Fluent Essays

I have attached all instructions Form 709 Department of the Treasury Internal Revenue Service United States Gift (and Generation-Skipping Transfer) Tax Return ▶ Information about Form 709 and its separate instructions is at www.irs.gov/form709. (For gifts made during calendar year 2014) ▶ See instructions. OMB No. 1545-0020 2014 P a rt 1 — G e n e ra l I n fo rm a ti o n 1 Donor’s first name and middle initial 2 Donor’s last name 3 Donor’s social security number 4 Address (number, street, and apartment number) 5 Legal residence (domicile) 6 City or town, state or province, country, and ZIP or foreign postal code 7 Citizenship (see instructions) 8 If the donor died during the year, check here ▶ and enter date of death , . Yes No 9 If you extended the time to file this Form 709, check here ▶ 10 Enter the total number of donees listed on Schedule A. Count each person only once ▶ 11 a Have you (the donor) previously filed a Form 709 (or 709-A) for any other year? If No, skip line 11b . . . . . . . b Has your address changed since you last filed Form 709 (or 709-A)? . . . . . . . . . . . . . . . . 12 Gifts by husband or wife to third parties. Do you consent to have the gifts (including generation-skipping transfers) made by you and by your spouse to third parties during the calendar year considered as made one-half by each of you? (see instructions.) (If the answer is “Yes,” the following information must be furnished and your spouse must sign the consent shown below. If the answer is “No,” skip lines 13–18.) . . . . . . . . . . . . . . . . . . . . 13 Name of consenting spouse 14 SSN 15 Were you married to one another during the entire calendar year? (see instructions) . . . . . . . . . . . . 16 If 15 is “No,” check whether married divorced or widowed/deceased, and give date (see instructions) ▶ 17 Will a gift tax return for this year be filed by your spouse? (If “Yes,” mail both returns in the same envelope.) . . . . . 18 Consent of Spouse. I consent to have the gifts (and generation-skipping transfers) made by me and by my spouse to third parties during the calendar year considered as made one-half by each of us. We are both aware of the joint and several liability for tax created by the execution of this consent. Consenting spouse’s signature ▶ Date ▶ 19 Have you applied a DSUE amount received from a predeceased spouse to a gift or gifts reported on this or a previous Form 709? If “Yes,” complete Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . . P a rt 2 — T a x C o m p u ta ti o n 1 Enter the amount from Schedule A, Part 4, line 11 . . . . . . . . . . . . . . . 1 2 Enter the amount from Schedule B, line 3 . . . . . . . . . . . . . . . . . 2 3 Total taxable gifts. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . 3 4 Tax computed on amount on line 3 (see Table for Computing Gift Tax in instructions) . . . . 4 5 Tax computed on amount on line 2 (see Table for Computing Gift Tax in instructions) . . . . 5 6 Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . 6 7 Applicable credit amount. If donor has DSUE amount from predeceased spouse(s), enter amount from Schedule C, line 4; otherwise, see instructions . . . . . . . . . . . . . . 7 8 Enter the applicable credit against tax allowable for all prior periods (from Sch. B, line 1, col. C) . 8 9 Balance. Subtract line 8 from line 7. Do not enter less than zero . . . . . . . . . . . 9 10 Enter 20\% (.20) of the amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977 (see instructions) . . . . . . . . . . . . . . 10 11 Balance. Subtract line 10 from line 9. Do not enter less than zero . . . . . . . . . . 11 12 Applicable credit. Enter the smaller of line 6 or line 11 . . . . . . . . . . . . . . 12 13 Credit for foreign gift taxes (see instructions) . . . . . . . . . . . . . . . . 13 14 Total credits. Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . 14 15 Balance. Subtract line 14 from line 6. Do not enter less than zero . . . . . . . . . . 15 16 Generation-skipping transfer taxes (from Schedule D, Part 3, col. H, Total) . . . . . . . . 16 17 Total tax. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . 17 18 Gift and generation-skipping transfer taxes prepaid with extension of time to file . . . . . . 18 19 If line 18 is less than line 17, enter balance due (see instructions) . . . . . . . . . . 19 20 If line 18 is greater than line 17, enter amount to be refunded . . . . . . . . . . . 20 A tt a c h c h e c k o r m o n e y o rd e r h e re . Sign Here Under penalties of perjury, I declare that I have examined this return, including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than donor) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see instructions)? Yes No ▲ Signature of donor Date Paid Preparer Use Only Print/Type preparer’s name Preparer’s signature Date Check if self-employed PTIN Firm’s name ▶ Firm’s address ▶ Firms EIN ▶ Phone no. For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see the instructions for this form. Cat. No. 16783M Form 709 (2014) Form 709 (2014) Page 2 SCHEDULE A Computation of Taxable Gifts (Including transfers in trust) (see instructions) A Does the value of any item listed on Schedule A reflect any valuation discount? If “Yes,” attach explanation . . . . . . Yes No B ◀ Check here if you elect under section 529(c)(2)(B) to treat any transfers made this year to a qualified tuition program as made ratably over a 5-year period beginning this year. See instructions. Attach explanation. Part 1—Gifts Subject Only to Gift Tax. Gifts less political organization, medical, and educational exclusions. (see instructions) A Item number B • Donee’s name and address • Relationship to donor (if any) • Description of gift • If the gift was of securities, give CUSIP no. • If closely held entity, give EIN C D Donor’s adjusted basis of gift E Date of gift F Value at date of gift G For split gifts, enter 1/2 of column F H Net transfer (subtract col. G from col. F) Gifts made by spouse —complete only if you are splitting gifts with your spouse and he/she also made gifts. Total of Part 1. Add amounts from Part 1, column H . . . . . . . . . . . . . . . . . . . . . . ▶ Part 2—Direct Skips. Gifts that are direct skips and are subject to both gift tax and generation-skipping transfer tax. You must list the gifts in chronological order. A Item number B • Donee’s name and address • Relationship to donor (if any) • Description of gift • If the gift was of securities, give CUSIP no. • If closely held entity, give EIN C 2632(b) election out D Donor’s adjusted basis of gift E Date of gift F Value at date of gift G For split gifts, enter 1/2 of column F H Net transfer (subtract col. G from col. F) Gifts made by spouse —complete only if you are splitting gifts with your spouse and he/she also made gifts. Total of Part 2. Add amounts from Part 2, column H . . . . . . . . . . . . . . . . . . . . . . ▶ Part 3—Indirect Skips. Gifts to trusts that are currently subject to gift tax and may later be subject to generation-skipping transfer tax. You must list these gifts in chronological order. A Item number B • Donee’s name and address • Relationship to donor (if any) • Description of gift • If the gift was of securities, give CUSIP no. • If closely held entity, give EIN C 2632(c) election D Donor’s adjusted basis of gift E Date of gift F Value at date of gift G For split gifts, enter 1/2 of column F H Net transfer (subtract col. G from col. F) Gifts made by spouse —complete only if you are splitting gifts with your spouse and he/she also made gifts. Total of Part 3. Add amounts from Part 3, column H . . . . . . . . . . . . . . . . . . . . . . ▶ (If more space is needed, attach additional statements.) Form 709 (2014) Form 709 (2014) Page 3 Part 4—Taxable Gift Reconciliation 1 Total value of gifts of donor. Add totals from column H of Parts 1, 2, and 3 . . . . . . . . . . 1 2 Total annual exclusions for gifts listed on line 1 (see instructions) . . . . . . . . . . . . . 2 3 Total included amount of gifts. Subtract line 2 from line 1 . . . . . . . . . . . . . . . 3 Deductions (see instructions) 4 Gifts of interests to spouse for which a marital deduction will be claimed, based on item numbers of Schedule A . . 4 5 Exclusions attributable to gifts on line 4 . . . . . . . . . . . . 5 6 Marital deduction. Subtract line 5 from line 4 . . . . . . . . . . . 6 7 Charitable deduction, based on item nos. less exclusions . 7 8 Total deductions. Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . 8 9 Subtract line 8 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . 9 10 Generation-skipping transfer taxes payable with this Form 709 (from Schedule D, Part 3, col. H, Total) . . 10 11 Taxable gifts. Add lines 9 and 10. Enter here and on page 1, Part 2—Tax Computation, line 1 . . . . 11 Terminable Interest (QTIP) Marital Deduction. (see instructions for Schedule A, Part 4, line 4) If a trust (or other property) meets the requirements of qualified terminable interest property under section 2523(f), and: a. The trust (or other property) is listed on Schedule A, and b. The value of the trust (or other property) is entered in whole or in part as a deduction on Schedule A, Part 4, line 4, then the donor shall be deemed to have made an election to have such trust (or other property) treated as qualified terminable interest property under section 2523(f). If less than the entire value of the trust (or other property) that the donor has included in Parts 1 and 3 of Schedule A is entered as a deduction on line 4, the donor shall be considered to have made an election only as to a fraction of the trust (or other property). The numerator of this fraction is equal to the amount of the trust (or other property) deducted on Schedule A, Part 4, line 6. The denominator is equal to the total value of the trust (or other property) listed in Parts 1 and 3 of Schedule A. If you make the QTIP election, the terminable interest property involved will be included in your spouse’s gross estate upon his or her death (section 2044). See instructions for line 4 of Schedule A. If your spouse disposes (by gift or otherwise) of all or part of the qualifying life income interest, he or she will be considered to have made a transfer of the entire property that is subject to the gift tax. See Transfer of Certain Life Estates Received From Spouse in the instructions. 12 Election Out of QTIP Treatment of Annuities ◀ Check here if you elect under section 2523(f)(6) not to treat as qualified terminable interest property any joint and survivor annuities that are reported on Schedule A and would otherwise be treated as qualified terminable interest property under section 2523(f). See instructions. Enter the item numbers from Schedule A for the annuities for which you are making this election ▶ SCHEDULE B Gifts From Prior Periods If you answered “Yes,” on line 11a of page 1, Part 1, see the instructions for completing Schedule B. If you answered “No,” skip to the Tax Computation on page 1 (or Schedules C or D, if applicable). Complete Schedule A before beginning Schedule B. See instructions for recalculation of the column C amounts. Attach calculations. A Calendar year or calendar quarter (see instructions) B Internal Revenue office where prior return was filed C Amount of applicable credit (unified credit) against gift tax for periods after December 31, 1976 D Amount of specific exemption for prior periods ending before January 1, 1977 E Amount of taxable gifts 1 Totals for prior periods . . . . . . . . . . . . 1 2 Amount, if any, by which total specific exemption, line 1, column D is more than $30,000 . . . . . . 2 3 Total amount of taxable gifts for prior periods. Add amount on line 1, column E and amount, if any, on line 2. Enter here and on page 1, Part 2—Tax Computation, line 2 . . . . . . . . . . . . . . . 3 (If more space is needed, attach additional statements.) Form 709 (2014) Form 709 (2014) Page 4 SCHEDULE C Deceased Spousal Unused Exclusion (DSUE) Amount Provide the following information to determine the DSUE amount and applicable credit received from prior spouses. Complete Schedule A before beginning Schedule C. A Name of Deceased Spouse (dates of death after December 31, 2010 only) B Date of Death C Portability Election Made? Yes No D If “Yes,” DSUE Amount Received from Spouse E DSUE Amount Applied by Donor to Lifetime Gifts (list current and prior gifts) F Date of Gift(s) (enter as mm/dd/yy for Part 1 and as yyyy for Part 2) Part 1—DSUE RECEIVED FROM LAST DECEASED SPOUSE Part 2—DSUE RECEIVED FROM PREDECEASED SPOUSE(S) TOTAL (for all DSUE amounts applied from column E for Part 1 and Part 2) 1 Donor’s basic exclusion amount (see instructions) . . . . . . . . . . . . . . . . . 1 2 Total from column E, Parts 1 and 2 . . . . . . . . . . . . . . . . . . . . . . 2 3 Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Applicable credit on amount in line 3 (See Table for Computing Gift Tax in the instructions). Enter here and on line 7, Part 2—Tax Computation . . . . . . . . . . . . . . . . . . . . . 4 SCHEDULE D Computation of Generation-Skipping Transfer Tax Note. Inter vivos direct skips that are completely excluded by the GST exemption must still be fully reported (including value and exemptions claimed) on Schedule D. Part 1—Generation-Skipping Transfers A Item No. (from Schedule A, Part 2, col. A) B Value (from Schedule A, Part 2, col. H) C Nontaxable Portion of Transfer D Net Transfer (subtract col. C from col. B) Gifts made by spouse (for gift splitting only) (If more space is needed, attach additional statements.) Form 709 (2014) Form 709 (2014) Page 5 Part 2—GST Exemption Reconciliation (Section 2631) and Section 2652(a)(3) Election Check here ▶ if you are making a section 2652(a)(3) (special QTIP) election (see instructions) Enter the item numbers from Schedule A of the gifts for which you are making this election ▶ 1 Maximum allowable exemption (see instructions) . . . . . . . . . . . . . . . . . . . 1 2 Total exemption used for periods before filing this return . . . . . . . . . . . . . . . . . 2 3 Exemption available for this return. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . 3 4 Exemption claimed on this return from Part 3, column C total, below . . . . . . . . . . . . . . 4 5 Automatic allocation of exemption to transfers reported on Schedule A, Part 3. To opt out of the automatic allocation rules, you must attach an “Election Out” statement. (see instructions) . . . . . . . . . . 5 6 Exemption allocated to transfers not shown on line 4 or 5, above. You must attach a “Notice of Allocation.” (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Add lines 4, 5, and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Exemption available for future transfers. Subtract line 7 from line 3 . . . . . . . . . . . . . . 8 Part 3—Tax Computation A Item No. (from Schedule D, Part 1) B Net Transfer (from Schedule D, Part 1, col. D) C GST Exemption Allocated D Divide col. C by col. B E Inclusion Ratio (Subtract col. D from 1.000) F Maximum Estate Tax Rate G Applicable Rate (multiply col. E by col. F) H Generation-Skipping Transfer Tax (multiply col. B by col. G) Gifts made by spouse (for gift splitting only) Total exemption claimed. Enter here and on Part 2, line 4, above. May not exceed Part 2, line 3, above . . . . . . . Total generation-skipping transfer tax. Enter here; on page 3, Schedule A, Part 4, line 10; and on page 1, Part 2—Tax Computation, line 16 . . . . . . . . . . . . . . (If more space is needed, attach additional statements.) Form 709 (2014) Version A, Cycle 4 INTERNAL USE ONLY DRAFT AS OF October 20, 2014 2014 Form 709 SE:W:CAR:MP United States Gift (and Generation-Skipping Transfer) Tax Return Form  709 Department of the Treasury Internal Revenue Service United States Gift (and Generation-Skipping Transfer) Tax Return  ▶ Information about Form 709 and its separate instructions is at www.irs.gov/form709. (For gifts made during calendar year 2014) ▶ See instructions.  OMB No. 1545-0020 O M B Number 1545-0020. For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see the instructions for this form. 2014          2014. Catalog Number 16783M. Part 1—General Information 8 . Yes No 9 10 11 a Have you (the donor) previously filed a Form 709 (or 709-A) for any other year? If No, skip line 11b           b Has your address changed since you last filed Form 709 (or 709-A)?           12  Gifts by husband or wife to third parties. Do you consent to have the gifts (including generation-skipping transfers) made by you and by your spouse to third parties during the calendar year considered as made one-half by each of you? (see  instructions.) (If the answer is “Yes,” the following information must be furnished and your spouse must sign the consent  shown below. If the answer is “No,” skip lines 13–18.)           13 14 15 Were you married to one another during the entire calendar year? (see instructions)           16 If 15 is “No,” check whether 17 Will a gift tax return for this year be filed by your spouse? (If “Yes,” mail both returns in the same envelope.)           18 Consent of Spouse. I consent to have the gifts (and generation-skipping transfers) made by me and by my spouse to third parties during the calendar year considered as made one-half by each of us. We are both aware of the joint and several liability for tax created by the execution of this consent.  Consent of Spouse. I consent to have the gifts (and generation-skipping transfers) made by me and by my spouse to third parties during the calendar year considered as made one-half by each of us. We are both aware of the joint and several liability for tax created by the execution of this consent. Consenting spouse’s signature  ▶ Date ▶ 19 Have you applied a DSUE amount received from a predeceased spouse to a gift or gifts reported on this or a previous Form 709? If “Yes,” complete Schedule C           Part 2—Tax Computation 1 Enter the amount from Schedule A, Part 4, line 11           1 2 Enter the amount from Schedule B, line 3           2 3 Total taxable gifts. Add lines 1 and 2           3 4 Tax computed on amount on line 3 (see Table for Computing Gift Tax in instructions)           4 5 Tax computed on amount on line 2 (see Table for Computing Gift Tax in instructions)           5 6 Balance. Subtract line 5 from line 4           6 7 Applicable credit amount. If donor has DSUE amount from predeceased spouse(s), enter amount from Schedule C, line 4; otherwise, see instructions           7 8 Enter the applicable credit against tax allowable for all prior periods (from Sch. B, line 1, col. C)           8 9 Balance. Subtract line 8 from line 7. Do not enter less than zero           9 10 Enter 20\% (.20) of the amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977 (see instructions)           10 11 Balance. Subtract line 10 from line 9. Do not enter less than zero           11 12 Applicable credit. Enter the smaller of line 6 or line 11           12 13 Credit for foreign gift taxes (see instructions)           13 14 Total credits. Add lines 12 and 13           14 15 Balance. Subtract line 14 from line 6. Do not enter less than zero           15 16 Generation-skipping transfer taxes (from Schedule D, Part 3, col. H, Total)           16 17 Total tax. Add lines 15 and 16           17 18 Gift and generation-skipping transfer taxes prepaid with extension of time to file           18 19 If line 18 is less than line 17, enter balance due (see instructions)           19 20 If line 18 is greater than line 17, enter amount to be refunded           20 Attach check or money order here. Sign Here Under penalties of perjury, I declare that I have examined this return, including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than donor) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see instructions)? ▲ Signature of donor Date Paid Preparer Use Only Preparer’s signature Date Check if self-employed For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see the instructions for this form. Cat. No. 16783M Form 709 (2014)  Form 709 (2014) Page 2  SCHEDULE A Computation of Taxable Gifts (Including transfers in trust) (see instructions)  A Does the value of any item listed on Schedule A reflect any valuation discount? If “Yes,” attach explanation           B ◀  Check here if you elect under section 529(c)(2)(B) to treat any transfers made this year to a qualified tuition program as made ratably over a 5-year period beginning this year. See instructions. Attach explanation.  Part 1—Gifts Subject Only to Gift Tax. Gifts less political organization, medical, and educational exclusions. (see instructions)  A  Item number  B • Donee’s name and address  • Relationship to donor (if any)  • Description of gift  • If the gift was of securities, give CUSIP no.  • If closely held entity, give EIN  C D Donor’s adjusted basis of gift  E Date of gift  F Value at date of gift  G For split  gifts, enter 1/2 of column F  H Net transfer (subtract  col. G from col. F)  Gifts made by spouse —complete only if you are splitting gifts with your spouse and he/she also made gifts.             A. Item number. B. Donee’s name and address. Relationship to donor (if any). Description of gift. If the gift was of securities, give C U S I P number. If closely held entity, give E I N. C. D. Donors adjusted basis of gift. E. Date of gift. F. Value at date of gift. G. For split gifts, enter one half of column F. H. Net transfer (subtract column G from column F). Total of Part 1. Add amounts from Part 1, column H           ▶ Part 2—Direct Skips. Gifts that are direct skips and are subject to both gift tax and generation-skipping transfer tax. You must list the gifts in chronological order.  A  Item number  B • Donee’s name and address  • Relationship to donor (if any)  • Description of gift  • If the gift was of securities, give CUSIP no.  • If closely held entity, give EIN  C 2632(b)  election out  D Donor’s adjusted basis of gift  E Date of gift  F  Value at   date of gift  G For split  gifts, enter 1/2 of column F  H Net transfer (subtract  col. G from col. F)  Gifts made by spouse —complete only if you are splitting gifts with your spouse and he/she also made gifts.                A. Item number. B. Donee’s name and address. Relationship to donor (if any). Description of gift. If the gift was of securities, give C U S I P number. If closely held entity, give E I N. C. 2632(b) election out. D. Donors adjusted basis of gift. E. Date of gift. F. Value at date of gift. G. For split gifts, enter one half of column F. H. Net transfer (subtract column G from column F). Total of Part 2. Add amounts from Part 2, column H          ▶ Part 3—Indirect Skips. Gifts to trusts that are currently subject to gift tax and may later be subject to generation-skipping transfer tax. You must list these gifts in chronological order.  A  Item number  B • Donee’s name and address  • Relationship to donor (if any)  • Description of gift  • If the gift was of securities, give CUSIP no.  • If closely held entity, give EIN  C 2632(c)  election  D Donor’s adjusted basis of gift  E Date of gift  F  Value at   date of gift  G For split  gifts, enter 1/2 of column F  H Net transfer (subtract  col. G from col. F)  Gifts made by spouse —complete only if you are splitting gifts with your spouse and he/she also made gifts.                A. Item number. B. Donee’s name and address. Relationship to donor (if any). Description of gift. If the gift was of securities, give C U S I P number. If closely held entity, give E I N. C. 2632(c) election. D. Donors adjusted basis of gift. E. Date of gift. F. Value at date of gift. G. For split gifts, enter one half of column F. H. Net transfer (subtract column G from column F). Total of Part 3. Add amounts from Part 3, column H           ▶ (If more space is needed, attach additional statements.) Form 709 (2014)  Form 709 (2014) Page 3  Part 4—Taxable Gift Reconciliation 1 Total value of gifts of donor. Add totals from column H of Parts 1, 2, and 3           1 2 Total annual exclusions for gifts listed on line 1 (see instructions)           2 3 Total included amount of gifts. Subtract line 2 from line 1           3 Deductions (see instructions)  4 Gifts of interests to spouse for which a marital deduction will be claimed, based of Schedule A           4 5 Exclusions attributable to gifts on line 4           5 6 Marital deduction. Subtract line 5 from line 4           6 7 less exclusions           7 8 Total deductions. Add lines 6 and 7           8 9 Subtract line 8 from line 3           9 10 Generation-skipping transfer taxes payable with this Form 709 (from Schedule D, Part 3, col. H, Total)           10 11 Taxable gifts. Add lines 9 and 10. Enter here and on page 1, Part 2—Tax Computation, line 1           11 Terminable Interest (QTIP) Marital Deduction. (see instructions for Schedule A, Part 4, line 4)  If a trust (or other property) meets the requirements of qualified terminable interest property under section 2523(f), and: a. The trust (or other property) is listed on Schedule A, and  b. The value of the trust (or other … Userid: CPM Schema: instrx Leadpct: 100\% Pt. size: 10 Draft Ok to Print AH XSL/XML Fileid: … ms/F1040ES/2021/A/XML/Cycle02/source (Init. & Date) _______ Page 1 of 6 10:20 - 2-Feb-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. 2021 Form 1040-ES Estimated Tax for Individuals Department of the Treasury Internal Revenue Service Purpose of This Package Use Form 1040-ES to figure and pay your estimated tax for 2021. Estimated tax is the method used to pay tax on income that isn’t subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.). In addition, if you don’t elect voluntary withholding, you should make estimated tax payments on other taxable income, such as unemployment compensation and the taxable part of your social security benefits. Change of address. If your address has changed, file Form 8822, to update your record. Future developments. For the latest information about developments related to Form 1040-ES and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form1040ES. Who Must Make Estimated Tax Payments The estimated tax rules apply to: • U.S. citizens and resident aliens; • Residents of Puerto Rico, the U.S. Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa; and • Nonresident aliens (use Form 1040-ES (NR)). If you filed a Schedule H or Schedule SE with your Form 1040 or 1040-SR for 2020, and deferred some of the household employment and/or self-employment tax payments you owe for 2020, dont use Form 1040-ES to make this payment. Instead, see the instructions for Schedule 3 (Form 1040), line 12e, for more information on repaying these deferrals. General Rule In most cases, you must pay estimated tax for 2021 if both of the following apply. 1. You expect to owe at least $1,000 in tax for 2021, after subtracting your withholding and refundable credits. 2. You expect your withholding and refundable credits to be less than the smaller of: a. 90\% of the tax to be shown on your 2021 tax return, or b. 100\% of the tax shown on your 2020 tax return. Your 2020 tax return must cover all 12 months. Note. These percentages may be different if you are a farmer, fisherman, or higher income taxpayer. See Special Rules, later. Exception. You don’t have to pay estimated tax for 2021 if you were a U.S. citizen or resident alien for all of 2020 and you had no tax liability for the full 12-month 2020 tax CAUTION ! year. You had no tax liability for 2020 if your total tax was zero or you didn’t have to file an income tax return. Special Rules There are special rules for farmers, fishermen, certain household employers, and certain higher income taxpayers. Farmers and fishermen. If at least two-thirds of your gross income for 2020 or 2021 is from farming or fishing, substitute 662/3\% for 90\% in (2a) under General Rule. Household employers. When estimating the tax on your 2021 tax return, include your household employment taxes if either of the following applies. • You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income. • You would be required to make estimated tax payments to avoid a penalty even if you didn’t include household employment taxes when figuring your estimated tax. Higher income taxpayers. If your adjusted gross income (AGI) for 2020 was more than $150,000 ($75,000 if your filing status for 2021 is married filing separately), substitute 110\% for 100\% in (2b) under General Rule, earlier. This rule doesn’t apply to farmers or fishermen. Increase Your Withholding If you also receive salaries and wages, you may be able to avoid having to make estimated tax payments on your other income by asking your employer to take more tax out of your earnings. To do this, file a new Form W-4, Employees Withholding Certificate, with your employer. Generally, if you receive a pension or annuity you can use Form W-4P, Withholding Certificate for Pension or Annuity Payments, to start or change your withholding from these payments. You also can choose to have federal income tax withheld from certain government payments. For details, see Form W-4V, Voluntary Withholding Request. You can use the Tax Withholding Estimator at IRS.gov/W4App to determine whether you need to have your withholding increased or decreased. Additional Information You May Need You can find most of the information you will need in Pub. 505, Tax Withholding and Estimated Tax, and in the instructions for the 2020 Form 1040 and 1040-SR. For details on how to get forms and publications, see the 2020 Instructions for Form 1040 and 1040-SR. Whats New In figuring your 2021 estimated tax, be sure to consider the following. TIP Feb 02, 2021 Cat. No. 11340T https://www.irs.gov/uac/Form-1040-ES,-Estimated-Tax-for-Individuals-1 https://www.irs.gov/W4APP Page 2 of 6 Fileid: … ms/F1040ES/2021/A/XML/Cycle02/source 10:20 - 2-Feb-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Tuition and fees deduction eliminated. The deduction for tuition and fees is not available in 2021; instead, the income limitation on the lifetime learning credit has been increased. Standard deduction amount increased. For 2021, the standard deduction amount has been increased for all filers. If you dont itemize your deductions, you can take the 2021 standard deduction listed in the following chart for your filing status. IF your 2021 filing status is... THEN your standard deduction is... Married filing jointly or Qualifying widow(er) $25,100 Head of household $18,800 Single or Married filing separately $12,550 However, if you can be claimed as a dependent on another persons 2021 return, your standard deduction is the greater of: • $1,100, or • Your earned income plus $350 (up to the standard deduction amount). Your standard deduction is increased by the following amount if, at the end of 2021, you are: • An unmarried individual (single or head of household) and are: 65 or older or blind . . . . . . . . . . . . . . . . . . . . . . . . $1,700 65 or older and blind . . . . . . . . . . . . . . . . . . . . . . . $3,400 • A married individual (filing jointly or separately) or a qualifying widow(er) and are: 65 or older or blind . . . . . . . . . . . . . . . . . . . . . . . . $1,350 65 or older and blind . . . . . . . . . . . . . . . . . . . . . . . $2,700 Both spouses 65 or older . . . . . . . . . . . . . . . . . . . . $2,700* Both spouses 65 or older and blind . . . . . . . . . . . . . . $5,400* *Only if married filing jointly. If married filing separately, these amounts do not apply. Your standard deduction is zero if (a) your spouse itemizes on a separate return, or (b) you were a dual-status alien and you do not elect to be taxed as a resident alien for 2021. Social security tax. For 2021, the maximum amount of earned income (wages and net earnings from self-employment) subject to the social security tax is $142,800. Adoption credit or exclusion. For 2021, the maximum adoption credit or exclusion for employer-provided adoption benefits has increased to $14,440. In order to claim either the credit or exclusion, your modified adjusted gross income must be less than $256,660. CAUTION ! Reminders Individual taxpayer identification number (ITIN) re- newal. If you were assigned an ITIN before January 1, 2013, or if you have an ITIN that you haven’t included on a tax return in the last 3 consecutive years, you may need to renew it. For more information, see the Instructions for Form W-7. Advance payments of the premium tax credit. If you buy health care insurance through the Health Insurance Marketplace, you may be eligible for advance payments of the premium tax credit to help pay for your insurance coverage. Receiving too little or too much in advance will affect your refund or balance due. Promptly report changes in your income or family size to your Marketplace. See Form 8962 and its Instructions for more information. Access your online account (Individual taxpayers only) Go to IRS.gov/Account to securely access information about your federal tax account. • View the amount you owe, pay online, or set up an online payment agreement. • Access your tax records online. • Review the past 5 years of your payment history. • Go to IRS.gov/SecureAccess to review the required identity authentication process. How To Figure Your Estimated Tax You will need: • The 2021 Estimated Tax Worksheet, • The Instructions for the 2021 Estimated Tax Worksheet, • The 2021 Tax Rate Schedules, and • Your 2020 tax return and instructions to use as a guide to figuring your income, deductions, and credits (but be sure to consider the items listed under Whats New, earlier). Matching estimated tax payments to income. If you receive your income unevenly throughout the year (for example, because you operate your business on a seasonal basis or you have a large capital gain late in the year), you may be able to lower or eliminate the amount of your required estimated tax payment for one or more periods by using the annualized income installment method. See chapter 2 of Pub. 505 for details. Changing your estimated tax. To amend or correct your estimated tax, see How To Amend Estimated Tax Payments, later. You can’t make joint estimated tax payments if you or your spouse is a nonresident alien, you are separated under a decree of divorce or separate maintenance, or you and your spouse have different tax years. Additionally, individuals who are in registered domestic partnerships, civil unions, or other similar formal relationships that aren’t marriages under state law cannot make joint estimated tax payments. These individuals can take credit only for the estimated tax payments that they made. CAUTION ! -2- Form 1040-ES (2021) https://www.irs.gov/Account https://www.irs.gov/SecureAccess Page 3 of 6 Fileid: … ms/F1040ES/2021/A/XML/Cycle02/source 10:20 - 2-Feb-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Payment Due Dates You can pay all of your estimated tax by April 15, 2021, or in four equal amounts by the dates shown below. 1st payment . . . . . . . . . . . . . . . . . April 15, 2021 2nd payment . . . . . . . . . . . . . . . . June 15, 2021 3rd payment . . . . . . . . . . . . . . . . . Sept. 15, 2021 4th payment . . . . . . . . . . . . . . . . . Jan. 18, 2022* * You don’t have to make the payment due January 18, 2022, if you file your 2021 tax return by January 31, 2022, and pay the entire balance due with your return. If you mail your payment and it is postmarked by the due date, the date of the U.S. postmark is considered the date of payment. If your payments are late or you didn’t pay enough, you may be charged a penalty for underpaying your tax. See When a Penalty Is Applied, later. You can make more than four estimated tax payments. To do so, make a copy of one of your unused estimated tax payment vouchers, fill it in, and mail it with your payment. If you make more than four payments, to avoid a penalty, make sure the total of the amounts you pay during a payment period is at least as much as the amount required to be paid by the due date for that period. For other payment methods, see How To Pay Estimated Tax, later. No income subject to estimated tax during first pay- ment period. If, after March 31, 2021, you have a large change in income, deductions, additional taxes, or credits that requires you to start making estimated tax payments, you should figure the amount of your estimated tax payments by using the annualized income installment method, explained in chapter 2 of Pub. 505. If you use the annualized income installment method, file Form 2210, including Schedule AI, with your 2021 tax return even if no penalty is owed. Farmers and fishermen. If at least two-thirds of your gross income for 2020 or 2021 is from farming or fishing, you can do one of the following. • Pay all of your estimated tax by January 18, 2022. • File your 2021 Form 1040 or 1040-SR by March 1, 2022, and pay the total tax due. In this case, 2021 estimated tax payments aren’t required to avoid a penalty. Fiscal year taxpayers. You are on a fiscal year if your 12-month tax period ends on any day except December 31. Due dates for fiscal year taxpayers are the 15th day of the 4th, 6th, and 9th months of your current fiscal year and the 1st month of the following fiscal year. If any payment date falls on a Saturday, Sunday, or legal holiday, use the next business day. See Pub. 509, Tax Calendars, for a list of all legal holidays. Name Change If you changed your name because of marriage, divorce, etc., and you made estimated tax payments using your former name, attach a statement to the front of your 2021 paper tax return. On the statement, show all of the estimated tax payments you (and your spouse, if filing TIP jointly) made for 2021 and the name(s) and SSN(s) under which you made the payments. Be sure to report the change to your local Social Security Administration office before filing your 2021 tax return. This prevents delays in processing your return and issuing refunds. It also safeguards your future social security benefits. For more details, call the Social Security Administration at 800-772-1213 (TTY/TDD 800-325-0778). How To Amend Estimated Tax Payments To change or amend your estimated tax payments, refigure your total estimated tax payments due (see the 2021 Estimated Tax Worksheet). Then, to figure the payment due for each remaining payment period, see Amended estimated tax in chapter 2 of Pub. 505. If an estimated tax payment for a previous period is less than one-fourth of your amended estimated tax, you may owe a penalty when you file your return. When a Penalty Is Applied In some cases, you may owe a penalty when you file your return. The penalty is imposed on each underpayment for the number of days it remains unpaid. A penalty may be applied if you didn’t pay enough estimated tax for the year or you didn’t make the payments on time or in the required amount. A penalty may apply even if you have an overpayment on your tax return. The penalty may be waived under certain conditions. See the Instructions for Form 2210 for details. How To Pay Estimated Tax Pay Online IRS offers an electronic payment option that is right for you. Paying online is convenient and secure and helps make sure we get your payments on time. To pay your taxes online or for more information, go to IRS.gov/ Payments. You can pay using any of the following methods. • IRS Direct Pay. For online transfers directly from your checking or savings account at no cost to you, go to IRS.gov/Payments. • Pay by Card. To pay by debit or credit card, go to IRS.gov/Payments. A convenience fee is charged by these service providers. • Electronic Fund Withdrawal (EFW) is an integrated e-file/e-pay option offered when filing your federal taxes electronically using tax preparation software, through a tax professional, or the IRS at IRS.gov/Payments. • Online Payment Agreement. If you can’t pay in full by the due date of your tax return, you can apply for an online monthly installment agreement at IRS.gov/Payments. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved. A user fee is charged. • IRS2Go is the mobile application of the IRS; you can access Direct Pay or Pay By Card by downloading the application. Form 1040-ES (2021) -3- https://www.irs.gov/payments https://www.irs.gov/payments https://www.irs.gov/payments https://www.irs.gov/payments https://www.irs.gov/payments https://www.irs.gov/payments Page 4 of 6 Fileid: … ms/F1040ES/2021/A/XML/Cycle02/source 10:20 - 2-Feb-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Pay by Phone Paying by phone is another safe and secure method of paying electronically. Use one of the following methods: (1) call one of the debit or credit card service providers or (2) the Electronic Federal Tax Payment System (EFTPS). Debit or credit card. Call one of our service providers. Each charges a fee that varies by provider, card type, and payment amount. Official Payments 1-888-UPAY-TAXTM (1-888-872-9829) www.officialpayments.com Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) www.PAY1040.com WorldPay US, Inc. 1-844-729-8298 (1-844-PAY-TAX-8TM) www.payUSAtax.com EFTPS. To use EFTPS, you must be enrolled either online or have an enrollment form mailed to you. To make a payment using EFTPS, call 1-800-555-4477 (English) or 1-800-244-4829 (Español). People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-733-4829. For more information about EFTPS, go to IRS.gov/Payments or www.EFTPS.gov. Mobile Device To pay through your mobile device, download the IRS2Go app. Pay by Cash Cash is an in-person payment option for individuals provided through retail partners with a maximum of $1,000 per day per transaction. To make a cash payment, you must first be registered online at www.officialpayments.com/fed, our official payment provider. Pay by Check or Money Order Using the Estimated Tax Payment Voucher Before submitting a payment through the mail using the estimated tax payment voucher, please consider alternative methods. One of our safe, quick, and easy electronic payment options might be right for you. If you choose to mail in your payment, there is a separate estimated tax payment voucher for each due date. The due date is shown in the upper right corner. Complete and send in the voucher only if you are making a payment by check or money order. If you and your spouse plan to file separate returns, file separate vouchers instead of a joint voucher. To complete the voucher, do the following. • Print or type your name, address, and SSN in the space provided on the estimated tax payment voucher. If you have an IRS Individual Taxpayer Identification Number (ITIN), enter it wherever your SSN is requested. If filing a joint voucher, also enter your spouses name and SSN. List the names and SSNs in the same order on the joint voucher as you will list them on your joint return. • Enter in the box provided on the estimated tax payment voucher only the amount you are sending in by check or money order. When making payments of estimated tax, be sure to take into account any 2020 overpayment that you choose to credit against your 2021 tax, but don’t include the overpayment amount in this box. • Make your check or money order payable to “United States Treasury.” Don’t send cash. To help process your payment accurately, enter the amount on the right side of the check like this: $ XXX.XX. Don’t use dashes or lines (for example, don’t enter “$ XXX—” or “$ XXX xx/100”). • Enter “2021 Form 1040-ES” and your SSN on your check or money order. If you are filing a joint estimated tax payment voucher, enter the SSN that you will show first on your joint return. • Enclose, but don’t staple or attach, your payment with the estimated tax payment voucher. Notice to taxpayers presenting checks. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution. No checks of $100 million or more accepted. The IRS can’t accept a single check (including a cashier’s check) for amounts of $100,000,000 ($100 million) or more. If you are sending $100 million or more by check, you will need to spread the payment over 2 or more checks with each check made out for an amount less than $100 million. This limit doesn’t apply to other methods of payment (such as electronic payments). Please consider a method of payment other than check if the amount of the payment is over $100 million. -4- Form 1040-ES (2021) https://www.officialpayments.com https://www.pay1040.com https://www.payusatax.com https://www.irs.gov/payments https://www.eftps.gov https://www.officialpayments.com/fed Page 5 of 6 Fileid: … ms/F1040ES/2021/A/XML/Cycle02/source 10:20 - 2-Feb-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Where To File Your Estimated Tax Payment Voucher if Paying by Check or Money Order Mail your estimated tax payment voucher and check or money order to the address shown below for the place where you live. Do not mail your tax return to this address or send an estimated tax payment without a payment voucher. Also, do not mail your estimated tax payments to the address shown in the Form 1040 and 1040-SR instructions. If you need more payment vouchers, you can make a copy of one of your unused vouchers. A foreign country, American Samoa, or Puerto Rico (or are excluding income under Internal Revenue Code 933), or use an APO or FPO address, or file Form 2555 or 4563, or are a dual-status alien or nonpermanent resident of Guam or the U.S. Virgin Islands Internal Revenue Service P.O. Box 1303 Charlotte, NC 28201-1303 Caution: For proper delivery of your estimated tax payment to a P.O. box, you must include the box number in the address. Also, note that only the U.S. Postal Service can deliver to P.O. boxes. Therefore, you cannot use a private delivery service to make estimated tax payments required to be sent to a P.O. box. Guam: Bona fide residents* Department of Revenue and Taxation Government of Guam P.O. Box 23607 GMF, GU 96921 IF you live in . . . THEN send it to “Internal Revenue Service” at . . . U.S. Virgin Islands: Bona fide residents* Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Thomas, VI 00802 Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas Internal Revenue Service P.O. Box 1300 Charlotte, NC 28201-1300 Arkansas, Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey, New York, Oklahoma, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin Internal Revenue Service P.O. Box 931100 Louisville, KY 40293-1100 Alaska, Arizona, California, Colorado, Hawaii, Idaho, Kansas, Michigan, Montana, Nebraska, Nevada, New Mexico, Ohio, Oregon, North Dakota, South Dakota, Utah, Washington, Wyoming Internal Revenue Service P.O. Box 802502 Cincinnati, OH 45280-2502 *Bona fide residents must prepare separate vouchers for estimated income tax and self-employment tax payments. Send the income tax vouchers to the address for bona fide residents and the self-employment tax vouchers to the address for non-bona fide residents. Instructions for the 2021 Estimated Tax Worksheet Line 1. Adjusted gross income. When figuring the adjusted gross income you expect in 2021, be sure to consider the items listed under What’s New, earlier. For more details on figuring your AGI, see Expected AGI—Line 1 in chapter 2 of Pub. 505. If you are self-employed, be sure to take into account the deduction for self-employment tax. Use the 2021 Self-Employment Tax and Deduction Worksheet for Lines 1 and 9 of the Estimated Tax Worksheet to figure the amount to subtract when figuring your expected AGI. This worksheet also will give you the amount to enter on line 9 of your estimated tax worksheet. Line 7. Credits. See the 2020 Form 1040 or 1040-SR, line 19 and Schedule 3 (Form 1040), lines 1 through 6, and the related instructions for the types of credits allowed. Line 9. Self-employment tax. If you and your spouse make joint estimated tax payments and both of you have self-employment income, figure the self-employment tax for each of you separately. Enter the total on line 9. When estimating your 2021 net earnings from self-employment, be sure to use only 92.35\% (0.9235) of your total net profit from self-employment. Line 10. Other taxes. Use the instructions for the 2020 Form 1040 and 1040-SR to determine if you expect to owe, for 2021, any of the taxes that would have been entered on your 2020 Schedule 2 (Form 1040), line 6, 7a, 7b, and 8 (including, if applicable, Additional Medicare Tax and/or Net Investment Income Tax). On line 10, enter the total of those taxes, subject to the following two exceptions. Exception 1. Include household employment taxes from Schedule 2 (Form 1040), line 7a, on this line only 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 (to avoid a penalty) even if you didn’t include household employment taxes when figuring your estimated tax. If you meet either of the above, include the total of your household employment taxes on line 10. Exception 2. Of the amounts for other taxes that may be entered on Schedule 2 (Form 1040), line 8, don’t include on line 10: recapture of a federal mortgage subsidy, uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, excise tax Form 1040-ES (2021) -5- Page 6 of 6 Fileid: … ms/F1040ES/2021/A/XML/Cycle02/source 10:20 - 2-Feb-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. on excess golden parachute payments, look-back interest due under section 167(g) or 460(b), or excise tax on insider stock compensation from an expatriated corporation. These taxes aren’t required to be paid until the due date of your income tax return (not including extensions). Additional Medicare Tax. For information about the Additional Medicare Tax, see the Instructions for Form 8959. Net Investment Income Tax (NIIT). For information about the Net Investment Income Tax, see the Instructions for Form 8960. Repayment of first-time homebuyer credit. You must repay the first-time homebuyer credit if you bought the home in 2008. For details about repaying the first-time homebuyer credit, see the Instructions for Form 5405. Line 12b. Prior years tax. Enter the 2020 tax you figure according to the instructions in Figuring your 2020 tax unless you meet one of the following exceptions. • If the AGI shown on your 2020 return is more than $150,000 ($75,000 if married filing separately for 2021), enter 110\% of your 2020 tax as figured next. Note. This doesn’t apply to farmers or fishermen. • If you will file a joint return for 2021 but you didn’t file a joint return for 2020, add the tax shown on your 2020 return to the tax shown on your spouses 2020 return and enter the total on line 12b. • If you filed a joint return for 2020 but you will not file a joint return for 2021, first figure the tax both you and your spouse would have paid had you filed separate returns for 2020 using the same filing status as for 2021. Then multiply the tax on the joint return by a fraction the numerator being the tax you would have paid had you filed a separate return over the total tax you and your spouse would have paid had you filed separate returns. Enter this amount on line 12b. • If you didn’t file a return for 2020 or your 2020 tax year was less than 12 full months, don’t complete line 12b. Instead, enter the amount from line 12a on line 12c. Figuring your 2020 tax. Use the following instructions to figure your 2020 tax. The tax shown on your 2020 Form 1040 or 1040-SR is the amount on Form 1040 or 1040-SR, line 24 reduced by: 1. Unreported social security and Medicare tax or RRTA tax from Schedule 2 (Form 1040), line 5; 2. Any tax included on Schedule 2 (Form 1040), line 6, on excess contributions to an IRA, Archer MSA, Coverdell education savings account, health savings account, ABLE account, or on excess accumulations in qualified retirement plans; 3. Amounts on Schedule 2 (Form 1040), line 8, as listed under Exception 2, earlier; and 4. Any refundable credit amounts on Form 1040 or 1040-SR, lines 27, 28, 29, or 30, and Schedule 3 (Form 1040), lines 8, 11, 12b, and 12c. 2021 Self-Employment Tax and Deduction Worksheet for Lines 1 and 9 of the Estimated Tax Worksheet Keep for Your Records 1a. Enter your expected income and profits subject to self-employment tax* . . . . . . . . . . . . 1a. b. If you will have farm income and also receive social security retirement or disability benefits, enter your expected Conservation Reserve Program payments that …