File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2014 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

Nm Taxation And Revenue

Form 48681040 EzFree Income Tax PreparationCan A Tax Return Be Amended1040 Ez File OnlineFree Income Tax FilingFiling Amended Tax Return 20131040x Calculator1040ez 2011 FormE File My State Taxes For FreeHr Block Tax PreparationFederal Tax Return AmendmentFile 2006 Taxes For FreeAmend Taxes Online1090ezTaxslayer Com Main Aspx DestinationH & R Block OnlineFree State Tax Return TurbotaxFile Taxes 2014Tax Act 2011 Login2011 Federal Tax Form 1040H And R Block E FileHand R Block Online2011 Form 1040ezForm 1040 Federal Tax FormH&r Block File 2010 TaxesFree State EfileIncome Tax Return FilingCan I Still File My 2011 TaxesTurbotax2009 1040Irs E File ExtensionInstructions For Form 1040ez2010 Free Tax FilingMypay Dfas Mil MypayFree Ez FormForm 1040x More:label_form_201040x More:taxesEz 1040 Form 20112011 1040Free Tax Filing 2010

Nm Taxation And Revenue

Nm taxation and revenue Publication 969 - Main Content Table of Contents Health Savings Accounts (HSAs)Qualifying for an HSA Contributions to an HSA Distributions From an HSA Balance in an HSA Death of HSA Holder Filing Form 8889 Employer Participation Medical Savings Accounts (MSAs)Archer MSAs Contributions to an MSA Distributions From an MSA Balance in an Archer MSA Death of the Archer MSA Holder Filing Form 8853 Employer Participation Medicare Advantage MSAs Flexible Spending Arrangements (FSAs)Qualifying for an FSA Contributions to an FSA Distributions From an FSA Balance in an FSA Employer Participation Health Reimbursement Arrangements (HRAs)Qualifying for an HRA Contributions to an HRA Distributions From an HRA Balance in an HRA Employer Participation How To Get Tax HelpLow Income Taxpayer Clinics Health Savings Accounts (HSAs) A health savings account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. Nm taxation and revenue You must be an eligible individual to qualify for an HSA. Nm taxation and revenue No permission or authorization from the IRS is necessary to establish an HSA. Nm taxation and revenue You set up an HSA with a trustee. Nm taxation and revenue A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. Nm taxation and revenue The HSA can be established through a trustee that is different from your health plan provider. Nm taxation and revenue Your employer may already have some information on HSA trustees in your area. Nm taxation and revenue If you have an Archer MSA, you can generally roll it over into an HSA tax free. Nm taxation and revenue See Rollovers, later. Nm taxation and revenue What are the benefits of an HSA?   You may enjoy several benefits from having an HSA. Nm taxation and revenue You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do not itemize your deductions on Form 1040. Nm taxation and revenue Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income. Nm taxation and revenue The contributions remain in your account until you use them. Nm taxation and revenue The interest or other earnings on the assets in the account are tax free. Nm taxation and revenue Distributions may be tax free if you pay qualified medical expenses. Nm taxation and revenue See Qualified medical expenses , later. Nm taxation and revenue An HSA is “portable. Nm taxation and revenue ” It stays with you if you change employers or leave the work force. Nm taxation and revenue Qualifying for an HSA To be an eligible individual and qualify for an HSA, you must meet the following requirements. Nm taxation and revenue You must be covered under a high deductible health plan (HDHP), described later, on the first day of the month. Nm taxation and revenue You have no other health coverage except what is permitted under Other health coverage , later. Nm taxation and revenue You are not enrolled in Medicare. Nm taxation and revenue You cannot be claimed as a dependent on someone else's 2013 tax return. Nm taxation and revenue Under the last-month rule, you are considered to be an eligible individual for the entire year if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers). Nm taxation and revenue If you meet these requirements, you are an eligible individual even if your spouse has non-HDHP family coverage, provided your spouse's coverage does not cover you. Nm taxation and revenue If another taxpayer is entitled to claim an exemption for you, you cannot claim a deduction for an HSA contribution. Nm taxation and revenue This is true even if the other person does not actually claim your exemption. Nm taxation and revenue Each spouse who is an eligible individual who wants an HSA must open a separate HSA. Nm taxation and revenue You cannot have a joint HSA. Nm taxation and revenue High deductible health plan (HDHP). Nm taxation and revenue   An HDHP has: A higher annual deductible than typical health plans, and A maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you must pay for covered expenses. Nm taxation and revenue Out-of-pocket expenses include copayments and other amounts, but do not include premiums. Nm taxation and revenue   An HDHP may provide preventive care benefits without a deductible or with a deductible less than the minimum annual deductible. Nm taxation and revenue Preventive care includes, but is not limited to, the following. Nm taxation and revenue Periodic health evaluations, including tests and diagnostic procedures ordered in connection with routine examinations, such as annual physicals. Nm taxation and revenue Routine prenatal and well-child care. Nm taxation and revenue Child and adult immunizations. Nm taxation and revenue Tobacco cessation programs. Nm taxation and revenue Obesity weight-loss programs. Nm taxation and revenue Screening services. Nm taxation and revenue This includes screening services for the following: Cancer. Nm taxation and revenue Heart and vascular diseases. Nm taxation and revenue Infectious diseases. Nm taxation and revenue Mental health conditions. Nm taxation and revenue Substance abuse. Nm taxation and revenue Metabolic, nutritional, and endocrine conditions. Nm taxation and revenue Musculoskeletal disorders. Nm taxation and revenue Obstetric and gynecological conditions. Nm taxation and revenue Pediatric conditions. Nm taxation and revenue Vision and hearing disorders. Nm taxation and revenue For more information on screening services, see Notice 2004-23, 2004-15 I. Nm taxation and revenue R. Nm taxation and revenue B. Nm taxation and revenue 725 available at www. Nm taxation and revenue irs. Nm taxation and revenue gov/irb/2004-15_IRB/ar10. Nm taxation and revenue html. Nm taxation and revenue     The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2013. Nm taxation and revenue      Self-only coverage Family coverage Minimum annual deductible $1,250 $2,500 Maximum annual deductible and other out-of-pocket expenses* $6,250 $12,500 * This limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Nm taxation and revenue Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies. Nm taxation and revenue    The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2014. Nm taxation and revenue      Self-only coverage Family coverage Minimum annual deductible $1,250 $2,500 Maximum annual deductible and other out-of-pocket expenses* $6,350 $12,700 * This limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Nm taxation and revenue Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies. Nm taxation and revenue   Self-only HDHP coverage is an HDHP covering only an eligible individual. Nm taxation and revenue Family HDHP coverage is an HDHP covering an eligible individual and at least one other individual (whether or not that individual is an eligible individual). Nm taxation and revenue Example. Nm taxation and revenue An eligible individual and his dependent child are covered under an “employee plus one” HDHP offered by the individual's employer. Nm taxation and revenue This is family HDHP coverage. Nm taxation and revenue Family plans that do not meet the high deductible rules. Nm taxation and revenue   There are some family plans that have deductibles for both the family as a whole and for individual family members. Nm taxation and revenue Under these plans, if you meet the individual deductible for one family member, you do not have to meet the higher annual deductible amount for the family. Nm taxation and revenue If either the deductible for the family as a whole or the deductible for an individual family member is less than the minimum annual deductible for family coverage, the plan does not qualify as an HDHP. Nm taxation and revenue Example. Nm taxation and revenue You have family health insurance coverage in 2013. Nm taxation and revenue The annual deductible for the family plan is $3,500. Nm taxation and revenue This plan also has an individual deductible of $1,500 for each family member. Nm taxation and revenue The plan does not qualify as an HDHP because the deductible for an individual family member is less than the minimum annual deductible ($2,500) for family coverage. Nm taxation and revenue Other health coverage. Nm taxation and revenue   You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not an HDHP. Nm taxation and revenue However, you can still be an eligible individual even if your spouse has non-HDHP coverage provided you are not covered by that plan. Nm taxation and revenue    You can have additional insurance that provides benefits only for the following items. Nm taxation and revenue Liabilities incurred under workers' compensation laws, tort liabilities, or liabilities related to ownership or use of property. Nm taxation and revenue A specific disease or illness. Nm taxation and revenue A fixed amount per day (or other period) of hospitalization. Nm taxation and revenue   You can also have coverage (whether provided through insurance or otherwise) for the following items. Nm taxation and revenue Accidents. Nm taxation and revenue Disability. Nm taxation and revenue Dental care. Nm taxation and revenue Vision care. Nm taxation and revenue Long-term care. Nm taxation and revenue    Plans in which substantially all of the coverage is through the items listed earlier are not HDHPs. Nm taxation and revenue For example, if your plan provides coverage substantially all of which is for a specific disease or illness, the plan is not an HDHP for purposes of establishing an HSA. Nm taxation and revenue Prescription drug plans. Nm taxation and revenue   You can have a prescription drug plan, either as part of your HDHP or a separate plan (or rider), and qualify as an eligible individual if the plan does not provide benefits until the minimum annual deductible of the HDHP has been met. Nm taxation and revenue If you can receive benefits before that deductible is met, you are not an eligible individual. Nm taxation and revenue Other employee health plans. Nm taxation and revenue   An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA. Nm taxation and revenue Health FSAs and HRAs are discussed later. Nm taxation and revenue   However, an employee can make contributions to an HSA while covered under an HDHP and one or more of the following arrangements. Nm taxation and revenue Limited-purpose health FSA or HRA. Nm taxation and revenue These arrangements can pay or reimburse the items listed earlier under Other health coverage except long-term care. Nm taxation and revenue Also, these arrangements can pay or reimburse preventive care expenses because they can be paid without having to satisfy the deductible. Nm taxation and revenue Suspended HRA. Nm taxation and revenue Before the beginning of an HRA coverage period, you can elect to suspend the HRA. Nm taxation and revenue The HRA does not pay or reimburse, at any time, the medical expenses incurred during the suspension period except preventive care and items listed under Other health coverage. Nm taxation and revenue When the suspension period ends, you are no longer eligible to make contributions to an HSA. Nm taxation and revenue Post-deductible health FSA or HRA. Nm taxation and revenue These arrangements do not pay or reimburse any medical expenses incurred before the minimum annual deductible amount is met. Nm taxation and revenue The deductible for these arrangements does not have to be the same as the deductible for the HDHP, but benefits may not be provided before the minimum annual deductible amount is met. Nm taxation and revenue Retirement HRA. Nm taxation and revenue This arrangement pays or reimburses only those medical expenses incurred after retirement. Nm taxation and revenue After retirement you are no longer eligible to make contributions to an HSA. Nm taxation and revenue Health FSA – grace period. Nm taxation and revenue   Coverage during a grace period by a general purpose health FSA is allowed if the balance in the health FSA at the end of its prior year plan is zero. Nm taxation and revenue See Flexible Spending Arrangements (FSAs) , later. Nm taxation and revenue Contributions to an HSA Any eligible individual can contribute to an HSA. Nm taxation and revenue For an employee's HSA, the employee, the employee's employer, or both may contribute to the employee's HSA in the same year. Nm taxation and revenue For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. Nm taxation and revenue Family members or any other person may also make contributions on behalf of an eligible individual. Nm taxation and revenue Contributions to an HSA must be made in cash. Nm taxation and revenue Contributions of stock or property are not allowed. Nm taxation and revenue Limit on Contributions The amount you or any other person can contribute to your HSA depends on the type of HDHP coverage you have, your age, the date you become an eligible individual, and the date you cease to be an eligible individual. Nm taxation and revenue For 2013, if you have self-only HDHP coverage, you can contribute up to $3,250. Nm taxation and revenue If you have family HDHP coverage, you can contribute up to $6,450. Nm taxation and revenue For 2014, if you have self-only HDHP coverage, you can contribute up to $3,300. Nm taxation and revenue If you have family HDHP coverage you can contribute up to $6,550. Nm taxation and revenue If you were, or were considered (under the last-month rule, discussed later), an eligible individual for the entire year and did not change your type of coverage, you can contribute the full amount based on your type of coverage. Nm taxation and revenue However, if you were not an eligible individual for the entire year or changed your coverage during the year, your contribution limit is the greater of: The limitation shown on the Line 3 Limitation Chart and Worksheetin the Instructions for Form 8889, Health Savings Accounts (HSAs), or The maximum annual HSA contribution based on your HDHP coverage (self-only or family) on the first day of the last month of your tax year. Nm taxation and revenue If you had family HDHP coverage on the first day of the last month of your tax year, your contribution limit for 2013 is $6,450 even if you changed coverage during the year. Nm taxation and revenue Last-month rule. Nm taxation and revenue   Under the last-month rule, if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers), you are considered an eligible individual for the entire year. Nm taxation and revenue You are treated as having the same HDHP coverage for the entire year as you had on the first day of the last month. Nm taxation and revenue Testing period. Nm taxation and revenue   If contributions were made to your HSA based on you being an eligible individual for the entire year under the last-month rule, you must remain an eligible individual during the testing period. Nm taxation and revenue For the last-month rule, the testing period begins with the last month of your tax year and ends on the last day of the 12th month following that month. Nm taxation and revenue For example, December 1, 2013, through December 31, 2014. Nm taxation and revenue   If you fail to remain an eligible individual during the testing period, other than because of death or becoming disabled, you will have to include in income the total contributions made to your HSA that would not have been made except for the last-month rule. Nm taxation and revenue You include this amount in your income in the year in which you fail to be an eligible individual. Nm taxation and revenue This amount is also subject to a 10% additional tax. Nm taxation and revenue The income and additional tax are shown on Form 8889, Part III. Nm taxation and revenue Example 1. Nm taxation and revenue Chris, age 53, becomes an eligible individual on December 1, 2013. Nm taxation and revenue He has family HDHP coverage on that date. Nm taxation and revenue Under the last-month rule, he contributes $6,450 to his HSA. Nm taxation and revenue Chris fails to be an eligible individual in June 2014. Nm taxation and revenue Because Chris did not remain an eligible individual during the testing period (December 1, 2013, through December 31, 2014), he must include in his 2014 income the contributions made in 2013 that would not have been made except for the last-month rule. Nm taxation and revenue Chris uses the worksheet in the Form 8889 instructions to determine this amount. Nm taxation and revenue January -0- February -0- March -0- April -0- May -0- June -0- July -0- August -0- September -0- October -0- November -0- December $6,450. Nm taxation and revenue 00 Total for all months $6,450. Nm taxation and revenue 00 Limitation. Nm taxation and revenue Divide the total by 12 $537. Nm taxation and revenue 50 Chris would include $5,912. Nm taxation and revenue 50 ($6,450. Nm taxation and revenue 00 – $537. Nm taxation and revenue 50) in his gross income on his 2014 tax return. Nm taxation and revenue Also, a 10% additional tax applies to this amount. Nm taxation and revenue Example 2. Nm taxation and revenue Erika, age 39, has self-only HDHP coverage on January 1, 2013. Nm taxation and revenue Erika changes to family HDHP coverage on November 1, 2013. Nm taxation and revenue Because Erika has family HDHP coverage on December 1, 2013, she contributes $6,450 for 2013. Nm taxation and revenue Erika fails to be an eligible individual in March 2014. Nm taxation and revenue Because she did not remain an eligible individual during the testing period (December 1, 2013, through December 31, 2014), she must include in income the contribution made that would not have been made except for the last-month rule. Nm taxation and revenue Erika uses the worksheet in the Form 8889 instructions to determine this amount. Nm taxation and revenue January $3,250. Nm taxation and revenue 00 February $3,250. Nm taxation and revenue 00 March $3,250. Nm taxation and revenue 00 April $3,250. Nm taxation and revenue 00 May $3,250. Nm taxation and revenue 00 June $3,250. Nm taxation and revenue 00 July $3,250. Nm taxation and revenue 00 August $3,250. Nm taxation and revenue 00 September $3,250. Nm taxation and revenue 00 October $3,250. Nm taxation and revenue 00 November $6,450. Nm taxation and revenue 00 December $6,450. Nm taxation and revenue 00 Total for all months $45,400. Nm taxation and revenue 00 Limitation. Nm taxation and revenue Divide the total by 12 $3,783. Nm taxation and revenue 34 Erika would include $2,666. Nm taxation and revenue 67 ($6,450 – $3,783. Nm taxation and revenue 34) in her gross income on her 2014 tax return. Nm taxation and revenue Also, a 10% additional tax applies to this amount. Nm taxation and revenue Additional contribution. Nm taxation and revenue   If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000. Nm taxation and revenue For example, if you have self-only coverage, you can contribute up to $4,250 (the contribution limit for self-only coverage ($3,250) plus the additional contribution of $1,000). Nm taxation and revenue However, see Enrolled in Medicare , later. Nm taxation and revenue If you have more than one HSA in 2013, your total contributions to all the HSAs cannot be more than the limits discussed earlier. Nm taxation and revenue Reduction of contribution limit. Nm taxation and revenue   You must reduce the amount that can be contributed (including any additional contribution) to your HSA by the amount of any contribution made to your Archer MSA (including employer contributions) for the year. Nm taxation and revenue A special rule applies to married people, discussed next, if each spouse has family coverage under an HDHP. Nm taxation and revenue Rules for married people. Nm taxation and revenue   If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. Nm taxation and revenue If each spouse has family coverage under a separate plan, the contribution limit for 2013 is $6,450. Nm taxation and revenue You must reduce the limit on contributions, before taking into account any additional contributions, by the amount contributed to both spouses' Archer MSAs. Nm taxation and revenue After that reduction, the contribution limit is split equally between the spouses unless you agree on a different division. Nm taxation and revenue The rules for married people apply only if both spouses are eligible individuals. Nm taxation and revenue If both spouses are 55 or older and not enrolled in Medicare, each spouse's contribution limit is increased by the additional contribution. Nm taxation and revenue If both spouses meet the age requirement, the total contributions under family coverage cannot be more than $8,450. Nm taxation and revenue Each spouse must make the additional contribution to his or her own HSA. Nm taxation and revenue Example. Nm taxation and revenue For 2013, Mr. Nm taxation and revenue Auburn and his wife are both eligible individuals. Nm taxation and revenue They each have family coverage under separate HDHPs. Nm taxation and revenue Mr. Nm taxation and revenue Auburn is 58 years old and Mrs. Nm taxation and revenue Auburn is 53. Nm taxation and revenue Mr. Nm taxation and revenue and Mrs. Nm taxation and revenue Auburn can split the family contribution limit ($6,450) equally or they can agree on a different division. Nm taxation and revenue If they split it equally, Mr. Nm taxation and revenue Auburn can contribute $4,225 to an HSA (one-half the maximum contribution for family coverage ($3,225) + $1,000 additional contribution) and Mrs. Nm taxation and revenue Auburn can contribute $3,225 to an HSA. Nm taxation and revenue Employer contributions. Nm taxation and revenue   You must reduce the amount you, or any other person, can contribute to your HSA by the amount of any contributions made by your employer that are excludable from your income. Nm taxation and revenue This includes amounts contributed to your account by your employer through a cafeteria plan. Nm taxation and revenue Enrolled in Medicare. Nm taxation and revenue   Beginning with the first month you are enrolled in Medicare, your contribution limit is zero. Nm taxation and revenue Example. Nm taxation and revenue You turned age 65 in July 2013 and enrolled in Medicare. Nm taxation and revenue You had an HDHP with self-only coverage and are eligible for an additional contribution of $1,000. Nm taxation and revenue Your contribution limit is $2,125 ($4,250 × 6 ÷ 12). Nm taxation and revenue Qualified HSA funding distribution. Nm taxation and revenue   A qualified HSA funding distribution may be made from your traditional IRA or Roth IRA to your HSA. Nm taxation and revenue This distribution cannot be made from an ongoing SEP IRA or SIMPLE IRA. Nm taxation and revenue For this purpose, a SEP IRA or SIMPLE IRA is ongoing if an employer contribution is made for the plan year ending with or within your tax year in which the distribution would be made. Nm taxation and revenue   The maximum qualified HSA funding distribution depends on the HDHP coverage (self-only or family) you have on the first day of the month in which the contribution is made and your age as of the end of the tax year. Nm taxation and revenue The distribution must be made directly by the trustee of the IRA to the trustee of the HSA. Nm taxation and revenue The distribution is not included in your income, is not deductible, and reduces the amount that can be contributed to your HSA. Nm taxation and revenue The qualified HSA funding distribution is shown on Form 8889 for the year in which the distribution is made. Nm taxation and revenue   You can make only one qualified HSA funding distribution during your lifetime. Nm taxation and revenue However, if you make a distribution during a month when you have self-only HDHP coverage, you can make another qualified HSA funding distribution in a later month in that tax year if you change to family HDHP coverage. Nm taxation and revenue The total qualified HSA funding distribution cannot be more than the contribution limit for family HDHP coverage plus any additional contribution to which you are entitled. Nm taxation and revenue Example. Nm taxation and revenue In 2013, you are an eligible individual, age 57, with self-only HDHP coverage. Nm taxation and revenue You can make a qualified HSA funding distribution of $4,250 ($3,250 plus $1,000 additional contribution). Nm taxation and revenue Funding distribution – testing period. Nm taxation and revenue   You must remain an eligible individual during the testing period. Nm taxation and revenue For a qualified HSA funding distribution, the testing period begins with the month in which the qualified HSA funding distribution is contributed and ends on the last day of the 12th month following that month. Nm taxation and revenue For example, if a qualified HSA funding distribution is contributed to your HSA on August 10, 2013, your testing period begins in August 2013, and ends on August 31, 2014. Nm taxation and revenue   If you fail to remain an eligible individual during the testing period, other than because of death or becoming disabled, you will have to include in income the qualified HSA funding distribution. Nm taxation and revenue You include this amount in income in the year in which you fail to be an eligible individual. Nm taxation and revenue This amount is also subject to a 10% additional tax. Nm taxation and revenue The income and the additional tax are shown on Form 8889, Part III. Nm taxation and revenue   Each qualified HSA funding distribution allowed has its own testing period. Nm taxation and revenue For example, you are an eligible individual, age 45, with self-only HDHP coverage. Nm taxation and revenue On June 18, 2013, you make a qualified HSA funding distribution of $3,250. Nm taxation and revenue On July 27, 2013, you enroll in family HDHP coverage and on August 17, 2013, you make a qualified HSA funding distribution of $3,200. Nm taxation and revenue Your testing period for the first distribution begins in June 2013 and ends on June 30, 2014. Nm taxation and revenue Your testing period for the second distribution begins in August 2013 and ends on August 31, 2014. Nm taxation and revenue   The testing period rule that applies under the last-month rule (discussed earlier) does not apply to amounts contributed to an HSA through a qualified HSA funding distribution. Nm taxation and revenue If you remain an eligible individual during the entire funding distribution testing period, then no amount of that distribution is included in income and will not be subject to the additional tax for failing to meet the last-month rule testing period. Nm taxation and revenue Rollovers A rollover contribution is not included in your income, is not deductible, and does not reduce your contribution limit. Nm taxation and revenue Archer MSAs and other HSAs. Nm taxation and revenue   You can roll over amounts from Archer MSAs and other HSAs into an HSA. Nm taxation and revenue You do not have to be an eligible individual to make a rollover contribution from your existing HSA to a new HSA. Nm taxation and revenue Rollover contributions do not need to be in cash. Nm taxation and revenue Rollovers are not subject to the annual contribution limits. Nm taxation and revenue   You must roll over the amount within 60 days after the date of receipt. Nm taxation and revenue You can make only one rollover contribution to an HSA during a 1-year period. Nm taxation and revenue Note. Nm taxation and revenue If you instruct the trustee of your HSA to transfer funds directly to the trustee of another of your HSAs, the transfer is not considered a rollover. Nm taxation and revenue There is no limit on the number of these transfers. Nm taxation and revenue Do not include the amount transferred in income, deduct it as a contribution, or include it as a distribution on Form 8889. Nm taxation and revenue When To Contribute You can make contributions to your HSA for 2013 until April 15, 2014. Nm taxation and revenue If you fail to be an eligible individual during 2013, you can still make contributions, up until April 15, 2014, for the months you were an eligible individual. Nm taxation and revenue Your employer can make contributions to your HSA between January 1, 2014, and April 15, 2014, that are allocated to 2013. Nm taxation and revenue Your employer must notify you and the trustee of your HSA that the contribution is for 2013. Nm taxation and revenue The contribution will be reported on your 2014 Form W-2. Nm taxation and revenue Reporting Contributions on Your Return Contributions made by your employer are not included in your income. Nm taxation and revenue Contributions to an employee's account by an employer using the amount of an employee's salary reduction through a cafeteria plan are treated as employer contributions. Nm taxation and revenue Generally, you can claim contributions you made and contributions made by any other person, other than your employer, on your behalf, as an adjustment to income. Nm taxation and revenue Contributions by a partnership to a bona fide partner's HSA are not contributions by an employer. Nm taxation and revenue The contributions are treated as a distribution of money and are not included in the partner's gross income. Nm taxation and revenue Contributions by a partnership to a partner's HSA for services rendered are treated as guaranteed payments that are deductible by the partnership and includible in the partner's gross income. Nm taxation and revenue In both situations, the partner can deduct the contribution made to the partner's HSA. Nm taxation and revenue Contributions by an S corporation to a 2% shareholder-employee's HSA for services rendered are treated as guaranteed payments and are deductible by the S corporation and includible in the shareholder-employee's gross income. Nm taxation and revenue The shareholder-employee can deduct the contribution made to the shareholder-employee's HSA. Nm taxation and revenue Form 8889. Nm taxation and revenue   Report all contributions to your HSA on Form 8889 and file it with your Form 1040 or Form 1040NR. Nm taxation and revenue You should include all contributions made for 2013, including those made by April 15, 2014, that are designated for 2013. Nm taxation and revenue Contributions made by your employer and qualified HSA funding distributions are also shown on the form. Nm taxation and revenue   You should receive Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, from the trustee showing the amount contributed to your HSA during the year. Nm taxation and revenue Your employer's contributions also will be shown in box 12 of Form W-2, Wage and Tax Statement, with code W. Nm taxation and revenue Follow the instructions for Form 8889. Nm taxation and revenue Report your HSA deduction on Form 1040 or Form 1040NR. Nm taxation and revenue Excess contributions. Nm taxation and revenue   You will have excess contributions if the contributions to your HSA for the year are greater than the limits discussed earlier. Nm taxation and revenue Excess contributions are not deductible. Nm taxation and revenue Excess contributions made by your employer are included in your gross income. Nm taxation and revenue If the excess contribution is not included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Nm taxation and revenue   Generally, you must pay a 6% excise tax on excess contributions. Nm taxation and revenue See Form 5329, Additional Taxes on Qualified Plans (including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. Nm taxation and revenue The excise tax applies to each tax year the excess contribution remains in the account. Nm taxation and revenue   You may withdraw some or all of the excess contributions and not pay the excise tax on the amount withdrawn if you meet the following conditions. Nm taxation and revenue You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made. Nm taxation and revenue You withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw the contributions and earnings. Nm taxation and revenue If you fail to remain an eligible individual during any of the testing periods, discussed earlier, the amount you have to include in income is not an excess contribution. Nm taxation and revenue If you withdraw any of those amounts, the amount is treated the same as any other distribution from an HSA, discussed later. Nm taxation and revenue Deducting an excess contribution in a later year. Nm taxation and revenue   You may be able to deduct excess contributions for previous years that are still in your HSA. Nm taxation and revenue The excess contribution you can deduct for the current year is the lesser of the following two amounts. Nm taxation and revenue Your maximum HSA contribution limit for the year minus any amounts contributed to your HSA for the year. Nm taxation and revenue The total excess contributions in your HSA at the beginning of the year. Nm taxation and revenue   Amounts contributed for the year include contributions by you, your employer, and any other person. Nm taxation and revenue They also include any qualified HSA funding distribution made to your HSA. Nm taxation and revenue Any excess contribution remaining at the end of a tax year is subject to the excise tax. Nm taxation and revenue See Form 5329. Nm taxation and revenue Distributions From an HSA You will generally pay medical expenses during the year without being reimbursed by your HDHP until you reach the annual deductible for the plan. Nm taxation and revenue When you pay medical expenses during the year that are not reimbursed by your HDHP, you can ask the trustee of your HSA to send you a distribution from your HSA. Nm taxation and revenue You can receive tax-free distributions from your HSA to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. Nm taxation and revenue If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and may be subject to an additional 20% tax. Nm taxation and revenue You do not have to make distributions from your HSA each year. Nm taxation and revenue If you are no longer an eligible individual, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses. Nm taxation and revenue Generally, a distribution is money you get from your health savings account. Nm taxation and revenue Your total distributions include amounts paid with a debit card that restricts payments to health care and amounts withdrawn from the HSA by other individuals that you have designated. Nm taxation and revenue The trustee will report any distribution to you and the IRS on Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. Nm taxation and revenue Qualified medical expenses. Nm taxation and revenue   Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. Nm taxation and revenue These are explained in Publication 502, Medical and Dental Expenses. Nm taxation and revenue   Also, non-prescription medicines (other than insulin) are not considered qualified medical expenses for HSA purposes. Nm taxation and revenue A medicine or drug will be a qualified medical expense for HSA purposes only if the medicine or drug: Requires a prescription, Is available without a prescription (an over-the-counter medicine or drug) and you get a prescription for it, or Is insulin. Nm taxation and revenue   For HSA purposes, expenses incurred before you establish your HSA are not qualified medical expenses. Nm taxation and revenue State law determines when an HSA is established. Nm taxation and revenue An HSA that is funded by amounts rolled over from an Archer MSA or another HSA is established on the date the prior account was established. Nm taxation and revenue   If, under the last-month rule, you are considered to be an eligible individual for the entire year for determining the contribution amount, only those expenses incurred after you actually establish your HSA are qualified medical expenses. Nm taxation and revenue   Qualified medical expenses are those incurred by the following persons. Nm taxation and revenue You and your spouse. Nm taxation and revenue All dependents you claim on your tax return. Nm taxation and revenue Any person you could have claimed as a dependent on your return except that: The person filed a joint return, The person had gross income of $3,900 or more, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Nm taxation and revenue    For this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child's exemption. Nm taxation and revenue You cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the tax-free distribution from your HSA. Nm taxation and revenue Insurance premiums. Nm taxation and revenue   You cannot treat insurance premiums as qualified medical expenses unless the premiums are for: Long-term care insurance. Nm taxation and revenue Health care continuation coverage (such as coverage under COBRA). Nm taxation and revenue Health care coverage while receiving unemployment compensation under federal or state law. Nm taxation and revenue Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap). Nm taxation and revenue   The premiums for long-term care insurance (item (1)) that you can treat as qualified medical expenses are subject to limits based on age and are adjusted annually. Nm taxation and revenue See Limit on long-term care premiums you can deduct in the instructions for Schedule A (Form 1040). Nm taxation and revenue   Items (2) and (3) can be for your spouse or a dependent meeting the requirement for that type of coverage. Nm taxation and revenue For item (4), if you, the account beneficiary, are not 65 or older, Medicare premiums for coverage of your spouse or a dependent (who is 65 or older) generally are not qualified medical expenses. Nm taxation and revenue Health coverage tax credit. Nm taxation and revenue   You cannot claim this credit for premiums that you pay with a tax-free distribution from your HSA. Nm taxation and revenue See Publication 502 for more information on this credit. Nm taxation and revenue Deemed distributions from HSAs. Nm taxation and revenue   The following situations result in deemed taxable distributions from your HSA. Nm taxation and revenue You engaged in any transaction prohibited by section 4975 with respect to any of your HSAs, at any time in 2013. Nm taxation and revenue Your account ceases to be an HSA as of January 1, 2013, and you must include the fair market value of all assets in the account as of January 1, 2013, on Form 8889. Nm taxation and revenue You used any portion of any of your HSAs as security for a loan at any time in 2013. Nm taxation and revenue You must include the fair market value of the assets used as security for the loan as income on Form 1040 or Form 1040NR. Nm taxation and revenue   Examples of prohibited transactions include the direct or indirect: Sale, exchange, or leasing of property between you and the HSA, Lending of money between you and the HSA, Furnishing goods, services, or facilities between you and the HSA, and Transfer to or use by you, or for your benefit, of any assets of the HSA. Nm taxation and revenue   Any deemed distribution will not be treated as used to pay qualified medical expenses. Nm taxation and revenue These distributions are included in your income and are subject to the additional 20% tax, discussed later. Nm taxation and revenue Recordkeeping. Nm taxation and revenue You must keep records sufficient to show that: The distributions were exclusively to pay or reimburse qualified medical expenses, The qualified medical expenses had not been previously paid or reimbursed from another source, and The medical expenses had not been taken as an itemized deduction in any year. Nm taxation and revenue Do not send these records with your tax return. Nm taxation and revenue Keep them with your tax records. Nm taxation and revenue Reporting Distributions on Your Return How you report your distributions depends on whether or not you use the distribution for qualified medical expenses (defined earlier). Nm taxation and revenue If you use a distribution from your HSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form 8889. Nm taxation and revenue However, the distribution of an excess contribution taken out after the due date, including extensions, of your return is subject to tax even if used for qualified medical expenses. Nm taxation and revenue Follow the instructions for the form and file it with your Form 1040 or Form 1040NR. Nm taxation and revenue If you do not use a distribution from your HSA for qualified medical expenses, you must pay tax on the distribution. Nm taxation and revenue Report the amount on Form 8889 and file it with your Form 1040 or Form 1040NR. Nm taxation and revenue You may have to pay an additional 20% tax on your taxable distribution. Nm taxation and revenue HSA administration and maintenance fees withdrawn by the trustee are not reported as distributions from the HSA. Nm taxation and revenue Additional tax. Nm taxation and revenue   There is an additional 20% tax on the part of your distributions not used for qualified medical expenses. Nm taxation and revenue Figure the tax on Form 8889 and file it with your Form 1040 or Form 1040NR. Nm taxation and revenue Exceptions. Nm taxation and revenue   There is no additional tax on distributions made after the date you are disabled, reach age 65, or die. Nm taxation and revenue Balance in an HSA An HSA is generally exempt from tax. Nm taxation and revenue You are permitted to take a distribution from your HSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax free. Nm taxation and revenue Amounts that remain at the end of the year are generally carried over to the next year (see Excess contributions , earlier). Nm taxation and revenue Earnings on amounts in an HSA are not included in your income while held in the HSA. Nm taxation and revenue Death of HSA Holder You should choose a beneficiary when you set up your HSA. Nm taxation and revenue What happens to that HSA when you die depends on whom you designate as the beneficiary. Nm taxation and revenue Spouse is the designated beneficiary. Nm taxation and revenue   If your spouse is the designated beneficiary of your HSA, it will be treated as your spouse's HSA after your death. Nm taxation and revenue Spouse is not the designated beneficiary. Nm taxation and revenue   If your spouse is not the designated beneficiary of your HSA: The account stops being an HSA, and The fair market value of the HSA becomes taxable to the beneficiary in the year in which you die. Nm taxation and revenue If your estate is the beneficiary, the value is included on your final income tax return. Nm taxation and revenue The amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death. Nm taxation and revenue Filing Form 8889 You must file Form 8889 with your Form 1040 or Form 1040NR if you (or your spouse, if married filing a joint return) had any activity in your HSA during the year. Nm taxation and revenue You must file the form even if only your employer or your spouse's employer made contributions to the HSA. Nm taxation and revenue If, during the tax year, you are the beneficiary of two or more HSAs or you are a beneficiary of an HSA and you have your own HSA, you must complete a separate Form 8889 for each HSA. Nm taxation and revenue Enter “statement” at the top of each Form 8889 and complete the form as instructed. Nm taxation and revenue Next, complete a controlling Form 8889 combining the amounts shown on each of the statement Forms 8889. Nm taxation and revenue Attach the statements to your tax return after the controlling Form 8889. Nm taxation and revenue Employer Participation This section contains the rules that employers must follow if they decide to make HSAs available to their employees. Nm taxation and revenue Unlike the previous discussions, “you” refers to the employer and not to the employee. Nm taxation and revenue Health plan. Nm taxation and revenue   If you want your employees to be able to have an HSA, they must have an HDHP. Nm taxation and revenue You can provide no additional coverage other than those exceptions listed previously under Other health coverage . Nm taxation and revenue Contributions. Nm taxation and revenue   You can make contributions to your employees' HSAs. Nm taxation and revenue You deduct the contributions on your business income tax return for the year in which you make the contributions. Nm taxation and revenue If the contribution is allocated to the prior year, you still deduct it in the year in which you made the contribution. Nm taxation and revenue   For more information on employer contributions, see Notice 2008-59, 2008-29 I. Nm taxation and revenue R. Nm taxation and revenue B. Nm taxation and revenue 123, questions 23 through 27, available at www. Nm taxation and revenue irs. Nm taxation and revenue gov/irb/2008-29_IRB/ar11. Nm taxation and revenue html. Nm taxation and revenue Comparable contributions. Nm taxation and revenue   If you decide to make contributions, you must make comparable contributions to all comparable participating employees' HSAs. Nm taxation and revenue Your contributions are comparable if they are either: The same amount, or The same percentage of the annual deductible limit under the HDHP covering the employees. Nm taxation and revenue The comparability rules do not apply to contributions made through a cafeteria plan. Nm taxation and revenue Comparable participating employees. Nm taxation and revenue   Comparable participating employees: Are covered by your HDHP and are eligible to establish an HSA, Have the same category of coverage (either self-only or family coverage), and Have the same category of employment (part-time, full-time, or former employees). Nm taxation and revenue   To meet the comparability requirements for eligible employees who have not established an HSA by December 31 or have not notified you that they have an HSA, you must meet a notice requirement and a contribution requirement. Nm taxation and revenue   You will meet the notice requirement if by January 15 of the following calendar year you provide a written notice to all such employees. Nm taxation and revenue The notice must state that each eligible employee who, by the last day of February, establishes an HSA and notifies you that they have established an HSA will receive a comparable contribution to the HSA for the prior year. Nm taxation and revenue For a sample of the notice, see Regulation 54. Nm taxation and revenue 4980G-4 A-14(c). Nm taxation and revenue You will meet the contribution requirement for these employees if by April 15, 2014, you contribute comparable amounts plus reasonable interest to the employee's HSA for the prior year. Nm taxation and revenue Note. Nm taxation and revenue For purposes of making contributions to HSAs of non-highly compensated employees, highly compensated employees shall not be treated as comparable participating employees. Nm taxation and revenue Excise tax. Nm taxation and revenue   If you made contributions to your employees' HSAs that were not comparable, you must pay an excise tax of 35% of the amount you contributed. Nm taxation and revenue Employment taxes. Nm taxation and revenue   Amounts you contribute to your employees' HSAs are generally not subject to employment taxes. Nm taxation and revenue You must report the contributions in box 12 of the Form W-2 you file for each employee. Nm taxation and revenue This includes the amounts the employee elected to contribute through a cafeteria plan. Nm taxation and revenue Enter code “W” in box 12. Nm taxation and revenue Medical Savings Accounts (MSAs) Archer MSAs were created to help self-employed individuals and employees of certain small employers meet the medical care costs of the account holder, the account holder's spouse, or the account holder's dependent(s). Nm taxation and revenue After December 31, 2007, you cannot be treated as an eligible individual for Archer MSA purposes unless: You were an active participant for any tax year ending before January 1, 2008, or You became an active participant for a tax year ending after December 31, 2007, by reason of coverage under a high deductible health plan (HDHP) of an Archer MSA participating employer. Nm taxation and revenue A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder who is eligible for Medicare. Nm taxation and revenue Archer MSAs An Archer MSA is a tax-exempt trust or custodial account that you set up with a U. Nm taxation and revenue S. Nm taxation and revenue financial institution (such as a bank or an insurance company) in which you can save money exclusively for future medical expenses. Nm taxation and revenue What are the benefits of an Archer MSA?   You may enjoy several benefits from having an Archer MSA. Nm taxation and revenue You can claim a tax deduction for contributions you make even if you do not itemize your deductions on Form 1040 or Form 1040NR. Nm taxation and revenue The interest or other earnings on the assets in your Archer MSA are tax free. Nm taxation and revenue Distributions may be tax free if you pay qualified medical expenses. Nm taxation and revenue See Qualified medical expenses , later. Nm taxation and revenue The contributions remain in your Archer MSA from year to year until you use them. Nm taxation and revenue An Archer MSA is “portable” so it stays with you if you change employers or leave the work force. Nm taxation and revenue Qualifying for an Archer MSA To qualify for an Archer MSA, you must be either of the following. Nm taxation and revenue An employee (or the spouse of an employee) of a small employer (defined later) that maintains a self-only or family HDHP for you (or your spouse). Nm taxation and revenue A self-employed person (or the spouse of a self-employed person) who maintains a self-only or family HDHP. Nm taxation and revenue You can have no other health or Medicare coverage except what is permitted under Other health coverage , later. Nm taxation and revenue You must be an eligible individual on the first day of a given month to get an Archer MSA deduction for that month. Nm taxation and revenue If another taxpayer is entitled to claim an exemption for you, you cannot claim a deduction for an Archer MSA contribution. Nm taxation and revenue This is true even if the other person does not actually claim your exemption. Nm taxation and revenue Small employer. Nm taxation and revenue   A small employer is generally an employer who had an average of 50 or fewer employees during either of the last 2 calendar years. Nm taxation and revenue The definition of small employer is modified for new employers and growing employers. Nm taxation and revenue Growing employer. Nm taxation and revenue   A small employer may begin HDHPs and Archer MSAs for his or her employees and then grow beyond 50 employees. Nm taxation and revenue The employer will continue to meet the requirement for small employers if he or she: Had 50 or fewer employees when the Archer MSAs began, Made a contribution that was excludable or deductible as an Archer MSA for the last year he or she had 50 or fewer employees, and Had an average of 200 or fewer employees each year after 1996. Nm taxation and revenue Changing employers. Nm taxation and revenue   If you change employers, your Archer MSA moves with you. Nm taxation and revenue However, you may not make additional contributions unless you are otherwise eligible. Nm taxation and revenue High deductible health plan (HDHP). Nm taxation and revenue   To be eligible for an Archer MSA, you must be covered under an HDHP. Nm taxation and revenue An HDHP has: A higher annual deductible than typical health plans, and A maximum limit on the annual out-of-pocket medical expenses that you must pay for covered expenses. Nm taxation and revenue Limits. Nm taxation and revenue   The following table shows the limits for annual deductibles and the maximum out-of-pocket expenses for HDHPs for 2013. Nm taxation and revenue   Self-only coverage Family coverage Minimum annual deductible $2,150 $4,300 Maximum annual deductible $3,200 $6,450 Maximum annual out-of-pocket expenses $4,300 $7,850 Family plans that do not meet the high deductible rules. Nm taxation and revenue   There are some family plans that have deductibles for both the family as a whole and for individual family members. Nm taxation and revenue Under these plans, if you meet the individual deductible for one family member, you do not have to meet the higher annual deductible amount for the family. Nm taxation and revenue If either the deductible for the family as a whole or the deductible for an individual family member is less than the minimum annual deductible for family coverage, the plan does not qualify as an HDHP. Nm taxation and revenue Example. Nm taxation and revenue You have family health insurance coverage in 2013. Nm taxation and revenue The annual deductible for the family plan is $5,500. Nm taxation and revenue This plan also has an individual deductible of $2,000 for each family member. Nm taxation and revenue The plan does not qualify as an HDHP because the deductible for an individual family member is less than the minimum annual deductible ($4,300) for family coverage. Nm taxation and revenue Other health coverage. Nm taxation and revenue   You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not an HDHP. Nm taxation and revenue However, you can still be an eligible individual even if your spouse has non-HDHP coverage provided you are not covered by that plan. Nm taxation and revenue However, you can have additional insurance that provides benefits only for the following items. Nm taxation and revenue Liabilities incurred under workers' compensation laws, torts, or ownership or use of property. Nm taxation and revenue A specific disease or illness. Nm taxation and revenue A fixed amount per day (or other period) of hospitalization. Nm taxation and revenue You can also have coverage (whether provided through insurance or otherwise) for the following items. Nm taxation and revenue Accidents. Nm taxation and revenue Disability. Nm taxation and revenue Dental care. Nm taxation and revenue Vision care. Nm taxation and revenue Long-term care. Nm taxation and revenue Contributions to an MSA Contributions to an Archer MSA must be made in cash. Nm taxation and revenue You cannot contribute stock or other property to an Archer MSA. Nm taxation and revenue Who can contribute to my Archer MSA?   If you are an employee, your employer may make contributions to your Archer MSA. Nm taxation and revenue (You do not pay tax on these contributions. Nm taxation and revenue ) If your employer does not make contributions to your Archer MSA, or you are self-employed, you can make your own contributions to your Archer MSA. Nm taxation and revenue Both you and your employer cannot make contributions to your Archer MSA in the same year. Nm taxation and revenue You do not have to make contributions to your Archer MSA every year. Nm taxation and revenue    If your spouse is covered by your HDHP and an excludable amount is contributed by your spouse's employer to an Archer MSA belonging to your spouse, you cannot make contributions to your own Archer MSA that year. Nm taxation and revenue Limits There are two limits on the amount you or your employer can contribute to your Archer MSA: The annual deductible limit. Nm taxation and revenue An income limit. Nm taxation and revenue Annual deductible limit. Nm taxation and revenue   You (or your employer) can contribute up to 75% of the annual deductible of your HDHP (65% if you have a self-only plan) to your Archer MSA. Nm taxation and revenue You must have the HDHP all year to contribute the full amount. Nm taxation and revenue If you do not qualify to contribute the full amount for the year, determine your annual deductible limit by using the worksheet in the Instructions for Form 8853, Archer MSAs and Long-Term Care Insurance Contracts. Nm taxation and revenue Example 1. Nm taxation and revenue You have an HDHP for your family all year in 2013. Nm taxation and revenue The annual deductible is $5,000. Nm taxation and revenue You can contribute up to $3,750 ($5,000 × 75%) to your Archer MSA for the year. Nm taxation and revenue Example 2. Nm taxation and revenue You have an HDHP for your family for the entire months of July through December 2013 (6 months). Nm taxation and revenue The annual deductible is $5,000. Nm taxation and revenue You can contribute up to $1,875 ($5,000 × 75% ÷ 12 × 6) to your Archer MSA for the year. Nm taxation and revenue If you and your spouse each have a family plan, you are treated as having family coverage with the lower annual deductible of the two health plans. Nm taxation and revenue The contribution limit is split equally between you unless you agree on a different division. Nm taxation and revenue Income limit. Nm taxation and revenue   You cannot contribute more than you earned for the year from the employer through whom you have your HDHP. Nm taxation and revenue   If you are self-employed, you cannot contribute more than your net self-employment income. Nm taxation and revenue This is your income from self-employment minus expenses (including the deductible part of self-employment tax). Nm taxation and revenue Example 1. Nm taxation and revenue Noah Paul earned $25,000 from ABC Company in 2013. Nm taxation and revenue Through ABC, he had an HDHP for his family for the entire year. Nm taxation and revenue The annual deductible was $5,000. Nm taxation and revenue He can contribute up to $3,750 to his Archer MSA (75% × $5,000). Nm taxation and revenue He can contribute the full amount because he earned more than $3,750 at ABC. Nm taxation and revenue Example 2. Nm taxation and revenue Westley Lawrence is self-employed. Nm taxation and revenue He had an HDHP for his family for the entire year in 2013. Nm taxation and revenue The annual deductible was $5,000. Nm taxation and revenue Based on the annual deductible, the maximum contribution to his Archer MSA would have been $3,750 (75% × $5,000). Nm taxation and revenue However, after deducting his business expenses, Joe's net self-employment income is $2,500 for the year. Nm taxation and revenue Therefore, he is limited to a contribution of $2,500. Nm taxation and revenue Individuals enrolled in Medicare. Nm taxation and revenue   Beginning with the first month you are enrolled in Medicare, you cannot contribute to an Archer MSA. Nm taxation and revenue However, you may be eligible for a Medicare Advantage MSA, discussed later. Nm taxation and revenue When To Contribute You can make contributions to your Archer MSA for 2013 until April 15, 2014. Nm taxation and revenue Reporting Contributions on Your Return Report all contributions to your Archer MSA on Form 8853 and file it with your Form 1040 or Form 1040NR. Nm taxation and revenue You should include all contributions you, or your employer, made for 2013, including those made by April 15, 2014, that are designated for 2013. Nm taxation and revenue You should receive Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information, from the trustee showing the amount you (or your employer) contributed during the year. Nm taxation and revenue Your employer's contributions should be shown in box 12 of Form W-2, Wage and Tax Statement, with code R. Nm taxation and revenue Follow the instructions for Form 8853 and complete the worksheet in the instructions. Nm taxation and revenue Report your Archer MSA deduction on Form 1040 or Form 1040NR. Nm taxation and revenue Excess contributions. Nm taxation and revenue   You will have excess contributions if the contributions to your Archer MSA for the year are greater than the limits discussed earlier. Nm taxation and revenue Excess contributions are not deductible. Nm taxation and revenue Excess contributions made by your employer are included in your gross income. Nm taxation and revenue If the excess contribution is not included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Nm taxation and revenue   Generally, you must pay a 6% excise tax on excess contributions. Nm taxation and revenue See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. Nm taxation and revenue The excise tax applies to each tax year the excess contribution remains in the account. Nm taxation and revenue   You may withdraw some or all of the excess contributions and not pay the excise tax on the amount withdrawn if you meet the following conditions. Nm taxation and revenue You withdraw the excess contributions by the due date, including extensions, of your tax return. Nm taxation and revenue You withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw the contributions and earnings. Nm taxation and revenue Deducting an excess contribution in a later year. Nm taxation and revenue   You may be able to deduct excess contributions for previous years that are still in your Archer MSA. Nm taxation and revenue The excess contribution you can deduct in the current year is the lesser of the following two amounts. Nm taxation and revenue Your maximum Archer MSA contribution limit for the year minus any amounts contributed to your Archer MSA for the year. Nm taxation and revenue The total excess contributions in your Archer MSA at the beginning of the year. Nm taxation and revenue   Any excess contributions remaining at the end of a tax year are subject to the excise tax. Nm taxation and revenue See Form 5329. Nm taxation and revenue Distributions From an MSA You will generally pay medical expenses during the year without being reimbursed by your HDHP until you reach the annual deductible for the plan. Nm taxation and revenue When you pay medical expenses during the year that are not reimbursed by your HDHP, you can ask the trustee of your Archer MSA to send you a distribution from your Archer MSA. Nm taxation and revenue You can receive tax-free distributions from your Archer MSA to pay for qualified medical expenses (discussed later). Nm taxation and revenue If you receive distributions for other reasons, the amount will be subject to income tax and may be subject to an additional 20% tax as well. Nm taxation and revenue You do not have to make withdrawals from your Archer MSA each year. Nm taxation and revenue If you no longer qualify to make contributions, you can still receive tax-free distributions to pay or reimburse your qualified medical expenses. Nm taxation and revenue A distribution is money you get from your Archer MSA. Nm taxation and revenue The trustee will report any distribution to you and the IRS on Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA. Nm taxation and revenue Qualified medical expenses. Nm taxation and revenue   Qualified medical expenses are those expenses that would generally qualify for the medical and dental expenses deduction. Nm taxation and revenue These are explained in Publication 502. Nm taxation and revenue   Also, non-prescription medicines (other than insulin) are not considered qualified medical expenses for MSA purposes. Nm taxation and revenue A medicine or drug will be a qualified medical expense for MSA purposes only if the medicine or drug: Requires a prescription, Is available without a prescription (an over-the-counter medicine or drug) and you get a prescription for it, or Is insulin. Nm taxation and revenue   Qualified medical expenses are those incurred by the following persons. Nm taxation and revenue You and your spouse. Nm taxation and revenue All dependents you claim on your tax return. Nm taxation and revenue Any person you could have claimed as a dependent on your return except that: The person filed a joint return, The person had gross income of $3,900 or more, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Nm taxation and revenue    For this purpose, a child of parents that are divorced, separated, or living apart for the last 6 months of the calendar year is treated as the dependent of both parents whether or not the custodial parent releases the claim to the child's exemption. Nm taxation and revenue    You cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) that are equal to the tax-free distribution from your Archer MSA. Nm taxation and revenue Special rules for insurance premiums. Nm taxation and revenue   Generally, you cannot treat insurance premiums as qualified medical expenses for Archer MSAs. Nm taxation and revenue You can, however, treat premiums for long-term care coverage, health care coverage while you receive unemployment benefits, or health care continuation coverage required under any federal law as qualified medical expenses for Archer MSAs. Nm taxation and revenue Health coverage tax credit. Nm taxation and revenue   You cannot claim this credit for premiums that you pay with a tax-free distribution from your Archer MSA. Nm taxation and revenue See Publication 502 for information on this credit. Nm taxation and revenue Deemed distributions from Archer MSAs. Nm taxation and revenue   The following situations result in deemed taxable distributions from your Archer MSA. Nm taxation and revenue You engaged in any transaction prohibited by section 4975 with respect to any of your Archer MSAs at any time in 2013. Nm taxation and revenue Your account ceases to be an Archer MSA as of January 1, 2013, and you must include the fair market value of all assets in the account as of January 1, 2013, on Form 8853. Nm taxation and revenue You used any portion of any of your Archer MSAs as security for a loan at any time in 2013. Nm taxation and revenue You must include the fair market value of the assets used as security for the loan as income on Form 1040 or Form 1040NR. Nm taxation and revenue   Examples of prohibited transactions include the direct or indirect: Sale, exchange, or leasing of property between you and the Archer MSA, Lending of money between you and the Archer MSA, Furnishing goods, services, or facilities between you and the Archer MSA, and Transfer to or use by you, or for your benefit, of any assets of the Archer MSA. Nm taxation and revenue   Any deemed distribution will not be treated as used to pay qualified medical expenses. Nm taxation and revenue These distributions are included in your income and are subject to the additional 20% tax, discussed later. Nm taxation and revenue Recordkeeping. Nm taxation and revenue You must keep records sufficient to show that: The distributions were exclusively to pay or reimburse qualified medical expenses, The qualified medical expenses had not been previously paid or reimbursed from another source, and The medical expenses had not been taken as an itemized deduction in any year. Nm taxation and revenue Do not send these records with your tax return. Nm taxation and revenue Keep them with your tax records. Nm taxation and revenue Reporting Distributions on Your Return How you report your distributions depends on whether or not you use the distribution for qualified medical expenses (defined earlier). Nm taxation and revenue If you use a distribution from your Archer MSA for qualified medical expenses, you do not pay tax on the distribution but you have to report the distribution on Form 8853. Nm taxation and revenue Follow the instructions for the form and file it with your Form 1040 or Form 1040NR. Nm taxation and revenue If you do not use a distribution from your Archer MSA for qualified medical expenses, you must pay tax on the distribution. Nm taxation and revenue Report the amount on Form 8853 and file it with your Form 1040 or Form 1040NR. Nm taxation and revenue You may have to pay an additional 20% tax, discussed later, on your taxable distribution. Nm taxation and revenue If an amount (other than a rollover) is contributed to your Archer MSA this year (by you or your employer), you also must report and pay tax on a distribution you receive from your Archer MSA this year that is used to pay medical expenses of someone who is not covered by an HDHP, or is also covered by another health plan that is not an HDHP, at the time the expenses are incurred. Nm taxation and revenue Rollovers. Nm taxation and revenue   Generally, any distribution from an Archer MSA that you roll over into another Archer MSA or an HSA is not taxable if you complete the rollover within 60 days. Nm taxation and revenue An Archer MSA and an HSA can only receive one rollover contribution during a 1-year period. Nm taxation and revenue See the Form 8853 instructions for more information. Nm taxation and revenue Additional tax. Nm taxation and revenue   There is a 20% additional tax on the part of your distributions not used for qualified medical expenses. Nm taxation and revenue Figure the tax on Form 8853 and file it with your Form 1040 or Form 1040NR. Nm taxation and revenue Report the additional tax in the total on Form 1040 or Form 1040NR. Nm taxation and revenue Exceptions. Nm taxation and revenue   There is no additional tax on distributions made after the date you are disabled, reach age 65, or die. Nm taxation and revenue Balance in an Archer MSA An Archer MSA is generally exempt from tax. Nm taxation and revenue You are permitted to take a distribution from your Archer MSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax free. Nm taxation and revenue Amounts that remain at the end of the year are generally carried over to the next year (see Excess contributions , earlier). Nm taxation and revenue Earnings on amounts in an Archer MSA are not included in your income while held in the Archer MSA. Nm taxation and revenue Death of the Archer MSA Holder You should choose a beneficiary when you set up your Archer MSA. Nm taxation and revenue What happens to that Archer MSA when you die depends on whom you designate as the beneficiary. Nm taxation and revenue Spouse is the designated beneficiary. Nm taxation and revenue   If your spouse is the designated beneficiary of your Archer MSA, it will be treated as your spouse's Archer MSA after your death. Nm taxation and revenue Spouse is not the designated beneficiary. Nm taxation and revenue   If your spouse is not the designated beneficiary of your Archer MSA: The account stops being an Archer MSA, and The fair market value of the Archer MSA becomes taxable to the beneficiary in the year in which you die. Nm taxation and revenue   If your estate is the beneficiary, the fair market value of the Archer MSA will be included on your final income tax return. Nm taxation and revenue The amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death. Nm taxation and revenue Filing Form 8853 You must file Form 8853 with your Form 1040 or Form 1040NR if you (or your spouse, if married filing a joint return) had any activity in your Archer MSA during the year. Nm taxation and revenue You must file the form even if only your employer or your spouse's employer made contributions to the Archer MSA. Nm taxation and revenue If, during the tax year, you are the beneficiary of two or more Archer MSAs or you are a beneficiary of an Archer MSA and you have your own Archer MSA, you must complete a separate Form 8853 for each MSA. Nm taxation and revenue Enter “statement” at the top of each Form 8853 and complete the form as instructed. Nm taxation and revenue Next, complete a controlling Form 8853 combining the amounts shown on each of the statement Forms 8853. Nm taxation and revenue Attach the statements to your tax return after the controlling Form 8853. Nm taxation and revenue Employer Participation This section contains the rules that employers must follow if they decide to make Archer MSAs available to their employees. Nm taxation and revenue Unlike the previous discussions, “you” refers to the employer and not to the employee. Nm taxation and revenue Health plan. Nm taxation and revenue   If you want your employees to be able to have an Archer MSA, you must make an HDHP available to them. Nm taxation and revenue You can provide no additional coverage other than those exceptions listed previously under Other health coverage . Nm taxation and revenue Contributions. Nm taxation and revenue   You can make contributions to your employees' Archer MSAs. Nm taxation and revenue You deduct the contributions on the “Employee benefit programs” line of your business income tax return for the year in which you make the contributions. Nm taxation and revenue If you are filing Form 1040, Schedule C, this is Part II, line 14. Nm taxation and revenue Comparable contributions. Nm taxation and revenue   If you decide to make contributions, you must make comparable contributions to all comparable participating employees' Archer MSAs. Nm taxation and revenue Your contributions are comparable if they are either: The same amount, or The same percentage of the annual deductible limit under the HDHP covering the employees. Nm taxation and revenue Comparable participating employees. Nm taxation and revenue   Comparable participating employees: Are covered by your HDHP and are eligible to establish an Archer MSA, Have the same category of coverage (either self-only or family coverage), and Have the same category of employment (either part-time or full-time). Nm taxation and revenue Excise tax. Nm taxation and revenue   If you made contributions to your employees' Archer MSAs that were not comparable, you must pay an excise tax of 35% of the amount you contributed. Nm taxation and revenue Employment taxes. Nm taxation and revenue   Amounts you contribute to your employees' Archer MSAs are generally not subject to employment taxes. Nm taxation and revenue You must report the contributions in box 12 of the Form W-2 you file for each employee. Nm taxation and revenue Enter code “R” in box 12. Nm taxation and revenue Medicare Advantage MSAs A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of the account holder. Nm taxation and revenue To be eligible for a Medicare Advantage MSA, you must be enrolled in Medicare and have a high deductible health plan (HDHP) that meets the Medicare guidelines. Nm taxation and revenue A Medicare Advantage MSA is a tax-exempt trust or custodial savings account that you set up with a financial institution (such as a bank or an insurance company) in which the Medicare program can deposit money for qualified medical expenses. Nm taxation and revenue The money in your account is not taxed if it is used for qualified medical expenses, and it may earn interest or dividends. Nm taxation and revenue An HDHP is a special health insurance policy that has a high deductible. Nm taxation and revenue You choose the policy you want to use as part of your Medicare Advantage MSA plan. Nm taxation and revenue However, the policy must be approved by the Medicare program. Nm taxation and revenue Medicare Advantage MSAs are administered through the federal Medicare program. Nm taxation and revenue You can get information by calling 1-800-Medicare (1-800-633-4227) or through the Internet at www. Nm taxation and revenue medicare. Nm taxation and revenue gov. Nm taxation and revenue Note. Nm taxation and revenue You must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your tax return if you have a Medicare Advantage MSA. Nm taxation and revenue Flexible Spending Arrangements (FSAs) A health flexible spending arrangement (FSA) allows employees to be reimbursed for medical expenses. Nm taxation and revenue FSAs are usually funded through voluntary salary reduction agreements with your employer. Nm taxation and revenue No employment or federal income taxes are deducted from your contribution. Nm taxation and revenue The employer may also contribute. Nm taxation and revenue Note. Nm taxation and revenue Unlike HSAs or Archer MSAs which must be reported on Form 1040 or Form 1040NR, there are no reporting requirements for FSAs on your income tax return. Nm taxation and revenue For information on the interaction between a health FSA and an HSA, see Other employee health plans under Qualifying for an HSA, earlier. Nm taxation and revenue What are the benefits of an FSA?   You may enjoy several benefits from having an FSA. Nm taxation and revenue Contributions made by your employer can be excluded from your gross income. Nm taxation and revenue No employment or federal income taxes are deducted from the contributions. Nm taxation and revenue Withdrawals may be tax free if you pay qualified medical expenses. Nm taxation and revenue See Qualified medical expenses , later. Nm taxation and revenue You can withdraw funds from the account to pay qualified medical expenses even if you have not yet placed the funds in the account. Nm taxation and revenue Qualifying for an FSA Health FSAs are employer-established benefit plans. Nm taxation and revenue These may be offered in conjunction with other employer-provided benefits as part of a cafeteria plan. Nm taxation and revenue Employers have complete flexibility to offer various combinations of benefits in designing their plan. Nm taxation and revenue You do not have to be covered under any other health care plan to participate. Nm taxation and revenue Self-employed persons are not eligible for an FSA. Nm taxation and revenue Certain limitations may apply if you are a highly compensated participant or a key employee. Nm taxation and revenue Contributions to an FSA You contribute to your FSA by electing an amount to be voluntarily withheld from your pay by your employer. Nm taxation and revenue This is sometimes called a salary reduction agreement. Nm taxation and revenue The employer may also contribute to your FSA if specified in the plan. Nm taxation and revenue You do not pay federal income tax or employment taxes on the salary you contribute or the amounts your employer contributes to the FSA. Nm taxation and revenue However, contributions made by your employer to provide coverage for long-term care insurance must be included in income. Nm taxation and revenue When To Contribute At the
Print - Click this link to Print this page

SOI Tax Stats - Individual Tax Statistics

Return to Tax Stats home page

Here you will find links to various studies relating to the individual taxpayer.

 

Individual Income Tax Numerous studies which provide statistics on income, deductions, tax, and credits reported on individual Form 1040 income tax returns and associated schedules are available in this area. Find statistics on high income tax returns, income tax rates, nonfarm sole proprietorships, data by geographic areas, and more...

Estate Tax

Estate Tax Statistics OneSheet

This annual study includes information on gross estate and its composition, deductions, and tax; and information on the age, sex, and marital status of decedents. Basic estate tax return data by year in which returns are filed are produced each year. Also included are data on nonresident aliens who had more than $60,000 of assets in the United States. These data come from taxpayers filing Form 706.
International Numerous studies which provide statistics on the individual taxpayer in the international context. Find statistics on foreign recipients of U.S. income, foreign trusts, individual foreign earned income and the foreign tax credit, international boycotts and nonresident alien estate tax returns. These data come from taxpayers filing Forms 706-NA, 1042-S, 1116, 2555, 3520, 5713 and more.
Personal Wealth This periodic study provides estimates of personal wealth of top wealth holders that are generated from estate tax return data using the "estate multiplier" technique, in conjunction with both filing-year and year-of-death estate databases.

Income from Trusts and Estates

Snapshot of Estate and Trust Income Tax Statistics

The U.S. Income Tax Return for Estates and Trusts (Form 1041) is used to report the income, deductions, gains, and losses of estates and trusts, as well as distributions to beneficiaries and income tax liability. Entities are classified into types based on their purpose.  

Return to Tax Stats home page

Page Last Reviewed or Updated: 24-Mar-2014

The Nm Taxation And Revenue

Nm taxation and revenue 2. Nm taxation and revenue   Estimated Tax for 2014 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated TaxGeneral Rule Married Taxpayers Special Rules Aliens Estates and Trusts How To Figure Estimated Tax2014 Estimated Tax Worksheet When To Pay Estimated TaxWhen To Start Farmers and Fishermen How To Figure Each PaymentRegular Installment Method Annualized Income Installment Method Estimated Tax Payments Not Required How To Pay Estimated TaxCredit an Overpayment Pay Online Pay by Phone Pay by Check or Money Order Using the Estimated Tax Payment Voucher Introduction Estimated tax is the method used to pay tax on income that is not subject to withholding. Nm taxation and revenue This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Nm taxation and revenue 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. Nm taxation and revenue Estimated tax is used to pay both income tax and self-employment tax, as well as other taxes and amounts reported on your tax return. Nm taxation and revenue 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. Nm taxation and revenue If you do not pay enough by the due date of each payment period (see When To Pay Estimated Tax , later), you may be charged a penalty even if you are due a refund when you file your tax return. Nm taxation and revenue For information on when the penalty applies, see chapter 4. Nm taxation and revenue It would be helpful for you to have a copy of your 2013 tax return and an estimate of your 2014 income nearby while reading this chapter. Nm taxation and revenue Topics - This chapter discusses: 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. Nm taxation and revenue Useful Items - You may want to see: Form (and Instructions) 1040-ES Estimated Tax for Individuals See chapter 5 for information about how to get this publication and form. Nm taxation and revenue Worksheets. Nm taxation and revenue   You may need to use several of the blank worksheets included in this chapter. Nm taxation and revenue See Worksheets for Chapter 2, later, to locate what you need. Nm taxation and revenue Who Does Not Have To Pay Estimated Tax 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. Nm taxation and revenue To do this, file a new Form W-4 with your employer. Nm taxation and revenue See chapter 1. Nm taxation and revenue Estimated tax not required. Nm taxation and revenue   You do not have to pay estimated tax for 2014 if you meet all three of the following conditions. Nm taxation and revenue You had no tax liability for 2013. Nm taxation and revenue You were a U. Nm taxation and revenue S. Nm taxation and revenue citizen or resident alien for the whole year. Nm taxation and revenue Your 2013 tax year covered a 12-month period. Nm taxation and revenue   You had no tax liability for 2013 if your total tax (defined later under Total tax for 2013—line 14b ) was zero or you did not have to file an income tax return. Nm taxation and revenue Please click here for the text description of the image. Nm taxation and revenue Figure 2-A: Do You Have To Pay Estimated Tax? Who Must Pay Estimated Tax If you owed additional tax for 2013, you may have to pay estimated tax for 2014. Nm taxation and revenue 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. Nm taxation and revenue General Rule In most cases, you must pay estimated tax for 2014 if both of the following apply. Nm taxation and revenue You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Nm taxation and revenue You expect your withholding and refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. Nm taxation and revenue Your 2013 tax return must cover all 12 months. Nm taxation and revenue Note. Nm taxation and revenue The percentages in (2a) or (2b) above may be different if you are a farmer, fisherman, or higher income taxpayer. Nm taxation and revenue See Special Rules , later. Nm taxation and revenue If the result from using the general rule above suggests that you will not have enough withholding, complete the 2014 Estimated Tax Worksheet for a more accurate calculation. Nm taxation and revenue Figure 2-A takes you through the general rule. Nm taxation and revenue You may find this helpful in determining if you must pay estimated tax. Nm taxation and revenue If all your income will be subject to income tax withholding, you probably do not need to pay estimated tax. Nm taxation and revenue Example 1. Nm taxation and revenue Jane Smart uses Figure 2-A and the following information to figure whether she should pay estimated tax for 2014. Nm taxation and revenue She files as head of household claiming her dependent son, takes the standard deduction, and expects no refundable credits for 2014. Nm taxation and revenue Expected adjusted gross income (AGI) for 2014 $82,800 AGI for 2013 $73,700 Total tax on 2013 return (Form 1040,  line 61) $  8,746 Total 2014 estimated tax (line 13c of the 2014 Estimated Tax Worksheet) $11,015 Tax expected to be withheld in 2014 $10,000 Jane's answer to Figure 2-A, box 1, is YES; she expects to owe at least $1,000 for 2014 after subtracting her withholding from her expected total tax ($11,015 − $10,000 = $1,015). Nm taxation and revenue 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 2014 return ($11,015 × 90% = $9,913. Nm taxation and revenue 50). Nm taxation and revenue Jane does not need to pay estimated tax. Nm taxation and revenue Example 2. Nm taxation and revenue The facts are the same as in Example 1, except that Jane expects only $8,700 tax to be withheld in 2014. Nm taxation and revenue Because that is less than $9,913. Nm taxation and revenue 50, her answer to box 2a is NO. Nm taxation and revenue Jane's answer to box 2b is also NO; she does not expect her income tax withholding ($8,700) to be at least 100% of the total tax shown on her 2013 return ($8,746). Nm taxation and revenue Jane must increase her withholding or pay estimated tax for 2014. Nm taxation and revenue Example 3. Nm taxation and revenue The facts are the same as in Example 2, except that the total tax shown on Jane's 2013 return was $8,600. Nm taxation and revenue Because she expects to have more than $8,600 withheld in 2014 ($8,700), her answer to box 2b is YES. Nm taxation and revenue Jane does not need to pay estimated tax for 2014. Nm taxation and revenue Married Taxpayers If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income. Nm taxation and revenue You and your spouse can make joint estimated tax payments even if you are not living together. Nm taxation and revenue 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, Either spouse is a nonresident alien (unless that spouse elected to be treated as a resident alien for tax purposes). Nm taxation and revenue See Choosing Resident Alien Status in Publication 519, or 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. Nm taxation and revenue These individuals can take credit only for the estimated tax payments that he or she made. Nm taxation and revenue If you and your spouse cannot make joint estimated tax payments, apply these rules to your separate estimated income. Nm taxation and revenue Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2014. Nm taxation and revenue 2013 separate returns and 2014 joint return. Nm taxation and revenue   If you plan to file a joint return with your spouse for 2014, but you filed separate returns for 2013, your 2013 tax is the total of the tax shown on your separate returns. Nm taxation and revenue You filed a separate return if you filed as single, head of household, or married filing separately. Nm taxation and revenue 2013 joint return and 2014 separate returns. Nm taxation and revenue   If you plan to file a separate return for 2014, but you filed a joint return for 2013, your 2013 tax is your share of the tax on the joint return. Nm taxation and revenue You file a separate return if you file as single, head of household, or married filing separately. Nm taxation and revenue   To figure your share of the tax on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2013 using the same filing status for 2014. Nm taxation and revenue Then multiply the tax on the joint return by the following fraction. Nm taxation and revenue      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. Nm taxation and revenue Joe and Heather filed a joint return for 2013 showing taxable income of $48,500 and a tax of $6,386. Nm taxation and revenue Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. Nm taxation and revenue For 2014, they plan to file married filing separately. Nm taxation and revenue Joe figures his share of the tax on the 2013 joint return as follows: Tax on $40,100 based on separate return $5,960 Tax on $8,400 based on separate return 843 Total $6,803 Joe's percentage of total ($5,960 ÷ $6,803) 87. Nm taxation and revenue 6% Joe's share of tax on joint return  ($6,386 × 87. Nm taxation and revenue 6%) $5,594 Special Rules There are special rules for farmers, fishermen, and certain higher income taxpayers. Nm taxation and revenue Farmers and Fishermen If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, substitute 662/3% for 90% in (2a) under General Rule , earlier. Nm taxation and revenue Gross income. Nm taxation and revenue   Your gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. Nm taxation and revenue To determine whether two-thirds of your gross income for 2013 was from farming or fishing, use as your gross income the total of the income (not loss) amounts. Nm taxation and revenue Joint returns. Nm taxation and revenue   On a joint return, you must add your spouse's gross income to your gross income to determine if at least two-thirds of your total gross income is from farming or fishing. Nm taxation and revenue Gross income from farming. Nm taxation and revenue   This is income from cultivating the soil or raising agricultural commodities. Nm taxation and revenue It includes the following amounts. Nm taxation and revenue Income from operating a stock, dairy, poultry, bee, fruit, or truck farm. Nm taxation and revenue Income from a plantation, ranch, nursery, range, orchard, or oyster bed. Nm taxation and revenue Crop shares for the use of your land. Nm taxation and revenue Gains from sales of draft, breeding, dairy, or sporting livestock. Nm taxation and revenue   For 2013, gross income from farming is the total of the following amounts. Nm taxation and revenue Schedule F (Form 1040), Profit or Loss From Farming, line 9. Nm taxation and revenue Form 4835, Farm Rental Income and Expenses, line 7. Nm taxation and revenue Your share of the gross farming income from a partnership, S corporation, estate or trust, from: Schedule K-1 (Form 1065), Schedule K-1 (Form 1120S), or Schedule K-1 (Form 1041). Nm taxation and revenue Your gains from sales of draft, breeding, dairy, or sporting livestock shown on Form 4797, Sales of Business Property. Nm taxation and revenue   Wages you receive as a farm employee and wages you receive from a farm corporation are not gross income from farming. Nm taxation and revenue Gross income from fishing. Nm taxation and revenue   This is income from catching, taking, harvesting, cultivating, or farming any kind of fish, shellfish (for example, clams and mussels), crustaceans (for example, lobsters, crabs, and shrimp), sponges, seaweeds, or other aquatic forms of animal and vegetable life. Nm taxation and revenue   Gross income from fishing includes the following amounts. Nm taxation and revenue Schedule C (Form 1040), Profit or Loss From Business. Nm taxation and revenue Income for services as an officer or crew member of a vessel while the vessel is engaged in fishing. Nm taxation and revenue Your share of the gross fishing income from a partnership, S corporation, estate or trust, from: Schedule K-1 (Form 1065), Schedule K-1 (Form 1120S), or Schedule K-1 (Form 1041). Nm taxation and revenue Certain taxable interest and punitive damage awards received in connection with the Exxon Valdez litigation. Nm taxation and revenue Income for services normally performed in connection with fishing. Nm taxation and revenue Services normally performed in connection with fishing include: 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. Nm taxation and revenue Higher Income Taxpayers If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing a separate return), substitute 110% for 100% in (2b) under General Rule , earlier. Nm taxation and revenue For 2013, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. Nm taxation and revenue Note. Nm taxation and revenue This rule does not apply to farmers and fishermen. Nm taxation and revenue Aliens Resident and nonresident aliens also may have to pay estimated tax. Nm taxation and revenue Resident aliens should follow the rules in this publication, unless noted otherwise. Nm taxation and revenue Nonresident aliens should get Form 1040-ES (NR), U. Nm taxation and revenue S. Nm taxation and revenue Estimated Tax for Nonresident Alien Individuals. Nm taxation and revenue You are an alien if you are not a citizen or national of the United States. Nm taxation and revenue You are a resident alien if you either have a green card or meet the substantial presence test. Nm taxation and revenue For more information about withholding, the substantial presence test, and Form 1040-ES (NR), see Publication 519. Nm taxation and revenue Estates and Trusts Estates and trusts also must pay estimated tax. Nm taxation and revenue 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. Nm taxation and revenue Estates and trusts must use Form 1041-ES, Estimated Income Tax for Estates and Trusts, to figure and pay estimated tax. Nm taxation and revenue How To Figure Estimated Tax To figure your estimated tax, you must figure your expected AGI, taxable income, taxes, deductions, and credits for the year. Nm taxation and revenue When figuring your 2014 estimated tax, it may be helpful to use your income, deductions, and credits for 2013 as a starting point. Nm taxation and revenue Use your 2013 federal tax return as a guide. Nm taxation and revenue You can use Form 1040-ES to figure your estimated tax. Nm taxation and revenue Nonresident aliens use Form 1040-ES (NR) to figure estimated tax. Nm taxation and revenue You must make adjustments both for changes in your own situation and for recent changes in the tax law. Nm taxation and revenue Some of these changes are discussed under What's New for 2014 , earlier. Nm taxation and revenue For information about these and other changes in the law, visit the IRS website at IRS. Nm taxation and revenue gov. Nm taxation and revenue The instructions for Form 1040-ES include a worksheet to help you figure your estimated tax. Nm taxation and revenue Keep the worksheet for your records. Nm taxation and revenue 2014 Estimated Tax Worksheet Use Worksheet 2-1 to help guide you through the information about completing the 2014 Estimated Tax Worksheet. Nm taxation and revenue You can also find a copy of the worksheet in the Instructions for Form 1040-ES. Nm taxation and revenue Expected AGI—Line 1 Your expected AGI for 2014 (line 1) is your expected total income minus your expected adjustments to income. Nm taxation and revenue Total income. Nm taxation and revenue   Include in your total income all the income you expect to receive during the year, even income that is subject to withholding. Nm taxation and revenue However, do not include income that is tax exempt. Nm taxation and revenue   Total income includes all income and loss for 2014 that, if you had received it in 2013, would have been included on your 2013 tax return in the total on line 22 of Form 1040, line 15 of Form 1040A, or line 4 of Form 1040EZ. Nm taxation and revenue Social security and railroad retirement benefits. Nm taxation and revenue If you expect to receive social security or tier 1 railroad retirement benefits during 2014, use Worksheet 2-2 to figure the amount of expected taxable benefits you should include on line 1. Nm taxation and revenue Adjustments to income. Nm taxation and revenue   Be sure to subtract from your expected total income all of the adjustments you expect to take on your 2014 tax return. Nm taxation and revenue Self-employed. Nm taxation and revenue 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. Nm taxation and revenue Include the amount from Worksheet 2-3 in your expected adjustments to income. Nm taxation and revenue 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. Nm taxation and revenue Expected Taxable Income— Lines 2–5 Reduce your expected AGI for 2014 (line 1) by either your expected itemized deductions or your standard deduction and by your exemptions (lines 2 through 5). Nm taxation and revenue Itemized deductions—line 2. Nm taxation and revenue   If you expect to claim itemized deductions on your 2014 tax return, enter the estimated amount on line 2. Nm taxation and revenue   Itemized deductions are the deductions that can be claimed on Schedule A (Form 1040). Nm taxation and revenue    For 2014, your total itemized deductions may be reduced if your AGI is more than the amount shown next for your filing status. Nm taxation and revenue Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than this amount, use Worksheet 2-5 to figure the amount to enter on line 2. Nm taxation and revenue Standard deduction—line 2. Nm taxation and revenue   If you expect to claim the standard deduction on your 2014 tax return, enter the amount on line 2. Nm taxation and revenue Use Worksheet 2-4 to figure your standard deduction. Nm taxation and revenue No standard deduction. Nm taxation and revenue   The standard deduction for some individuals is zero. Nm taxation and revenue 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. Nm taxation and revenue Exemptions—line 4. Nm taxation and revenue   After you have subtracted either your expected itemized deductions or your standard deduction from your expected AGI, reduce the amount remaining by $3,950 for each exemption you expect to take on your 2014 tax return. Nm taxation and revenue 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. Nm taxation and revenue 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. Nm taxation and revenue    For 2014, your deduction for personal exemption is reduced if your AGI is more than the amount shown next for your filing status. Nm taxation and revenue Single $254,200 Married filing jointly or qualifying widow(er) $305,050 Married filing separately $152,525 Head of household $279,650   If you expect your AGI to be more than this amount, use Worksheet 2-6 to figure the amount to enter on line 4. Nm taxation and revenue Expected Taxes and Credits— Lines 6–13c After you have figured your expected taxable income (line 5), follow the steps next to figure your expected taxes, credits, and total tax for 2014. Nm taxation and revenue Most people will have entries for only a few of these steps. Nm taxation and revenue However, you should check every step to be sure you do not overlook anything. Nm taxation and revenue Step 1. Nm taxation and revenue   Figure your expected income tax (line 6). Nm taxation and revenue Generally, you will use the 2014 Tax Rate Schedules, later, to figure your expected income tax. Nm taxation and revenue   However, see below for situations where you must use a different method to compute your estimated tax. Nm taxation and revenue Tax on child's investment income. Nm taxation and revenue   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. Nm taxation and revenue Children under age 18 at the end of 2014. Nm taxation and revenue The following children if their earned income is not more than half their support. Nm taxation and revenue Children age 18 at the end of 2014. Nm taxation and revenue Children who are full-time students over age 18 and under age 24 at the end of 2014. Nm taxation and revenue See Publication 929, Tax Rules for Children and Dependents. Nm taxation and revenue Although the ages and dollar amounts in the publication may be different in the 2014 revision, this reference will give you basic information for figuring the tax. Nm taxation and revenue Tax on net capital gain. Nm taxation and revenue   The regular income tax rates for individuals do not apply to a net capital gain. Nm taxation and revenue Instead, your net capital gain is taxed at a lower maximum rate. Nm taxation and revenue   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. Nm taxation and revenue Tax on capital gain and qualified dividends. Nm taxation and revenue If the amount on line 1 includes a net capital gain or qualified dividends, use Worksheet 2-7 to figure your tax. Nm taxation and revenue Note. Nm taxation and revenue For 2014, your capital gains and dividends rate will depend on your income. Nm taxation and revenue Tax if excluding foreign earned income or excluding or deducting foreign housing. Nm taxation and revenue 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. Nm taxation and revenue Step 2. Nm taxation and revenue   Total your expected taxes (line 8). Nm taxation and revenue Include on line 8 the sum of the following. Nm taxation and revenue Your tax on line 6. Nm taxation and revenue Your expected alternative minimum tax (AMT) from Form 6251, or included on Form 1040A. Nm taxation and revenue Your expected additional taxes from Form 8814, Parents' Election To Report Child's Interest and Dividends, and Form 4972, Tax on Lump-Sum Distributions. Nm taxation and revenue Any recapture of education credits. Nm taxation and revenue Step 3. Nm taxation and revenue   Subtract your expected credits (line 9). Nm taxation and revenue If you are using your 2013 return as a guide and filed Form 1040, your total credits for 2013 were shown on line 54. Nm taxation and revenue If you filed Form 1040A, your total credits for 2013 were on line 34. Nm taxation and revenue   If your credits on line 9 are more than your taxes on line 8, enter “-0-” on line 10 and go to Step 4. Nm taxation and revenue Step 4. Nm taxation and revenue   Add your expected self-employment tax (line 11). Nm taxation and revenue You already should have figured your self-employment tax (see Self-employed under Expected AGI—Line 1, earlier). Nm taxation and revenue Step 5. Nm taxation and revenue   Add your expected other taxes (line 12). Nm taxation and revenue   Other taxes include the following. Nm taxation and revenue Additional tax on early distributions from: An IRA or other qualified retirement plan, A tax-sheltered annuity, or A modified endowment contract entered into after June 20, 1988. Nm taxation and revenue 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. Nm taxation and revenue Amounts written on Form 1040 on the line for “other taxes” (line 60 on the 2013 Form 1040). Nm taxation and revenue 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. Nm taxation and revenue Repayment of the first-time homebuyer credit. Nm taxation and revenue See Form 5405. Nm taxation and revenue Additional Medicare Tax. Nm taxation and revenue A 0. Nm taxation and revenue 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. Nm taxation and revenue 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. Nm taxation and revenue A self-employment loss should not be considered for purposes of this tax. Nm taxation and revenue RRTA compensation should be separately compared to the threshold. Nm taxation and revenue Your employer is responsible for withholding the 0. Nm taxation and revenue 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000 in 2014. Nm taxation and revenue You should consider this withholding, if applicable, in determining whether you need to make an estimated payment. Nm taxation and revenue For more information on Additional Medicare Tax, go to IRS. Nm taxation and revenue gov and enter “Additional Medicare Tax” in the search box. Nm taxation and revenue Net Investment Income Tax (NIIT). Nm taxation and revenue The NIIT is 3. Nm taxation and revenue 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. Nm taxation and revenue 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 For more information on Net Investment Income Tax, go to IRS. Nm taxation and revenue gov and enter “Net Investment Income Tax” in the search box. Nm taxation and revenue Step 6. Nm taxation and revenue   Subtract your refundable credit (line 13b). Nm taxation and revenue   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. Nm taxation and revenue   The result of steps 1 through 6 is your total estimated tax for 2014 (line 13c). Nm taxation and revenue Required Annual Payment— Line 14c On lines 14a through 14c, figure the total amount you must pay for 2014, through withholding and estimated tax payments, to avoid paying a penalty. Nm taxation and revenue General rule. Nm taxation and revenue   The total amount you must pay is the smaller of: 90% of your total expected tax for 2014, or 100% of the total tax shown on your 2013 return. Nm taxation and revenue Your 2013 tax return must cover all 12 months. Nm taxation and revenue Special rules. Nm taxation and revenue   There are special rules for higher income taxpayers and for farmers and fishermen. Nm taxation and revenue Higher income taxpayers. Nm taxation and revenue   If your AGI for 2013 was more than $150,000 ($75,000 if your filing status for 2014 is married filing separately), substitute 110% for 100% in (2) above. Nm taxation and revenue This rule does not apply to farmers and fishermen. Nm taxation and revenue For 2013, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. Nm taxation and revenue Example. Nm taxation and revenue   Jeremy Martin's total tax on his 2013 return was $42,581, and his expected tax for 2014 is $71,253. Nm taxation and revenue His 2013 AGI was $180,000. Nm taxation and revenue Because Jeremy had more than $150,000 of AGI in 2013, he figures his required annual payment as follows. Nm taxation and revenue He determines that 90% of his expected tax for 2014 is $64,128 (. Nm taxation and revenue 90 × $71,253). Nm taxation and revenue Next, he determines that 110% of the tax shown on his 2013 return is $46,839 (1. Nm taxation and revenue 10 x $42,581). Nm taxation and revenue Finally, he determines that his required annual payment is $46,839, the smaller of the two. Nm taxation and revenue Farmers and fishermen. Nm taxation and revenue   If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, your required annual payment is the smaller of: 662/3% (. Nm taxation and revenue 6667) of your total tax for 2014, or 100% of the total tax shown on your 2013 return. Nm taxation and revenue (Your 2013 tax return must cover all 12 months. Nm taxation and revenue )   For definitions of “gross income from farming” and “gross income from fishing,” see Farmers and Fishermen , under Special Rules discussed earlier. Nm taxation and revenue Total tax for 2013—line 14b. Nm taxation and revenue   Your 2013 total tax, if you filed Form 1040, is the amount on line 61 reduced by the following. Nm taxation and revenue Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Nm taxation and revenue The following amounts from Form 5329 included on line 58. Nm taxation and revenue Any tax on excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts. Nm taxation and revenue Any tax on excess accumulations in qualified retirement plans. Nm taxation and revenue The following write-ins on line 60. Nm taxation and revenue Excise tax on excess golden parachute payments (identified as “EPP”). Nm taxation and revenue Excise tax on insider stock compensation from an expatriated corporation (identified as “ISC”). Nm taxation and revenue Look-back interest due under section 167(g) (identified as “From Form 8866”). Nm taxation and revenue Look-back interest due under section 460(b) (identified as “From Form 8697”). Nm taxation and revenue Recapture of federal mortgage subsidy (identified as “FMSR”). Nm taxation and revenue Additional tax on advance payments of health coverage tax credit when not eligible (identified as “HCTC”). Nm taxation and revenue Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance (identified as “UT”). Nm taxation and revenue Any refundable credit amounts. Nm taxation and revenue   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits. Nm taxation and revenue   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. Nm taxation and revenue Total Estimated Tax Payments Needed—Line 16a Use lines 15 and 16a to figure the total estimated tax you may be required to pay for 2014. Nm taxation and revenue Subtract your expected withholding from your required annual payment (line 14c). Nm taxation and revenue You usually must pay this difference in four equal installments. Nm taxation and revenue See When To Pay Estimated Tax and How To Figure Each Payment . Nm taxation and revenue 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. Nm taxation and revenue Withholding—line 15. Nm taxation and revenue   Your expected withholding for 2014 (line 15) includes the income tax you expect to be withheld from all sources (wages, pensions and annuities, etc. Nm taxation and revenue ). Nm taxation and revenue It includes excess social security, and tier 1 railroad retirement tax you expect to be withheld from your wages and compensation. Nm taxation and revenue For this purpose, you will have excess social security or tier 1 railroad retirement tax withholding for 2014 only if your wages and compensation from two or more employers are more than $117,000. Nm taxation and revenue See Excess Social Security or Railroad Retirement Tax Withholding in chapter 3. Nm taxation and revenue   It also includes Additional Medicare Tax you expect to be withheld from your wages or compensation. Nm taxation and revenue Your employer is responsible for withholding the 0. Nm taxation and revenue 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. Nm taxation and revenue When To Pay Estimated Tax For estimated tax purposes, the year is divided into four payment periods. Nm taxation and revenue Each period has a specific payment due date. Nm taxation and revenue 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. Nm taxation and revenue If a payment is mailed, the date of the U. Nm taxation and revenue S. Nm taxation and revenue postmark is considered the date of payment. Nm taxation and revenue The payment periods and due dates for estimated tax payments are shown next. Nm taxation and revenue For exceptions to the dates listed, see Saturday, Sunday, holiday rule below. Nm taxation and revenue For the period: Due date: Jan. Nm taxation and revenue 11 – March 31 April 15 April 1 – May 31 June 16 June 1 – August 31 September 15 Sept. Nm taxation and revenue 1 – Dec. Nm taxation and revenue 31 January 15  next year2 1If your tax year does not begin on January 1,  see Fiscal year taxpayers . Nm taxation and revenue 2See January payment . Nm taxation and revenue Saturday, Sunday, holiday rule. Nm taxation and revenue   If the due date for an estimated tax payment falls on a Saturday, Sunday, or legal holiday, the payment will be on time if you make it on the next day that is not a Saturday, Sunday, or a holiday. Nm taxation and revenue January payment. Nm taxation and revenue   If you file your 2014 Form 1040 or Form 1040A by February 2, 2015, and pay the rest of the tax you owe, you do not need to make the payment due on January 15, 2015. Nm taxation and revenue Example. Nm taxation and revenue Janet Adams does not pay any estimated tax for 2014. Nm taxation and revenue She files her 2014 income tax return and pays the balance due shown on her return on January 26, 2015. Nm taxation and revenue Janet's estimated tax for the fourth payment period is considered to have been paid on time. Nm taxation and revenue However, she may owe a penalty for not making the first three estimated tax payments, if required. Nm taxation and revenue Any penalty for not making those payments will be figured up to January 26, 2015. Nm taxation and revenue Fiscal year taxpayers. Nm taxation and revenue   If your tax year does not start on January 1, your payment due dates are: 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. Nm taxation and revenue   You do not have to make the last payment listed above if you file your income tax return by the last day of the first month after the end of your fiscal year and pay all the tax you owe with your return. Nm taxation and revenue When To Start You do not have to make estimated tax payments until you have income on which you will owe income tax. Nm taxation and revenue 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. Nm taxation and revenue You have several options when paying estimated taxes. Nm taxation and revenue 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. Nm taxation and revenue If you choose to pay in installments, make your first payment by the due date for the first payment period. Nm taxation and revenue Make your remaining installment payments by the due dates for the later periods. Nm taxation and revenue To avoid any estimated tax penalties, all installments must be paid by their due date and for the required amount. Nm taxation and revenue No income subject to estimated tax during first period. Nm taxation and revenue   If you do not have income subject to estimated tax until a later payment period, you must make your first payment by the due date for that period. Nm taxation and revenue You can pay your entire estimated tax by the due date for that period or you can pay it in installments by the due date for that period and the due dates for the remaining periods. Nm taxation and revenue Table 2-1 shows the dates for making installment payments. Nm taxation and revenue    Table 2-1. Nm taxation and revenue 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 16     Sept. Nm taxation and revenue 15     Jan. Nm taxation and revenue 15 next year April 1–May 31 June 16 Sept. Nm taxation and revenue 15     Jan. Nm taxation and revenue 15 next year June 1–Aug. Nm taxation and revenue 31 Sept. Nm taxation and revenue 15 Jan. Nm taxation and revenue 15 next year After Aug. Nm taxation and revenue 31 Jan. Nm taxation and revenue 15 next year (None) *See January payment and Saturday, Sunday, holiday rule . Nm taxation and revenue How much to pay to avoid penalty. Nm taxation and revenue   To determine how much you should pay by each payment due date, see How To Figure Each Payment , later. Nm taxation and revenue Farmers and Fishermen If at least two-thirds of your gross income for 2013 or 2014 is from farming or fishing, you have only one payment due date for your 2014 estimated tax, January 15, 2015. Nm taxation and revenue The due dates for the first three payment periods, discussed under When To Pay Estimated Tax , earlier, do not apply to you. Nm taxation and revenue If you file your 2014 Form 1040 by March 2, 2015, and pay all the tax you owe at that time, you do not need to make an estimated tax payment. Nm taxation and revenue Fiscal year farmers and fishermen. Nm taxation and revenue   If you are a farmer or fisherman, but your tax year does not start on January 1, you can either: 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. Nm taxation and revenue How To Figure Each Payment After you have figured your total estimated tax, figure how much you must pay by the due date of each payment period. Nm taxation and revenue You should pay enough by each due date to avoid a penalty for that period. Nm taxation and revenue 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. Nm taxation and revenue The penalty is discussed in chapter 4. Nm taxation and revenue Regular Installment Method If your first estimated tax payment is due April 15, 2014, you can figure your required payment for each period by dividing your annual estimated tax due (line 16a of the 2014 Estimated Tax Worksheet (Worksheet 2-1)) by 4. Nm taxation and revenue Enter this amount on line 17. Nm taxation and revenue However, use this method only if your income is basically the same throughout the year. Nm taxation and revenue Change in estimated tax. Nm taxation and revenue   After you make an estimated tax payment, changes in your income, adjustments, deductions, credits, or exemptions may make it necessary for you to refigure your estimated tax. Nm taxation and revenue Pay the unpaid balance of your amended estimated tax by the next payment due date after the change or in installments by that date and the due dates for the remaining payment periods. Nm taxation and revenue If you do not receive your income evenly throughout the year, your required estimated tax payments may not be the same for each period. Nm taxation and revenue See Annualized Income Installment Method . Nm taxation and revenue Amended estimated tax. Nm taxation and revenue If you refigure your estimated tax during the year, or if your first estimated tax payment is due after April 15, 2014, figure your required payment for each remaining payment period using Worksheet 2-14. Nm taxation and revenue Example. Nm taxation and revenue Early in 2014, Mira Roberts figures that her estimated tax due is $1,800. Nm taxation and revenue She makes estimated tax payments on April 15 and June 16 of $450 each ($1,800 ÷ 4). Nm taxation and revenue On July 10, she sells investment property at a gain. Nm taxation and revenue Her refigured estimated tax is $4,100. Nm taxation and revenue Her required estimated tax payment for the third payment period is $2,175, as shown in her filled-in Worksheet 2-14. Nm taxation and revenue If Mira's estimated tax does not change again, her required estimated tax payment for the fourth payment period will be $1,025. Nm taxation and revenue Worksheet 2-14. Nm taxation and revenue Amended Estimated Tax Worksheet—Illustrated               1. Nm taxation and revenue Amended total estimated tax due 1. Nm taxation and revenue $4,100 2. Nm taxation and revenue Multiply line 1 by:           50% (. Nm taxation and revenue 50) if next payment is due June 16, 2014           75% (. Nm taxation and revenue 75) if next payment is due September 15,  2014           100% (1. Nm taxation and revenue 00) if next payment is due January 15,  2015 2. Nm taxation and revenue 3,075     3. Nm taxation and revenue Estimated tax payments for all previous periods 3. Nm taxation and revenue 900     4. Nm taxation and revenue 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. Nm taxation and revenue $2,175       Note. Nm taxation and revenue If the payment on line 4 is due January 15, 2015, stop here. Nm taxation and revenue Otherwise, go to line 5. Nm taxation and revenue         5. Nm taxation and revenue Add lines 3 and 4 5. Nm taxation and revenue 3,075 6. Nm taxation and revenue Subtract line 5 from line 1 and enter the result (but not less than zero) 6. Nm taxation and revenue 1,025 7. Nm taxation and revenue Each following required payment: If the payment on line 4 is due June 16, 2014, enter one-half of the amount on line 6 here and on the payment vouchers for your payments due September 15, 2014, and January 15, 2015. Nm taxation and revenue If the amount on line 4 is due September 15, 2014, enter the amount from line 6 here and on the payment voucher for your payment due January 15, 2015 7. Nm taxation and revenue $1,025 Worksheet 2-14. Nm taxation and revenue Amended Estimated Tax Worksheet—Blank               1. Nm taxation and revenue Amended total estimated tax due 1. Nm taxation and revenue   2. Nm taxation and revenue Multiply line 1 by:           50% (. Nm taxation and revenue 50) if next payment is due June 16, 2014           75% (. Nm taxation and revenue 75) if next payment is due September 15,  2014           100% (1. Nm taxation and revenue 00) if next payment is due January 15,  2015 2. Nm taxation and revenue       3. Nm taxation and revenue Estimated tax payments for all previous periods 3. Nm taxation and revenue       4. Nm taxation and revenue 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. Nm taxation and revenue         Note. Nm taxation and revenue If the payment on line 4 is due January 15, 2015, stop here. Nm taxation and revenue Otherwise, go to line 5. Nm taxation and revenue         5. Nm taxation and revenue Add lines 3 and 4 5. Nm taxation and revenue   6. Nm taxation and revenue Subtract line 5 from line 1 and enter the result (but not less than zero) 6. Nm taxation and revenue   7. Nm taxation and revenue Each following required payment: If the payment on line 4 is due June 16, 2014, enter one-half of the amount on line 6 here and on the payment vouchers for your payments due September 15, 2014, and January 15, 2015. Nm taxation and revenue If the amount on line 4 is due September 15, 2014, enter the amount from line 6 here and on the payment voucher for your payment due January 15, 2015 7. Nm taxation and revenue   Underpayment penalty. Nm taxation and revenue   The penalty is figured separately for each payment period. Nm taxation and revenue If you figure your payments using the regular installment method and later refigure your payments because of an increase in income, you may be charged a penalty for underpayment of estimated tax for the period(s) before you changed your payments. Nm taxation and revenue To see how you may be able to avoid or reduce this penalty, see Annualized Income Installment Method (Schedule AI) in chapter 4. Nm taxation and revenue 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. Nm taxation and revenue 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. Nm taxation and revenue To see whether you can pay less for any period, complete the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9). Nm taxation and revenue You first must complete the 2014 Estimated Tax Worksheet (Worksheet 2-1) through line 16b. Nm taxation and revenue Use the result you figure on line 32 of Worksheet 2-9 to make your estimated tax payments and complete your payment vouchers. Nm taxation and revenue Note. Nm taxation and revenue If you use the annualized income installment method to figure your estimated tax payments, you must file Form 2210 with your 2014 tax return. Nm taxation and revenue See Annualized Income Installment Method (Schedule AI) in chapter 4 for more information. Nm taxation and revenue Instructions for the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9) Use Worksheet 2-9 to help you follow these instructions. Nm taxation and revenue 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. Nm taxation and revenue The top of the worksheet shows the dates for each payment period. Nm taxation and revenue The periods build; that is, each period includes all previous periods. Nm taxation and revenue After the end of each payment period, complete the corresponding worksheet column to figure the payment due for that period. Nm taxation and revenue Line 1. Nm taxation and revenue   Enter your AGI for the period. Nm taxation and revenue 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. Nm taxation and revenue See Expected AGI—Line 1 , earlier. Nm taxation and revenue Self-employment income. Nm taxation and revenue   If you had self-employment income, first complete Section B of this worksheet. Nm taxation and revenue Use the amounts on line 43 when figuring your expected AGI to enter in each column of Section A, line 1. Nm taxation and revenue Line 4. Nm taxation and revenue   Be sure to consider all deduction limits figured on Schedule A (Form 1040), such as reducing your medical expenses by 10% (7. Nm taxation and revenue 5% if either you or your spouse was born before January 2, 1950) or reducing certain miscellaneous deductions by 2% of your AGI. Nm taxation and revenue Figure your deduction limits using your expected AGI in the corresponding column of line 1 (2014 Annualized Estimated Tax Worksheet (Worksheet 2-9)). Nm taxation and revenue Line 6. Nm taxation and revenue   Multiply line 4 by line 5 and enter the result on line 6 unless line 3 is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately. Nm taxation and revenue In that case, use Worksheet 2-10 to figure the amount to enter on line 6. Nm taxation and revenue Complete Worksheet 2–10 for each period, as necessary. Nm taxation and revenue Line 7. Nm taxation and revenue   If you will not itemize your deductions, use Worksheet 2-4 to figure your standard deduction. Nm taxation and revenue Line 10. Nm taxation and revenue   Multiply $3,950 by your total expected exemptions and enter the result on line 10 unless line 3 is more than $305,050 if married filing jointly or qualifying widow(er), $279,650 if head of household, $254,200 if single, or $152,525 if married filing separately. Nm taxation and revenue   In that case, use Worksheet 2-11 to figure the amount to enter on line 10. Nm taxation and revenue Line 12. Nm taxation and revenue   Generally, you will use the Tax Rate Schedules to figure the tax on your annualized income. Nm taxation and revenue However, see below for situations where you must use a different method to compute your estimated tax. Nm taxation and revenue Tax on child's investment income. Nm taxation and revenue   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. Nm taxation and revenue Children under age 18 at the end of 2014. Nm taxation and revenue The following children if their earned income is not more than half their support. Nm taxation and revenue Children age 18 at the end of 2014. Nm taxation and revenue Children who are full-time students over age 18 and under age 24 at the end of 2014. Nm taxation and revenue See Publication 929. Nm taxation and revenue Tax on net capital gain. Nm taxation and revenue   The regular income tax rates for individuals do not apply to a net capital gain. Nm taxation and revenue Instead, your net capital gain is taxed at a lower maximum rate. Nm taxation and revenue   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. Nm taxation and revenue Tax on qualified dividends and capital gains. Nm taxation and revenue   For 2014, your capital gain and dividends rate will depend on your income. Nm taxation and revenue Tax on capital gain or qualified dividends. Nm taxation and revenue 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. Nm taxation and revenue Tax if excluding foreign earned income or excluding or deducting foreign housing. Nm taxation and revenue 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. Nm taxation and revenue Line 13. Nm taxation and revenue   If you file Form 1040, add the tax from Forms 8814, 4972, and 6251 for the period. Nm taxation and revenue If you file Form 1040A, add the amount from the Alternative Minimum Tax Worksheet found in the instructions. Nm taxation and revenue Also include any recapture of an education credit for each period. Nm taxation and revenue 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 2013 return. Nm taxation and revenue   Use the 2013 forms or worksheets to see if you will owe any of the taxes discussed above. Nm taxation and revenue Figure the tax based on your income and deductions during the period shown in the column headings. Nm taxation and revenue Multiply this amount by the annualization amounts shown for each column on line 2 of the 2014 Annualized Estimated Tax Worksheet (Worksheet 2-9). Nm taxation and revenue Enter the result on line 13 of this worksheet. Nm taxation and revenue Line 15. Nm taxation and revenue   Include all the nonrefundable credits you expect to claim because of events that will occur during the period. Nm taxation and revenue Note. Nm taxation and revenue When figuring your credits for each period, annualize any item of income or deduction to figure each credit. Nm taxation and revenue 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. Nm taxation and revenue Line 18. Nm taxation and revenue   Add your expected other taxes. Nm taxation and revenue   Other taxes include the following. Nm taxation and revenue Additional tax on early distributions from: An IRA or other qualified retirement plan, A tax-sheltered annuity, or A modified endowment contract entered into after June 20, 1988. Nm taxation and revenue 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. Nm taxation and revenue Amounts on Form 1040 written on the line for “other taxes” (line 60 on the 2013 Form 1040). Nm taxation and revenue 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. Nm taxation and revenue Repayment of the first-time homebuyer credit if the home will cease to be your main home in 2014. Nm taxation and revenue See Form 5405 for exceptions. Nm taxation and revenue Additional Medicare Tax. Nm taxation and revenue A 0. Nm taxation and revenue 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. Nm taxation and revenue 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. Nm taxation and revenue A self-employment loss should not be considered for purposes of this tax. Nm taxation and revenue RRTA compensation should be separately compared to the threshold. Nm taxation and revenue Your employer is responsible for withholding the 0. Nm taxation and revenue 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays you in excess of $200,000 in 2014. Nm taxation and revenue You should consider this withholding, if applicable, in determining whether you need to make an estimated payment. Nm taxation and revenue For more information on Additional Medicare Tax, go to IRS. Nm taxation and revenue gov and enter “Additional Medicare Tax” in the search box. Nm taxation and revenue Net Investment Income Tax (NIIT). Nm taxation and revenue The NIIT is 3. Nm taxation and revenue 8% of the lesser of your net investment income or the excess of your modified adjusted gross income over a specified threshold amount. Nm taxation and revenue 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 For more information on Net Investment Income Tax, go to IRS. Nm taxation and revenue gov and enter “Net Investment Income Tax” in the search box. Nm taxation and revenue Line 20. Nm taxation and revenue   Include all the refundable credits (other than withholding credits) you can claim because of events that occurred during the period. Nm taxation and revenue Note. Nm taxation and revenue When figuring your refundable credits for each period, annualize any item of income or deduction used to figure each credit. Nm taxation and revenue Line 29. Nm taxation and revenue   If line 28 is smaller than line 25 and you are not certain of the estimate of your 2014 tax, you can avoid a penalty by entering the amount from line 25 on line 29. Nm taxation and revenue Line 31. Nm taxation and revenue   For each period, include estimated tax payments made and any excess social security and railroad retirement tax. Nm taxation and revenue   Also include estimated federal income tax withholding. Nm taxation and revenue One-fourth of your estimated withholding is considered withheld on the due date of each payment period. Nm taxation and revenue To figure the amount to include on line 31 for each period, multiply your total expected withholding for 2014 by: 25% (. Nm taxation and revenue 25) for the first period, 50% (. Nm taxation and revenue 50) for the second period, 75% (. Nm taxation and revenue 75) for the third period, and 100% (1. Nm taxation and revenue 00) for the fourth period. Nm taxation and revenue   However, you may choose to include your withholding according to the actual dates on which the amounts will be withheld. Nm taxation and revenue For each period, include withholding made from the beginning of the period up to and including the payment due date. Nm taxation and revenue You can make this choice separately for the taxes withheld from your wages and all other withholding. Nm taxation and revenue For an explanation of what to include in withholding, see Total Estimated Tax Payments Needed—Line 16a , earlier. Nm taxation and revenue Nonresident aliens. Nm taxation and revenue   If you will file Form 1040NR and you do not receive wages as an employee subject to U. Nm taxation and revenue S. Nm taxation and revenue income tax withholding, the instructions for the worksheet are modified as follows. Nm taxation and revenue Skip column (a). Nm taxation and revenue On line 1, enter your income for the period that is effectively connected with a U. Nm taxation and revenue S. Nm taxation and revenue trade or business. Nm taxation and revenue 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. Nm taxation and revenue S. Nm taxation and revenue trade or business by the following. Nm taxation and revenue 72% for column (b). Nm taxation and revenue 45% for column (c). Nm taxation and revenue 30% for column (d). Nm taxation and revenue However, if you can use a treaty rate lower than 30%, use the percentages determined by multiplying your treaty rate by 2. Nm taxation and revenue 4, 1. Nm taxation and revenue 5, and 1, respectively. Nm taxation and revenue On line 26, enter one-half of the amount from line 16c of the Form 1040-ES (NR) 2014 Estimated Tax Worksheet in column (b), and one-fourth in columns (c) and (d) of Worksheet 2-9. Nm taxation and revenue On lines 24 and 27, skip column (b). Nm taxation and revenue 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). Nm taxation and revenue See Publication 519 for more information. Nm taxation and revenue Estimated Tax Payments Not Required You do not have to pay estimated tax if your withholding in each payment period is at least as much as: One-fourth of your required annual payment, or Your required annualized income installment for that period. Nm taxation and revenue 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. Nm taxation and revenue How To Pay Estimated Tax There are several ways to pay estimated tax. Nm taxation and revenue Credit an overpayment on your 2013 return to your 2014 estimated tax. Nm taxation and revenue Pay by direct transfer from your bank account, or pay by credit or debit card using a pay-by-phone system or the Internet. Nm taxation and revenue Send in your payment (check or money order) with a payment voucher from Form 1040-ES. Nm taxation and revenue Credit an Overpayment If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2013, you can apply part or all of it to your estimated tax for 2014. Nm taxation and revenue On Form 1040, or Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. Nm taxation and revenue Take the amount you have credited into account when figuring your estimated tax payments. Nm taxation and revenue If you timely file your 2013 return, treat the credit as a payment made on April 15, 2014. Nm taxation and revenue If you are a beneficiary of an estate or trust, and the trustee elects to credit 2014 trust payments of estimated tax to you, you can treat the amount credited as paid by you on January 15, 2015. Nm taxation and revenue 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. Nm taxation and revenue You also cannot use that overpayment in any other way. Nm taxation and revenue Example. Nm taxation and revenue When Kathleen finished filling out her 2013 tax return, she saw that she had overpaid her taxes by $750. Nm taxation and revenue Kathleen knew she would owe additional tax in 2014. Nm taxation and revenue She credited $600 of the overpayment to her 2014 estimated tax and had the remaining $150 refunded to her. Nm taxation and revenue In September, she amended her 2013 return by filing Form 1040X, Amended U. Nm taxation and revenue S. Nm taxation and revenue Individual Income Tax Return. Nm taxation and revenue It turned out that she owed $250 more in tax than she had thought. Nm taxation and revenue This reduced her 2013 overpayment from $750 to $500. Nm taxation and revenue Because the $750 had already been applied to her 2014 estimated tax or refunded to her, the IRS billed her for the additional $250 she owed, plus penalties and interest. Nm taxation and revenue Kathleen could not use any of the $600 she had credited to her 2014 estimated tax to pay this bill. Nm taxation and revenue Pay Online Paying online is convenient and secure and helps make sure we get your payments on time. Nm taxation and revenue You can make your estimated tax payments online when you e-file or at any time during the year. Nm taxation and revenue You can pay using either of the following electronic payment methods. Nm taxation and revenue Direct transfer from your bank account. Nm taxation and revenue Credit or debit card. Nm taxation and revenue To pay your taxes online or for more information, go to www. Nm taxation and revenue irs. Nm taxation and revenue gov/e-pay. Nm taxation and revenue Pay by Phone Paying by phone is another safe and secure method of paying electronically. Nm taxation and revenue Use one of the following methods. Nm taxation and revenue Direct transfer from your bank account. Nm taxation and revenue Credit or debit card. Nm taxation and revenue 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. Nm taxation and revenue To pay using a credit or debit card, you can call one of the following service providers. Nm taxation and revenue There is a convenience fee charged by these providers that varies by provider, card type, and payment amount. Nm taxation and revenue WorldPay 1-888-9-PAY-TAXTM (1-888-972-9829) www. Nm taxation and revenue payUSAtax. Nm taxation and revenue com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) www. Nm taxation and revenue officialpayments. Nm taxation and revenue com Link2GOV Corporation 1-888-PAY-1040TM (1-888-729-1040) www. Nm taxation and revenue PAY1040. Nm taxation and revenue com For the latest details on how to pay by phone, go to www. Nm taxation and revenue irs. Nm taxation and revenue gov/e-pay. Nm taxation and revenue Pay by Check or Money Order Using the Estimated Tax Payment Voucher Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. Nm taxation and revenue 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. Nm taxation and revenue Do not use the address shown in the Form 1040 or Form 1040A instructions. Nm taxation and revenue If you did not pay estimated tax last year, get a copy of Form 1040-ES from the IRS (see chapter 5). Nm taxation and revenue Follow the instructions to make sure you use the vouchers correctly. Nm taxation and revenue Joint estimated tax payments. Nm taxation and revenue    If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return. Nm taxation and revenue Change of address. Nm taxation and revenue    You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Nm taxation and revenue Complete Form 8822, Change of Address, and mail it to the address shown in the instructions for that form. Nm taxation and revenue Worksheets for Chapter 2 Use the following worksheets and tables to figure your correct estimated tax. Nm taxation and revenue IF you need. Nm taxation and revenue . Nm taxation and revenue . Nm taxation and revenue THEN use. Nm taxation and revenue . Nm taxation and revenue . Nm taxation and revenue 2014 Tax Rate Schedules   the 2014 Estimated Tax Worksheet Worksheet 2-1 to estimate your taxable social security and railroad retirement benefits—line 1 of ES Worksheet (or Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-2 to estimate your self-employment (SE) tax and your deduction for SE tax—lines 1 and 11 of ES Worksheet (lines 1 and 17 of Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-3 to estimate your standard deduction—line 2 of ES Worksheet (line 7 of Annualized ES Worksheet (Worksheet 2-9)) Worksheet 2-4 to reduce your itemized deductions because your estimated AGI is more than $152,525—line 2 of ES Worksheet Worksheet 2-5 to reduce your exemption amount because your estimated AGI is more than $152,525—line 4 of ES Worksheet Worksheet 2-6 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 2-7 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 2555-EZ—line 6 of ES Worksheet Worksheet 2-8 the 2014 Annualized Estimated Tax Worksheet (Annualized ES Worksheet) Worksheet 2-9 to reduce your itemized deductions because your estimated annualized AGI is more than $152,525—line 6 of Annualized ES Worksheet Worksheet 2-10 to reduce your exemption amount because your estimated annualized AGI is more than $152,525—line 10 of Annualized ES Worksheet Worksheet 2-11 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 2-12 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 2555-EZ—line 12 of Annualized ES Worksheet Worksheet 2-13 to refigure (amend) your estimated tax during the year Worksheet 2-14 2014 Tax Rate Schedules Do not use these Tax Rate Schedules to figure your 2013 taxes. Nm taxation and revenue Use them only to figure your 2014 estimated taxes. Nm taxation and revenue Schedule X—Use if your 2014 filing status is  Single Schedule Z—Use if your 2014 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 $9,075     10. Nm taxation and revenue 0%   $0 $0 $12,950     10. Nm taxation and revenue 0%   $0 9,075 36,900 $907. Nm taxation and revenue 50 + 15. Nm taxation and revenue 0%   9,075 12,950 49,400 $1,295. Nm taxation and revenue 00 + 15. Nm taxation and revenue 0%   12,950 36,900 89,350 5,081. Nm taxation and revenue 25 + 25. Nm taxation and revenue 0%   36,900 49,400 127,550 6,762. Nm taxation and revenue 50 + 25. Nm taxation and revenue 0%   49,400 89,350 186,350 18,193. Nm taxation and revenue 75 + 28. Nm taxation and revenue 0%   89,350 127,550 206,600 26,300. Nm taxation and revenue 00 + 28. Nm taxation and revenue 0%   127,550 186,350 405,100 45,353. Nm taxation and revenue 75 + 33. Nm taxation and revenue 0%   186,350 206,600 405,100 48,434. Nm taxation and revenue 00 + 33. Nm taxation and revenue 0%   206,600 405,100 406,750 117,541. Nm taxation and revenue 25 + 35. Nm taxation and revenue 0%   405,100 405,100 432,200 113,939. Nm taxation and revenue 00 + 35. Nm taxation and revenue 0%   405,100 406,750 - - - - - - 118,118. Nm taxation and revenue 75 + 39. Nm taxation and revenue 6%   406,750 432,200 - - - - - - 123,424. Nm taxation and revenue 00 + 39. Nm taxation and revenue 6%   432,200 Schedule Y-1—Use if your 2014 filing status is Married filing jointly or Qualifying widow(er) Schedule Y-2—Use if your 2014 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 $18,150     10. Nm taxation and revenue 0%   $0 $0 $9,075     10. Nm taxation and revenue 0%   $0 18,150 73,800 $1,815. Nm taxation and revenue 00 + 15. Nm taxation and revenue 0%   18,150 9,075 36,900 $907. Nm taxation and revenue 50 + 15. Nm taxation and revenue 0%   9,075 73,800 148,850 10,162. Nm taxation and revenue 50 + 25. Nm taxation and revenue 0%   73,800 36,900 74,425 5,081. Nm taxation and revenue 25 + 25. Nm taxation and revenue 0%   36,900 148,850 226,850 28,925. Nm taxation and revenue 00 + 28. Nm taxation and revenue 0%   148,850 74,425 113,425 14,462. Nm taxation and revenue 50 + 28. Nm taxation and revenue 0%   74,425 226,850 405,100 50,765. Nm taxation and revenue 00 + 33. Nm taxation and revenue 0%   226,850 113,425 202,550 25,382. Nm taxation and revenue 50 + 33. Nm taxation and revenue 0%   113,425 405,100 457,600 109,587. Nm taxation and revenue 50 + 35. Nm taxation and revenue 0%   405,100 202,550 228,800 54,793. Nm taxation and revenue 75 + 35. Nm taxation and revenue 0%   202,550 457,600 - - - - - - 127,962. Nm taxation and revenue 50 + 39. Nm taxation and revenue 6%   457,600 228,800 - - - - - - 63,981. Nm taxation and revenue 25 + 39. Nm taxation and revenue 6%   228,800                             Worksheet 2-1. Nm taxation and revenue 2014 Estimated Tax Worksheet When this worksheet refers you to instructions, you can find those instructions in the Instructions for 2014 Form 1040-ES. Nm taxation and revenue 1 Adjusted gross income you expect in 2014 (see instructions) 1     2 If you plan to itemize deductions, enter the estimated total of your itemized deductions. Nm taxation and revenue  Caution: If line 1 is over $152,525, your deduction may be reduced. Nm taxation and revenue See Worksheet 2-5. Nm taxation and revenue If you do not plan to itemize deductions, enter your standard deduction. Nm taxation and revenue 2     3 Subtract line 2 from line 1 3     4 Exemptions. Nm taxation and revenue Multiply $3,950 by the number of personal exemptions. Nm taxation and revenue  Caution: If line 1 is over $152,525, the amount of your personal exemptions may be limited. Nm taxation and revenue See Worksheet 2-6. Nm taxation and revenue 4     5 Subtract line 4 from line 3 5     6 Tax. Nm taxation and revenue Figure your tax on the amount on line 5 by using the 2014 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 2-7 and 2-8 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. Nm taxation and revenue Add to this amount any other taxes you expect to include in the total on Form 1040, line 44 8     9 Credits (see instructions). Nm taxation and revenue Do not include any income tax withholding on this line 9     10 Subtract line 9 from line 8. Nm taxation and revenue If zero or less, enter -0- 10     11 Self-employment 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, and refundable American opportunity credit 13b     c Total 2014 estimated tax. Nm taxation and revenue Subtract line 13b from line 13a. Nm taxation and revenue If zero or less, enter -0- ▶ 13c     14a Multiply line 13c by 90% (662/3% 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. Nm taxation and revenue 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. Nm taxation and revenue To avoid a penalty, make sure your estimate on line 13c is as accurate as possible. Nm taxation and revenue Even if you pay the required annual payment, you may still owe tax when you file your return. Nm taxation and revenue If you prefer, you can pay the amount shown on line 13c. Nm taxation and revenue                         15 Income tax withheld and estimated to be withheld during 2014 (including income tax withholding on pensions, annuities, certain deferred income, etc. Nm taxation and revenue ) 15     16a Subtract line 15 from line 14c 16a             Is the result zero or less? □ Yes. Nm taxation and revenue Stop here. Nm taxation and revenue You are not required to make estimated tax payments. Nm taxation and revenue  □ No. Nm taxation and revenue Go to line 16b. Nm taxation and revenue             b Subtract line 15 from line 13c 16b             Is the result less than $1,000? □ Yes. Nm taxation and revenue Stop here. Nm taxation and revenue You are not required to make estimated tax payments. Nm taxation and revenue  □ No. Nm taxation and revenue Go to line 17 to figure your required payment. Nm taxation and revenue                         17 If the first payment you are required to make is due April 15, 2014, enter ¼ of line 16a (minus any 2013 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     Worksheet 2-2. Nm taxation and revenue 2014 Estimated Tax Worksheet—Line 1 Estimated Taxable Social Security and Railroad Retirement Benefits Note. Nm taxation and revenue If you are using this worksheet to estimate your taxable social security or railroad retirement benefits for Worksheet 2-9, 2014 Annualized Estimated Tax Worksheet, multiply the expected amount of benefits for each period by the annualization amount shown on Worksheet 2-9, line 2, for the same period before entering it on line 1 below. Nm taxation and revenue     1. Nm taxation and revenue Enter your expected social security and railroad retirement benefits 1. Nm taxation and revenue   2. Nm taxation and revenue Enter one-half of line 1 2. Nm taxation and revenue   3. Nm taxation and revenue Enter your expected total income. Nm taxation and revenue Do not include any social security and railroad retirement benefits, nontaxable interest income, nontaxable IRA distributions, or nontaxable pension distributions 3. Nm taxation and revenue   4. Nm taxation and revenue Enter your expected nontaxable interest income 4. Nm taxation and revenue   5. Nm taxation and revenue Enter (as a positive amount) the total of any expected exclusions or deductions for: U. Nm taxation and revenue S. Nm taxation and revenue savings bond interest used for higher education expenses (Form 8815) Employer-provided adoption benefits (Form 8839) Foreign earned income or housing (Form 2555 or 2555-EZ) Income by bona fide residents of American Samoa (Form 4563) or Puerto Rico 5. Nm taxation and revenue   6. Nm taxation and revenue Add lines 2, 3, 4, and 5 6. Nm taxation and revenue   7. Nm taxation and revenue Enter your expected adjustments to income. Nm taxation and revenue Do not include any student loan interest deduction 7. Nm taxation and revenue   8. Nm taxation and revenue Subtract line 7 from line 6. Nm taxation and revenue If zero or less, stop here. Nm taxation and revenue  Note. Nm taxation and revenue Do not include any social security or railroad retirement benefits in the amount on line 1 of your 2014 Estimated Tax Worksheet (Worksheet 2-1) (or Annualized Estimated Tax Worksheet (Worksheet 2-9)) 8. Nm taxation and revenue   9. Nm taxation and revenue 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. Nm taxation and revenue   10. Nm taxation and revenue Subtract line 9 from line 8. Nm taxation and revenue If zero or less, stop here. Nm taxation and revenue  Note. Nm taxation and revenue Do not include any social security or railroad retirement benefits in the amount on line 1 of your Worksheet 2-1 (or Annualized Estimated Tax Worksheet (Worksheet 2-9)) 10. Nm taxation and revenue   11. Nm taxation and revenue 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. Nm taxation and revenue   12. Nm taxation and revenue Subtract line 11 from line 10. Nm taxation and revenue If zero or less, enter -0- 12. Nm taxation and revenue   13. Nm taxation and revenue Enter the smaller of line 10 or line 11 13. Nm taxation and revenue   14. Nm taxation and revenue Enter one-half of line 13 14. Nm taxation and revenue   15