GET LISTED | LOGIN | SIGNUP
 
Welcome to FindMyBest CPA
 
Accounting & Financial Directory
 
Find local and nationwide accounting and financial businesses. We have located the best Accountants, CPAs, Accounting Firms, Tax Consultants, Tax Return Preparers, Bookkeepers and Financial Advisors in the US.
 
Business Directory
 
Tax & Accounting Articles - IRS Tax Forms
 
 
 
CPA's Find New Clients Today
 
FindMyBestCPA Search
User Details
Reviews and Comments
 
Search top city
Atlanta Accountants
------------------------------------------------------
Boston Accountants
------------------------------------------------------
Chicago Accountants
------------------------------------------------------
Dallas Accountants
------------------------------------------------------
Detroit Accountants
------------------------------------------------------
Huston Accountants
------------------------------------------------------
Los Angeles Accountants
------------------------------------------------------
Miami Accountants
------------------------------------------------------
New York Accountants
------------------------------------------------------
Philadelphia Accountants
------------------------------------------------------
San Francisco Accountants
------------------------------------------------------
Washington Accountants
 
List of General Articles
 
Fortune 500 Company List
 
Accounting Tools
Business Entity Types
Other Taxes
Other Types of Accounting
Cost Accounting
Accounting and Terminology
Governing Bodies and Regulations
CPA Guide
IRS Tax Forms
Public Accounting
 
Tax & Accounting Sub Category Articles
CPA's Find New Clients For Your Firm
Accounting Information > IRS Tax Forms > Form 1040 ES Estimated Income Taxes

Form 1040ES - Estimated Tax for Individuals

             Form 1040ES, Estimated Tax for Individuals, is used to compute and pay any applicable estimated tax.  The purpose of estimated tax is to figure and pay tax on income which will not have federal income tax withheld from it.  Some examples of this type of income are self-employment income, rental income, interest, dividends, and alimony received.  Estimated tax can also be used for the taxable portion of Social Security benefit payments received and for unemployment compensation.

             Included with the instructions for Form 1040ES is a worksheet to be used to compute your estimated tax.  The first step is to estimate your adjusted gross income for the year.  Normally, you begin with your prior year adjusted gross income, and make adjustments to that amount using your knowledge of what similarities and differences you expect for the current year.  Next, you subtract either your standard deduction based on your filing status, or the amount you expect to be able to claim as itemized deductions.

 

             The next step is to subtract the total amount for personal exemptions that you will be entitled to claim.  After that, you find your tax in the Tax Rate Schedule, and then add any alternative minimum tax you may be liable for.  Then you total those taxes together and add any expected tax from Form 4972 and Form 8814, as well as any anticipated recapture of education credits. 

             From this total tax amount, you next subtract any credits that you would be expecting to claim on your tax return.  Next, you would add your estimated self-employment tax, and any other expected taxes.  From this sum, you then subtract your estimated earned income credit, additional child tax credit, as well as any credits from Form 4136 or Form 8885.  The result is your total estimated tax.  Next, multiply your total estimated tax by 90%, or 66.66% for farmers and fishermen, and compare this amount to your prior year tax from your tax return.  Whichever number is smaller is the amount you would be required to pay for the year in order to avoid a penalty.  The next step is to compare this required annual payment amount to the amount you expect to be withheld from your income.  If the difference is at least $1,000, you are required to make estimated payments.

             The requirements for estimated tax payments are imposed on U.S. citizens and resident aliens; residents of Puerto Rico, Guam, the U.S. Virgin Islands, the Northern Mariana Islands, and American Samoa; as well as nonresident aliens.  If you were a U.S. citizen or resident alien for all of the prior year, and did not have a tax liability for the year, you do not need to worry about estimated taxes.  Having no tax liability means that you had zero total tax or were not required to file a tax return.

             The due dates for the estimated payments due for 2007 taxes are April 16, 2007; June 15, 2007; September 17, 2007; and January 15, 2008.

              If you need help with figuring out your income taxes, including your estimated taxes, you are in the right place.  Try out the CPA search feature on this website to find a qualified professional in your area to assist you with all your tax and accounting needs.

 
 
 
 
 
 
© Copyrights 2007, All Rights Reserved. FindMyBestCPA.com
Home     AboutUs     CPA Directory     List Your Firm     Links     Privacy     Contact Us