9,275  10.0%  $0  $0  $13,250  10.0%  $0  
9,275  37,650  $927.50  +  15.0%  9,275  13,250  50,400  $1,325.00  +  15.0%  13,250  
37,650  91,150  5,183.75  +  25.0%  37,650  50,400  130,150  6,897.50  +  25.0%  50,400  
91,150  190,150  18,558.75  +  28.0%  91,150  130,150  210,800  26,835.00  +  28.0%  130,150  
190,150  413,350  46,278.75  +  33.0%  190,150  210,800  413,350  49,417.00  +  33.0%  210,800  
413,350  415,050  119,934.75  +  35.0%  413,350  413,350  441,000  116,258.50  +  35.0%  413,350  
415,050         120,529.75  +  39.6%  415,050  441,000         125,936.00  +  39.6%  441,000  
Schedule Y1— Use if your 2016 filing status is Married filing jointly or Qualifying widow(er) 
Schedule Y2— Use if your 2016 filing status is Married filing separately 

If line 5 is:  The tax is:  If line 5 is:  The tax is:  
Over—  But not over— 
of the amount over— 
Over—  But not over— 
of the amount over— 

$0  $18,550  10.0%  $0  $0  $9,275  10.0%  $0  
18,550  75,300  $1,855.00  +  15.0%  18,550  9,275  37,650  $927.50  +  15.0%  9,275  
75,300  151,900  10,367.50  +  25.0%  75,300  37,650  75,950  5,183.75  +  25.0%  37,650  
151,900  231,450  29,517.50  +  28.0%  151,900  75,950  115,725  14,758.75  +  28.0%  75,950  
231,450  413,350  51,791.50  +  33.0%  231,450  115,725  206,675  25,895.75  +  33.0%  115,725  
413,350  466,950  111,818.50  +  35.0%  413,350  206,675  233,475  55,909.25  +  35.0%  206,675  
466,950         130,578.50  +  39.6%  466,950  233,475         65,289.25  +  39.6%  233,475  
When this worksheet refers you to instructions, you can find those instructions in the instructions for 2016 Form 1040ES.

1.  Adjusted gross income you expect in 2016 (see instructions)  1.  
2. 

2.  
3.  Subtract line 2 from line 1  3.  
4.  Exemptions. Multiply $4,050 by the number of personal exemptions. Caution: If line 1 is over $155,650, the amount of your personal exemptions may be limited. See Worksheet 26 
4.  
5.  Subtract line 4 from line 3  5.  
6.  Tax. Figure your tax on the amount on line 5 by using the 2016 Tax Rate Schedules. Caution: If you will have qualified dividends or a net capital gain, or expect to exclude or deduct foreign earned income or housing, see Worksheets 27 and 28 to figure the tax 
6.  
7.  Alternative minimum tax from Form 6251 or included on Form 1040A, line 28  7.  
8.  Add lines 6 and 7. Add to this amount any other taxes you expect to include in the total on Form 1040, line 44  8.  
9.  Credits (see instructions). Do not include any income tax withholding on this line  9.  
10.  Subtract line 9 from line 8. If zero or less, enter 0  10.  
11.  Selfemployment tax (see instructions)  11.  
12.  Other taxes including, if applicable, Additional Medicare Tax and/or NIIT (see instructions)  12.  
13a.  Add lines 10 through 12  13a.  
b.  Earned income credit, additional child tax credit, fuel tax credit, net premium tax credit, refundable American opportunity credit, and refundable credit from Form 8885  13b.  
c.  Total 2016 estimated tax. Subtract line 13b from line 13a. If zero or less, enter 0  ▶  13c.  
14a.  Multiply line 13c by 90% (0.90) (66^{2}/_{3}% (0.6667) for farmers and fishermen)  14a.  
b.  Required annual payment based on prior year's tax (see instructions)  14b.  
c.  Required annual payment to avoid a penalty. Enter the smaller of line 14a or 14b  ▶  14c.  
Caution: Generally, if you do not prepay (through income tax withholding and estimated tax payments) at least the amount on line 14c, you may owe a penalty for not paying enough estimated tax. To avoid a penalty, make sure your estimate on line 13c is as accurate as possible. Even if you pay the required annual payment, you may still owe tax when you file your return. If you prefer, you can pay the amount shown on line 13c. 

15.  Income tax withheld and estimated to be withheld during 2016 (including income tax withholding on pensions, annuities, certain deferred income, etc.)  15.  
16a.  Subtract line 15 from line 14c  16a.  
Is the result zero or less? □ Yes. Stop here. You are not required to make estimated tax payments. □ No. Go to line 16b. 

b.  Subtract line 15 from line 13c  16b.  
Is the result less than $1,000? □ Yes. Stop here. You are not required to make estimated tax payments. □ No. Go to line 17 to figure your required payment. 

17.  If the first payment you are required to make is due April 18, 2016, enter ¼ of line 16a (minus any 2015 overpayment that you are applying to this installment) here, and on your estimated tax payment voucher(s) if you are paying by check or money order  17. 
Note. If you are using this worksheet to estimate your taxable social security or railroad retirement benefits for Worksheet 29, 2016 Annualized Estimated Tax Worksheet, multiply the expected amount of benefits for each period by the annualization amount shown on Worksheet 29, line 2, for the same period before entering it on line 1 below.  
1.  Enter your expected social security and railroad retirement benefits  1.  
2.  Enter onehalf of line 1  2.  
3.  Enter your expected total income. Do not include any social security and railroad retirement benefits, nontaxable interest income, nontaxable IRA distributions, or nontaxable pension distributions  3.  
4.  Enter your expected nontaxable interest income  4.  
5.  Enter (as a positive amount) the total of any expected exclusions or deductions for:

5.  
6.  Add lines 2, 3, 4, and 5  6.  
7.  Enter your expected adjustments to income. Do not include any student loan interest deduction  7.  
8.  Subtract line 7 from line 6. If zero or less, stop here. Note. Do not include any social security or railroad retirement benefits in the amount on line 1 of your 2016 Estimated Tax Worksheet (Worksheet 21) (or Annualized Estimated Tax Worksheet (Worksheet 29)) 
8.  
9.  Enter $25,000 ($32,000 if you expect to file married filing jointly; $0 if you expect to file married filing separately and expect to live with your spouse at any time during the year)  9.  
10.  Subtract line 9 from line 8. If zero or less, stop here. Note. Do not include any social security or railroad retirement benefits in the amount on line 1 of your Worksheet 21 (or Annualized Estimated Tax Worksheet (Worksheet 29)) 
10.  
11.  Enter $9,000 ($12,000 if you expect to file married filing jointly; $0 if you expect to file married filing separately and expect to live with your spouse at any time during the year)  11.  
12.  Subtract line 11 from line 10. If zero or less, enter 0  12.  
13.  Enter the smaller of line 10 or line 11  13.  
14.  Enter onehalf of line 13  14.  
15.  Enter the smaller of line 2 or line 14  15.  
16.  Multiply line 12 by 85% (0.85). If line 12 is zero, enter 0  16.  
17.  Add lines 15 and 16  17.  
18.  Multiply line 1 by 85% (0.85)  18.  
19.  Enter the smaller of line 17 or line 18  19.  
20.  Expected taxable social security and railroad retirement benefits for the period. Divide line 19 by the annualization amount shown on Worksheet 29, line 2, for the same period and enter here. Include this amount in the total on line 1 of your 2016 Estimated Tax Worksheet (Worksheet 21) (or Annualized Estimated Tax Worksheet (Worksheet 29))  20. 
1  a.  Enter your expected income and profits subject to selfemployment tax*  1a.  .  
b.  If you will have farm income and also receive social security retirement or disability benefits, enter your expected Conservation Reserve Program payments that will be included on Schedule F (Form 1040) or listed on Schedule K1 (Form 1065)  1b.  
2.  Subtract line 1b from line 1a  2.  
3.  Multiply line 2 by 92.35% (0.9235). If less than $400, do not complete this worksheet; you will not owe selfemployment tax on your expected net earnings from selfemployment  3.  
4.  Multiply line 3 by 2.9% (0.029)  4.  
5.  Maximum income subject to social security tax  5.  $118,500  
6.  Enter your expected wages (if subject to social security tax or the 6.2% portion of tier 1 railroad retirement tax) 
6.  
7.  Subtract line 6 from line 5  7.  
Note. If line 7 is zero or less, enter 0 on line 9 and skip to line 10.  
8.  Enter the smaller of line 3 or line 7  8.  
9.  Multiply line 8 by 12.4% (0.124)  9.  
10.  Add line 4 and line 9. Enter the result here and on line 11 of your 2016 Estimated Tax Worksheet (Worksheet 21) (or line 17 of the Annualized Estimated Tax Worksheet (Worksheet 29))  10.  
11.  Multiply line 10 by 50% (0.50). This is your expected deduction for selfemployment tax on Form 1040, line 27. Subtract this amount when figuring your expected AGI on line 1 of your 2016 Estimated Tax Worksheet (Worksheet 21) (or Annualized Estimated Tax Worksheet (Worksheet 29))  11. 
*Net profit from selfemployment is found on Schedule C; Schedule F; Schedule K1 (Form 1065); and Schedule K1 (Form 1065B). 
Caution. Do not complete this worksheet if you expect your spouse to itemize on a separate return or you expect to be a dualstatus 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—$6,300  
•Married filing jointly or Qualifying widow(er)—$12,600  
•Head of household—$9,300  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 $700?  
Yes.  Add $350 to your earned income. Enter the total.  
No.  Enter $1,050  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, 1952, or blind?  
No.  Go to line 6.  
Yes.  Check if:  
a. You were Born before January 2, 1952 Blind  
b. Your spouse was Born before January 2, 1952 Blind  
c. Total boxes checked in 5a and 5b  
▶  Multiply $1,250 ($1,550 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 2016 Estimated Tax Worksheet (Worksheet 21) (or line 7 of your 2016 Annualized Estimated Tax Worksheet (Worksheet 29))  6. 
* Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes taxable scholarships and fellowship grants. Reduce your earned income by your allowed deduction for selfemployment tax (Worksheet 23, line 11). 
1.  Enter the estimated total of your itemized deductions  1.  
2.  Enter the total amount included on line 1 above for medical and dental expenses, investment interest expense, casualty or theft losses of personal use property, casualty and theft losses from incomeproducing property, and gambling losses  2.  
3.  Is the amount on line 2 less than the amount on line 1? ❑ No. Stop here. Your deduction is not limited. Enter the amount from line 1 above on line 2 of the 2016 Estimated Tax Worksheet (Worksheet 21). ❑ Yes. Subtract line 2 from line 1 
3.  
4.  Multiply line 3 by 80% (0.80)  4.  
5.  Enter the amount from line 1 of the 2016 Estimated Tax Worksheet (Worksheet 21)  5.  
6.  Enter $311,300 if married filing jointly or qualifying widow(er), $285,350 if head of household, $259,400 if single, $155,650 if married filing separately  6.  
7.  Is the amount on line 6 less than the amount on line 5? ❑ No. Stop here. Your deduction is not limited. Enter the amount from line 1 above on line 2 of the Estimated Tax Worksheet (Worksheet 21). ❑ Yes. Subtract line 6 from line 5 
7.  
8.  Multiply line 7 by 3% (0.03)  8.  
9.  Enter the smaller of line 4 or line 8  9.  
10.  Total Itemized Deductions. Subtract line 9 from line 1. Enter the result here and on line 2 of your 2016 Estimated Tax Worksheet (Worksheet 21)  10.  
1.  Multiply $4,050 by the number of exemptions you plan to claim  1.  
2.  Enter the amount from line 1 of your 2016 Estimated Tax Worksheet (Worksheet 21)  2.  
3.  Enter $259,400 if single, $311,300 if married filing jointly or qualifying widow(er), $155,650 if married filing separately, or $285,350 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. You can not take a deduction for exemptions. ❑ 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% (0.02). Enter the result as a decimal  6.  
7.  Multiply line 1 by line 6  7.  
8.  Subtract line 7 from line 1. Enter the result here and on line 4 of your 2016 Estimated Tax Worksheet (Worksheet 21)  8.  
1.  Enter the amount from the appropriate worksheet.

1.  
2.  Enter your qualified dividends expected for 2016 ^{1}  2.  
3.  Enter your net capital gain expected for 2016 ^{1}  3.  
4.  Add lines 2 and 3  4.  
5.  Enter your 28% rate gain or loss expected for 2016 ^{2}  5.  
6.  Enter your unrecaptured section 1250 gain expected for 2016  6.  
7.  Add lines 5 and 6  7.  
8.  Enter the smaller of line 3 or line 7  8.  
9.  Subtract line 8 from line 4  9.  
10.  Subtract line 9 from line 1. If zero or less, enter 0  10.  
11.  Enter the smaller of line 1 or $75,300 ($37,650 if single or married filing separately, or $50,400 if head of household)  11.  
12.  Enter the smaller of line 10 or line 11  12.  
13.  Subtract line 4 from line 1. If zero or less, enter 0  13.  
14.  Enter the larger of line 12 or line 13  14.  
Note. If line 11 and line 12 are the same, skip line 15 and go to line 16.  
15.  Subtract line 12 from line 11. This is the amount taxed at 0%  15.  
Note. If lines 1 and 11 are the same, skip lines 16 through 36 and go to line 37.  
16.  Enter the smaller of line 1 or line 9  16.  
17.  Enter the amount from line 15. If line 15 is blank, enter 0  17.  
18.  Subtract line 17 from line 16. If zero or less, enter 0  18.  
19.  Enter:

19.  
20.  Enter the smaller of line 1 or line 19  20.  
21.  Add lines 14 and 15  21.  
22.  Subtract line 21 from line 20. If zero or less, enter 0  22.  
23.  Enter the smaller of line 18 or line 22  23.  
24.  Multiply line 23 by 15% (0.15)  24.  
25.  Add line 17 and line 23. If line 1 equals the sum of lines 21 and 23, then skip lines 26 through 36 and go to line 37  25.  
26.  Subtract line 25 from line 16  26.  
27.  Multiply line 26 by 20% (0.20)  27.  
28.  Enter the smaller of line 3 or line 6  28.  
29.  Add lines 4 and 14  29.  
30.  Enter the amount from line 1 above  30.  
31.  Subtract line 30 from line 29. If zero or less, enter 0  31.  
32.  Subtract line 31 from line 28. If zero or less, enter 0  32.  
33.  Multiply line 32 by 25% (0.25)  33.  
Note. If line 5 is zero or blank, skip lines 34 through 36 and go to line 37.  
34.  Add lines 14, 15, 23, 26, and 32  34.  
35.  Subtract line 34 from line 1  35. 
36.  Multiply line 35 by 28% (0.28)  36.  
37.  Figure the tax on the amount on line 14 from the 2016 Tax Rate Schedules  37.  
38.  Add lines 24, 27, 33, 36, and 37  38.  
39.  Figure the tax on the amount on line 1 from the 2016 Tax Rate Schedules  39.  
40.  Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 38 or line 39 here and on line 6 of the 2016 Estimated Tax Worksheet (Worksheet 21) (or line 4 of Worksheet 28) 
40.  
^{1}
If you expect to deduct investment interest expense, do not include on this line any qualified dividends or net capital gain
that you will elect to treat as investment income. ^{2} This includes a section 1202 exclusion from eligible gain on qualified small business stock and gain or loss from the sale or exchange of collectibles. See the Instructions for Schedule D (Form 1040) for more information. 
Before you begin: If line 5 of your 2016 Estimated Tax Worksheet (Worksheet 21) is zero, do not complete this worksheet.  
1.  Enter the amount from line 5 of your 2016 Estimated Tax Worksheet (Worksheet 2–1)  1.  
2.  Enter the total foreign earned income and housing amount you (and your spouse if filing jointly) expect to exclude or deduct in 2016 on Form 2555 or Form 2555EZ  2.  
3.  Add lines 1 and 2  3.  
4.  Tax on the amount on line 3. Use the 2016 Tax Rate Schedules or Worksheet 27*, as appropriate  4.  
5.  Tax on the amount on line 2. Use the 2016 Tax Rate Schedules  5.  
6.  Subtract line 5 from line 4. Enter the result here and on line 6 of your 2016 Estimated Tax Worksheet (Worksheet 2–1). If zero or less, enter 0  6.  
*If using Worksheet 27 (Qualified Dividends and Capital Gain Tax Worksheet), enter the amount from line 3 above on line 1 of Worksheet 27. Complete Worksheet 27 through line 9. Next, determine if you have a capital gain excess.  
Figuring capital gain excess. To find out if you have a capital gain excess, subtract line 5 of your 2016 Estimated Tax Worksheet (Worksheet 21) from line 9 of Worksheet 27. If the result is more than zero, that amount is your capital gain excess.  
Make these modifications only for purposes of filling out Worksheet 28.  
a. Reduce (but not below zero) the amount you otherwise would enter on line 3 of Worksheet 27 by your capital gain excess. 

b. Reduce (but not below zero) the amount you otherwise would enter on line 2 of Worksheet 27 by any of your capital gain excess not used in (a) above. 

c. Reduce (but not below zero) the amount you otherwise would enter on line 5 of Worksheet 27 by your capital gain excess. 

d. Reduce (but not below zero) the amount you otherwise would enter on line 6 of Worksheet 27 by your capital gain excess. 
Note. For instructions, see Annualized Income Installment Method.

Before you begin:Complete the 2016 Estimated Tax Worksheet — Worksheet 21. Section A (For Figuring Your Annualized Estimated Tax Payments)— Complete each column after end of period shown. 

Estates and trusts: Use the following ending dates in columns (a) through (d): 2/29/2016, 4/30/2016, 7/31/2016, 11/30/2016. 
(a) 1/1/163/31/16 
(b) 1/1/165/31/16 
(c) 1/1/168/31/16 
(d) 1/1/1612/31/16 

1.  Adjusted gross income (AGI) for each period (see instructions). Estates and trusts, enter your taxable income without your exemption for each period. Selfemployed: Complete Section B first  1.  
2.  Annualization amounts. (Estates and trusts, see instructions)  2.  4  2.4  1.5  1  
3.  Annualized income. Multiply line 1 by line 2  3.  
4.  If you itemize, enter itemized deductions for period shown in the column headings (see instructions). All others, enter 0
and skip to line 7. Exception: Estates and trusts, skip to line 9 and enter amount from line 3 
4.  
5.  Annualization amounts  5.  4  2.4  1.5  1  
6.  Multiply line 4 by line 5 (if line 3 is more than $155,650, see instructions and Worksheet 210)  6.  
7.  Standard deduction from Worksheet 24  7.  
8.  Enter the larger of line 6 or line 7  8.  
9.  Subtract line 8 from line 3  9.  
10.  In each column, multiply $4,050 by your total expected number of exemptions (if line 3 is more than $155,650, see instructions and Worksheet 211) (Estates and trusts, see instructions)  10.  
11.  Subtract line 10 from line 9. If zero or less, enter 0  11.  
12.  Figure your tax on the amount on line 11 (see instructions)  12.  
13.  For each period, enter any tax from Forms 8814, 4972, and 6251. Also include any recapture of education credits (see instructions)  13.  
14.  Add lines 12 and 13  14.  
15.  Enter nonrefundable credits for each period (see instructions)  15.  
16.  Subtract line 15 from line 14  16.  
17.  Selfemployment tax from line 41 of Section B  17.  
18.  Enter other taxes for each period, including, if applicable, Additional Medicare Tax and/or NIIT (see instructions)  18.  
19.  Total tax. Add lines 16, 17, and 18  19.  
20.  Enter refundable credits for each period (see instructions for type of credits allowed). Do not include any income tax withholding on this line  20.  
21.  Subtract line 20 from line 19. If zero or less, enter 0  21.  
22.  Applicable percentage  22.  22.5%  45%  67.5%  90%  
23.  Multiply line 21 by line 22  23.  
Complete lines 24 through 29 of one column before going to line 24 of the next column.  
24.  Enter the total of the amounts in all previous columns of line 29  24.  
25.  Annualized income installment. Subtract line 24 from line 23. If zero or less, enter 0  25.  
26.  Enter 25% (0.25) of line 14c of your 2016 Estimated Tax Worksheet (Worksheet 21) in each column  26.  
27.  Subtract line 29 of the previous column from line 28 of that column  27.  
28.  Add lines 26 and 27  28.  
29.  Enter the smaller of line 25 or line 28 (see instructions)  29.  
30.  Total required payments for the period. Add lines 24 and 29  30.  
31.  Estimated tax payments made (line 32 of all previous columns) plus tax withholding through the due date for the period (see instructions)  31.  
32.  Estimated tax payment required by the next due date. Subtract line 31 from line 30 and enter the result (but not less than zero) here and on your payment voucher 
32. 
Section B (For Figuring Your Annualized Estimated SelfEmployment Tax) — Complete each column after end of period shown.  
(Form 1040 filers only)  (a) 1/1/163/31/16 
(b) 1/1/165/31/16 
(c) 1/1/168/31/16 
(d) 1/1/1612/31/16 

33.  Net earnings from selfemployment for the period (see instructions)  33.  
34.  Prorated social security tax limit  34.  $29,625  $49,375  $79,000  $118,500 
35.  Enter actual wages for the period subject to social security tax or the 6.2% portion of the tier 1 railroad retirement tax.
Exception: If you file Form 4137 or Form 8919, see instructions 
35.  
36.  Subtract line 35 from line 34. If zero or less, enter 0  36.  
37.  Annualization amounts  37.  0.496  0.2976  0.186  0.124 
38.  Multiply line 37 by the smaller of line 33 or line 36  38.  
39.  Annualization amounts  39.  0.116  0.0696  0.0435  0.029 
40.  Multiply line 33 by line 39  40.  
41.  Add lines 38 and 40. Enter the result here and on line 17 of Section A 
41.  
42.  Annualization amounts  42.  8  4.8  3  2 
43.  Deduction for selfemployment tax. Divide line 41 by line 42. Enter the result here. Use this result to figure your AGI on line 1  43. 
1.  Enter line 4 of the 2016 Annualized ES Worksheet, Section A (Worksheet 29)  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 the 2016 Annualized ES Worksheet, Section A (Worksheet 29)  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 the amount from line 5 above on line 6 of the 2016 Annualized ES Worksheet, Section A (Worksheet 29).  
6.  Multiply line 3 by line 4  6.  
7.  Multiply line 6 by 80% (0.80)  7.  
8.  Enter line 3 of the 2016 Annualized ES Worksheet, Section A (Worksheet 29)  8.  
9.  Enter $311,300 if married filing jointly or qualifying widow(er); $285,350 if head of household; $259,400 if single; or $155,650 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 the amount from line 5 above on line 6 of the 2016 Annualized ES Worksheet, Section A (Worksheet 29).  
11.  Multiply line 10 by 3% (0.03)  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 the 2016 Annualized ES Worksheet, Section A, line 6 (Worksheet 29)  13.  
1.  Multiply $4,050 by the number of exemptions you plan to claim  1.  
2.  Enter line 3 of the 2016 Annualized ES Worksheet, Section A (Worksheet 29)  2.  
3.  Enter the amount shown below for your filing status: $259,400 if single, $311,300 if married filing jointly or qualifying widow(er), $155,650 if married filing separately, or $285,350 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. You can not take a deduction for exemptions. ❑ 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% (0.02). 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 2016 Annualized ES Worksheet, Section A, line 10 (Worksheet 29)  8.  
Note. To figure the annualized entries for lines 2, 3, 5, and 6 below, multiply the expected amount for the period by the annualization amount on line 2 of Worksheet 29 for the same period.  
1.  Enter the amount from the appropriate worksheet.

1.  
2.  Enter your annualized qualified dividends expected for 2016 ^{1}  2.  
3.  Enter your annualized net capital gain expected for 2016 ^{1} 
3.  
4.  Add lines 2 and 3  4.  
5.  Enter your annualized 28% rate gain or loss expected for 2016 ^{2}  5.  
6.  Enter your annualized unrecaptured section 1250 gain expected for 2016  6.  
7.  Add lines 5 and 6  7.  
8.  Enter the smaller of line 3 or line 7  8.  
9.  Subtract line 8 from line 4  9.  
10.  Subtract line 9 from line 1. If zero or less, enter 0  10.  
11.  Enter the smaller of line 1 or $75,300 ($37,650 if single or married filing separately, or $50,400 if head of household)  11.  
12.  Enter the smaller of line 10 or line 11  12.  
13.  Subtract line 4 from line 1. If zero or less, enter 0 
13. 


14.  Enter the larger of line 12 or line 13  14.  
Note. If line 11 and line 12 are the same, skip line 15 and go to line 16.  
15.  Subtract line 12 from line 11. This is the amount taxed at 0%  15.  
Note. If lines 1 and 11 are the same, skip lines 16 through 36 and go to line 37.  
16.  Enter the smaller of line 1 or line 9  16.  
17.  Enter the amount from line 15. If line 15 is blank, enter 0  17.  
18.  Subtract line 17 from line 16. If zero or less, enter 0  18.  
19.  Enter:

19.  
20.  Enter the smaller of line 1 or line 19  20.  
21.  Add lines 14 and 15  21.  
22.  Subtract line 21 from line 20. If zero or less, enter 0  22.  
23.  Enter the smaller of line 18 or line 22  23.  
24.  Multiply line 23 by 15% (0.15)  24.  
25.  Add line 17 and line 23. If line 1 equals the sum of lines 21 and 23, then skip lines 26 through 36 and go to line 37  25.  
26.  Subtract line 25 from line 16  26.  
27.  Multiply line 26 by 20% (0.20)  27.  
28.  Enter the smaller of line 3 or line 6  28.  
29.  Add lines 4 and 14  29.  
30.  Enter the amount from line 1 above  30.  
31.  Subtract line 30 from line 29. If zero or less, enter 0  31.  
32.  Subtract line 31 from line 28. If zero or less, enter 0  32.  
33.  Multiply line 32 by 25% (0.25)  33.  
Note. If line 5 is zero or blank, skip lines 34 through 36 and go to line 37.  
34.  Add lines 14, 15, 23, 26, and 32  34.  
35.  Subtract line 34 from line 1  35. 
36.  Multiply line 35 by 28% (0.28)  36.  
37.  Figure the tax on the amount on line 14 from the 2016 Tax Rate Schedules  37.  
38.  Add lines 24, 27, 33, 36, and 37  38.  
39.  Figure the tax on the amount on line 1 from the 2016 Tax Rate Schedules  39.  
40.  Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 38 or line 39 here and on line 12 of the appropriate column of the 2016 Annualized Estimated Tax Worksheet (or line 4 of Worksheet 213) 
40.  
^{1}
If you expect to deduct investment interest expense, do not include on this line any qualified dividends or net capital gain
that you will elect to treat as investment income. ^{2} This includes a section 1202 exclusion from eligible gain on qualified small business stock and gain or loss from the sale or exchange of collectibles. See the Instructions for Schedule D (Form 1040) for more information. 
Before you begin:  If line 11 of Worksheet 29 (2016 Annualized Estimated Tax Worksheet) is zero for the period, do not complete this worksheet.  
1.  Enter the amount from line 11 of your 2016 Annualized Estimated Tax Worksheet for the period  1.  
2.  Enter the annualized amount* of foreign earned income and housing amount you (and your spouse if filing jointly) expect to exclude or deduct for the period on Form 2555 or Form 2555EZ  2.  
3.  Add lines 1 and 2  3.  
4.  Tax on the amount on line 3. Use the 2016 Tax Rate Schedules or Worksheet 212**, as appropriate  4.  
5.  Tax on the amount on line 2. Use the 2016 Tax Rate Schedules  5.  
6.  Subtract line 5 from line 4. Enter the result here and on line 12 of your 2016 Annualized Estimated Tax Worksheet (Worksheet 29). If zero or less, enter 0  6.  
* To figure the annualized amount for line 2, multiply the expected exclusion for the period by the annualization amount on line 2 of Worksheet 29 for the same period. 

** If using Worksheet 212 (Qualified Dividends and Capital Gain Tax Worksheet), enter the amount from line 3 above on line 1 of Worksheet 212. Complete Worksheet 212 through line 9. Next, determine if you have a capital gain excess. 

Figuring capital gain excess. To find out if you have a capital gain excess for the appropriate period, subtract line 11 of Worksheet 29 from line 9 of Worksheet 212. If the result is more than zero, that amount is your capital gain excess. 

No capital gain excess. If you do not have a capital gain excess, complete the rest of Worksheet 212 according to its instructions. Then complete lines 5 and 6 above.  
Capital gain excess. If you have a capital gain excess, complete a second Worksheet 212 as instructed above but in its entirety and with the following additional modifications. Then complete lines 5 and 6 above.  
Make these modifications only for purposes of filling out Worksheet 213.  
a. Reduce (but not below zero) the amount you otherwise would enter on line 3 of Worksheet 212 by your capital gain excess.  
b. Reduce (but not below zero) the amount you otherwise would enter on line 2 of Worksheet 212 by any of your capital gain excess not used in (a) above.  
c. Reduce (but not below zero) the amount you otherwise would enter on line 5 of Worksheet 212 by your capital gain excess.  
d. Reduce (but not below zero) the amount you otherwise would enter on line 6 of Worksheet 212 by your capital gain excess. 
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