The Alabama 40ES form is a worksheet used by individuals and corporations to estimate their tax obligations for the year. It helps taxpayers calculate their estimated tax payments based on expected income, deductions, and credits. Proper completion of this form ensures compliance with Alabama tax laws and helps avoid penalties for underpayment.
The Alabama 40ES form is an important tool for individuals and corporations planning their estimated tax payments. This form helps taxpayers calculate their expected tax liability for the year based on their projected income, deductions, and credits. It requires you to enter your adjusted gross income, any deductions you plan to take, and your federal income tax liability. From there, you can determine your estimated taxable income and the corresponding tax amount due. The form also outlines the payment schedule, indicating when payments are due throughout the year. Taxpayers must keep a record of their estimated tax payments and any credits from previous years, as these can affect the total amount owed. Understanding the Alabama 40ES form is essential for meeting tax obligations and avoiding penalties for underpayment.
FORM
ALABAMA DEPARTMENT OF REVENUE
40ES
ESTIMATED TAX
INDIVIDUAL & CORPORATE TAX DIVISION
(WORKSHEET – KEEP FOR YOUR RECORDS – DO NOT FILE)
Name
CALENDAR YEAR
2013
or Fiscal Year Ending
Social Security Number
1 Enter amount of adjusted gross income expected in taxable year
1
2If deductions are itemized, enter total of such deductions expected. If deductions
will not be itemized, enter the amount from the standard deduction table
2
3
Enter amount of federal income tax liability for taxable year
4
Total of lines 2 and 3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Subtract line 4 from line 1. Enter balance here
6
Personal exemption and dependent exemption(s) (see instructions for Forms 40 and 40NR for amounts)
7
Subtract line 6 from line 5. This is your estimated taxable income
8Compute tax on amount on line 7 at the following rates:
Single or Married & Filing Separately
Married & Filing Jointly
a
1st $500
. 2%
1st $1000
2%
8a
b
Next $2500
. 4%
Next $5000
4%
8b
c
Over $3000
. 5%
Over $6000
5%
8c
9 Add lines 8a, 8b, 8c. Enter total here
. . . . . . . . . . . . . . . . . . .
. . . . . . . . . . .
. . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . .
9
10 Amount of Alabama income tax you estimate will be withheld from your wages in taxable year. Enter balance here
10
11 Subtract line 10 from line 9. Enter balance here. This is your estimated tax.
If less than five hundred dollars ($500), no estimated tax is required to be filed (see instructions).
11
RECORD OF STATE OF ALABAMA ESTIMATED TAX PAYMENTS AND CREDIT
Amount
Date Paid
Check Number, etc.
1Overpayment credit from last year credited to estimated tax for this year. (Make sure this credit is shown in the proper space on your Alabama income tax return for last year. . . . . . . . . . . . . . .
2 First payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Second payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Third payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Fourth payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ENTER THIS AMOUNT ON THE PROPER LINE OF YOUR 2013 ALABAMA
INDIVIDUAL INCOME TAX RETURN, FORM 40 OR FORM 40NR.
NOTE: The Alabama Department of Revenue does not send notices of amounts paid on estimated tax. Therefore, it is important that you maintain this record.
Form 40ES Instructions
Who Must Pay Estimated Tax
If you owe additional tax for 2012, you may have to pay esti- mated tax for 2013.
You can use the following general rule as a guide during the year to see if you will have enough withholding, or if you should in- crease your withholding or make estimated tax payments.
General Rule. In most cases, you must pay estimated tax for 2013 if both of the following apply.
1.You expect to owe at least $500 in tax for 2013, after sub- tracting your withholding and credits.
2.You expect your withholding plus your credits to be less than the smaller of:
a.90% of the tax to be shown on your 2013 tax return, or
b.100% of the tax shown on the your 2012 tax return. Your 2012 tax return must cover all 12 months.
Special Rule for Higher Income Taxpayers
If your Alabama AGI for 2012 was more than $150,000 ($75,000 if your filing status for 2013 is Married Filing a Separate Return) substitute 110% for 100% in (2b) under General Rule, above.
When and Where to File Estimated Tax
Your estimated tax must be filed on or before April 15, 2013, or on such later dates as specified under “Farmers.” It should be mailed to the Alabama Department of Revenue, Individual Esti- mates, P.O. Box 327485, Montgomery, AL 36132-7485.
Payment of Estimated Tax
Your estimated tax may be paid in full or in equal installments on or before April 15, 2013, June 15, 2013, September 15, 2013 and January 15, 2014. If the 15th falls on a Saturday, Sunday, or State holiday, the due date will then be considered the following
business day. Checks or money orders should be made payable to the Alabama Department of Revenue.
Changes In Tax
Even though your situation on April 15 is such that you are not required to file estimated tax at that time, your expected tax may change so that you will be required to file estimated tax later. In such case, the time for filing is as follows: June 15, if the change occurs after April 1 and before June 2; September 15, if the change occurs after June 1 and before September 2; January 15, if the change occurs after September 1. If, after you have filed a voucher, you find that your estimated tax is substantially increased or de- creased as the result of a change in your tax, you should file an amended voucher on or before the next filing date – June 15, 2013, September 15, 2013, January 15, 2014.
Farmers
If at least 2/3 of your estimated gross income for the taxable year is derived from farming, you may pay estimated tax at any time on or before January 15, 2014 instead of April 15, 2013. If you wait until January 15, 2014, you must pay the entire balance of the estimated tax. However, if farmers file their final tax return on or before March 2, 2013, and pay the total tax at that time, they need not file estimated tax.
Fiscal Year
If you file your income tax return on a fiscal year basis, you will substitute for the dates specified in the above instructions the months corresponding thereto.
Penalties for Underpayment
Penalties are provided for underpaying the Alabama income tax by at least $500.00.
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DETACH ALONG THIS LINE AND MAIL VOUCHER WITH YOUR FULL PAYMENT
40ES 2013
Alabama Department of Revenue
➀
Estimated Income Tax Payment Voucher
PRIMARY TAXPAYER’S
SPOUSE’S
LAST
FIRST NAME
NAME •
MAILING
ADDRESS
DAYTIME
CITY
STATE
ZIP
TELEPHONE NUMBER
CHECK IF FISCAL YEAR
Beginning Date:
Ending Date: •
Primary Taxpayer SSN: •
Spouse SSN:
•
Amount Paid With Voucher: $ •
MAIL TO: Alabama Department of Revenue, Individual Estimates,
P.O. Box 327485, Montgomery, AL 36132-7485
ADOR
Instructions
1.Be sure you are using a form for the proper year. Do not use this form to file for any calendar year other than the year printed in bold type on the face of the form. Individuals who file on fiscal year basis (other than calendar year ending Dec. 31) should show beginning and ending dates of fiscal year in spaces provided on Form 40ES and each payment voucher.
2.Enter your social security number in space pro- vided. If joint voucher, enter spouse’s number on the line after yours.
3.Enter your first name, middle initial, and last name. If joint estimated tax, show first name and middle initial of both spouses. (Example: John T. and Mary A. Doe).
4.The amount to be shown on Amount Paid With Voucher line is determined by (a) the date you meet the requirements for filing a estimated tax,
(b) the amount of credit, if any, for overpayment from last year or income taxes withheld. Any overpayment credit may be applied to your earli- est installment or divided equally among all the installments for the year. See the following schedule:
Requirements Met
Required
Amt. Due With
After
& Before
Filing Date
Voucher
1-1-2013
4-2-2013
4-15-2013
1/4 of line 1
4-1-2013
6-2-2013
6-15-2013
1/3 of line 1
6-1-2013
9-2-2013
9-15-2013
1/2 of line 1
9-1-2013
1-1-2014
1-15-2014
All of line 1
MAIL TO: Alabama Department of Revenue
Individual Estimates
P.O. Box 327485
Montgomery, AL 36132-7485
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Alabama Mvt 41 1 - You can check the status of your application once submitted through the department.
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The IRS Form 1040 is a fundamental document for individual income tax filing in the United States. Like the Alabama 40ES form, it requires taxpayers to report their income, deductions, and credits to determine their tax liability. Both forms aim to provide a clear picture of an individual's financial situation for the tax year. However, while Form 1040 is used for annual tax returns, the Alabama 40ES focuses specifically on estimated tax payments throughout the year, highlighting the need for proactive tax planning.
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Another similar document is the IRS Form 1040-ES, which is specifically designed for estimated tax payments for individuals. Much like the Alabama 40ES form, it allows taxpayers to calculate and pay their estimated tax liabilities on a quarterly basis. Both forms require an estimation of income and deductions, ensuring that taxpayers stay compliant with tax obligations and avoid penalties for underpayment. The key difference lies in the jurisdiction, as Form 1040-ES is federal while 40ES pertains to Alabama state taxes.
The IRS Form 1120 serves as the U.S. Corporation Income Tax Return. Similar to the Alabama 40ES form, it requires corporations to report their income, deductions, and tax liability. Both documents emphasize the importance of accurate financial reporting and timely payments. However, Form 1120 is specifically tailored for corporate entities, while the Alabama 40ES is designed for both individual and corporate estimated tax payments, reflecting the diverse needs of different taxpayer categories.
Form 1065, the U.S. Return of Partnership Income, is another comparable document. It allows partnerships to report their income and deductions, similar to how the Alabama 40ES form helps individuals and corporations estimate their tax obligations. Both forms require detailed financial information, but Form 1065 focuses on partnerships, highlighting the unique tax structure and reporting requirements for these entities, while the 40ES is aimed at estimating future tax liabilities.
The Alabama Form 40 is the state's individual income tax return. It is similar to the Alabama 40ES in that both forms are used by individuals to report income and calculate tax liability. The 40 form is filed annually, while the 40ES is for estimated payments throughout the year. This distinction is essential for taxpayers to understand, as both forms play a critical role in ensuring compliance with state tax laws.
The IRS Form 941 is used for reporting payroll taxes for employers. Like the Alabama 40ES, it requires accurate reporting to avoid penalties. Both forms focus on the importance of timely payments, but Form 941 is specifically for employment taxes, while the Alabama 40ES addresses estimated income tax payments. Understanding both forms is crucial for business owners to manage their tax responsibilities effectively.
The IRS Form 990 is a return for tax-exempt organizations, similar to the Alabama 40ES form in that both require detailed financial reporting. While the 40ES focuses on estimated tax payments, Form 990 provides transparency about the financial activities of nonprofit organizations. Both forms serve to ensure compliance with tax regulations, although they cater to different types of entities and tax obligations.
Form W-4, Employee's Withholding Certificate, is another related document. It allows employees to inform their employers about their tax withholding preferences. While the Alabama 40ES form focuses on estimated tax payments, both documents share the goal of ensuring that taxpayers meet their obligations. W-4 helps in adjusting withholdings to avoid underpayment, which aligns with the proactive approach of the 40ES in estimating tax liabilities.
Lastly, the Alabama Form 40NR is the Non-Resident Income Tax Return for individuals who earn income in Alabama but reside elsewhere. It is similar to the Alabama 40ES in that both forms are used to report income and calculate tax obligations for individuals. The 40NR is filed at the end of the tax year, while the 40ES is for estimated payments, reflecting different stages of the tax process while serving the same purpose of compliance with state tax laws.
When filling out the Alabama 40ES form, consider these key takeaways:
The Alabama 40ES form is used to calculate and report estimated income tax payments for individuals and corporations. This form helps taxpayers estimate their tax liability for the year based on expected income, deductions, and tax credits. It is a worksheet that taxpayers should keep for their records but should not file with the Alabama Department of Revenue.
Taxpayers must file the Alabama 40ES form if they expect to owe at least $500 in tax for the year after subtracting their withholding and credits. Additionally, if their withholding plus credits are less than either 90% of their current year's tax liability or 100% of the previous year's tax liability, they should file the form.
Estimated tax payments are due in four installments throughout the year. The due dates are April 15, June 15, September 15, and January 15 of the following year. If any of these dates fall on a weekend or holiday, the due date is extended to the next business day. Taxpayers can choose to pay the total estimated tax amount at once or in equal installments.
If a taxpayer fails to file or pay the required estimated taxes, they may incur penalties. A penalty applies if the taxpayer underpays their Alabama income tax by at least $500. It is crucial to maintain accurate records and ensure timely payments to avoid these penalties.
Taxpayers should keep a record of their estimated tax payments by noting the amount paid, the date of payment, and any check numbers. The Alabama 40ES form includes a section for recording this information. It is essential to retain these records for future reference and to ensure accuracy when filing the annual tax return.