2024 Publication 505

Contents

Introduction .................. 1

What's New for 2024 ............. 2

Reminders ................... 2

Chapter 1. Tax Withholding

for 2024 .................. 2

Salaries and Wages ........... 3

Tips .................... 8

Taxable Fringe Benefits ......... 8

Sick Pay .................. 9

Pensions and Annuities ......... 9

Gambling Winnings .......... 10

Unemployment Compensation .... 10

Federal Payments ........... 11

Backup Withholding .......... 11

Chapter 2. Estimated Tax for 2024 ... 19

Who Does Not Have To Pay

Estimated Tax ............ 19

Who Must Pay Estimated Tax ..... 20

How To Figure Estimated Tax ..... 21

When To Pay Estimated Tax ...... 23

How To Figure Each Payment ..... 24

How To Pay Estimated Tax ...... 26

How To Get Tax Help ............ 40

Index ..................... 43

Introduction

The federal income tax is a pay-as-you-go tax.

You must pay the tax as you earn or receive in-

come during the year. There are two ways to

pay as you go.

•

Withholding. If you are an employee, your

employer probably withholds income tax

from your pay. In addition, tax may be with-

held from certain other income, such as

pensions, bonuses, commissions, and

gambling winnings. The amount withheld is

paid to the IRS in your name.

•

Estimated tax. If you don’t pay your tax

through withholding, or don’t pay enough

tax that way, you might have to pay estima-

ted tax. People who are in business for

themselves will generally have to pay their

tax this way. You may have to pay estima-

ted tax if you receive income such as divi-

dends, interest, capital gains, rents, and

royalties. Estimated tax is used to pay not

only income tax, but other taxes such as

self-employment tax and alternative mini-

mum tax.

This publication explains both of these meth-

ods. It also explains how to take credit on your

return for the tax that was withheld and for your

estimated tax payments.

If you didn’t pay enough tax during the year,

either through withholding or by making estima-

ted tax payments, you may have to pay a pen-

alty. Generally, the IRS can figure this penalty

for you.

Nonresident aliens. Before completing

Form W-4, Employee's Withholding Certificate,

nonresident alien employees should see Notice

Department

of the

Treasury

Internal

Revenue

Service

Publication 505

Cat. No. 15008E

Tax

Withholding

and Estimated

Tax

For use in 2024

Get forms and other information faster and easier at:

• IRS.gov (English)

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•

IRS.gov/Chinese (中文)

•

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Mar 5, 2024

1392, Supplemental Form W-4 Instructions for

Nonresident Aliens (Rev. January 2020), which

provides nonresident aliens who are not exempt

from withholding instructions for completing

Form W-4, and the Instructions for Form 8233,

Exemption From Withholding on Compensation

for Independent (and Certain Dependent) Per-

sonal Services of a Nonresident Alien Individ-

ual. Also, see chapter 8 of Pub. 519, U.S. Tax

Guide for Aliens, for important information on

withholding.

Final regulations on income tax with-

holding. Final regulations on income tax with-

holding were published in the Federal Register

on October 6, 2020 (at 85 FR 63019). The regu-

lations implement changes made by the Tax

Cuts and Jobs Act and reflect the redesigned

withholding certificate (Form W-4). See the reg-

ulations for detailed information on income tax

withholding.

Comments and suggestions. We welcome

your comments about this publication and sug-

gestions for future editions.

You can send us comments through

IRS.gov/FormComments. Or, you can write to

the Internal Revenue Service, Tax Forms and

Publications, 1111 Constitution Ave. NW,

IR-6526, Washington, DC 20224.

Although we can’t respond individually to

each comment received, we do appreciate your

feedback and will consider your comments and

suggestions as we revise our tax forms, instruc-

tions, and publications. Don’t send tax ques-

tions, tax returns, or payments to the above ad-

dress.

Getting answers to your tax questions.

If you have a tax question not answered by this

publication or the How To Get Tax Help section

at the end of this publication, go to the IRS In-

teractive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the

search feature or viewing the categories listed.

Getting tax forms, instructions, and pub-

lications. Go to IRS.gov/Forms to download

current and prior-year forms, instructions, and

publications.

Ordering tax forms, instructions, and

publications. Go to IRS.gov/OrderForms to or-

der current forms, instructions, and publica-

tions; call 800-829-3676 to order prior-year

forms and instructions. The IRS will process

your order for forms and publications as soon

as possible. Don’t resubmit requests you’ve al-

ready sent us. You can get forms and publica-

tions faster online.

What's New for 2024

Use your 2023 tax return as a guide in figuring

your 2024 estimated tax, but be sure to

consider the following.

Form 1040-SS filers. For 2024 the Estimated

Tax Worksheet for filers of Form 1040-SS has

been added to Form 1040-ES. See Form

1040-ES and its instructions for more informa-

tion.

Standard deduction amount increased. For

2024, the standard deduction amount has been

increased for all filers, and the amounts are as

follows.

•

Single or Married Filing Sepa-

rately—$14,600.

•

Married Filing Jointly or Qualifying Surviv-

ing Spouse—$29,200.

•

Head of Household—$21,900.

Retirement savings contribution credit in-

come limits increased. In order to claim this

credit for 2024, your MAGI must not be more

than $38,250 ($76,500 if married filing jointly;

$57,375 if head of household).

Adoption credit or exclusion. The maximum

adoption credit or exclusion for employer-provi-

ded adoption benefits has increased to

$16,810. In order to claim either the credit or ex-

clusion, your MAGI must be less than $292,150.

Reminders

Future developments. The IRS has created a

page on IRS.gov for information about Pub. 505

at IRS.gov/Pub505. Information about any fu-

ture developments affecting Pub. 505 (such as

legislation enacted after we release it) will be

posted on that page.

Social security tax. Generally, each employer

for whom you work during the tax year must

withhold social security tax up to the annual

limit. The annual limit is $168,600 in 2024.

Individual taxpayer identification number

(ITIN) renewal. 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 re-

new it. For more information, see the Instruc-

tions for Form W-7.

Advance payments of the premium tax

credit. If you buy health insurance through the

Health Insurance Marketplace, you may be eli-

gible to have advance payments of the premium

tax credit paid on your behalf to the insurance

company. Receiving too little or too much in ad-

vance will affect your refund or balance due.

Promptly report changes in your income or fam-

ily size to your Marketplace. See Form 8962

and its instructions for more information.

Additional Medicare Tax. Generally, a 0.9%

Additional Medicare Tax applies to Medicare

wages, Railroad Retirement Tax Act compensa-

tion, and self-employment income over

$200,000 if you are filing as single, head of

household, or qualifying surviving spouse; over

$250,000 if you are married filing jointly; and

over $125,000 if you are married filing sepa-

rately. You may need to include this amount

when figuring your estimated tax. You may also

request that your employer deduct and withhold

an additional amount of income tax withholding

from your wages on Form W-4.

Net Investment Income Tax (NIIT). You may

be subject to NIIT. NIIT is a 3.8% tax on the

lesser of net investment income or the excess of

your MAGI over $200,000 ($250,000 if married

filing jointly or qualifying surviving spouse;

$125,000 if married filing separately). NIIT may

need to be included when figuring estimated

tax. You may also request that your employer

deduct and withhold an additional amount of in-

come tax withholding from your wages on Form

W-4.

Access your online account. Go to IRS.gov/

Account to securely access information about

your federal tax account.

•

View the amount you owe and a break-

down by tax year.

•

See payment plan details or apply for a

new payment plan.

•

Make a payment, view 5 years of payment

history and any pending or scheduled pay-

ments.

•

Access your tax records, including key

data from your most recent tax return, your

economic impact payment amounts, and

transcripts.

•

View digital copies of select notices from

the IRS.

•

Approve or reject authorization requests

from tax professionals.

•

Update your address or manage your com-

munication preferences.

Photographs of missing children. The IRS is

a proud partner with the National Center for

Missing & Exploited Children® (NCMEC). Pho-

tographs of missing children selected by the

Center may appear in this publication on pages

that would otherwise be blank. You can help

bring these children home by looking at the

photographs and calling 800-THE-LOST

(800-843-5678) if you recognize a child.

Tax Withholding

for 2024

Introduction

This chapter discusses income tax withholding

on:

•

Salaries and wages,

•

Tips,

•

Taxable fringe benefits,

•

Sick pay,

•

Pensions and annuities,

•

Gambling winnings,

•

Unemployment compensation, and

•

Certain federal payments.

This chapter explains in detail the rules for with-

holding tax from each of these types of income.

The discussion of salaries and wages includes

an explanation of how to complete Form W-4.

This chapter also covers backup withholding

on interest, dividends, and other payments.

Useful Items

You may want to see:

Form (and Instructions)

W-4 Employee's Withholding Certificate

W-4P Withholding Certificate for Periodic

Pension or Annuity Payments

W-4

W-4P

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2 Chapter 1 Tax Withholding for 2024 Publication 505 (2024)

W-4R Withholding Certificate for

Nonperiodic Payments and Eligible

Rollover Distributions

W-4S Request for Federal Income Tax

Withholding From Sick Pay

W-4V Voluntary Withholding Request

See How To Get Tax Help at the end of this pub-

lication for information about getting these pub-

lications and forms.

Salaries and Wages

Income tax is withheld from the pay of most em-

ployees. Your pay includes your regular pay, bo-

nuses, commissions, and vacation allowances.

It also includes reimbursements and other ex-

pense allowances paid under a nonaccountable

plan. See Supplemental Wages, later, for defini-

tions of accountable and nonaccountable plans.

If your income is low enough that you won’t

have to pay income tax for the year, you may be

exempt from withholding. This is explained un-

der Exemption From Withholding, later.

You can ask your employer to withhold in-

come tax from noncash wages and other wages

not subject to withholding. If your employer

does not agree to withhold tax, or if not enough

is withheld, you may have to pay estimated tax,

as discussed in chapter 2.

Military retirees. Military retirement pay is

treated in the same manner as regular pay for

income tax withholding purposes, even though

it is treated as a pension or annuity for other tax

purposes.

Household workers. If you are a household

worker, you can ask your employer to withhold

income tax from your pay. A household worker

is an employee who performs household work

in a private home, local college club, or local fra-

ternity or sorority chapter.

Tax is withheld only if you want it withheld

and your employer agrees to withhold it. If you

don’t have enough income tax withheld, you

may have to pay estimated tax, as discussed in

chapter 2.

Farmworkers. Generally, income tax is with-

held from your cash wages for work on a farm

unless your employer both:

•

Pays you cash wages of less than $150

during the year, and

•

Has expenditures for agricultural labor to-

taling less than $2,500 during the year.

Differential wage payments. When employ-

ees are on leave from employment for military

duty, some employers make up the difference

between the military pay and civilian pay. Pay-

ments to an employee who is on active duty for

a period of more than 30 days will be subject to

income tax withholding, but not subject to social

security or Medicare taxes. The wages and

withholding will be reported on Form W-2,

Wage and Tax Statement.

W-4R

W-4S

W-4V

Determining Amount of Tax

Withheld Using Form W-4

The amount of income tax your employer with-

holds from your regular pay depends on three

things.

•

The amount you earn in each payroll pe-

riod.

•

Your payroll period.

•

The information you give your employer on

Form W-4.

Form W-4 includes four steps that will give

information to your employer to figure your with-

holding. Complete Steps 2 through 4 only if they

apply to you.

Step 1. Enter your personal information, in-

cluding your anticipated filing status. Your antici-

pated filing status will determine the standard

deduction and tax rates used to figure your

withholding.

Step 2. Complete this step if you (1) hold more

than one job at a time, or (2) are married and

plan to file a joint return and your spouse also

works.

If you or your spouse have another job,

complete Steps 3 through 4(b) on only

one Form W-4. Your withholding will be

most accurate if you do this on the Form W-4 for

the highest paying job.

Step 3. Complete this step if you have depend-

ents and think you may be eligible to claim the

child tax credit or credit for other dependents on

your tax return. Also, complete this step if you

want to include an estimate of your other tax

credits (for example, an education credit or the

foreign tax credit).

Step 4. Complete this optional step to make

other adjustments.

•

Other income (not from jobs).

•

Deductions (other than the standard de-

duction).

•

Any additional amounts you want to with-

hold from each check.

New Job

When you start a new job, you must fill out a

Form W-4 and give it to your employer. Your

employer should have copies of the form. If you

need to change the information later, you must

fill out a new form.

If you work only part of the year (for exam-

ple, you start working after the beginning of the

year), too much tax may be withheld. You may

be able to avoid overwithholding if your em-

ployer agrees to use the part-year method. See

Part-Year Method, later, for more information.

Employee also receiving pension income. If

you receive pension or annuity income and be-

gin a new job, you will need to file Form W-4

with your new employer. You should also con-

sider furnishing a new Form W-4P.

CAUTION

Changing Your Withholding

During the year, changes may occur to your

marital status, adjustments, deductions, or

credits you expect to claim on your tax return.

When this happens, you may need to give your

employer a new Form W-4 to change your with-

holding.

If a change in personal circumstances re-

duces the amount of withholding you are enti-

tled to claim, you are required to give your em-

ployer a new Form W-4 within 10 days after the

change occurs.

The following rules apply in determining

whether you are required to furnish a new Form

W-4 to your employer.

Change of status resulting in withholding

less than your tax liability. If you have one of

the changes in the following bullet list and you

won't have enough tax withheld for the remain-

der of 2024 to cover your income tax liability for

2024, you are required to furnish a new Form

W-4 to your employer within 10 days after the

date of the change.

•

Your filing status changes from Married Fil-

ing Jointly (or Qualifying Surviving Spouse)

to Head of Household or Single (or Married

Filing Separately) or from Head of House-

hold to Single (or Married Filing Sepa-

rately).

•

You or your spouse start another job, and

you chose to use the Multiple Jobs Work-

sheet or the Tax Withholding Estimator to

account for your other job in determining

your withholding.

•

You or your spouse start another job, and

as a result file a new 2024 Form W-4, and

you or your spouse select the checkbox in

Step 2(c) (in this case, you must furnish a

new Form W-4 for your first job and select

the checkbox in Step 2(c)).

•

You or your spouse expect a raise of more

than $10,000 in regular wages (not a bo-

nus) at a second or third job, and the Form

W-4, Step 2(c), checkbox is not selected

on your Forms W-4.

•

You no longer expect to be able to claim a

Child Tax Credit you took into account on a

previously furnished Form W-4.

•

Your other credits you took into account on

a previously furnished Form W-4 decrease

by more than $500.

•

Your deductions decrease by more than

$2,300 from the amount you took into ac-

count on a previously furnished Form W-4.

•

You no longer reasonably expect to claim

exemption from withholding.

Change of status resulting in withholding

that will cover your tax liability. If you have a

change of status listed in the previous section,

you don't have to furnish a new Form W-4 for

2024 if after the change you will have enough

tax withheld for the remainder of 2024 to cover

your income tax liability. However, if you will

have enough tax withheld for 2024 to cover your

income tax liability after a change or changes in

status, but your filing status changes from Mar-

ried Filing Jointly (or Qualifying Surviving

Spouse) to Head of Household or to Single (or

Married Filing Separately) or from Head of

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Publication 505 (2024) Chapter 1 Tax Withholding for 2024 3

Household to Single (or Married Filing Sepa-

rately) during 2024, you are required to furnish

your employer a new Form W-4 for 2025 by De-

cember 2, 2024, or, if later, 10 days after the

date of the change in filing status, to take effect

in 2025.

Otherwise, if you want to change your with-

holding for any other reason, you can generally

do that whenever you wish. See Table 1-1 for

examples of personal and financial changes

you should consider.

Personal and Financial

Changes

Table 1-1.

Factor Examples

Lifestyle

change

Marriage

Divorce

Birth or adoption of child

Purchase of a new home

Retirement

Filing chapter 11 bankruptcy

Wage income You or your spouse start or

stop working, or start or stop a

second job

Change in the

amount of

taxable

income not

subject to

withholding

Interest income

Dividends

Capital gains

Self-employment income

IRA (including certain Roth

IRA) distributions

Change in the

amount of

adjustments to

income

IRA deduction

Student loan interest

deduction

Alimony expense

Change in the

amount of

itemized

deductions or

tax credits

Medical expenses

Taxes

Interest expense

Gifts to charity

Dependent care expenses

Education credit

Child tax credit

Earned income credit

If you change the amount of your withhold-

ing, you can request that your employer with-

hold using the Cumulative Wage Method, later.

Checking Your Withholding

After you have given your employer a Form

W-4, you can check to see whether the amount

of tax withheld from your pay is too much or too

little. If too much or too little tax is being with-

held, you should give your employer a new

Form W-4 to change your withholding. You can

get a blank Form W-4 from your employer or

print the form from IRS.gov.

You can use the Tax Withholding Esti-

mator at IRS.gov/W4App instead of the

worksheets in this publication or inclu-

ded with Form W-4 to determine whether you

need to have your withholding increased or de-

creased.

You should try to have your withholding

match your actual tax liability. If not enough tax

is withheld, you will owe tax at the end of the

year and may have to pay interest and a

TIP

penalty. If too much tax is withheld, you will lose

the use of that money until you get your refund.

Always check your withholding if there are per-

sonal or financial changes in your life or

changes in the law that might change your tax li-

ability. See Table 1-1 for examples.

Note. You can’t give your employer a pay-

ment to cover federal income tax withholding on

salaries and wages for past pay periods or a

payment for estimated tax.

When Should You Check Your

Withholding?

The earlier in the year you check your withhold-

ing, the easier it is to get the right amount of tax

withheld.

You should check your withholding when

any of the following situations occur.

1. You receive a paycheck stub (statement)

covering a full pay period in 2024 showing

tax withheld based on 2024 tax rates.

2. You prepare your 2023 tax return and get

a. Big refund, or

b. Balance due that is:

i. More than you can comfortably

pay, or

ii. Subject to a penalty.

3. There are changes in your life or financial

situation that affect your tax liability. See

Table 1-1.

4. There are changes in the tax law that af-

fect your tax liability.

How Do You Check Your

Withholding?

You can use the worksheets and tables in this

publication to see if you are having the right

amount of tax withheld. You can also use the

Tax Withholding Estimator at IRS.gov/W4App. If

you use the worksheets and tables in this publi-

cation, follow these steps.

1. Fill out Worksheet 1-3 to project your total

federal income tax liability for 2024.

2. Fill out Worksheet 1-5 to project your total

federal withholding for 2024 and compare

that with your projected tax liability from

Worksheet 1-3.

If you are not having the correct amount of

tax withheld, line 6 of Worksheet 1-5 will show

you how to adjust the amount withheld each

payday. For ways to increase the amount of tax

withheld, see How Do You Increase Your With-

holding, later.

If line 5 of Worksheet 1-5 shows that you are

having more tax withheld than necessary, see

How Do You Decrease Your Withholding, later,

for ways to decrease the amount of tax you

have withheld each payday.

Detailed instructions for completing a new

Form W-4 to adjust your withholding follow

Worksheet 1-5.

How Do You Increase Your

Withholding?

You can increase your withholding by entering

an additional amount that you want withheld

from each paycheck on Form W-4.

Requesting an additional amount be with-

held. You can request that an additional

amount be withheld from each paycheck by en-

tering the additional amount in Step 4(c) of

Form W-4. To see if you should request an addi-

tional amount be withheld, complete Work-

sheets 1-3 and 1-5. Complete a new Form W-4

if the amount on Worksheet 1-5, line 5:

1. Is more than you want to pay with your tax

return or in estimated tax payments

throughout the year, or

2. Would cause you to pay a penalty when

you file your tax return for 2024.

What if I have more than one job or my

spouse also has a job? You are more likely to

need to increase your withholding if you have

more than one job or if you are married filing

jointly and your spouse also works. If this is the

case, you can increase your withholding for one

or more of the jobs.

You can apply the amount on Worksheet

1-5, line 5, to only one job or divide it between

the jobs any way you wish. For each job, deter-

mine the extra amount that you want to apply to

that job and divide that amount by the number

of paydays remaining in 2024 for that job. This

will give you the additional amount to enter on

the Form W-4 you will file for that job. You need

to give your employer a new Form W-4 for each

job for which you are changing your withhold-

ing.

Example. You work in a store and earn

$46,000 a year. Your spouse works in a factory,

earns $68,000 a year, and has 49 pay periods

left. In 2024, you will also have $184 in taxable

interest and $1,000 of other taxable income.

You expect to file a joint income tax return. You

and your spouse complete Worksheets 1-3,

1-4, and 1-5. Line 5 of Worksheet 1-5 shows

that you will owe an additional $4,459 after sub-

tracting your withholding for the year. You can

divide the $4,459 any way you want. You can

enter an additional amount on either of your

Forms W-4, or divide it between the two of you.

You decide to have the additional amount with-

held from your spouse’s wages, so your spouse

enters $91 ($4,459 ÷ 49 remaining paydays) on

their Form W-4 in Step 4(c).

How Do You Decrease Your

Withholding?

If your completed Worksheets 1-3 and 1-5 show

that you may have more tax withheld than your

projected tax liability for 2024, you may be able

to decrease your withholding by following the in-

structions in Worksheet 1-5.

Tax Credits

Table 1-2 shows many of the tax credits you

may be able to use to decrease your withhold-

ing. For a complete list of credits you may be

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4 Chapter 1 Tax Withholding for 2024 Publication 505 (2024)

able to claim, see the 2023 Instructions for

Form 1040.

Step 3 of Form W-4 provides instructions for

determining the amount of the child tax credit

and the credit for other dependents. You can

also include other tax credits in Step 3 of Form

W-4. To do so, complete Worksheet 1-6 and

add the amount from line 11 of that worksheet

to the amount you are entering for other de-

pendents in Step 3 of Form W-4. Including

these credits will increase your paycheck and

reduce the amount of any refund you may re-

ceive when you file your tax return.

When Will Your New Form W-4 Go

Into Effect?

If the change is for the current year, your em-

ployer must put your new Form W-4 into effect

no later than the start of the first payroll period

ending on or after the 30th day after the day on

which you give your employer your revised

Form W-4.

If the change is for next year, your new Form

W-4 won’t take effect until next year.

Form W-4P

When you first began receiving your pension,

you told the payer how much tax to withhold, if

any, by completing Form W-4P, Withholding

Certificate for Pension or Annuity Payments (or

similar form). However, if your retirement pay is

from the military or certain deferred compensa-

tion plans, you completed Form W-4 instead of

Form W-4P. You completed either form based

on your projected income at that time. If you are

returning to the workforce, your new Form W-4

(given to your employer) and your Form W-4 or

W-4P (on file with your pension plan) must work

together to determine the correct amount of

withholding for your new amount of income.

Form W-4P includes four steps that will give

information to the payer of your pension or an-

nuity for how to figure your withholding. Com-

plete Steps 2 through 4 only if they apply to you.

Step 1. Enter your personal information, in-

cluding your anticipated filing status. Your antici-

pated filing status will determine the standard

deduction and tax rates used to figure your

withholding.

Step 2. Complete this step if you (1) have in-

come from a job or more than one pension/

annuity, and/or (2) are married filing jointly and

your spouse receives income from a job or a

pension/annuity.

If you (or if married filing jointly, you

and/or your spouse) have a job(s),

don't complete Steps 3 through 4b on

Form W-4P. Instead, complete Steps 3 through

4b on the Form W-4 for the job. If you (or if mar-

ried filing jointly, you and your spouse) don't

have a job, complete Steps 3 through 4b on

Form W-4P for only the pension or annuity that

pays the most annually. Leave those steps

blank for the other pensions or annuities.

Step 3. Complete this step if you have depend-

ents and think you may be eligible to claim the

child tax credit or credit for other dependents on

your tax return. Also, complete this step if you

want to include an estimate of your other tax

credits (for example, an education credit or the

foreign tax credit).

Step 4. Complete this optional step to make

other adjustments.

•

Other estimated income (Step 4a).

•

Deductions (other than the standard de-

duction)(Step 4b) you expect to claim. Use

the Step 4(b)—Deductions Worksheet in

the instructions for Form W-4P to help you

determine the amount to enter on line 4b.

•

Any additional amounts you want to with-

hold from each payment (Step 4c).

CAUTION

Note. If you don't give Form W-4P to your

payer, you don't provide an SSN, or the IRS no-

tifies the payer that you gave an incorrect SSN,

then the payer will withhold tax from your pay-

ments as if your filing status is single with no ad-

justments in Steps 2 through 4. For payments

that began before 2024, your current withhold-

ing election (or your default rate) remains in ef-

fect unless you submit a new Form W-4P.

And remember, this isn’t a final decision. If

you don’t get the correct amount of withholding

with the first Forms W-4 and W-4P you submit,

you should refigure your withholding using the

information and worksheets in this publication,

or the resources mentioned above.

You should go through this same process

each time your life situation changes, whether it

be for personal or financial reasons. You may

need more tax withheld, or you may need less.

Getting the Right Amount

of Tax Withheld

In most situations, the tax withheld from your

pay will be close to the tax you figure on your re-

turn if you follow these two rules.

•

You accurately complete all the Form W-4

worksheets that apply to you.

•

You give your employer a new Form W-4

when changes occur.

But because the worksheets and withhold-

ing methods don’t account for all possible situa-

tions, you may not be getting the right amount

withheld. This is most likely to happen in the fol-

lowing situations.

•

You are married and both you and your

spouse work.

•

You have more than one job at a time.

•

You have nonwage income, such as inter-

est, dividends, alimony, or unemployment

compensation.

Table 1-2. Tax Credits for 2024

For more information about the... See...

Adoption credit Instructions for Form 8839

Credit for child and dependent care expenses Pub. 503, Child and Dependent Care Expenses

Child tax credit (including the additional child tax credit) 2023 Instructions for Schedule 8812 (Form 1040)

Credit for other dependents 2023 Instructions for Schedule 8812 (Form 1040)

Earned income credit Pub. 596, Earned Income Credit (EIC)

Education credits Pub. 970, Tax Benefits for Education

Credit for the elderly or the disabled Pub. 524, Credit for the Elderly or the Disabled

Foreign tax credit (except any credit that applies to wages not subject to

U.S. income tax withholding because they are subject to income tax

withholding by a foreign country)

Pub. 514, Foreign Tax Credit for Individuals

General business credit Form 3800, General Business Credit

Mortgage interest credit Pub. 530, Tax Information for Homeowners

Qualified electric vehicle credit Form 8834

Credit for prior year minimum tax (if you paid alternative minimum tax in an

earlier year)

Instructions for Form 8801

Retirement savings contributions credit (saver's credit) Pub. 590-A, Contributions to Individual Retirement Arrangements (IRAs)

Credit to holders of tax credit bonds Instructions for Form 8912

Premium tax credit Pub. 974, Premium Tax Credit (PTC)

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Publication 505 (2024) Chapter 1 Tax Withholding for 2024 5

•

You will owe additional amounts with your

return.

•

Your withholding is based on obsolete

Form W-4 information for a substantial part

of the year.

•

You work only part of the year.

•

You change the amount of your withholding

during the year.

•

You are subject to Additional Medicare Tax

or NIIT. If you anticipate liability for Addi-

tional Medicare Tax or NIIT, you may re-

quest that your employer withhold an addi-

tional amount of income tax withholding on

Form W-4.

If any of these situations apply to you, you

can use the Tax Withholding Estimator at

IRS.gov/W4App to see if you need to change

your withholding.

If you have self-employment income or owe

self-employment tax, you should use the work-

sheets in this publication to determine if you

should pay estimated tax.

Part-Year Method

If you work only part of the year and your em-

ployer agrees to use the part-year withholding

method, less tax will be withheld from each

wage payment than would be withheld if you

worked all year. To be eligible for the part-year

method, you must meet both of the following re-

quirements.

•

You must use the calendar year (the 12

months from January 1 through December

31) as your tax year. You can’t use a fiscal

year.

•

You must not expect to be employed for

more than 245 days during the year. To fig-

ure this limit, count all calendar days that

you are employed (including weekends,

vacations, and sick days) beginning with

the first day you are on the job for pay and

ending with your last day of work. If you are

temporarily laid off for 30 days or less,

count those days too. If you are laid off for

more than 30 days, don’t count those days.

You won’t meet this requirement if you be-

gin working before May 1 and expect to

work for the rest of the year.

How to apply for the part-year method. You

must ask your employer in writing to use this

method. The request must state all three of the

following.

•

The date of your last day of work for any

prior employer during the current calendar

year.

•

That you don’t expect to be employed

more than 245 days during the current cal-

endar year.

•

That you use the calendar year as your tax

year.

Cumulative Wage Method

If you change your withholding during the year,

too much or too little tax may have been with-

held for the period before you made the change.

You may be able to compensate for this if your

employer agrees to use the cumulative wage

withholding method for the rest of the year. You

must ask your employer in writing to use this

method.

To be eligible, your payroll periods (weekly,

biweekly, etc.) must have been the same since

the beginning of the year.

Aids for Figuring Your Withholding

Tax Withholding Estimator. If you are con-

cerned that you may be having too much or too

little income tax withheld from your pay, the IRS

provides a withholding estimator on its website.

Go to IRS.gov/W4App. It can help you deter-

mine the correct amount to be withheld any time

during the year.

Rules Your Employer

Must Follow

It may be helpful for you to know some of the

withholding rules your employer must follow.

These rules can affect how to fill out your Form

W-4 and how to handle problems that may

arise.

New Form W-4. When you start a new job,

your employer should give you a Form W-4 to fill

out. Beginning with your first payday, your em-

ployer will use the information you give on the

form to figure your withholding.

If you later fill out a new Form W-4, your em-

ployer can put it into effect as soon as possible.

The deadline for putting it into effect is the start

of the first payroll period ending 30 or more

days after you turn it in.

No Form W-4. If you don't give your employer

a Form W-4, your employer should treat you as

though you checked the box for Single or Mar-

ried filing separately in Step 1(c) and made no

entries in Step 2, Step 3, or Step 4 of the 2024

Form W-4.

Repaying withheld tax. If you find you are

having too much tax withheld because you

didn’t account for all your dependents or deduc-

tions you are entitled to, you should give your

employer a new Form W-4. Your employer can’t

repay any of the tax previously withheld. In-

stead, claim the full amount withheld when you

file your tax return.

However, if your employer has withheld

more than the correct amount of tax for the

Form W-4 you have in effect, you don’t have to

fill out a new Form W-4 to have your withholding

lowered to the correct amount. Your employer

can repay the amount that was withheld incor-

rectly. If you are not repaid, your Form W-2 will

reflect the full amount actually withheld, which

you would claim when you file your tax return.

IRS review of your withholding. Your with-

holding or any claim for a complete exemption

from withholding is subject to review by the IRS.

Your employer may be required to send a copy

of the Form W-4 to the IRS. There is a penalty

for supplying false information on Form W-4.

See Penalties, later.

If the IRS determines that you have oversta-

ted your withholding or can’t claim a complete

exemption from withholding, the IRS will issue a

notice that specifies the withholding arrange-

ment permitted for the employee (commonly re-

ferred to as a “lock-in letter”) to both you and

your employer.

The IRS will provide a period of time during

which you can dispute the determination before

your employer adjusts your withholding. If you

believe that you are entitled to claim complete

exemption from withholding or that the IRS de-

termination was otherwise incorrect, you must

submit a new Form W-4 and a written statement

to support your claims made on Form W-4 that

would decrease federal income tax withholding

to the IRS. Contact information (a toll-free num-

ber and an IRS office address) will be provided

in the lock-in letter. At the end of this period, if

you haven’t responded or if your response isn’t

adequate, your employer will be required to

withhold based on the original lock-in letter.

After the lock-in letter takes effect, your em-

ployer must withhold tax on the basis of the

withholding rate (marital status) and maximum

withholding specified in that letter.

If you later believe that you are entitled to

claim exemption from withholding or otherwise

adjust your withholding, you can complete a

new Form W-4 and a written statement to sup-

port the claims made on the Form W-4 and

send them directly to the IRS address shown on

the lock-in letter. Your employer must continue

to figure your withholding on the basis previ-

ously determined by the IRS until the IRS advi-

ses your employer otherwise.

At any time, either before or after the lock-in

letter becomes effective, you may give your em-

ployer a new Form W-4 that does not claim

complete exemption from withholding and re-

sults in more income tax withheld than specified

in the lock-in letter. Your employer must then

withhold tax based on this new Form W-4.

Additional information is available at

IRS.gov. Enter ``withholding compliance

questions'' in the search box.

Exemption From Withholding

If you claim exemption from withholding, your

employer won’t withhold federal income tax

from your wages. The exemption applies only to

income tax, not to social security or Medicare

tax.

You can claim exemption from withholding

for 2024 only if both of the following situations

apply.

•

For 2023, you had a right to a refund of all

federal income tax withheld because you

had no tax liability.

•

For 2024, you expect a refund of all federal

income tax withheld because you expect to

have no tax liability.

Use Figure 1-A to help you decide whether

you can claim exemption from withholding.

Don’t use Figure 1-A if you:

•

Are 65 or older,

•

Are blind,

•

Will itemize deductions on your 2024 re-

turn, or

•

Will claim any tax credits on your 2024 re-

turn.

These situations are discussed later.

Students. If you are a student, you are not au-

tomatically exempt. If you work only part time or

during the summer, you may qualify for exemp-

tion from withholding.

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6 Chapter 1 Tax Withholding for 2024 Publication 505 (2024)

Example 1. You are a high school student

and expect to earn $2,500 from a summer job.

You don’t expect to have any other income dur-

ing the year, and your parents will be able to

claim you as a dependent on their tax return.

You worked last summer and had $375 federal

income tax withheld from your pay. The entire

$375 was refunded when you filed your 2023 re-

turn. Using Figure 1-A, you find that you can

claim exemption from withholding.

Example 2. The facts are the same as in

Example 1, except that you also have a savings

account and expect to have $475 interest in-

come during the year. Using Figure 1-A, you

find that you can’t claim exemption from with-

holding because your unearned income will be

more than $450 and your total income will be

more than $1,300.

You may have to file a tax return, even if

you are exempt from withholding. See

Pub. 501 to see whether you must file a

return.

Age 65 or older or blind. If you are 65

or older or blind, use Worksheet 1-1 or

Worksheet 1-2 to help you decide

whether you can claim exemption from with-

holding. Don’t use either worksheet if you will

itemize deductions or claim tax credits on your

2024 return. Instead, see Itemizing deductions

or claiming credits next.

CAUTION

Itemizing deductions or claiming credits. If

you had no tax liability for 2023, and you will:

•

Itemize deductions, or

•

Claim a tax credit,

use Worksheet 2-1 (also, see chapter 2) to fig-

ure your 2024 expected tax liability. You can

claim exemption from withholding only if your to-

tal expected tax liability (line 11c of the work-

sheet) is zero.

Claiming exemption from withholding. To

claim exemption, you must give your employer a

Form W-4. Write “Exempt” on the form in the

space below Step 4(c) and complete Steps

1(a), 1(b), and 5. Don’t complete any other

steps.

Figure 1-A. Exemption From Withholding on Form W-4

For 2023, did you have a

right to a refund of ALL

federal income tax withheld

because you had NO tax

liability?

For 2024, will

someone (such as

your parent) be able

to claim you as a

dependent?

Will your 2024 income

be more than $1,300?

Will your 2024 income

include more than $450

of unearned income

(interest, dividends, etc.)?

You CAN’T claim

exemption from

withholding.

You CAN claim

exemption from

withholding.

You CAN’T claim

exemption from

withholding.

Will your 2024 total income be more than the amount shown below for

your ling status?

Single

Head of household

Married ling separately for

BOTH 2023 and 2024

Other married status (include BOTH

spouses’ income whether ling

separately or jointly)

Qualifying surviving spouse

$14,600

Note. Don’t use this chart if you are 65 or older or blind, or if you will itemize your deductions or claim tax credits. Instead, see

the discussions in this chapter under Exemption From Withholding. If none of these situations apply to you, but you have

adjustments to income, use the 2024 Estimated Tax Worksheet.

Yes

Start Here

Will your 2024 total income be

$14,600 or less?

Yes

21,900

14,600

29,200

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Publication 505 (2024) Chapter 1 Tax Withholding for 2024 7

If you claim exemption, but later your situa-

tion changes so that you will have to pay in-

come tax after all, you must file a new Form W-4

within 10 days after the change. If you claim ex-

emption in 2024 but you expect to owe income

tax for 2025, you must file a new Form W-4 by

December 2, 2024.

Your claim of exempt status may be re-

viewed by the IRS. See IRS review of your with-

holding, earlier.

An exemption is good for only 1 year.

You must give your employer a new Form W-4

by February 15 each year to continue your ex-

emption.

Supplemental Wages

Supplemental wages include bonuses, commis-

sions, overtime pay, vacation allowances, cer-

tain sick pay, and expense allowances under

certain plans. The payer can figure withholding

on supplemental wages using the same method

used for your regular wages. However, if these

payments are identified separately from regular

wages, your employer or other payer of supple-

mental wages can withhold income tax from

these wages at a 22% flat rate under certain cir-

cumstances as explained in the section on sup-

plemental wages in Pub. 15.

Expense allowances. Reimbursements or

other expense allowances paid by your em-

ployer under a nonaccountable plan are treated

as supplemental wages. A nonaccountable plan

is a reimbursement arrangement that does not

require you to account for, or prove, your busi-

ness expenses to your employer or does not re-

quire you to return your employer's payments

that are more than your proven expenses.

Reimbursements or other expense allowan-

ces paid under an accountable plan that are

more than your proven expenses are treated as

paid under a nonaccountable plan if you don’t

return the excess payments within a reasonable

period of time.

Accountable plan. To be an accountable plan,

your employer's reimbursement or allowance

arrangement must include all three of the follow-

ing rules.

•

Your expenses must have a business con-

nection. That is, you must have paid or in-

curred deductible expenses while perform-

ing services as an employee of your

employer.

•

You must adequately account to your em-

ployer for these expenses within a reason-

able period of time.

•

You must return any excess reimbursement

or allowance within a reasonable period of

time.

An excess reimbursement or allowance is

any amount you are paid that is more than the

business-related expenses that you adequately

accounted for to your employer.

The definition of reasonable period of time

depends on the facts and circumstances of your

situation. However, regardless of those facts

and circumstances, actions that take place

within the times specified in the following list will

be treated as taking place within a reasonable

period of time.

•

You receive an advance within 30 days of

the time you have an expense.

•

You adequately account for your expenses

within 60 days after they were paid or in-

curred.

•

You return any excess reimbursement

within 120 days after the expense was paid

or incurred.

•

You are given a periodic statement (at least

quarterly) that asks you to either return or

adequately account for outstanding advan-

ces and you comply within 120 days of the

statement.

Nonaccountable plan. Any plan that does not

meet the definition of an accountable plan is

considered a nonaccountable plan.

For more information about accountable and

nonaccountable plans, see chapter 6 of Pub.

463, Travel, Entertainment, Gift, and Car Expen-

ses.

Penalties

You may have to pay a penalty of $500 if both of

the following apply.

•

You make statements on your Form W-4

that reduce the amount of tax withheld.

•

You have no reasonable basis for those

statements at the time you prepare your

Form W-4.

There is also a criminal penalty for willfully

supplying false or fraudulent information on your

Form W-4 or for willfully failing to supply infor-

mation that would increase the amount with-

held. The penalty upon conviction can be either

a fine of up to $1,000 or imprisonment for up to

1 year, or both.

These penalties will apply if you deliberately

and knowingly falsify your Form W-4 in an at-

tempt to reduce or eliminate the proper with-

holding of taxes. A simple error or an honest

mistake won’t result in one of these penalties.

Tips

The tips you receive while working on your job

are considered part of your pay. You must in-

clude your tips on your tax return on the same

line as your regular pay. However, tax isn’t with-

held directly from tip income, as it is from your

regular pay. Nevertheless, your employer will

take into account the tips you report when figur-

ing how much to withhold from your regular pay.

Reporting tips to your employer. If you re-

ceive tips of $20 or more in a month while work-

ing for any one employer, you must report to

your employer the total amount of tips you re-

ceive on the job during the month. The report is

due by the 10th day of the following month.

If you have more than one job, make a sepa-

rate report to each employer. Report only the

tips you received while working for that em-

ployer, and only if they total $20 or more for the

month.

How employer figures amount to withhold.

The tips you report to your employer are coun-

ted as part of your income for the month you re-

port them. Your employer can figure your with-

holding in either of two ways.

•

By withholding at the regular rate on the

sum of your pay plus your reported tips.

•

By withholding at the regular rate on your

pay plus a percentage of your reported

tips.

Not enough pay to cover taxes. If your regu-

lar pay isn’t enough for your employer to with-

hold all the tax (including income tax and social

security and Medicare taxes (or the equivalent

railroad retirement tax)) due on your pay plus

your tips, you can give your employer money to

cover the shortage.

If you don’t give your employer money to

cover the shortage, your employer first with-

holds as much Medicare tax and social security

or railroad retirement tax as possible, up to the

proper amount, and then withholds income tax

up to the full amount of your pay. If not enough

tax is withheld, you may have to pay estimated

tax. When you file your return, you may also

have to pay any Medicare and social security

tax or railroad retirement tax your employer

could not withhold.

Tips not reported to your employer. On your

tax return, you must report all the tips you re-

ceive during the year, even tips you don’t report

to your employer (this includes the value of any

noncash tips you received, such as tickets,

passes, or other items of value). Make sure you

are having enough tax withheld, or are paying

enough estimated tax (see chapter 2), to cover

all your tip income.

Allocated tips. If you work in a large food or

beverage establishment, your employer may

have to report an allocated amount of tips on

your Form W-2.

Your employer should not withhold income

tax, Medicare tax, and social security or railroad

retirement tax on the allocated amount. With-

holding is based only on your pay plus your re-

ported tips. Your employer should refund to you

any incorrectly withheld tax.

More information. For more information on

the reporting and withholding rules for tip in-

come and on tip allocation, see Pub. 531, Re-

porting Tip Income.

Taxable Fringe Benefits

The value of certain noncash fringe benefits you

receive from your employer is considered part

of your pay. Your employer must generally with-

hold income tax on these benefits from your

regular pay.

Although the value of your personal use of

an employer-provided car, truck, or other high-

way motor vehicle is taxable, your employer can

choose not to withhold income tax on that

amount. Your employer must notify you if this

choice is made.

When benefits are considered paid. Your

employer can choose to treat a fringe benefit as

paid by the pay period, by the quarter, or on

some other basis as long as the benefit is

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8 Chapter 1 Tax Withholding for 2024 Publication 505 (2024)

considered paid at least once a year. Your em-

ployer can treat the benefit as being paid on

one or more dates during the year, even if you

get the entire benefit at one time.

Special rule. Your employer can choose to

treat a benefit provided during November or De-

cember as paid in the next year. Your employer

must notify you if this rule is used.

Example. Your employer considers the

value of benefits paid from November 1, 2022,

through October 31, 2023, as paid to you in

2023. To determine the total value of benefits

paid to you in 2024, your employer will add the

value of any benefits paid in November and De-

cember of 2023 to the value of any benefits paid

in January through October of 2024.

Exceptions. Your employer can’t choose

when to withhold tax on the transfer of either

real property or personal property of a kind nor-

mally held for investment (such as stock). Your

employer must withhold tax on these benefits at

the time of the transfer.

How withholding is figured. Your employer

can either add the value of a fringe benefit to

your regular pay and figure income tax withhold-

ing on the total or withhold a flat 22% of the

benefit's value.

If the benefit's actual value can’t be deter-

mined when it is paid or treated as paid, your

employer can use a reasonable estimate. Your

employer must determine the actual value of the

benefit by January 31 of the next year. If the ac-

tual value is more than the estimate, your em-

ployer must pay the IRS any additional with-

holding tax required. Your employer has until

April 1 of that next year to recover from you the

additional income tax paid to the IRS for you.

How your employer reports your benefits.

Your employer must report on Form W-2 the to-

tal of the taxable fringe benefits paid or treated

as paid to you during the year and the tax with-

held for the benefits. These amounts can be

shown either on the Form W-2 for your regular

pay or on a separate Form W-2. If your em-

ployer provided you with a car, truck, or other

motor vehicle and chose to treat all of your use

of it as personal, its value must be either sepa-

rately shown on Form W-2 or reported to you on

a separate statement.

More information. For information on fringe

benefits, see Fringe Benefits under Employee

Compensation in Pub. 525, Taxable and Non-

taxable Income.

Sick Pay

Sick pay is a payment to you to replace your

regular wages while you are temporarily absent

from work due to sickness or personal injury. To

qualify as sick pay, it must be paid under a plan

to which your employer is a party.

If you receive sick pay from your employer or

an agent of your employer, income tax must be

withheld. An agent who does not pay regular

wages to you may choose to withhold income

tax at a flat rate.

However, if you receive sick pay from a third

party who isn’t acting as an agent of your em-

ployer, income tax will be withheld only if you

choose to have it withheld. See Form W-4S,

later.

If you receive payments under a plan in

which your employer does not participate (such

as an accident or health plan where you paid all

the premiums), the payments are not sick pay

and are usually not taxable.

Union agreements. If you receive sick pay un-

der a collective bargaining agreement between

your union and your employer, the agreement

may determine the amount of income tax with-

holding. See your union representative or your

employer for more information.

Form W-4S. If you choose to have income tax

withheld from sick pay paid by a third party,

such as an insurance company, you must fill out

Form W-4S. Its instructions contain a worksheet

you can use to figure the amount you want with-

held. They also explain restrictions that may ap-

ply.

Give the completed form to the payer of your

sick pay. The payer must withhold according to

your directions on the form.

Form W-4S remains in effect until you

change or cancel it, or stop receiving payments.

You can change your withholding by giving a

new Form W-4S or a written notice to the payer

of your sick pay.

Estimated tax. If you don’t request withholding

on Form W-4S, or if you don’t have enough tax

withheld, you may have to pay estimated tax. If

you don’t pay enough tax, either through esti-

mated tax or withholding, or a combination of

both, you may have to pay a penalty. See chap-

ter 2.

Pensions and Annuities

Income tax will usually be withheld from your

pension or annuity distributions unless you

choose not to have it withheld. This rule applies

to distributions from:

•

An IRA;

•

A life insurance company under an endow-

ment, annuity, or life insurance contract;

•

A pension, annuity, or profit-sharing plan;

•

A stock bonus plan; and

•

Any other plan that defers the time you re-

ceive compensation.

The amount withheld depends on whether

you receive payments spread out over more

than 1 year (periodic payments), within 1 year

(nonperiodic payments), or as an eligible roll-

over distribution (ERD). Income tax withholding

from an ERD is mandatory. ERDs are discussed

under Eligible Rollover Distributions, later.

Nontaxable part. The part of your pension or

annuity that is a return of your investment in

your retirement plan (the amount you paid into

the plan or its cost to you) isn’t taxable. Income

tax won’t be withheld from the part of your pen-

sion or annuity that isn’t taxable. The tax with-

held will be figured on, and can’t be more than,

the taxable part.

For information about figuring the part of

your pension or annuity that isn’t taxable, see

Pub. 575, Pension and Annuity Income.

Periodic Payments

Withholding from periodic payments of a pen-

sion or annuity is figured similarly to withholding

from certain salaries and wages. To tell the

payer of your pension or annuity how much you

want withheld, fill out Form W-4P or a similar

form provided by the payer. Follow instructions

for Form W-4P and the rules discussed under

Form W-4P, earlier, to fill out your 2024 Form

W-4P.

Note. Use Form W-4, not Form W-4P, if you

receive any of the following.

•

Military retirement pay.

•

Payments from certain nonqualified defer-

red compensation plans. These are em-

ployer plans that pay part of your compen-

sation at a later time, but are not

tax-qualified deferred compensation plans.

See Nonqualified Deferred Compensation

and Section 457 Plans in Pub. 957, Re-

porting Back Pay and Special Wage Pay-

ments to the Social Security Administra-

tion.

Withholding rules. The withholding rules for

pensions and annuities differ from those for sal-

aries and wages in the following ways.

•

If a 2024 Form W-4P is used for withhold-

ing for payments beginning in 2024, and

you don't fill out a withholding certificate,

tax will be withheld as if your filing status is

single with no adjustments made in Steps

2 through 4.

•

You can choose not to have tax withheld,

regardless of how much tax you owed last

year or expect to owe this year. You don’t

have to qualify for exemption. See Choos-

ing Not To Have Income Tax Withheld,

later.

•

If a 2024 Form W-4P is used for withhold-

ing for payments beginning in 2024, and

you don't give the payer your SSN in the

required manner or the IRS notifies the

payer before any payment or distribution is

made that you gave an incorrect SSN, tax

will be withheld as if your filing status is sin-

gle with no adjustments in Steps 2 through

Effective date of withholding certificate. If

you give your withholding certificate (Form

W-4P or a similar form) to the payer on or before

the date your payments start, it will be put into

effect by the first payment made more than 30

days after you submit the certificate.

If you give the payer your certificate after

your payments start, it will be put into effect with

the first payment, which is at least 30 days after

you submit it. However, the payer can elect to

put it into effect earlier.

Nonperiodic Payments

Tax will be withheld at a flat 10% rate on any

nonperiodic payments you receive, unless you

choose a different withholding rate.

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Publication 505 (2024) Chapter 1 Tax Withholding for 2024 9

Use Form W-4R, line 2, to choose a with-

holding rate other than the default 10% rate.

You can choose a rate between 0% and 100%.

You can choose to have no federal income tax

withheld by entering “-0-” on line 2. Generally,

you can't choose less than 10% for payments to

be delivered outside of the United States and its

territories. If you want to revoke a choice not to

have tax withheld, see Choosing Not To Have

Income Tax Withheld, later.

You may need to use Form W-4R to

ask for additional withholding. If you

don’t have enough tax withheld, you

may need to pay estimated tax, as explained in

chapter 2.

Eligible Rollover

Distributions

A distribution you receive that is eligible to be

rolled over tax free into a qualified retirement or

annuity plan is called an eligible rollover distri-

bution (ERD). This is the taxable part of any dis-

tribution from a qualified pension plan or

tax-sheltered annuity that isn’t any of the eight

following distributions.

The payer of a distribution described in num-

bers 1, 2, and 3 in the following list must with-

hold at a flat 20% rate on any part of an ERD

that is distributed rather than rolled over directly

to another qualified plan. Withholding on these

distributions is mandatory. You may choose a

rate higher than 20% by entering it on line 2 of

Form W-4R. Don't give Form W-4R to your

payer unless you want more than 20% withheld.

The distributions described in numbers 4

through 8 in the following list are not ERDs for

purposes of the mandatory withholding require-

ment.

1. Distributions required by federal law, such

as required minimum distributions.

2. One of a series of substantially equal peri-

odic pension or annuity payments made

over:

a. Your life (or your life expectancy) or

the joint lives of you and your benefi-

ciary (or your life expectancies), or

b. A specified period of 10 or more

years.

3. Qualifying "hardship" distributions.

4. Generally distributions from a pen-

sion-linked emergency savings account.

5. Eligible distributions to a domestic abuse

victim.

6. Qualified disaster recovery distributions.

7. Qualified birth or adoption distributions.

8. Emergency personal expense distribu-

tions.

Choosing Not To Have

Income Tax Withheld

For payments other than eligible rollover distri-

butions, you can choose not to have income tax

withheld. The payer will tell you how to make

this choice. If you use Form W-4R, enter “-0-”

CAUTION

on line 2 to choose not to have withholding. This

choice will remain in effect until you decide you

want withholding and inform the payer. See Re-

voking a choice not to have tax withheld, later.

The payer must withhold if either of the fol-

lowing applies.

•

You don’t give the payer your SSN in the

required manner.

•

The IRS notifies the payer, before any pay-

ment or distribution is made, that you gave

it an incorrect SSN.

If you don’t have any income tax withheld

from your pension or annuity, or if you don’t

have enough withheld, you may have to pay es-

timated tax. See chapter 2.

If you don’t pay enough tax, either through

estimated tax or withholding, or a combination

of both, you may have to pay a penalty.

Payments delivered outside the United

States. You must generally have tax withheld

from pension or annuity benefits delivered out-

side the United States. However, if you are a

U.S. citizen or resident alien, you can choose

not to have tax withheld if you give the payer of

the benefits a home address in the United

States or in a U.S. territory. The payer must

withhold tax if you provide a U.S. address for a

nominee, trustee, or agent to whom the benefits

are to be delivered, but don’t provide your own

home address in the United States or in a U.S.

territory.

Notice required of payer. The payer of your

pension or annuity must send you a notice tell-

ing you about your right to choose not to have

tax withheld.

Generally, the payer won’t send a notice to

you if it is reasonable to believe that the entire

amount you will be paid isn’t taxable.

Revoking a choice not to have tax withheld.

The payer of your pension or annuity will tell you

how to revoke your choice not to have income

tax withheld from periodic or nonperiodic pay-

ments. You can tell the payer exactly how much

to withhold by completing a new Form W-4P for

periodic payments or Form W-4R for nonperi-

odic payments.

Gambling Winnings

Income tax is withheld at a flat 24% rate from

certain kinds of gambling winnings.

Gambling winnings of more than $5,000

from the following sources are subject to in-

come tax withholding.

•

Any sweepstakes; wagering pool, including

payments made to winners of poker tour-

naments; or lottery.

•

Any other wager if the proceeds are at

least 300 times the amount of the bet.

It does not matter whether your winnings are

paid in cash, in property, or as an annuity. Win-

nings not paid in cash are taken into account at

their fair market value.

Exception. Gambling winnings from bingo,

keno, and slot machines are generally not sub-

ject to income tax withholding. However, you

may need to provide the payer with an SSN to

avoid withholding. See Backup withholding on

gambling winnings, later. If you receive gam-

bling winnings not subject to withholding, you

may need to pay estimated tax. See chapter 2.

If you don’t pay enough tax, either through

withholding or estimated tax, or a combination

of both, you may have to pay a penalty.

Form W-2G. If a payer withholds income tax

from your gambling winnings, you should re-

ceive a Form W-2G, Certain Gambling Win-

nings, showing the amount you won and the

amount withheld.

Report the tax withheld on your 2024 Form

1040 or 1040-SR, along with all other federal in-

come tax withheld, as shown on Forms W-2

and 1099.

Information to give payer. If the payer asks,

you must give the payer all the following infor-

mation.

•

Your name, address, and SSN.

•

Whether you made identical wagers (ex-

plained below).

•

Whether someone else is entitled to any

part of the winnings subject to withholding.

If so, you must complete Form 5754, State-

ment by Person(s) Receiving Gambling

Winnings, and return it to the payer. The

payer will use it to prepare a Form W-2G

for each of the winners.

Identical wagers. You may have to give the

payer a statement of the amount of your win-

nings, if any, from identical wagers. If this state-

ment is required, the payer will ask you for it.

You provide this statement by signing Form

W-2G or, if required, Form 5754.

Identical wagers include two bets placed in

a pari-mutuel pool on one horse to win a partic-

ular race. However, the bets are not identical if

one bet is “to win” and one bet is “to place.” In

addition, they are not identical if the bets were

placed in different pari-mutuel pools. For exam-

ple, a bet in a pool conducted by the racetrack

and a bet in a separate pool conducted by an

offtrack betting establishment in which the bets

are not pooled with those placed at the track

are not identical wagers.

Backup withholding on gambling winnings.

If you have any kind of gambling winnings and

don’t give the payer your SSN, the payer may

have to withhold income tax at a flat 24% rate.

This rule also applies to winnings of at least

$1,200 from bingo or slot machines or $1,500

from keno, and to certain other gambling win-

nings of at least $600.

Unemployment

Compensation

You can choose to have income tax withheld

from unemployment compensation. To make

this choice, fill out Form W-4V (or a similar form

provided by the payer) and give it to the payer.

All unemployment compensation is taxable.

So, if you don’t have income tax withheld, you

may have to pay estimated tax. See chapter 2.

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10 Chapter 1 Tax Withholding for 2024 Publication 505 (2024)

If you don’t pay enough tax, either through

withholding or estimated tax, or a combination

of both, you may have to pay a penalty.

Form 1099-G. If you receive $10 or more in un-

employment compensation, you will receive a

Form 1099-G, Certain Government Payments.

Box 1 will show the amount of unemployment

compensation you got for the year. Box 4 will

show the amount of federal income tax with-

held, if any.

Federal Payments

You can choose to have income tax withheld

from certain federal payments you receive.

These payments are the following.

1. Social security benefits.

2. Tier 1 railroad retirement benefits.

3. Commodity credit corporation loans you

choose to include in your gross income.

4. Payments under the Agricultural Act of

1949 (7 U.S.C. 1421 et seq.), as amen-

ded, or title II of the Disaster Assistance

Act of 1988 that are treated as insurance

proceeds and that you received because:

a. Your crops were destroyed or dam-

aged by drought, flood, or any other

natural disaster; or

b. You were unable to plant crops be-

cause of a natural disaster described

in (a).

5. Dividends and other distributions from

Alaska Native Corporations to their share-

holders.

6. Any other payment under federal law as

determined by the Secretary.

To make this choice, fill out Form W-4V (or a

similar form provided by the payer) and give it to

the payer.

If you don’t choose to have income tax with-

held, you may have to pay estimated tax. See

chapter 2.

If you don’t pay enough tax, either through

withholding or estimated tax, or a combination

of both, you may have to pay a penalty.

More information. For more information about

the tax treatment of social security and railroad

retirement benefits, see Pub. 915, Social Secur-

ity and Equivalent Railroad Retirement Benefits.

Get Pub. 225, Farmer's Tax Guide, for informa-

tion about the tax treatment of commodity credit

corporation loans or crop disaster payments.

Payment to shareholders of Alaska Native

Corporations (ANCs). If you are a share-

holder of an ANC, you can request to have in-

come tax withheld from dividends and other dis-

tributions you receive from the ANC. To make

this request, fill out Form W-4V (or a similar

form provided by the payer) and give it to the

payer. A request for withholding isn’t effective

until the ANC indicates in writing that it accepts

the request or begins withholding. Contact the

payer if it isn’t clear that the payer has accepted

your Form W-4V.

If you don’t choose to have income tax with-

held, or the ANC doesn’t accept your request,

you may have to pay estimated tax. See chap-

ter 2.

If you don’t pay enough tax, either through

withholding or estimated tax, or a combination

of both, you may have to pay a penalty.

Backup Withholding

Banks or other businesses that pay you certain

kinds of income must file an information return

(Form 1099) with the IRS. The information re-

turn shows how much you were paid during the

year. It also includes your name and taxpayer

identification number (TIN). TINs are explained

later in this discussion.

These payments are generally not subject to

withholding. However, “backup” withholding is

required in certain situations.

Payments subject to backup withholding.

Backup withholding can apply to most kinds of

payments that are reported on Form 1099.

These include:

•

Interest payments (Form 1099-INT);

•

Government payments (Form 1099-G);

•

Dividends (Form 1099-DIV);

•

Patronage dividends, but only if at least

half the payment is in money (Form

1099-PATR);

•

Rents, profits, or other gains (Form

1099-MISC);

•

Commissions, fees, or other payments for

work you do as an independent contractor

(Form 1099-NEC);

•

Payments by brokers (Form 1099-B);

•

Payments by fishing boat operators, but

only the part that is in money and that rep-

resents a share of the proceeds of the

catch (Form 1099-MISC); and

•

Royalty payments (Form 1099-MISC).

Backup withholding may also apply to gambling

winnings. See Backup withholding on gambling

winnings under Gambling Winnings, earlier.

Payments not subject to backup withhold-

ing. Backup withholding does not apply to pay-

ments reported on Form 1099-MISC (other than

payments by fishing boat operators and royalty

payments) unless at least one of the following

three situations applies.

•

The amount you receive from any one

payer is $600 or more.

•

The payer had to give you a Form 1099 last

year.

•

The payer made payments to you last year

that were subject to backup withholding.

Form 1099 and backup withholding are gen-

erally not required for a payment of less than

$10.

Withholding rules. When you open a new ac-

count, make an investment, or begin to receive

payments reported on Form 1099, the bank or

other business will give you Form W-9, Request

for Taxpayer Identification Number and Certifi-

cation, or a similar form. You must enter your

TIN on the form and, if your account or invest-

ment will earn interest or dividends, you must

also certify (under penalties of perjury) that your

TIN is correct and that you are not subject to

backup withholding.

The payer must withhold at a flat 24% rate in

the following situations.

•

You don’t give the payer your TIN in the re-

quired manner.

•

The IRS notifies the payer that the TIN you

gave is incorrect.

•

You are required, but fail, to certify that you

are not subject to backup withholding.

•

The IRS notifies the payer to start withhold-

ing on interest or dividends because you

have underreported interest or dividends

on your income tax return. The IRS will do

this only after it has mailed you four notices

over at least a 210-day period.

Taxpayer identification number (TIN).

Your TIN is one of the following three numbers.

•

An SSN.

•

An employer identification number (EIN).

•

An IRS individual taxpayer identification

number (ITIN). Aliens who don’t have an

SSN and are not eligible to get one should

get an ITIN. Use Form W-7, Application for

IRS Individual Taxpayer Identification Num-

ber, to apply for an ITIN.

An ITIN is for federal tax use only. It does not

entitle you to social security benefits or change

your employment or immigration status under

U.S. law. For more information on ITINs, see

Pub. 1915, Understanding Your IRS Individual

Taxpayer Identification Number.

If you were assigned an ITIN before

January 1, 2013, or if you have an ITIN

that you haven’t included on a tax re-

turn in the last 3 consecutive years, you may

need to renew it. For more information, see the

Instructions for Form W-7.

How to prevent or stop backup withholding.

If you have been notified by a payer that the TIN

you gave is incorrect, you can usually prevent

backup withholding from starting or stop backup

withholding once it has begun by giving the

payer your correct name and TIN. You must cer-

tify that the TIN you give is correct.

However, the payer will provide additional in-

structions if the TIN you gave needs to be vali-

dated by the Social Security Administration or

by the IRS. This may happen if both the follow-

ing conditions exist.

1. The IRS notifies the payer twice within 3

calendar years that a TIN you gave for the

same account is incorrect.

2. The incorrect TIN is still being used on the

account when the payer receives the sec-

ond notice.

Underreported interest or dividends. If

you have been notified that you underreported

interest or dividends, you must request and re-

ceive a determination from the IRS to prevent

backup withholding from starting or to stop

backup withholding once it has begun. Your re-

quest must show that at least one of the follow-

ing situations applies.

•

No underreporting occurred.

•

You have a bona fide dispute with the IRS

about whether an underreporting occurred.

•

Backup withholding will cause or is caus-

ing an undue hardship and it is unlikely that

CAUTION

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Publication 505 (2024) Chapter 1 Tax Withholding for 2024 11

you will underreport interest and dividends

in the future.

•

You have corrected the underreporting by

filing an original return if you didn’t previ-

ously file one, or by filing an amended re-

turn, and by paying all taxes, penalties, and

interest due for any underreported interest

or dividend payments.

If the IRS determines that backup withhold-

ing should stop, it will provide you with certifica-

tion and will notify the payers who were sent no-

tices earlier.

Penalties. There are civil and criminal penal-

ties for giving false information to avoid backup

withholding. The civil penalty is $500. The crimi-

nal penalty, upon conviction, is a fine of up to

$1,000 or imprisonment of up to 1 year, or both.

Worksheets for Chapter 1

Use the following worksheets to figure your correct withholding and adjustments.

Use... To...

Worksheet 1-1 and

Worksheet 1-2

Exemption From Withholding for

Persons/Dependents Age 65 or

Older or Blind

Figure your total expected income for 2024 to determine if you are exempt from withholding. Use Worksheet

1-1 if, in 2023, you had a right to a refund of all federal income tax withheld because of no tax liability. Use

Worksheet 1-2 if you are a dependent for 2024 and, for 2023, you had a refund of all federal income tax

withheld because of no tax liability.

Worksheet 1-3

Projected Tax for 2024

Project the taxable income you will have for 2024 and figure the amount of tax you will have to pay on that

income.

Worksheet 1-4

Tax Computation Worksheets for

2024

Figure the amount of tax on your projected taxable income.

Worksheet 1-5

Projected Withholding for 2024

Project the amount of federal income tax that you will have withheld in 2024, compare your projected

withholding with your projected tax, and determine whether the amount withheld each payday should be

adjusted.

Worksheet 1-6

Tax Credits for 2024 Form W-4 or

Form W-4P

Figure any extra amount to include in Step 3 of Form W-4 or Form W-4P to account for your projected tax

credits that are not otherwise taken into consideration.

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12 Chapter 1 Tax Withholding for 2024 Publication 505 (2024)

Exemption From Withholding for Persons Age 65 or Older or Blind

Use this worksheet only if, for 2023, you had a right to a refund of all federal income tax withheld because you had no tax liability.

Caution. This worksheet does not apply if you can be claimed as a dependent. See Worksheet 1-2 instead.

Check the boxes below that apply to you.

65 or older Blind

Check the boxes below that apply to your spouse’s standard deduction.*

65 or older Blind

Add the number of boxes you checked in

1 and 2 above. Enter the result ..................................................................................

You can claim exemption from withholding if:

Your filing status is: and the number on line 3 above is:

and your 2024

total income will

be no more than:

Single 1 $16,550

2 18,500

Head of 1 $23,850

household 2 25,800

Married filing 1 $16,150

separately for 2 17,700

both 2023 and 3 19,250

2024 4 20,800

Other married 1 $30,750**

status 2 32,300**

3 33,850**

4 35,400**

** Include both spouses' income whether you will file separately or jointly.

Qualifying 1 $30,750

surviving spouse 2 32,300

You can’t claim exemption from withholding if your total income will be more than the amount shown for your filing status.

* You can check the appropriate boxes for your spouse if your filing status is married filing jointly. You can check the appropriate boxes for your spouse if your filing

status is married filing separately and your spouse had no income, isn't filing a return, and can't be claimed as a dependent on another person's return.

Worksheet 1-1.

Exemption From Withholding for Dependents Age 65 or Older or Blind

Use this worksheet only if, for 2024, you are a dependent and if, for 2023, you had a right to a refund of all federal income tax withheld because you

had no tax liability.

1. Enter your expected earned income plus $450 ............................................

2. Minimum amount .....................................................................

$ 1,300

3. Compare lines 1 and 2. Enter the larger amount ...........................................

4. Limit ................................................................................

14,600

5. Compare lines 3 and 4. Enter the smaller amount .........................................

6. Enter the appropriate amount from the following table ......................................

Single

Either 65 or older or blind $1,950

Both 65 or older and blind 3,900

Married filing separately

Either 65 or older or blind 1,550

Both 65 or older and blind 3,100

7. Add lines 5 and 6. Enter the result .......................................................

8. Enter your total expected income ........................................................

You can claim exemption from withholding if line 7 is equal to or more than line 8. You can’t claim exemption from withholding if line 8 is more than

line 7.

Worksheet 1-2.

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Publication 505 (2024) Chapter 1 Tax Withholding for 2024 13

Worksheet 1-3. Projected Tax for 2024

Keep for Your Records

Use this worksheet to figure your projected tax for 2024. Note. Enter combined amounts if married filing jointly.

1. Enter amount of adjusted gross income (AGI) you expect in 2024. (To determine this, you may want to start with

the AGI on your last year's return, and add or subtract your expected changes. Also, take into account items listed

under What's New for 2024, earlier.)

Note. If self-employed, first complete Worksheet 2-3 to figure your expected deduction for self-employment tax.

Subtract the amount from Worksheet 2-3, line 11, to figure the line 1 entry .............................

2. If you:

• Don’t plan to itemize deductions on Schedule A (Form 1040), use Worksheet 2-4 to figure your expected

standard deduction.

• Plan to itemize deductions, enter the amount of your estimated itemized deductions.

• Qualify for the deduction for qualified business income, enter the estimated amount of the deduction you are

allowed on your qualified business income from a qualified trade or business. Add this amount to your expected

standard deduction or estimated itemized deductions and enter the total here ........................

3. Expected taxable income. Subtract line 2 from line 1. (If zero or less, enter -0- here and on line 4,

then go to line 5.) .......................................................................

4. If the amount on line 1:

• Doesn’t include a net capital gain or qualified dividends and you didn’t exclude foreign earned income or

exclude or deduct foreign housing in arriving at the amount on line 1, use Worksheet 1-4 to figure the tax to enter

here.

• Includes a net capital gain or qualified dividends, use Worksheet 2-5 to figure the tax to enter here.

• Was figured by excluding foreign earned income or excluding or deducting foreign housing, use

Worksheet 2-6 to figure the tax to enter here .................................................

5. Enter any expected additional taxes from an election to report your child's interest and dividends, lump-sum

distributions (Form 4972), and alternative minimum tax ...........................................

6. Add lines 4 and 5 .......................................................................

7. Enter the amount of any expected tax credits. See Table 1-2 .......................................

8. Subtract line 7 from line 6 (if zero or less, enter -0-) ..............................................

9. Self-employment tax. Enter the amount from Worksheet 2-3, line 10. (If you expect to file jointly and both of you are

self-employed, figure the self-employment tax for each of you separately and enter the total on line 9.) ........

10. Enter the total of any other expected taxes* ....................................................

10.

11. Projected tax for 2024. Add lines 8 through 10. Enter the total here and on Worksheet 1-5, line 1 ...........

11.

* Use the 2023 Instructions for Form 1040 to determine if you expect to owe, for 2024, any of the taxes that would have been entered on

your 2023 Schedule 2 (Form 1040), lines 7 through 17z.

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14 Chapter 1 Tax Withholding for 2024 Publication 505 (2024)

Tax Computation Worksheets for 2024Worksheet 1-4.

Keep for Your Records

Note. If you are figuring the tax on an amount from Worksheet 2-5 (line 1 or 14), or Worksheet 2-6 (line 2 or 3), enter the

amount from that worksheet in column (a) of the row that applies to that amount of income. Enter the result on the

appropriate line of the worksheet you are completing.

a. Single. Use this worksheet to figure the amount to enter on Worksheet 1-3, line 4, if you expect your filing status for 2024 to be Single.

Expected Taxable

Income

(a)

Enter amount

from

Worksheet 1-3,

line 3*

(b)

Multiplication amount

(c)

Multiply

(a) by (b)

(d)

Subtraction

amount

(e)

Subtract (d) from (c). Enter the result

here and on Worksheet 1-3, line 4*

If Worksheet 1-3,

line 3* is —

Over But not

over

$0 $11,600 × 10% (0.10) $0

11,600 47,150 × 12% (0.12) 232.00

47,150 100,525 × 22% (0.22) 4,947.00

100,525 191,950 × 24% (0.24) 6,957.50

191,950 243,725 × 32% (0.32) 22,313.50

243,725 609,350 × 35% (0.35) 29,625.25

609,350 - - - - - × 37% (0.37) 41,812.25

* If you are using Worksheet 2-5, for column (a) above, use the amount from line 1 or line 14 and enter the result (from column (e)) on line 37 or

line 39, as appropriate.

If you are using Worksheet 2-6, for column (a) above, use the amount from line 2 or line 3 and enter the result (from column (e)) on line 4 or line 5,

as appropriate.

b. Head of Household. Use this worksheet to figure the amount to enter on Worksheet 1-3, line 4, if you expect your filing status for 2024

to be Head of Household.

Expected Taxable

Income

(a)

Enter amount

from

Worksheet 1-3,

line 3*

(b)

Multiplication

amount

(c)

Multiply

(a) by (b)

(d)

Subtraction

amount

(e)

Subtract (d) from (c). Enter the result

here and on Worksheet 1-3, line 4*

If Worksheet 1-3,

line 3* is —

Over But not

over

$0 $16,550 × 10% (0.10) $0

16,550 63,100 × 12% (0.12) 331.00

63,100 100,500 × 22% (0.22) 6,641.00

100,500 191,950 × 24% (0.24) 8,651.00

191,950 243,700 × 32% (0.32) 24,007.00

243,700 609,350 × 35% (0.35) 31,318.00

609,350 - - - - - × 37% (0.37) 43,505.00

* If you are using Worksheet 2-5, for column (a) above, use the amount from line 1 or line 14 and enter the result (from column (e)) on line 37

or line 39, as appropriate.

If you are using Worksheet 2-6, for column (a) above, use the amount from line 2 or line 3 and enter the result (from column (e)) on line 4 or

line 5, as appropriate.

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Publication 505 (2024) Chapter 1 Tax Withholding for 2024 15

Tax Computation Worksheet for 2024 (Continued)

c. Married Filing Jointly or Qualifying Surviving Spouse. Use this worksheet to figure the amount to enter on Worksheet 1-3, line 4, if

you expect your filing status for 2024 to be Married Filing Jointly or Qualifying Surviving Spouse.

Expected Taxable

Income

(a)

Enter amount

from

Worksheet 1-3,

line 3*

(b)

Multiplication

amount

(c)

Multiply

(a) by (b)

(d)

Subtraction

amount

(e)

Subtract (d) from (c). Enter the result

here and on Worksheet 1-3, line 4*

If Worksheet 1-3,

line 3* is —

Over But not

over

$0 $23,200 × 10% (0.10) $0

23,200 94,300 × 12% (0.12) 464.00

94,300 201,050 × 22% (0.22) 9,894.00

201,050 383,900 × 24% (0.24) 13,915.00

383,900 487,450 × 32% (0.32) 44,627.00

487,450 731,200 × 35% (0.35) 59,250.50

731,200 - - - - - × 37% (0.37) 73,874.50

* If you are using Worksheet 2-5, for column (a) above, use the amount from line 1 or line 14 and enter the result (from column (e)) on line 37

or line 39, as appropriate.

If you are using Worksheet 2-6, for column (a) above, use the amount from line 2 or line 3 and enter the result (from column (e)) on line 4 or

line 5, as appropriate.

d. Married Filing Separately. Use this worksheet to figure the amount to enter on Worksheet 1-3, line 4, if you expect your filing status for 2024 to

be Married Filing Separately.

Expected Taxable

Income

(a)

Enter amount from

Worksheet 1-3,

line 3*

(b)

Multiplication amount

(c)

Multiply

(a) by (b)

(d)

Subtraction

amount

(e)

Subtract (d) from (c). Enter the result

here and on Worksheet 1-3, line 4*

If Worksheet 1-3,

line 3* is —

Over But not

over

$0 $11,600 × 10% (0.10) $0

11,600 47,150 × 12% (0.12) 232.00

47,150 100,525 × 22% (0.22) 4,947.00

100,525 191,950 × 24% (0.24) 6,957.50

191,950 243,725 × 32% (0.32) 22,313.50

243,725 365,600 × 35% (0.35) 29,625.25

365,600 - - - - - × 37% (0.37) 36,937.25

* If you are using Worksheet 2-5, for column (a) above, use the amount from line 1 or line 14 and enter the result (from column (e)) on line 37 or

line 39, as appropriate.

If you are using Worksheet 2-6, for column (a) above, use the amount from line 2 or line 3 and enter the result (from column (e)) on line 4 or line 5,

as appropriate.

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16 Chapter 1 Tax Withholding for 2024 Publication 505 (2024)

Worksheet 1-5. Projected Withholding for 2024

Keep for Your Records

Use this worksheet to figure the amount of your projected withholding for 2024, compare it to your projected tax for 2024, and, if necessary, figure

any adjustment to the amount you have withheld each payday.

Note. If married filing jointly, enter combined amounts.

1. Enter your projected tax for 2024 from Worksheet 1-3, line 13 .......................................

2. Enter your total federal income tax withheld to date in 2024 from all sources of income. (For wages, you should be

able to find the withholding-to-date on your last pay slip or statement.) .................................. 2.

3. Enter the federal tax withholding you expect for the rest of 2024.

a. For each source of wages, multiply the amount of federal income tax now being withheld each payday by the

number of paydays remaining in the year and enter the combined amount for all jobs ..................... 3a.

b. For all other sources of recurring taxable income, multiply the withholding amount by the remaining number of

times the income is expected. For example, if you have federal income tax withheld from your monthly pension and

you will receive nine more payments this year, multiply your monthly withholding amount by 9 ............... 3b.

4. Add lines 2, 3a, and 3b. This is your projected withholding for 2024 ..................................

5. Compare the amounts on lines 1 and 4.

• If line 1 is more than line 4, subtract line 4 from line 1. You need to increase your withholding. Enter the result here

and go to line 6.

• If line 4 is more than line 1, subtract line 1 from line 4. You may want to decrease your withholding. Enter the

result here and go to line 6. 5.

6. Divide line 5 by the number of paydays (or other withholding events) remaining in 2024 and enter the result. This is the

additional amount you should use to either increase or decrease the amount you have withheld from each remaining

payday (or other withholding event). Follow the instructions for line 6 for your situation for completing a 2024 Form

W-4. The instructions are different if your withholding so far this year was based on a 2019 (or earlier) Form W-4 or a

2024 Form W-4 .......................................................................... 6.

Instructions for line 6—If your

withholding to date was figured

based on a 2019 (or earlier) Form

W-4.

Use the following instructions to

increase your withholding.

How do you increase your withholding? Follow

these steps to increase your withholding by completing

a 2024 Form W-4.

Step 1:

•

If your filing status was "Single" or

"Married, but withhold at higher

Single rate," check "Single."

•

If your filing status was "Married,"

check "Married filing jointly."

Note. Head of household filing status

was not a choice on the 2019 (or

earlier) Form(s) W-4.

Step 4(a):

•

If your filing status was "Single" or

"Married, but withhold at higher

Single rate," enter $10,100 (the

equivalent of 2 allowances) on

Step 4(a).

•

If your filing status was "Married,"

enter $15,150 (the equivalent of 3

allowances) on Step 4(a).

Step 4(b):

•

If there was an entry on line 5

(number of allowances), multiply

each claimed allowance by

$5,050 and enter the result on

Step 4(b).

Step 4(c):

•

If there is an amount on line 6,

add it to the amount on line 6 of

Worksheet 1-5 above, and enter

the result on Step 4(c).

Instructions for line 6—If your

withholding to date was figured

based on a 2019 (or earlier) Form

W-4.

Use the following instructions to

decrease your withholding.

How do you decrease your withholding? Follow

these steps to decrease your withholding by completing

a 2024 Form W-4.

Step 1:

•

If your filing status was "Single" or

"Married, but withhold at higher

Single rate," check "Single."

•

If your filing status was "Married,"

check "Married filing jointly."

Note. Head of household filing status was

not a choice on the 2019 (or earlier)

Form(s) W-4.

Step 3: Multiply the amount on line 6 of

Worksheet 1-5 by the number of paydays

in 2024 and enter this amount on Step 3.

Step 4(a):

•

If your filing status was "Single" or

"Married, but withhold at higher

Single rate," enter $10,100 (the

equivalent of 2 allowances) on Step

4(a).

•

If your filing status was "Married,"

enter $15,150 (the equivalent of 3

allowances) on Step 4(a).

Step 4(b):

•

If there was an entry on line 5

(number of allowances), multiply

each claimed allowance by $5,050

and enter the result on Step 4(b).

Step 4(c):

•

If there was an amount on line 6,

add it to the amount on Step 4(c).

Instructions for line 6—If your

withholding to date was figured

based on a 2024 Form W-4.

Use the following instructions to either

increase or decrease your

withholding.

How do you increase your withholding? Follow

these steps to increase your withholding by completing

a 2024 Form W-4.

•

Complete your new 2024 Form W-4

through Step 4(b) in the same way you

completed your previous Form W-4.

•

Add the amount, if any, on Step 4(c) of

your previous Form W-4 to the amount

on line 6 of Worksheet 1-5 above and

enter the result on Step 4(c) of your

new Form W-4.

How do you decrease your withholding?

•

Complete Steps 1, 2(c), 4(a), 4(b),

and 4(c) in the same way as you

completed your previous Form W-4.

•

Add the amount, if any, on Step 3 of

your previous Form W-4 to the product

of line 6 of Worksheet 1-5 multiplied

by the total number of paydays in 2024

and enter the result on Step 3 of your

new Form W-4.

If you make a mid-year change to your

withholding, you should complete and

give to your employer a new Form W-4

in January. The later in the year you change

your Form W-4, the more important it is that you

submit a new form the following January.

CAUTION

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Publication 505 (2024) Chapter 1 Tax Withholding for 2024 17

Tax Credits for 2024 Form W-4 or Form W-4PWorksheet 1-6.

Keep for Your Records

Use this worksheet to figure any extra amount to enter in Step 3 of Form W-4 or Form W-4P. For more information on these credits, see Tax

Credits, earlier.

Caution. The child tax credit and the credit for other dependents are already figured in Step 3 of Form W-4 or Form W-4P.

Enter the projected amount for each credit you expect to take (other than the child tax credit or credit for other

dependents).

1. Credit for the elderly or the disabled .............................................................

2. Credit for child and dependent care expenses ......................................................

3. Education credits ............................................................................

4. Adoption credit ..............................................................................

5. Foreign tax credit ............................................................................

6. Retirement savings contributions credit ...........................................................

7. Earned income credit .........................................................................

8. Premium tax credit ...........................................................................

9. Other credits (see Table 1-2) ...................................................................

10. Add lines 1 through 9. This is your total estimated tax credits. Include this amount in the total entered on Form W-4,

Step 3 .................................................................................... 10.

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18 Chapter 1 Tax Withholding for 2024 Publication 505 (2024)

Estimated Tax

for 2024

Introduction

Estimated tax is the method used to pay tax on

income that isn’t subject to withholding. This in-

cludes income from self-employment, interest,

dividends, rent, gains from the sale of assets,

prizes, and awards. You may also have to pay

estimated tax if the amount of income tax being

withheld from your salary, pension, or other in-

come isn’t enough.

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.

If you don’t pay enough tax, either through with-

holding or estimated tax, or a combination of

both, you may have to pay a penalty. If you don’t

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. For

information on when the penalty applies, see

the Instructions for Form 2210.

It would be helpful for you to have a

copy of your 2023 tax return and an es-

timate of your 2024 income nearby

while reading this chapter. Also, keep in mind

the items under What's New for 2024, earlier.

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.

Useful Items

You may want to see:

Form (and Instructions)

1040-ES Estimated Tax for Individuals

See How To Get Tax Help at the end of this pub-

lication for information about how to get this

publication and form.

TIP

1040-ES

Worksheets. You may need to use several of

the blank worksheets included in this chapter.

See Worksheets for Chapter 2 to locate what

you need.

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 earn-

ings. To do this, file a new Form W-4 with your

employer. See chapter 1.

Estimated tax not required. You don’t have to

pay estimated tax for 2024 if you meet all three

of the following conditions.

•

You had no tax liability for 2023.

•

You were a U.S. citizen or resident alien for

the whole year.

•

Your 2023 tax year covered a 12-month pe-

riod.

You had no tax liability for 2023 if your total

tax (defined later under Total tax for

2023—line 12b) was zero or you didn’t have to

file an income tax return.

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Publication 505 (2024) Chapter 2 Estimated Tax for 2024 19

Who Must Pay

Estimated Tax

If you owed additional tax for 2023, you may

have to pay estimated tax for 2024.

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.

General Rule

In most cases, you must pay estimated tax for

2024 if both of the following apply.

1. You expect to owe at least $1,000 in tax for

2024 after subtracting your withholding

and tax credits.

2. You expect your withholding and tax cred-

its to be less than the smaller of:

a. 90% of the tax to be shown on your

2024 tax return, or

b. 100% of the tax shown on your 2023

tax return. Your 2023 tax return must

cover all 12 months.

Note. The percentages in (2a) or (2b) just listed

may be different if you are a farmer, fisher, or

higher income taxpayer. See Special Rules,

later.

If the result from using the general rule

above suggests that you won’t have

enough withholding, complete the

2024 Estimated Tax Worksheet for a more ac-

curate calculation.

CAUTION

Figure 2-A takes you through the general

rule. You may find this helpful in determining if

you must pay estimated tax.

If all your income will be subject to in-

come tax withholding, you probably

don’t need to pay estimated tax.

Married Taxpayers

If you qualify to make joint estimated tax pay-

ments, apply the rules discussed here to your

joint estimated income.

You and your spouse can make joint estima-

ted tax payments even if you are not living to-

gether.

However, you and your spouse can’t make

joint estimated tax payments if:

•

You are legally separated under a decree

of divorce or separate maintenance,

•

You and your spouse have different tax

years, or

•

Either spouse is a nonresident alien (un-

less that spouse elected to be treated as a

resident alien for tax purposes). See

Choosing Resident Alien Status in Pub.

519.

Note. Individuals who are in registered do-

mestic partnerships, civil unions, or other simi-

lar formal relationships that are not marriages

under state law can’t make joint estimated tax

payments. These individuals can take credit

only for the estimated tax payments that he or

she made.

If you and your spouse can’t make joint esti-

mated tax payments, apply these rules to your

separate estimated income.

TIP

Making joint or separate estimated tax pay-

ments won’t affect your choice of filing a joint

tax return or separate returns for 2024.

2023 separate returns and 2024 joint return.

If you plan to file a joint return with your spouse

for 2024, but you filed separate returns for 2023,

your 2023 tax is the total of the tax shown on

your separate returns. You filed a separate re-

turn if you filed as single, head of household, or

married filing separately.

2023 joint return and 2024 separate returns.

If you plan to file a separate return for 2024, but

you filed a joint return for 2023, your 2023 tax is

your share of the tax on the joint return. You file

a separate return if you file as single, head of

household, or married filing separately.

To figure your share of the tax on a joint re-

turn, first figure the tax both you and your

spouse would have paid had you filed separate

returns for 2023 using the same filing status for

2024. Then, multiply the tax on the joint return

by the following fraction.

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

Special Rules

There are special rules for farmers, fishers, and

certain higher income taxpayers.

Figure 2-A. Do You Have To Pay Estimated Tax?

1. Will you owe $1,000 or

more for 2024 after

subtracting income tax

withholding and refundable

credits

* from your total

tax? (Don’t subtract any

estimated tax payments.)

2b. Will your income tax withholding

and refundable credits

* be at

least 100%

** of the tax shown

on your 2023 tax return?

Note: Your 2023 return must

have covered a 12-month

period.

Yes

Start Here

2a. Will your income tax

withholding and refundable

credits

* be at least 90%

(66

⁄3% for farmers and

shermen) of the tax shown on

your 2024 tax return?

You MUST make estimated

tax payment(s) by the

required due date(s).

You are NOT required to pay

estimated tax.

Yes

* Use the refundable credits shown on the 2024 Estimated Tax Worksheet, line 11b.

See When To Pay

Estimated Tax.

110% if less than two-thirds of your gross income for 2023 or 2024 is from farming or shing and your 2023 adjusted gross income was

more than $150,000 ($75,000 if your ling status for 2024 is married ling a separate return).

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20 Chapter 2 Estimated Tax for 2024 Publication 505 (2024)

Farmers and Fishers

If at least two-thirds of your gross income for

2023 or 2024 is from farming or fishing, substi-

tute 66

/3% for 90% in (2a) under General Rule,

earlier.

Gross income. Your gross income is all in-

come you receive in the form of money, goods,

property, and services that isn’t exempt from

tax. To determine whether two-thirds of your

gross income for 2023 was from farming or fish-

ing, use as your gross income the total of the in-

come (not loss) amounts.

Joint returns. On a joint return, you must add

your spouse's gross income to your gross in-

come to determine if at least two-thirds of your

total gross income is from farming or fishing.

Gross income from farming. This is income

from cultivating the soil or raising agricultural

commodities. It includes the following amounts.

•

Income from operating a stock, dairy, poul-

try, bee, fruit, or truck farm.

•

Income from a plantation, ranch, nursery,

range, orchard, or oyster bed.

•

Crop shares for the use of your land.

•

Gains from sales of draft, breeding, dairy,

or sporting livestock.

For 2023, gross income from farming is the

total of the following amounts.

•

Schedule F (Form 1040), Profit or Loss

From Farming, line 9.

•

Form 4835, Farm Rental Income and Ex-

penses, line 7.

•

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 1120-S), or Sched-

ule K-1 (Form 1041).

•

Your gains from sales of draft, breeding,

dairy, or sporting livestock shown on Form

4797, Sales of Business Property.

Wages you receive as a farm employee and

wages you receive from a farm corporation are

not gross income from farming.

Gross income from fishing. 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, sea-

weeds, or other aquatic forms of animal and

vegetable life.

Gross income from fishing includes the fol-

lowing amounts.

•

Schedule C (Form 1040), Profit or Loss

From Business, line 7.

•

Income for services as an officer or crew

member of a vessel while the vessel is en-

gaged in fishing.

•

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 Sched-

ule K-1 (Form 1041).

•

Certain taxable interest and punitive dam-

age awards received in connection with the

Exxon Valdez litigation.

•

Income for services normally performed in

connection with fishing.

Services normally performed in connection with

fishing include:

•

Shore service as an officer or crew mem-

ber of a vessel engaged in fishing; and

•

Services that are necessary for the imme-

diate preservation of the catch, such as

cleaning, icing, and packing the catch.

Higher Income Taxpayers

If your AGI for 2023 was more than $150,000

($75,000 if your filing status for 2024 is married

filing a separate return), substitute 110% for

100% in (2b) under General Rule, earlier.

For 2023, AGI is the amount shown on Form

1040 or 1040-SR, line 11.

Note. This rule does not apply to farmers

and fishers.

Aliens

Resident and nonresident aliens may also have

to pay estimated tax. Resident aliens should fol-

low the rules in this publication, unless noted

otherwise. Nonresident aliens should get Form

1040-ES (NR), U.S. Estimated Tax for Nonresi-

dent Alien Individuals.

You are an alien if you are not a citizen or na-

tional of the United States. You are a resident

alien if you either have a green card or meet the

substantial presence test.

For more information about withholding, the

substantial presence test, and Form 1040-ES

(NR), see Pub. 519.

Estates and Trusts

Estates and trusts must also pay estimated tax.

However, estates (and certain grantor trusts

that receive the residue of the decedent's estate

under the decedent's will) are exempt from pay-

ing estimated tax for the first 2 years after the

decedent's death.

Estates and trusts must use Form 1041-ES,

Estimated Income Tax for Estates and Trusts, to

figure and pay estimated tax.

How To Figure

Estimated Tax

To figure your estimated tax, you must figure

your expected AGI, taxable income, taxes, de-

ductions, and credits for the year.

When figuring your 2024 estimated tax, it

may be helpful to use your income, deductions,

and credits for 2023 as a starting point. Use

your 2023 federal tax return as a guide. You can

use Form 1040-ES to figure your estimated tax.

Nonresident aliens use Form 1040-ES (NR) to

figure estimated tax.

You must make adjustments both for

changes in your own situation and for recent

changes in the tax law. Some of these changes

are discussed earlier under What's New for

2024. For information about these and other

changes in the law, visit the IRS website at

IRS.gov.

The instructions for Form 1040-ES include a

worksheet to help you figure your estimated tax.

Keep the worksheet for your records.

2024 Estimated Tax

Worksheet

If you file Form 1040-SS use the Esti-

mated Tax Worksheet for Filers of Form

1040-SS, in Form 1040-ES to figure your esti-

mated tax.

Use Worksheet 2-1 to help guide you

through the information about completing the

2024 Estimated Tax Worksheet. You can also

find a copy of the worksheet in the instructions

for Form 1040-ES.

Expected AGI—Line 1

Your expected AGI for 2024 (line 1) is your ex-

pected total income minus your expected ad-

justments to income.

Total income. Include in your total income all

the income you expect to receive during the

year, even income that is subject to withholding.

However, don’t include income that is tax ex-

empt.

Total income includes all income and loss

for 2024 that, if you had received it in 2023,

would have been included on your 2023 tax re-

turn in the total on line 9 of Form 1040 or

1040-SR.

Social security and railroad retire-

ment benefits. If you expect to receive

social security or tier 1 railroad retire-

ment benefits during 2024, use Worksheet 2-2

to figure the amount of expected taxable bene-

fits you should include on line 1.

Adjustments to income. Be sure to subtract

from your expected total income all of the ad-

justments you expect to take on your 2024 tax

return.

Self-employed. If you expect to have

income from self-employment, use

Worksheet 2-3 to figure your expected

self-employment tax and your allowable deduc-

tion for self-employment tax. Include the

amount from Worksheet 2-3 in your expected

adjustments to income. If you file a joint return

and both you and your spouse have net earn-

ings from self-employment, each of you must

complete a separate worksheet.

Expected Taxable Income—

Line 2

Reduce your expected AGI for 2024 (line 1) by

either your expected itemized deductions or

your standard deduction.

Itemized deductions—line 2a. If you expect

to claim itemized deductions on your 2024 tax

return, enter the estimated amount on line 2a.

Itemized deductions are the deductions that

can be claimed on Schedule A (Form 1040).

CAUTION

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Publication 505 (2024) Chapter 2 Estimated Tax for 2024 21

Standard deduction—line 2a. If you expect

to claim the standard deduction on your 2024

tax return, enter the amount on line 2a. Use

Worksheet 2-4 to figure your standard deduc-

tion.

No standard deduction. The standard de-

duction for some individuals is zero. Your stand-

ard 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 ac-

counting period.

Expected Taxes and Credits—

Lines 4–11c

After you have figured your expected taxable in-

come (line 3), follow the steps next to figure

your expected taxes, credits, and total tax for

2024. Most people will have entries for only a

few of these steps. However, you should check

every step to be sure you don’t overlook any-

thing.

Step 1. Figure your expected income tax

(line 4). Generally, you will use the 2024 Tax

Rate Schedules to figure your expected income

tax.

However, see below for situations where you

must use a different method to figure your esti-

mated tax.

Tax on child's investment income. You

must use a special method to figure tax on the

income of the following children who have more

than $2,600 of investment income.

1. Children under age 18 at the end of 2024.

2. The following children if their earned in-

come isn’t more than half their support.

a. Children age 18 at the end of 2024.

b. Children who are full-time students at

least age 19 but under age 24 at the

end of 2024.

Tax on net capital gain. The regular in-

come tax rates for individuals don’t apply to a

net capital gain. Instead, your net capital gain is

taxed at a lower maximum rate.

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.

Tax on capital gain and qualified

dividends. If the amount on line 1 in-

cludes a net capital gain or qualified

dividends, use Worksheet 2-5 to figure your tax.

Note. The tax rate on your capital gains and

dividends will depend on your income.

Tax if excluding foreign earned in-

come or excluding or deducting for-

eign housing. If you expect to claim

the foreign earned income exclusion or the

housing exclusion or deduction on Form 2555,

use Worksheet 2-6 to figure your estimated tax.

Step 2. Total your expected taxes (line 6). In-

clude on line 6 the sum of the following.

1. Your tax on line 6.

2. Your expected alternative minimum tax

(AMT) from Form 6251.

3. Your expected additional taxes from Form

8814, Parents' Election To Report Child's

Interest and Dividends, and Form 4972,

Tax on Lump-Sum Distributions.

4. Any recapture of education credits.

Step 3. Subtract your expected credits (line 7).

If you are using your 2023 return as a guide and

filed Form 1040 or 1040-SR, your total credits

for 2023 were shown on line 21.

If your credits on line 7 are more than your

taxes on line 6, enter -0- on line 8 and go to

Step 4.

Step 4. Add your expected self-employment

tax (line 9). You should already have figured

your self-employment tax (see Self-employed

under Expected AGI—Line 1, earlier).

Step 5. Add your expected other taxes

(line 10).

Other taxes include the following. The total

of these taxes are entered on line 10.

1. Additional tax on early distributions from:

a. An IRA or other qualified retirement

plan,

b. A tax-sheltered annuity, or

c. A modified endowment contract en-

tered into after June 20, 1988.

2. Household employment taxes if:

a. You will have federal income tax with-

held from wages, pensions, annuities,

gambling winnings, or other income;

b. You would be required to make esti-

mated tax payments even if you didn’t

include household employment taxes

when figuring your estimated tax.

3. Amounts entered on Schedule 2 (Form

1040), line 14 through 17z. But don’t in-

clude the following.

a. Line 17b, recapture of a federal mort-

gage subsidy;

b. Line 17k, tax on excess golden para-

chute payments;

c. Line 17m, excise tax on insider stock

compensation from an expatriated

corporation; or

d. Line 17n, look-back interest due un-

der section 167(g) or 460(b) of the In-

ternal Revenue Code.

4. Repayment of the first-time homebuyer

credit. See Form 5405.

5. Additional Medicare Tax. A 0.9% Addi-

tional Medicare Tax applies to your com-

bined Medicare wages and self-employ-

ment income and/or your RRTA

compensation that exceeds the amount

listed in the following chart, based on your

filing status.

Filing Status

Threshold Amount

Married filing jointly $250,000

Married filing separately $125,000

Single $200,000

Head of household $200,000

Qualifying surviving spouse $200,000

Medicare wages and self-employment

income are combined to determine if your

income exceeds the threshold. A self-em-

ployment loss should not be considered

for purposes of this tax. RRTA compensa-

tion should be separately compared to the

threshold. Your employer is responsible for

withholding the 0.9% Additional Medicare

Tax on Medicare wages or RRTA compen-

sation it pays to you in excess of $200,000

in 2024. You should consider this withhold-

ing, if applicable, in determining whether

you need to make an estimated payment.

6. Net Investment Income Tax (NIIT). The

NIIT is 3.8% of the lesser of your net in-

vestment income or the excess of your

MAGI over the amount listed in the follow-

ing chart, based on your filing status.

Filing Status

Threshold Amount

Married filing jointly $250,000

Married filing separately $125,000

Single $200,000

Head of household $200,000

Qualifying surviving spouse $250,000

Step 6. Subtract your refundable credits

(line 11c). These include the earned income

credit, additional child tax credit, fuel tax credit,

net premium tax credit, refundable American

opportunity credit, and section 1341 credit.

To figure your expected fuel tax credit, don’t

include fuel tax for the first 3 quarters of the

year that you expect to have refunded to you.

The result of Steps 1 through 6 is your total

estimated tax for 2024 (line 11c).

Required Annual Payment—

Line 12c

On lines 12a through 12c, figure the total

amount you must pay for 2024, through with-

holding and estimated tax payments, to avoid

paying a penalty.

General rule. The total amount you must pay

is the smaller of:

1. 90% of your total expected tax for 2024, or

2. 100% of the total tax shown on your 2023

return. Your 2023 tax return must cover all

12 months.

Special rules. There are special rules for

higher income taxpayers and for farmers and

fishers.

Higher income taxpayers. If your AGI for

2023 was more than $150,000 ($75,000 if your

filing status for 2024 is married filing sepa-

rately), substitute 110% for 100% in (2) above.

This rule does not apply to farmers and fishers.

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22 Chapter 2 Estimated Tax for 2024 Publication 505 (2024)

For 2023, AGI is the amount shown on Form

1040 or 1040-SR, line 11.

Example. Your total tax on the 2023 return

was $42,581, and the expected tax for 2024 is

$71,253. Your 2023 AGI was $180,000. Be-

cause you had more than $150,000 of AGI in

2023, you figure the required annual payment

as follows. You determine that 90% of the ex-

pected tax for 2024 is $64,128 (90% (0.90) ×

$71,253). Next, you determine that 110% of the

tax shown on the 2023 return is $46,839 (110%

(1.10) x $42,581). Finally, you determine that

the required annual payment is $46,839, the

smaller of the two.

Farmers and fishers. If at least two-thirds

of your gross income for 2023 or 2024 is from

farming or fishing, your required annual pay-

ment is the smaller of:

1. 66

/3% (0.6667) of your total tax for 2024,

2. 100% of the total tax shown on your 2023

return. (Your 2023 tax return must cover all

12 months.)

For definitions of “gross income from farm-

ing” and “gross income from fishing,” see Farm-

ers and Fishers, earlier, under Special Rules.

Total tax for 2023—line 12b. Your 2023 total

tax is the amount on line 24 reduced by the fol-

lowing.

1. Unreported social security and Medicare

tax or RRTA tax from Forms 4137 or 8919

included on Schedule 2 (Form 1040), lines

5 and 6.

2. Amounts from Form 5329, Parts III through

IX only.

3. The following amounts from Schedule 2

(Form 1040).

a. Excise tax on excess golden para-

chute payments (Schedule 2,

line 17k).

b. Excise tax on insider stock compen-

sation from an expatriated corporation

(Schedule 2, line 17m).

c. Look-back interest due under section

167(g) (Schedule 2, line 17n).

d. Look-back interest due under section

460(b) (Schedule 2, line 17n).

e. Recapture of federal mortgage sub-

sidy (Schedule 2, line 17b).

f. Uncollected social security and Medi-

care tax or RRTA tax on tips or

group-term life insurance (Schedule 2,

line 13).

4. Any refundable credit amounts on Form

1040 or 1040-SR, line 27, 28, and 29, and

Schedule 3 (Form 1040), lines 9, and 12,

13b and Schedule H lines 8e and 8f.

Total Estimated Tax Payments

Needed—Line 14a

Use lines 13 and 14a to figure the total estima-

ted tax you may be required to pay for 2024.

Subtract your expected withholding from your

required annual payment (line 12c). You must

usually pay this difference in four equal install-

ments. See When To Pay Estimated Tax and

How To Figure Each Payment, later.

You don’t have to pay estimated tax if:

•

Line 12c minus line 13 is zero or less, or

•

Line 11c minus line 13 is less than $1,000.

Withholding—line 13. Your expected with-

holding for 2024 (line 13) includes the income

tax you expect to be withheld from all sources

(wages, pensions and annuities, etc.). It in-

cludes excess social security and tier 1 railroad

retirement tax you expect to be withheld from

your wages and compensation. For this pur-

pose, you will have excess social security or tier

1 railroad retirement tax withholding for 2024

only if your wages and compensation from two

or more employers are more than $168,600.

It also includes Additional Medicare Tax you

expect to be withheld from your wages or com-

pensation. Your employer is responsible for

withholding the 0.9% Additional Medicare Tax

on Medicare wages or RRTA compensation it

pays to you in excess of $200,000.

When To Pay

Estimated Tax

For estimated tax purposes, the year is divided

into four payment periods. Each period has a

specific payment due date. If you don’t pay

enough tax by the due date of each of the pay-

ment periods, you may be charged a penalty

even if you are due a refund when you file your

income tax return.

If a payment is mailed, the date of the U.S.

postmark is considered the date of payment.

The general payment periods and due dates for

estimated tax payments are shown next. For ex-

ceptions to the dates listed, see Saturday, Sun-

day, holiday rule.

For the

period:

General due

date:

Tax year

2024 due

date:

Jan. 1

– March 31 ... April 15 April 15, 2024

April 1

– May 31 ..... June 15 June 17, 2024

June 1

– Aug. 31 .... Sept. 15 Sept. 16, 2024

Sept. 1

– Dec. 31 ....

Jan. 15, next

year

Jan. 15, 2025

If your tax year does not begin on January 1,

see Fiscal-year taxpayers, later.

See January payment, later.

Saturday, Sunday, holiday rule. 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 isn’t a Saturday, Sunday, or a holiday. See

Pub. 509 for a list of all legal holidays.

January payment. If you file your 2024 Form

1040 or 1040-SR by January 31, 2025, and pay

the rest of the tax you owe, you don’t need to

make the payment due on January 15, 2025.

Example. You do not pay any estimated tax

for 2024. You file the 2024 income tax return

and pay the balance due shown on the return

on January 26, 2025.

Your estimated tax for the fourth payment

period is considered to have been paid on time.

However, you may owe a penalty for not making

the first three estimated tax payments, if re-

quired. Any penalty for not making those pay-

ments will be figured up to January 26, 2025.

Fiscal-year taxpayers. If your tax year does

not start on January 1, your payment due dates

are:

1. The 15th day of the 4th month of your fis-

cal year,

2. The 15th day of the 6th month of your fis-

cal year,

3. The 15th day of the 9th month of your fis-

cal year, and

4. The 15th day of the 1st month after the

end of your fiscal year.

You don’t have to make the last payment lis-

ted 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.

When To Start

You don’t have to make estimated tax payments

until you have income on which you will owe in-

come tax. If you have income subject to estima-

ted tax during the first payment period, you

must make your first payment by the due date

for the first payment period.

You have several options when paying esti-

mated taxes. You can:

•

Apply an overpayment from the previous

tax year,

•

Pay all your estimated tax by the due date

of your first payment, or

•

Pay it in installments.

If you choose to pay in installments, make

your first payment by the due date for the first

payment period. Make your remaining install-

ment payments by the due dates for the later

periods.

To avoid any estimated tax penalties, all in-

stallments must be paid by their due date and

for the required amount.

No income subject to estimated tax during

first period. If you don’t have income subject

to estimated tax until a later payment period,

you must make your first payment by the due

date for that period. You can pay your entire es-

timated 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. Table 2-1 shows the general due dates

for making installment payments when the due

date does not fall on a Saturday, Sunday, or hol-

iday.

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Publication 505 (2024) Chapter 2 Estimated Tax for 2024 23

General Due Dates for

Estimated Tax

Installment Payments

Table 2-1.

If you first have

income on which

you must pay

estimated tax:

Make a

payment

by:*

Make later

installments

by:*

Before April 1 April 15 June 15

Sept. 15

Jan. 15 next year

April 1–May 31 June 15 Sept. 15

Jan. 15 next year

June 1–Aug. 31 Sept. 15 Jan. 15 next year

After Aug. 31 Jan. 15

next year

(None)

*See January payment and Saturday, Sunday,

holiday rule, earlier.

How much to pay to avoid penalty. To deter-

mine how much you should pay by each pay-

ment due date, see How To Figure Each Pay-

ment, later.

Farmers and Fishers

If at least two-thirds of your gross income for

2023 or 2024 is from farming or fishing, you

have only one payment due date for your 2024

estimated tax: January 15, 2025. The due dates

for the first three payment periods, discussed

under When To Pay Estimated Tax, earlier, don’t

apply to you.

If you file your 2024 Form 1040 or 1040-SR

by March 3, 2025, and pay all the tax you owe

at that time, you don’t need to make an estima-

ted tax payment.

Fiscal year farmers and fishers. If you are a

farmer or fisher, 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.

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. You should pay

enough by each due date to avoid a penalty for

that period. If you don’t pay enough during any

payment period, you may be charged a penalty

even if you are due a refund when you file your

tax return. The penalty is discussed in the In-

structions for Form 2210.

Regular Installment Method

If your first estimated tax payment is due April

15, 2024, you can figure your required payment

for each period by dividing your annual estima-

ted tax due (line 14a of the 2024 Estimated Tax

Worksheet (Worksheet 2-1)) by 4. Enter this

amount on line 15. However, use this method

only if your income is basically the same

throughout the year.

Change in estimated tax. After you make an

estimated tax payment, changes in your in-

come, adjustments, deductions, or credits may

make it necessary for you to refigure your esti-

mated tax. 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.

If you don’t receive your income evenly

throughout the year, your required estimated tax

payments may not be the same for each period.

See Annualized Income Installment Method,

later.

Amended estimated tax. If you refig-

ure your estimated tax during the year,

or if your first estimated tax payment is

due after April 15, 2024, figure your required

payment for each remaining payment period us-

ing Worksheet 2-10.

Example. Early in 2024, you figure estima-

ted tax due of $1,800. You make estimated tax

payments on April 15 and June 17 of $450 each

($1,800 ÷ 4).

On July 10, you sell investment property at a

gain. Your refigured estimated tax is $4,100.

The required estimated tax payment for the third

payment period is $2,175.

If your estimated tax does not change again,

the required estimated tax payment for the

fourth payment period will be $1,025.

Underpayment penalty. The penalty is fig-

ured separately for each payment period. If you

figure your payments using the regular install-

ment method and later refigure your payments

because of an increase in income, you may be

charged a penalty for underpayment of estima-

ted tax for the period(s) before you changed

your payments. To see how you may be able to

avoid or reduce this penalty, see Sched-

ule AI—Annualized Income Installment Method

in the Instructions for Form 2210.

Amended Estimated Tax WorksheetWorksheet 2-10.

Keep for Your Records

1. Amended total estimated tax due .........................................................

2. Multiply line 1 by:

50% (0.50) if next payment is due June 17, 2024

75% (0.75) if next payment is due September 16, 2024

100% (1.00) if next payment is due January 15, 2025 .................

3. Estimated tax payments for all previous periods ......................

4. Next required payment: Subtract line 3 from line 2 and enter the result (but not

less than zero) here and on your payment voucher for your next required

payment ................................................... 4.

Note. If the payment on line 4 is due January 15, 2025, stop here. Otherwise,

go to line 5.

5. Add lines 3 and 4 .....................................................................

6. Subtract line 5 from line 1 and enter the result (but not less than zero) ..............................

7. Each following required payment: If the payment on line 4 is due June 17, 2024, enter one-half of the

amount on line 6 here and on the payment vouchers for your payments due September 16, 2024, and January

15, 2025. If the amount on line 4 is due September 16, 2024, enter the amount from line 6 here and on the

payment voucher for your payment due January 15, 2025 ....................................... 7.

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24 Chapter 2 Estimated Tax for 2024 Publication 505 (2024)

Annualized Income

Installment Method

If you don’t receive your income evenly through-

out 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 fig-

ured using the regular installment method.

The annualized income installment method

annualizes your tax at the end of each period

based on a reasonable estimate of your in-

come, deductions, and other items relating to

events that occurred from the beginning of the

tax year through the end of the period. To see

whether you can pay less for any period, com-

plete the 2024 Annualized Estimated Tax Work-

sheet (Worksheet 2-7).

You first must complete the 2024 Esti-

mated Tax Worksheet (Worksheet 2-1)

through line 14b.

Use the result you figure on line 32 of Work-

sheet 2-7 to make your estimated tax payments

and complete your payment vouchers.

Note. If you use the annualized income in-

stallment method to figure your estimated tax

payments, you must file Form 2210 with your

2024 tax return. See Schedule AI—Annualized

Income Installment Method in the Instructions

for Form 2210 for more information.

Instructions for the 2024

Annualized Estimated Tax

Worksheet (Worksheet 2-7)

Use Worksheet 2-7 to help you follow

these instructions.

The purpose of this worksheet is to deter-

mine your estimated tax liability as your income

accumulates throughout the year, rather than di-

viding your entire year's estimated tax liability by

4 as if your income was earned equally through-

out the year. The top of the worksheet shows

the dates for each payment period. The periods

build; that is, each period includes all previous

periods. After the end of each payment period,

complete the corresponding worksheet column

to figure the payment due for that period.

Line 1. Enter your AGI for the period. 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. See Expected AGI—Line 1, earlier.

Self-employment income. If you had

self-employment income, first complete Sec-

tion B of this worksheet. Use the amounts on

line 41 when figuring your expected AGI to enter

in each column of Section A, line 1.

Line 4. Be sure to consider deduction limits fig-

ured on Schedule A (Form 1040), such as the

$10,000 limit on state and local taxes. Figure

your deduction limits using your expected AGI

in the corresponding column of line 1 (2024 An-

nualized Estimated Tax Worksheet (Worksheet

2-7)).

CAUTION

TIP

Line 7. If you won’t itemize your deductions,

use Worksheet 2-4 to figure your standard de-

duction.

Line 12. Generally, you will use the Tax Rate

Schedules to figure the tax on your annualized

income. However, see below for situations

where you must use a different method to figure

your estimated tax.

Tax on child's investment income. You

must use a special method to figure tax on the

income of the following children who have more

than $2,600 of investment income.

1. Children under age 18 at the end of 2024.

2. The following children if their earned in-

come isn’t more than half their support.

a. Children age 18 at the end of 2024.

b. Children who are full-time students at

least age 19 but under age 24 at the

end of 2024.

Tax on net capital gain. The regular in-

come tax rates for individuals don’t apply to a

net capital gain. Instead, your net capital gain is

taxed at a lower maximum rate.

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.

Tax on qualified dividends and capital

gains. For 2024, your capital gain and divi-

dends rate will depend on your income.

Tax on capital gain or qualified divi-

dends. If the amount on line 1 includes

a net capital gain or qualified divi-

dends, use Worksheet 2-8 to figure the amount

to enter on line 10.

Tax if excluding foreign earned in-

come or excluding or deducting for-

eign housing. If you expect to claim

the foreign earned income exclusion or the

housing exclusion or deduction on Form 2555,

use Worksheet 2-9 to figure the amount to enter

on line 10.

Line 13. Add the tax from Forms 8814, 4972,

and 6251 for the period. Also, include any re-

capture of an education credit for each period.

You may owe this tax if you claimed an educa-

tion credit in an earlier year and you received ei-

ther tax-free educational assistance or a refund

of qualifying expenses for the same student af-

ter filing your 2023 return.

Use the 2023 forms or worksheets to see if

you will owe any of the taxes just discussed.

Figure the tax based on your income and de-

ductions during the period shown in the column

headings. Multiply this amount by the annuali-

zation amounts shown for each column on

line 2 of the 2024 Annualized Estimated Tax

Worksheet (Worksheet 2-7). Enter the result on

line 13 of this worksheet.

Line 15. Include all the nonrefundable credits

you expect to claim because of events that will

occur during the period.

Note. When figuring your credits for each

period, annualize any item of income or

deduction to figure each credit. For example, if

you need to use your AGI to figure a credit, use

line 3 of Worksheet 2-7 to figure the credit for

each column.

Line 18. Add your expected other taxes.

Other taxes include the following.

1. Additional tax on early distributions from:

a. An IRA or other qualified retirement

plan,

b. A tax-sheltered annuity, or

c. A modified endowment contract en-

tered into after June 20, 1988.

2. Household employment taxes if:

a. You will have federal income tax with-

held from wages, pensions, annuities,

gambling winnings, or other income;

b. You would be required to make esti-

mated tax payments even if you didn’t

include household employment taxes

when figuring your estimated tax.

3. Amounts on Schedule 2 (Form 1040),

lines 14 through 16, and 17a, 17c through

17j, 17l, and 17o through 17z.

4. Repayment of the first-time homebuyer

credit if the home will cease to be your

main home in 2024. See Form 5405 for ex-

ceptions.

5. Additional Medicare Tax. A 0.9% Addi-

tional Medicare Tax applies to your com-

bined Medicare wages and self-employ-

ment income and/or your RRTA

compensation that exceeds the amount

listed in the following chart, based on your

filing status.

Filing Status

Threshold Amount

Married filing jointly $250,000

Married filing separately $125,000

Single $200,000

Head of household $200,000

Qualifying surviving spouse $200,000

Medicare wages and self-employment

income are combined to determine if your

income exceeds the threshold. A self-em-

ployment loss should not be considered

for purposes of this tax. RRTA compensa-

tion should be separately compared to the

threshold.

Your employer is responsible for with-

holding the 0.9% Additional Medicare Tax

on Medicare wages or RRTA compensa-

tion it pays you in excess of $200,000 in

2024. You should consider this withhold-

ing, if applicable, in determining whether

you need to make an estimated payment.

6. Net Investment Income Tax (NIIT). The

NIIT is 3.8% of the lesser of your net in-

vestment income or the excess of your

MAGI over a specified threshold amount.

Threshold amounts:

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Publication 505 (2024) Chapter 2 Estimated Tax for 2024 25

Filing Status Threshold Amount

Married filing jointly $250,000

Married filing separately $125,000

Single $200,000

Head of household $200,000

Qualifying surviving

spouse

$250,000

Line 20. Include all the refundable credits

(other than withholding credits) you can claim

because of events that occurred during the pe-

riod. These include the earned income credit,

additional child tax credit, fuel tax credit, net

premium tax credit, refundable American oppor-

tunity credit, and section 1341 credit.

Note. When figuring your refundable credits

for each period, annualize any item of income or

deduction used to figure each credit.

Line 29. If line 28 is smaller than line 25 and

you are not certain of the estimate of your 2024

tax, you can avoid a penalty by entering the

amount from line 25 on line 29.

Line 31. For each period, include estimated

tax payments made and any excess social se-

curity and railroad retirement tax.

Also, include estimated federal income tax

withholding. One-fourth of your estimated with-

holding is considered withheld on the due date

of each payment period. To figure the amount to

include on line 31 for each period, multiply your

total expected withholding for 2024 by:

•

25% (0.25) for the first period,

•

50% (0.50) for the second period,

•

75% (0.75) for the third period, and

•

100% (1.00) for the fourth period.

However, you may choose to include your

withholding according to the actual dates on

which the amounts will be withheld. For each

period, include withholding made from the be-

ginning of the period up to and including the

payment due date. You can make this choice

separately for the taxes withheld from your wa-

ges and all other withholding. For an explana-

tion of what to include in withholding, see Total

Estimated Tax Payments Needed—Line 14a,

earlier.

Nonresident aliens. If you will file Form

1040-NR and you don’t receive wages as an

employee subject to U.S. income tax withhold-

ing, the instructions for the worksheet are modi-

fied as follows.

1. Skip column (a).

2. On line 1, enter your income for the period

that is effectively connected with a U.S.

trade or business.

3. On line 21, increase your entry by the

amount determined by multiplying your in-

come for the period that isn’t effectively

connected with a U.S. trade or business by

the following.

a. 72% (0.72) for column (b).

b. 45% (0.45) for column (c).

c. 30% (0.30) for column (d).

However, if you can use a treaty rate

lower than 30%, use the percentages de-

termined by multiplying your treaty rate by

2.4, 1.5, and 1, respectively.

4. On line 26, enter one-half of the amount

from line 14c of the Form 1040-ES (NR)

2023 Estimated Tax Worksheet in column

(b), and one-fourth in columns (c) and (d)

of Worksheet 2-7.

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

6. On line 31, if you don’t use the actual with-

holding method, include one-half of your

total expected withholding in column (b)

and one-fourth in columns (c) and (d).

See Pub. 519 for more information.

Estimated Tax

Payments Not Required

You don’t have to pay estimated tax if your with-

holding in each payment period is at least as

much as:

•

One-fourth of your required annual pay-

ment, or

•

Your required annualized income install-

ment for that period.

You also don’t 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.

How To Pay

Estimated Tax

There are several ways to pay estimated tax.

•

Credit an overpayment on your 2023 return

to your 2024 estimated tax.

•

Pay by direct transfer from your bank ac-

count, or pay by debit or credit card using a

pay-by-phone system or the Internet.

•

Send in your payment (check or money or-

der) with a payment voucher from Form

1040-ES.

Credit an Overpayment

If you show an overpayment of tax after com-

pleting your Form 1040 or 1040-SR for 2023,

you can apply part or all of it to your estimated

tax for 2024. On Form 1040 or 1040-SR, enter

the amount you want credited to your estimated

tax rather than refunded. Take the amount you

have credited into account when figuring your

estimated tax payments. If you timely file your

2023 return, treat the credit as a payment made

on April 15, 2024.

If you are a beneficiary of an estate or trust,

and the trustee elects to credit 2024 trust pay-

ments of estimated tax to you, you can treat the

amount credited as paid by you on January 15,

2025.

If you choose to have an overpayment of tax

credited to your estimated tax, you can’t have

any of that amount refunded to you until you file

your tax return for the following year. You also

can’t use that overpayment in any other way.

Example. When you finished filling out the

2023 tax return, the result was an overpayment

of $750. You knew additional tax would be owed

in 2024. You credited $600 of the overpayment

to the 2024 estimated tax and had the remain-

ing $150 issued as a refund.

In September, you amended the 2023 return

by filing Form 1040-X, Amended U.S. Individual

Income Tax Return. It turned out that you owed

$250 more in tax than was originally thought.

This reduced the 2023 overpayment from $750

to $500. Because the $750 had already been

applied to the 2024 estimated tax or refunded,

the IRS billed you for the additional $250 owed,

plus penalties and interest. You could not use

any of the $600 that had been credited to the

2024 estimated tax to pay this bill.

Pay Online

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.

•

Your Online Account. You can now make

tax payments through your online account,

including balance payments, estimated tax

payments, or other types. You can also see

your payment history and other tax records

there. Go to IRS.gov/Account.

•

IRS Direct Pay. For online transfers di-

rectly from your checking or savings ac-

count at no cost to you, go to IRS.gov/

Payments.

•

Pay by Card or Digital Wallet. To pay by

debit or credit card or digital wallet, go to

IRS.gov/Payments. There is a fee charged

by these service providers. You can also

pay by phone with a debit or credit card.

See Debit or credit card under Pay by

Phone, later.

•

Electronic Funds 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 re-

turn, you can apply for an online monthly

installment agreement at IRS.gov/OPA.

Once you complete the online process,

you will receive immediate notification of

whether your agreement has been ap-

proved. A user fee is charged.

Electronic Federal Tax

Payment System (EFTPS)

Allows you to pay your taxes online or by phone

directly from your checking or saving ac-

count.There is no fee for this service. You must

be enrolled either online or have an enrollment

form mailed to you. See EFTPS under Pay by

Phone, later.

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

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26 Chapter 2 Estimated Tax for 2024 Publication 505 (2024)

credit card service providers, or (2) use the

Electronic Federal Tax Payment System

(EFTPS) to pay directly from your checking or

savings account.

Debit or credit card. Call one of our service

providers. Each charges a fee that varies by

provider, card type, and payment amount.

WorldPay US, Inc.

844-PAY-TAX-8

(844-729-8298)

www.payUSAtax.com

ACI Payments, Inc.

888-UPAY-TAX

(888-872-9829)

fed.acipayonline.com

Link2GOV Corporation

888-PAY-1040

(888-729-1040)

www.PAY1040.com

EFTPS. To get more information about EFTPS

or to enroll in EFTPS, visit EFTPS.gov or call

800-555-4477. To contact EFTPS using Tele-

communications Relay Services (TRS) for peo-

ple who are deaf, hard of hearing, or have a

speech disability, dial 711 and then provide the

TRS assistant the 800-555-4477 number above

or 800-733-4829. Additional information about

EFTPS is also available in Pub. 966.

Pay by Mobile Device

To pay through your mobile device, download

the IRS2Go application.

Pay by Cash

Cash is an in-person payment option for individ-

uals provided through retail partners with a

maximum of $1,000 per day per transaction. To

make a cash payment, you must choose a pay-

ment processor online with ACI Payments, Inc.

at fed.acipayonline.com or www.Pay1040.com.

For more information, go to IRS.gov/

paywithcash or see Pub. 5250. Don't send cash

payments through the mail.

Pay by Check or Money

Order Using the Estimated

Tax Payment Voucher

Before submitting a payment through the mail,

please consider alternative methods. One of

our safe, quick, and easy electronic payment

options might be right for you. Each payment of

estimated tax by check or money order must be

accompanied by a payment voucher from Form

1040-ES. 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.

Don’t use the address shown in the In-

structions for Form 1040.

If you didn’t pay estimated tax last year, get

a copy of Form 1040-ES from the IRS (see How

To Get Tax Help, later). Follow the instructions

to make sure you use the vouchers correctly.

Notice to taxpayers presenting checks.

When you provide a check as payment, you au-

thorize us either to use information from your

check to make a one-time electronic fund trans-

fer from your account or to process the payment

as a check transaction. When we use informa-

tion from your check to make an electronic fund

CAUTION

transfer, funds may be withdrawn from your ac-

count 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 accep-

ted. The IRS can’t accept a single check (in-

cluding 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'll

need to spread the payment over two 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.

Joint estimated tax payments. 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.

Change of address. You must notify the IRS if

you are making estimated tax payments and

you changed your address during the year.

Complete Form 8822, Change of Address, and

mail it to the address shown in the instructions

for that form.

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Publication 505 (2024) Chapter 2 Estimated Tax for 2024 27

Worksheets for Chapter 2

Use the following worksheets and tables to figure your correct estimated tax.

IF you need... THEN use...

2024 Tax Rate Schedules 2024 Tax Rate Schedules

the 2024 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 2-7))

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 2-7))

Worksheet 2-3

to estimate your standard deduction—line 2 of ES Worksheet (line 7 of Annualized ES Worksheet

(Worksheet 2-7))

Worksheet 2-4

to estimate your income tax if line 1 of your ES Worksheet includes a net capital gain or qualified

dividends—line 4 of ES Worksheet

Worksheet 2-5

to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing

exclusion or deduction on Form 2555—line 4 of ES Worksheet

Worksheet 2-6

the 2024 Annualized Estimated Tax Worksheet (Annualized ES Worksheet) Worksheet 2-7

to estimate your income tax if line 1 of your Annualized ES Worksheet includes a net capital gain or

qualified dividends—line 10 of Annualized ES Worksheet

Worksheet 2-8

to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing

exclusion or deduction on Form 2555—line 10 of Annualized ES Worksheet

Worksheet 2-9

to refigure (amend) your estimated tax during the year Worksheet 2-10

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28 Chapter 2 Estimated Tax for 2024 Publication 505 (2024)

2024 Tax Rate Schedules

CAUTION

Don’t use these Tax Rate Schedules to figure your 2023 taxes. Use them only to figure your 2024 estimated

taxes.

Schedule X—Use if your 2024 filing status is

Single

Schedule Z— Use if your 2024 filing status is

Head of household

If line 3 is: The tax is: If line 3 is: The tax is:

Over—

But not

over—

of the

amount

over— Over—

But not

over—

of the

amount

over—

$0 $11,600 10% $0 $0 $16,550 10% $0

11,600 47,150 $1,160.00 + 12% 11,600 16,550 63,100 $1,655.00 + 12% 16,550

47,150 100,525 5,426.00 + 22% 47,150 63,100 100,500 7,241.00 + 22% 63,100

100,525 191,950 17,168.50 + 24% 100,525 100,500 191,950 15,469.00 + 24% 100,500

191,950 243,725 39,110.50 + 32% 191,950 191,950 243,700 37,417.00 + 32% 191,950

243,725 609,350 55,678.50 + 35% 243,725 243,700 609,350 53,977.00 + 35% 243,700

609,350 - - - - - - 183,647.25 + 37% 609,350 609,350 - - - - - - 181,954.50 + 37% 609,350

Schedule Y-1— Use if your 2024 filing status is

Married filing jointly or Qualifying surviving spouse

Schedule Y-2— Use if your 2024 filing status is

Married filing separately

If line 3 is: The tax is: If line 3 is: The tax is:

Over—

But not

over—

of the

amount

over— Over—

But not

over—

of the

amount

over—

$0 $23,200 10% $0 $0 $11,600 10% $0

23,200 94,300 $2,320.00 + 12% 23,200 11,600 47,150 $1,160.00 + 12% 11,600

94,300 201,050 10,852.00 + 22% 94,300 47,150 100,525 5,426.00 + 22% 47,150

201,050 383,900 34,337.00 + 24% 201,050 100,525 191,950 17,168.50 + 24% 100,525

383,900 487,450 78,221.00 + 32% 383,900 191,950 243,725 39,110.50 + 32% 191,950

487,450 731,200 111,357.00 + 35% 487,450 243,725 365,600 55,678.50 + 35% 243,725

731,200 - - - - - - 196,669.50 + 37% 731,200 365,600 - - - - - - 98,334.75 + 37% 365,600

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Publication 505 (2024) Chapter 2 Estimated Tax for 2024 29

2024 Estimated Tax WorksheetWorksheet 2-1.

Keep for Your Records

CAUTION

When this worksheet refers you to instructions, you can find those instructions in the 2024 Form 1040-ES.

1. Adjusted gross income you expect in 2024 (see instructions) ........................................ 1.

2a. Deductions

•

If you plan to itemize deductions, enter the estimated total of your itemized deductions.

•

If you don’t plan to itemize deductions, enter your standard deduction (see instructions) ..................

2a.

b. If you can take the qualified business income deduction, enter the estimated amount of the deduction ..........

2b.

c. Add lines 2a and 2b ......................................................................

2c.

3. Subtract line 2c from line 1 .................................................................

4. Tax. Figure your tax on the amount on line 3 by using the 2024 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 2-5 and 2-6 to figure the tax .....................................

5. Alternative minimum tax from Form 6251 ......................................................

6. Add lines 4 and 5. Add to this amount any other taxes you expect to include in the total on Form 1040 or 1040-SR,

line 16 ................................................................................

7. Credits (see instructions). Don’t include any income tax withholding on this line ..........................

8. Subtract line 7 from line 6. If zero or less, enter -0- ................................................

9. Self-employment tax (see instructions) ........................................................

10. Other taxes including, if applicable, Additional Medicare Tax and/or NIIT (see instructions) ..................

10.

11a. Add lines 8 through 10 ....................................................................

11a.

b. Earned income credit, additional child tax credit, fuel tax credit, net premium tax credit, refundable American

opportunity credit, and section 1341 credit. .....................................................

11b.

c. Total 2024 estimated tax. Subtract line 11b from line 11a. If zero or less, enter -0- .................

▶

11c.

12a. Multiply line 11c by 90% (0.90) (66

/3% (0.6667) for farmers and fishers) ..... 12a.

b. Required annual payment based on prior year's tax (see instructions) .......

12b.

Required annual payment to avoid a penalty. Enter the smaller of line 12a or 12b ...............

▶

12c.

Caution: Generally, if you don’t prepay (through income tax withholding and estimated tax payments) at least the

amount on line 12c, you may owe a penalty for not paying enough estimated tax. To avoid a penalty, make sure your

estimate on line 11c is as accurate as possible. Even if you pay the required annual payment, you may still owe tax

when you file your return. If you prefer, you can pay the amount shown on line 11c.

13. Income tax withheld and estimated to be withheld during 2024 (including income tax withholding on pensions,

annuities, certain deferred income and Additional Medicare Tax withholding.) ............................

13.

14a. Subtract line 13 from line 12c ..................................... 14a.

Is the result zero or less?

Yes. Stop here. You are not required to make estimated tax payments.

No. Go to line 14b.

b. Subtract line 13 from line 11c ..................................... 14b.

Is the result less than $1,000?

Yes. Stop here. You are not required to make estimated tax payments.

No. Go to line 15 to figure your required payment.

15. If the first payment you are required to make is due April 15, 2024, enter ¼ of line 14a (minus any 2023 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 .................................................................... 15.

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30 Chapter 2 Estimated Tax for 2024 Publication 505 (2024)

2024 Estimated Tax Worksheet—Line 1

Estimated Taxable Social Security and Railroad Retirement

Benefits

Worksheet 2-2.

Keep for Your Records

Note. If you are using this worksheet to estimate your taxable social security or railroad retirement benefits for Worksheet 2-7, 2024

Annualized Estimated Tax Worksheet, multiply the expected amount of benefits for each period by the annualization amount shown on

Worksheet 2-7, line 2, for the same period before entering it on line 1 below.

1. Enter your expected social security and railroad retirement benefits ................

2. Enter one-half of line 1 ...................................................

3. Enter your expected total income. Don’t include any social security and railroad

retirement benefits, nontaxable interest income, nontaxable IRA distributions, or

nontaxable pension distributions ........................................... 3.

4. Enter your expected nontaxable interest income ...............................

5. Enter (as a positive amount) the total of any expected exclusions or deductions for:

•

U.S. savings bond interest used for higher education expenses (Form 8815)

•

Employer-provided adoption benefits (Form 8839)

•

Foreign earned income or housing (Form 2555)

•

Income by bona fide residents of American Samoa (Form 4563) or Puerto

Rico .............................................................. 5.

6. Add lines 2, 3, 4, and 5 ...................................................

7. Enter your expected adjustments to income. Don’t include any student loan

interest deduction ...................................................... 7.

8. Subtract line 7 from line 6. If zero or less, stop here.

Note. Don’t include any social security or railroad retirement benefits in the amount on

line 1 of your 2024 Estimated Tax Worksheet (Worksheet 2-1) (or Annualized Estimated

Tax Worksheet (Worksheet 2-7)) ........................................... 8.

9. Enter $25,000 ($32,000 if you expect to file married filing jointly; $0 if you expect to file

married filing separately and expect to live with your spouse at any time during the

year) ................................................................. 9.

10. Subtract line 9 from line 8. If zero or less, stop here.

Note. Don’t 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

2-7)) ................................................................. 10.

11. Enter $9,000 ($12,000 if you expect to file married filing jointly; $0 if you expect to file

married filing separately and expect to live with your spouse at any time during the

year) ................................................................. 11.

12. Subtract line 11 from line 10. If zero or less, enter -0- ...........................

12.

13. Enter the smaller of line 10 or line 11 .......................................

13.

14. Enter one-half of line 13 ..................................................

14.

15. Enter the smaller of line 2 or line 14 ........................................

15.

16. Multiply line 12 by 85% (0.85). If line 12 is zero, enter -0- ........................

16.

17. Add lines 15 and 16 .....................................................

17.

18. Multiply line 1 by 85% (0.85) ..............................................

18.

19. Enter the smaller of line 17 or line 18 .......................................

19.

20. Expected taxable social security and railroad retirement benefits for the period.

Divide line 19 by the annualization amount shown on Worksheet 2-7, line 2, for the same

period and enter here. Include this amount in the total on line 1 of your 2024 Estimated

Tax Worksheet (Worksheet 2-1) (or Annualized Estimated Tax Worksheet (Worksheet

2-7)) ................................................................. 20.

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Publication 505 (2024) Chapter 2 Estimated Tax for 2024 31

2024 Estimated Tax Worksheet—Lines 1 and 9

Estimated Self-Employment Tax and Deduction Worksheet

Worksheet 2-3.

Keep for Your Records

1 a. 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 will be included on Schedule F (Form 1040) or listed on

Schedule K-1 (Form 1065) ..................................... 1b.

2. Subtract line 1b from line 1a ....................................

3. Multiply line 2 by 92.35% (0.9235). If less than $400, don’t complete this

worksheet; you won’t owe self-employment tax on your expected net

earnings from self-employment ................................. 3.

4. Multiply line 3 by 2.9% (0.029) ........................................................

5. Maximum income subject to social security tax .....................

$168,600

6. Enter your expected wages (if subject to social security tax or the

6.2% portion of tier 1 railroad retirement tax) ....................... 6.

7. Subtract line 6 from line 5 ......................................

Note. If line 7 is zero or less, enter -0- on line 9 and skip to line 10.

8. Enter the smaller of line 3 or line 7 ..............................

9. Multiply line 8 by 12.4% (0.124) .......................................................

10. Add line 4 and line 9. Enter the result here and on line 9 of your 2024 Estimated Tax Worksheet

(Worksheet 2-1) (or line 15 of the Annualized Estimated Tax Worksheet (Worksheet 2-7)) .......... 10.

11. Multiply line 10 by 50% (0.50). This is your expected deduction for self-employment tax on Schedule 1

(Form 1040), line 15. Subtract this amount when figuring your AGI on line 1 of your 2024 Estimated

Tax Worksheet (Worksheet 2-1) (or Annualized Estimated Tax Worksheet (Worksheet 2-7)) ........ 11.

*Net profit from self-employment is found on Schedule C, Schedule F, and Schedule K-1 (Form 1065).

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32 Chapter 2 Estimated Tax for 2024 Publication 505 (2024)

2024 Estimated Tax Worksheet—Line 2

Standard Deduction Worksheet

Worksheet 2-4.

Keep for Your Records

Caution. Don’t complete this worksheet if you expect your spouse to itemize on a separate return or you expect to be a dual-status alien. In

either case, your standard deduction will be zero.

1. Enter the amount shown below for your filing status.

• Single or married filing separately—$14,600

• Married filing jointly or Qualifying surviving spouse—$29,200

• Head of household—$21,900 ...............................................

2. Can you (or your spouse if filing jointly) be claimed as a dependent on someone else's

return?

No. Skip line 3; enter the amount from line 1 on line 4.

Yes. Go to line 3.

3. Is your earned income* more than $850?

Yes. Add $450 to your earned income. Enter the total.

No. Enter $1,300 ................................................... 3.

4. Enter the smaller of line 1 or line 3 ............................................................

5. Were you (or your spouse if filing jointly) born before January 2, 1960, or blind?

No. Go to line 6.

Yes. Check if:

a. You were Born before January 2, 1960 Blind

b. Your spouse was Born before January 2, 1960 Blind

c. Total boxes checked in 5a and 5b

▶

Multiply $1,550 ($1,950 if single or head of household) by the number in the box on line 5c ........ 5.

6. Standard deduction. Add lines 4 and 5. Enter the result here and on line 2 of your 2024 Estimated Tax

Worksheet (Worksheet 2-1) (or line 7 of your 2024 Annualized Estimated Tax Worksheet (Worksheet

2-7)) .................................................................................... 6.

* Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes taxable scholarships and

fellowship grants. Reduce your earned income by your allowed deduction for self-employment tax (Worksheet 2-3, line 11).

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Publication 505 (2024) Chapter 2 Estimated Tax for 2024 33

2024 Estimated Tax Worksheet—Line 4

Qualified Dividends and Capital Gain Tax Worksheet

Worksheet 2-5.

Keep for Your Records

1. Enter the amount from the appropriate worksheet.

•

Line 3 of your 2024 Estimated Tax Worksheet.

•

Line 3 of Worksheet 2-6 (use if you will exclude or deduct foreign earned

income or housing) ...................................... 1.

2. Enter your qualified dividends expected for

2024

.................................. 2.

3. Enter your net capital gain expected for 2024

......

4. Add lines 2 and 3 ..........................................

5. Enter your 28% rate gain or loss expected for

2024

.................................. 5.

6. Enter your unrecaptured section 1250 gain expected for

2024 .................................. 6.

7. Add lines 5 and 6 ..........................

8. Enter the smaller of line 3 or line 7 .............................

9. Subtract line 8 from line 4 ....................................

10. Subtract line 9 from line 1. If zero or less, enter -0- ...................

10.

11. Enter the smaller of line 1 or $94,050 ($47,025 if single

or married filing separately, or $63,000 if head of

household) .............................. 11.

12. Enter the smaller of line 10 or line 11 ...........

12.

13 a. Subtract line 4 from line 1. If zero or less,

enter -0- ................................ 13a.

b. Enter the smaller of line 1 or:

•

$191,950 if single or married filing separately;

•

$191,950 if head of household; or

•

$383,900 if married filing jointly or qualifying

surviving spouse ........... ........... b.

c. Enter the smaller of line 10 or line 13b .........

14. Enter the larger of line 13a or 13c ...............................................

14.

Note. If line 11 and line 12 are the same, skip line 15 and go to line 16.

15. Subtract line 12 from line 11. This is the amount taxed at 0% .............................

15.

Note. If lines 1 and 11 are the same, skip lines 16 through 36 and go to line 37.

16. Enter the smaller of line 1 or line 9 .............................

16.

17. Enter the amount from line 15. If line 15 is blank, enter -0- ..............

17.

18. Subtract line 17 from line 16. If zero or less, enter -0- .................

18.

19. Enter:

•

$518,900 if single,

•

$291,850 if married filing separately,

•

$583,750 if married filing jointly or qualifying surviving spouse, or

•

$551,350 if head of household .............................. 19.

20. Enter the smaller of line 1 or line 19 .............................

20.

21. Add lines 14 and 15 ........................

21.

22. Subtract line 21 from line 20. If zero or less,

enter -0- ................................ 22.

23. Enter the smaller of line 18 or line 22 .............................................

23.

24. Multiply line 23 by 15% (0.15) ..................................................................

24.

25. Add lines 17 and 23. If line 1 equals the sum of lines 21 and 23, skip lines 26

through 36 and go to line 37 .................................. 25.

26. Subtract line 25 from line 16 ...................................................

26.

27. Multiply line 26 by 20% (0.20) ..................................................................

27.

28. Enter the smaller of line 3 or line 6 .............................

28.

29. Add lines 4 and 14 .........................

29.

30. Enter the amount from line 1 above .............

30.

31. Subtract line 30 from line 29. If zero or less, enter -0- .................

31.

32. Subtract line 31 from line 28. If zero or less, enter -0- ..................................

32.

33. Multiply line 32 by 25% (0.25) ..................................................................

33.

Note. If line 5 is zero or blank, skip lines 34 through 36 and go to line 37.

34. Add lines 14, 15, 23, 26, and 32 ................................................

34.

35. Subtract line 34 from line 1 ....................................................

35.

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34 Chapter 2 Estimated Tax for 2024 Publication 505 (2024)

Worksheet 2-5. 2024 Estimated Tax Worksheet—Line 4

Qualified Dividends and Capital Gain Tax Worksheet (Continued)

Keep for Your Records

36. Multiply line 35 by 28% (0.28) .................................................................

36.

37. Figure the tax on the amount on line 14 from the 2024 Tax Rate Schedules ..................................

37.

38. Add lines 24, 27, 33, 36, and 37 ............................................................... 38.

39. Figure the tax on the amount on line 1 from the 2024 Tax Rate Schedules ...................................

39.

40. Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 38

or line 39 here and on line 4 of the 2024 Estimated Tax Worksheet (Worksheet 2-1) (or line 4 of Worksheet 2-6) ......... 40.

If you expect to deduct investment interest expense, don’t include on this line any qualified dividends or net capital gain that you will elect to treat as

investment income.

This includes a section 1202 exclusion from eligible gain on qualified small business stock and gain or loss from the sale or exchange of collectibles. See the

Instructions for Schedule D (Form 1040) for more information.

2024 Estimated Tax Worksheet—Line 4

Foreign Earned Income Tax Worksheet

Worksheet 2-6.

Keep for Your Records

Before you begin: If line 3 of your 2024 Estimated Tax Worksheet (Worksheet 2-1) is zero, don’t complete this worksheet.

1. Enter the amount from line 3 of your 2024 Estimated Tax Worksheet (Worksheet 2-1) .................

2. Enter the total foreign earned income and housing amount you (and your spouse if filing jointly) expect to

exclude or deduct in 2024 on Form 2555 .................................................... 2.

3. Add lines 1 and 2 ......................................................................

4. Tax on the amount on line 3. Use the 2024 Tax Rate Schedules or Worksheet 2-5,* as appropriate .....

5. Tax on the amount on line 2. Use the 2024 Tax Rate Schedules ................................

6. Subtract line 5 from line 4. Enter the result here and on line 4 of your 2024 Estimated Tax Worksheet

(Worksheet 2-1). If zero or less, enter -0- .................................................... 6.

*If using Worksheet 2-5 (Qualified Dividends and Capital Gain Tax Worksheet), enter the amount from line 3 above on line 1 of

Worksheet 2-5. Complete Worksheet 2-5 through line 9. Next, determine if you have a capital gain excess.

Figuring capital gain excess. To find out if you have a capital gain excess, subtract line 3 of your 2024 Estimated Tax Worksheet

(Worksheet 2-1) from line 9 of Worksheet 2-5. If the result is more than zero, that amount is your capital gain excess.

Make these modifications only for purposes of filling out Worksheet 2-6.

a. Reduce (but not below zero) the amount you otherwise would enter on line 3 of Worksheet 2-5 by your capital

gain excess.

b. Reduce (but not below zero) the amount you otherwise would enter on line 2 of Worksheet 2-5 by any of your

capital gain excess not used in (a) above.

c. Reduce (but not below zero) the amount you otherwise would enter on line 5 of Worksheet 2-5 by your capital

gain excess.

d. Reduce (but not below zero) the amount you otherwise would enter on line 6 of Worksheet 2-5 by your capital

gain excess.

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Publication 505 (2024) Chapter 2 Estimated Tax for 2024 35

2024 Annualized Estimated Tax WorksheetWorksheet 2-7.

Keep for Your Records

Note. For instructions, see Annualized Income Installment Method, earlier.

Before you begin: Complete the 2024 Estimated Tax Worksheet—Worksheet 2-1.

Section A (For Figuring Your Annualized Estimated Tax Payments)—Complete each column after end of period shown.

Estates and trusts: See Form 1041-ES and Form 2210 for more information. (a)

1/1/24–3/31/24

(b)

1/1/24–5/31/24

(c)

1/1/24–8/31/24

(d)

1/1/24–

12/31/24

1. Adjusted gross income (AGI) for each period (see instructions). Complete

Section B first ...........................................

2. Annualization amounts ....................................

2. 4 2.4 1.5 1

3. Annualized income. Multiply line 1 by line 2 .......................

4. If you itemize, enter itemized deductions for period shown in the column

headings (see instructions). If you take the deduction for qualified business

income, add it to your itemized deductions. All others, enter -0- and skip to

line 7 .................................................

5. Annualization amounts .....................................

5. 4 2.4 1.5 1

6. Multiply line 4 by line 5 .....................................

7. Standard deduction from Worksheet 2-4 (see instructions) ............

8. Enter the larger of line 6 or line 7 ..............................

9. Deduction for qualified business income .........................

10. Add lines 8 and 9 .........................................

10.

11. Subtract line 10 from line 3. If zero or less, enter -0- .................

11.

12. Figure your tax on the amount on line 11 (see instructions) ............

12.

13. For each period, enter any tax from Forms 8814, 4972, and 6251. Also,

include any recapture of education credits (see instructions) ...........

13.

14. Add lines 12 and 13 .......................................

14.

15. Enter nonrefundable credits for each period (see instructions) ..........

15.

16. Subtract line 15 from line 14 .................................

16.

17. Self-employment tax from line 41 of Section B .....................

17.

18. Enter other taxes for each period, including, if applicable, Additional Medicare

Tax and/or NIIT (see instructions) .............................

18.

19. Total tax. Add lines 16, 17, and 18 .............................

19.

20. Enter refundable credits for each period (see instructions for type of credits

allowed). Don’t include any income tax withholding on this line .........

20.

21. Subtract line 20 from line 19. If zero or less, enter -0- ................

21.

22. Applicable percentage .....................................

22.

22.5% 45% 67.5% 90%

23. Multiply line 21 by line 22 ...................................

23.

Complete lines 24 through 29 of one column before going to line 24 of

the next column.

24. Enter the total of the amounts in all previous columns of line 29 .........

24.

25. Annualized income installment. Subtract line 24 from line 23. If zero or less,

enter -0- ...............................................

25.

26. Enter 25% (0.25) of line 12c of your 2024 Estimated Tax Worksheet

(Worksheet 2-1) in each column ..............................

26.

27. Subtract line 29 of the previous column from line 28 of that column .......

27.

28. Add lines 26 and 27 .......................................

28.

29. Enter the smaller of line 25 or line 28 (see instructions) ..............

29.

30. Total required payments for the period. Add lines 24 and 29 ...........

30.

31. Estimated tax payments made (line 32 of all previous columns) plus tax

withholding through the due date for the period (see instructions) ........

31.

32. Estimated tax payment required by the next due date. Subtract line 31 from

line 30 and enter the result (but not less than zero) here and on your payment

voucher ...............................................

32.

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36 Chapter 2 Estimated Tax for 2024 Publication 505 (2024)

Worksheet 2-7. 2024 Annualized Estimated Tax Worksheet (Continued)

Keep for Your Records

Section B (For Figuring Your Annualized Estimated Self-Employment Tax)—Complete each column after end of period shown.

(Form 1040 or 1040-SR filers only)

(a)

1/1/24–3/31/24

(b)

1/1/24–5/31/24

(c)

1/1/24–8/31/24

(d)

1/1/24–12/31/24

33. Net earnings from self-employment for the period .......... 33.

34. Prorated social security tax limit .......................

34. $42,150 $70,250 $112,400 $168,600

35. Enter actual wages for the period subject to social security tax or

the 6.2% portion of the tier 1 railroad retirement tax.

Exception: If you file Form 4137 or Form 8919, see

instructions .....................................

35.

36. Subtract line 35 from line 34. If zero or less, enter -0- ........

36.

37. Annualization amounts .............................

37. 0.496 0.2976 0.186 0.124

38. Multiply line 37 by the smaller of line 33 or line 36 ..........

38.

39. Annualization amounts .............................

39. 0.116 0.0696 0.0435 0.029

40. Multiply line 33 by line 39 ...........................

40.

41. Add lines 38 and 40. Enter the result here and on line 17 of

Section A ......................................

41.

42. Annualization amounts .............................

42. 8 4.8 3 2

43. Deduction for self-employment tax. Divide line 41 by line 42.

Enter the result here. Use this result to figure your AGI on

line 1 ......................................... 43.

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Publication 505 (2024) Chapter 2 Estimated Tax for 2024 37

2024 Annualized Estimated Tax Worksheet—Line 10

Qualified Dividends and Capital Gain Tax Worksheet

Worksheet 2-8.

Keep for Your Records

Note. To figure the annualized entries for lines 2, 3, 5, and 6 below, multiply the expected amount for the period by the annualization amount on line 2 of

Worksheet 2-7 for the same period.

1. Enter the amount from the appropriate worksheet.

•

Line 11 of your 2024 Annualized Estimated Tax Worksheet

(Worksheet 2-7).

•

Line 3 of Worksheet 2-9 (use if you will exclude or deduct foreign earned

income or housing) ...................................... 1.

2. Enter your annualized qualified dividends expected for

2024

.................................. 2.

3. Enter your annualized net capital gain expected

for 2024

............................... 3.

4. Add lines 2 and 3 ..........................................

5. Enter your annualized 28% rate gain or loss expected

for 2024

............................... 5.

6. Enter your annualized unrecaptured section 1250 gain

expected for 2024 ......................... 6.

7. Add lines 5 and 6 ..........................

8. Enter the smaller of line 3 or line 7 .............................

9. Subtract line 8 from line 4 ....................................

10. Subtract line 9 from line 1. If zero or less, enter -0- ...................

10.

11. Enter the smaller of line 1 or $94,050 ($47,025 if single

or married filing separately, or $63,000 if head of

household) .............................. 11.

12. Enter the smaller of line 10 or line 11 ............

12.

13. a. Subtract line 4 from line 1. If zero or less,

enter -0- ................................ 13a.

b. Enter the smaller of line 1 or:

•

$191,950 if single or married filing separately;

•

$191,950 if head of household; or

•

$383,900 if married filing jointly or qualifying

surviving spouse ...................... b.

c. Enter the smaller of line 10 or line 13b .........

14. Enter the larger of line 13a or 13c ...............................................

14.

Note. If line 11 and line 12 are the same, skip line 15 and go to line 16 .

15. Subtract line 12 from line 11. This is the amount taxed at 0% .............................

15.

Note. If lines 1 and 11 are the same, skip lines 16 through 36 and go to line 37.

16. Enter the smaller of line 1 or line 9 .............................

16.

17. Enter the amount from line 15. If line 15 is blank, enter -0- ..............

17.

18. Subtract line 17 from line 16. If zero or less, enter -0- .................

18.

19. Enter:

•

$518,900 if single,

•

$291,850 if married filing separately,

•

$583,750 if married filing jointly or qualifying surviving spouse, or

•

$551,350 if head of household .............................. 19.

20. Enter the smaller of line 1 or line 19 .............................

20.

21. Add lines 14 and 15 ........................

21.

22. Subtract line 21 from line 20. If zero or less,

enter -0- ................................ 22.

23. Enter the smaller of line 18 or line 22 .............................................

23.

24. Multiply line 23 by 15% (0.15) ..................................................................

24.

25. Add lines 17 and 23. If line 1 equals the sum of lines 21 and 23, skip lines 26

through 36 and go to line 37 .................................. 25.

26. Subtract line 25 from line 16 ...................................................

26.

27. Multiply line 26 by 20% (0.20) ..................................................................

27.

28. Enter the smaller of line 3 or line 6 .............................

28.

29. Add lines 4 and 14 .........................

29.

30. Enter the amount from line 1 above .............

30.

31. Subtract line 30 from line 29. If zero or less, enter -0- .................

31.

32. Subtract line 31 from line 28. If zero or less, enter -0- ..................................

32.

33. Multiply line 32 by 25% (0.25) ..................................................................

33.

Note. If line 5 is zero or blank, skip lines 34 through 36 and go to line 37.

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38 Chapter 2 Estimated Tax for 2024 Publication 505 (2024)

34. Add lines 14, 15, 23, 26, and 32 ................................................

34.

35. Subtract line 34 from line 1 ....................................................

35.

36. Multiply line 35 by 28% (0.28) ..................................................................

36.

37. Figure the tax on the amount on line 14 from the 2024 Tax Rate Schedules ...................................

37.

38. Add lines 24, 27, 33, 36, and 37 ................................................................

38.

39. Figure the tax on the amount on line 1 from the 2024 Tax Rate Schedules ....................................

39.

40. Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 38 or

line 39 here and on line 12 of the appropriate column of the 2024 Annualized Estimated Tax Worksheet (or line 4 of

Worksheet 2-9) ............................................................................ 40.

If you expect to deduct investment interest expense, don’t include on this line any qualified dividends or net capital gain that you will elect to treat as

investment income.

This includes a section 1202 exclusion from eligible gain on qualified small business stock and gain or loss from the sale or exchange of collectibles. See the

Instructions for Schedule D (Form 1040) for more information.

2024 Annualized Estimated Tax Worksheet—Line 10

Foreign Earned Income Tax Worksheet

Worksheet 2-9.

Keep for Your Records

Before you begin: If line 11 of Worksheet 2-7 (2024 Annualized Estimated Tax Worksheet) is zero for the period, don’t complete this

worksheet.

1. Enter the amount from line 11 of your 2024 Annualized Estimated Tax Worksheet for the period ......

2. Enter the annualized amount* of foreign earned income and housing amount you (and your spouse if

filing jointly) expect to exclude or deduct for the period on Form 2555 ........................... 2.

3. Add lines 1 and 2 ...................................................................

4. Tax on the amount on line 3. Use the 2024 Tax Rate Schedules or Worksheet 2-8,** as

appropriate ........................................................................ 4.

5. Tax on the amount on line 2. Use the 2024 Tax Rate Schedules .............................

6. Subtract line 5 from line 4. Enter the result here and on line 12 of your 2024 Annualized Estimated Tax

Worksheet (Worksheet 2-7). If zero or less, enter -0- ........................................ 6.

* To figure the annualized amount for line 2, multiply the expected exclusion for the period by the annualization amount

on line 2 of Worksheet 2-7 for the same period.

** If using Worksheet 2-8 (Qualified Dividends and Capital Gain Tax Worksheet), enter the amount from line 3 above on

line 1 of Worksheet 2-8. Complete Worksheet 2-8 through line 9. Next, determine if you have a capital gain excess.

Figuring capital gain excess. To find out if you have a capital gain excess for the appropriate period, subtract line 11

of Worksheet 2-7 from line 9 of Worksheet 2-8. If the result is more than zero, that amount is your capital gain excess.

No capital gain excess. If you don’t have a capital gain excess, complete the rest of Worksheet 2-8 according to its instructions. Then,

complete lines 5 and 6 above.

Capital gain excess. If you have a capital gain excess, complete a second Worksheet 2-8 as instructed above but in its entirety and with

the following additional modifications. Then, complete lines 5 and 6 above.

Make these modifications only for purposes of filling out Worksheet 2-9.

a. Reduce (but not below zero) the amount you otherwise would enter on line 3 of Worksheet 2-8 by your capital gain excess.

b. Reduce (but not below zero) the amount you otherwise would enter on line 2 of Worksheet 2-8 by any of your capital gain excess

not used in (a) above.

c. Reduce (but not below zero) the amount you otherwise would enter on line 5 of Worksheet 2-8 by your capital gain excess.

d. Reduce (but not below zero) the amount you otherwise would enter on line 6 of Worksheet 2-8 by your capital gain excess.

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Publication 505 (2024) 39

How To Get Tax Help

If you have questions about a tax issue; need

help preparing your tax return; or want to down-

load free publications, forms, or instructions, go

to IRS.gov to find resources that can help you

right away.

Preparing and filing your tax return. After

receiving all your wage and earnings state-

ments (Forms W-2, W-2G, 1099-R, 1099-MISC,

1099-NEC, etc.); unemployment compensation

statements (by mail or in a digital format) or

other government payment statements (Form

1099-G); and interest, dividend, and retirement

statements from banks and investment firms

(Forms 1099), you have several options to

choose from to prepare and file your tax return.

You can prepare the tax return yourself, see if

you qualify for free tax preparation, or hire a tax

professional to prepare your return.

Free options for tax preparation. Your op-

tions for preparing and filing your return online

or in your local community, if you qualify, include

the following.

•

Free File. This program lets you prepare

and file your federal individual income tax

return for free using software or Free File

Fillable Forms. However, state tax prepara-

tion may not be available through Free File.

Go to IRS.gov/FreeFile to see if you qualify

for free online federal tax preparation, e-fil-

ing, and direct deposit or payment options.

•

VITA. The Volunteer Income Tax Assis-

tance (VITA) program offers free tax help to

people with low-to-moderate incomes, per-

sons with disabilities, and limited-Eng-

lish-speaking taxpayers who need help

preparing their own tax returns. Go to

IRS.gov/VITA, download the free IRS2Go

app, or call 800-906-9887 for information

on free tax return preparation.

•

TCE. The Tax Counseling for the Elderly

(TCE) program offers free tax help for all

taxpayers, particularly those who are 60

years of age and older. TCE volunteers

specialize in answering questions about

pensions and retirement-related issues

unique to seniors. Go to IRS.gov/TCE or

download the free IRS2Go app for informa-

tion on free tax return preparation.

•

MilTax. Members of the U.S. Armed

Forces and qualified veterans may use Mil-

Tax, a free tax service offered by the De-

partment of Defense through Military One-

Source. For more information, go to

MilitaryOneSource (MilitaryOneSource.mil/

MilTax).

Also, the IRS offers Free Fillable Forms,

which can be completed online and then

e-filed regardless of income.

Using online tools to help prepare your re-

turn. Go to IRS.gov/Tools for the following.

•

The Earned Income Tax Credit Assistant

(IRS.gov/EITCAssistant) determines if

you’re eligible for the earned income credit

(EIC).

•

The Online EIN Application (IRS.gov/EIN)

helps you get an employer identification

number (EIN) at no cost.

•

The Tax Withholding Estimator (IRS.gov/

W4App) makes it easier for you to estimate

the federal income tax you want your em-

ployer to withhold from your paycheck.

This is tax withholding. See how your with-

holding affects your refund, take-home pay,

or tax due.

•

The First-Time Homebuyer Credit Account

Look-up (IRS.gov/HomeBuyer) tool pro-

vides information on your repayments and

account balance.

•

The Sales Tax Deduction Calculator

(IRS.gov/SalesTax) figures the amount you

can claim if you itemize deductions on

Schedule A (Form 1040).

Getting answers to your tax ques-

tions. On IRS.gov, you can get

up-to-date information on current

events and changes in tax law.

•

IRS.gov/Help: A variety of tools to help you

get answers to some of the most common

tax questions.

•

IRS.gov/ITA: The Interactive Tax Assistant,

a tool that will ask you questions and,

based on your input, provide answers on a

number of tax topics.

•

IRS.gov/Forms: Find forms, instructions,

and publications. You will find details on

the most recent tax changes and interac-

tive links to help you find answers to your

questions.

•

You may also be able to access tax infor-

mation in your e-filing software.

Need someone to prepare your tax return?

There are various types of tax return preparers,

including enrolled agents, certified public ac-

countants (CPAs), accountants, and many oth-

ers who don’t have professional credentials. If

you choose to have someone prepare your tax

return, choose that preparer wisely. A paid tax

preparer is:

•

Primarily responsible for the overall sub-

stantive accuracy of your return,

•

Required to sign the return, and

•

Required to include their preparer tax iden-

tification number (PTIN).

Although the tax preparer always signs

the return, you're ultimately responsible

for providing all the information re-

quired for the preparer to accurately prepare

your return and for the accuracy of every item

reported on the return. Anyone paid to prepare

tax returns for others should have a thorough

understanding of tax matters. For more informa-

tion on how to choose a tax preparer, go to Tips

for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business

Services Online. The Social Security Adminis-

tration (SSA) offers online service at SSA.gov/

employer for fast, free, and secure W-2 filing op-

tions to CPAs, accountants, enrolled agents,

and individuals who process Form W-2, Wage

and Tax Statement, and Form W-2c, Corrected

Wage and Tax Statement.

IRS social media. Go to IRS.gov/SocialMedia

to see the various social media tools the IRS

uses to share the latest information on tax

changes, scam alerts, initiatives, products, and

CAUTION

services. At the IRS, privacy and security are

our highest priority. We use these tools to share

public information with you. Don’t post your so-

cial security number (SSN) or other confidential

information on social media sites. Always pro-

tect your identity when using any social net-

working site.

The following IRS YouTube channels provide

short, informative videos on various tax-related

topics in English, Spanish, and ASL.

•

Youtube.com/irsvideos.

•

Youtube.com/irsvideosmultilingua.

•

Youtube.com/irsvideosASL.

Watching IRS videos. The IRS Video portal

(IRSVideos.gov) contains video and audio pre-

sentations for individuals, small businesses,

and tax professionals.

Online tax information in other languages.

You can find information on IRS.gov/

MyLanguage if English isn’t your native lan-

guage.

Free Over-the-Phone Interpreter (OPI) Serv-

ice. The IRS is committed to serving taxpayers

with limited-English proficiency (LEP) by offer-

ing OPI services. The OPI Service is a federally

funded program and is available at Taxpayer

Assistance Centers (TACs), most IRS offices,

and every VITA/TCE tax return site. The OPI

Service is accessible in more than 350 lan-

guages.

Accessibility Helpline available for taxpay-

ers with disabilities. Taxpayers who need in-

formation about accessibility services can call

833-690-0598. The Accessibility Helpline can

answer questions related to current and future

accessibility products and services available in

alternative media formats (for example, braille,

large print, audio, etc.). The Accessibility Help-

line does not have access to your IRS account.

For help with tax law, refunds, or account-rela-

ted issues, go to IRS.gov/LetUsHelp.

Note. Form 9000, Alternative Media Prefer-

ence, or Form 9000(SP) allows you to elect to

receive certain types of written correspondence

in the following formats.

•

Standard Print.

•

Large Print.

•

Braille.

•

Audio (MP3).

•

Plain Text File (TXT).

•

Braille Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to re-

view the available disaster tax relief.

Getting tax forms and publications. Go to

IRS.gov/Forms to view, download, or print all

the forms, instructions, and publications you

may need. Or, you can go to IRS.gov/

OrderForms to place an order.

Getting tax publications and instructions in

eBook format. Download and view most tax

publications and instructions (including the In-

structions for Form 1040) on mobile devices as

eBooks at IRS.gov/eBooks.

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40 Publication 505 (2024)

IRS eBooks have been tested using Apple's

iBooks for iPad. Our eBooks haven’t been tes-

ted on other dedicated eBook readers, and

eBook functionality may not operate as inten-

ded.

Access your online account. Go to IRS.gov/

Account to securely access information about

your federal tax account.

•

View the amount you owe and a break-

down by tax year.

•

See payment plan details or apply for a

new payment plan.

•

Make a payment or view 5 years of pay-

ment history and any pending or sched-

uled payments.

•

Access your tax records, including key

data from your most recent tax return, and

transcripts.

•

View digital copies of select notices from

the IRS.

•

Approve or reject authorization requests

from tax professionals.

•

View your address on file or manage your

communication preferences.

Get a transcript of your return. With an on-

line account, you can access a variety of infor-

mation to help you during the filing season. You

can get a transcript, review your most recently

filed tax return, and get your adjusted gross in-

come. Create or access your online account at

IRS.gov/Account.

Tax Pro Account. This tool lets your tax pro-

fessional submit an authorization request to ac-

cess your individual taxpayer IRS online ac-

count. For more information, go to IRS.gov/

TaxProAccount.

Using direct deposit. The safest and easiest

way to receive a tax refund is to e-file and

choose direct deposit, which securely and elec-

tronically transfers your refund directly into your

financial account. Direct deposit also avoids the

possibility that your check could be lost, stolen,

destroyed, or returned undeliverable to the IRS.

Eight in 10 taxpayers use direct deposit to re-

ceive their refunds. If you don’t have a bank ac-

count, go to IRS.gov/DirectDeposit for more in-

formation on where to find a bank or credit

union that can open an account online.

Reporting and resolving your tax-related

identity theft issues.

•

Tax-related identity theft happens when

someone steals your personal information

to commit tax fraud. Your taxes can be af-

fected if your SSN is used to file a fraudu-

lent return or to claim a refund or credit.

•

The IRS doesn’t initiate contact with tax-

payers by email, text messages (including

shortened links), telephone calls, or social

media channels to request or verify per-

sonal or financial information. This includes

requests for personal identification num-

bers (PINs), passwords, or similar informa-

tion for credit cards, banks, or other finan-

cial accounts.

•

Go to IRS.gov/IdentityTheft, the IRS Iden-

tity Theft Central webpage, for information

on identity theft and data security protec-

tion for taxpayers, tax professionals, and

businesses. If your SSN has been lost or

stolen or you suspect you’re a victim of

tax-related identity theft, you can learn

what steps you should take.

•

Get an Identity Protection PIN (IP PIN). IP

PINs are six-digit numbers assigned to tax-

payers to help prevent the misuse of their

SSNs on fraudulent federal income tax re-

turns. When you have an IP PIN, it pre-

vents someone else from filing a tax return

with your SSN. To learn more, go to

IRS.gov/IPPIN.

Ways to check on the status of your refund.

•

Go to IRS.gov/Refunds.

•

Download the official IRS2Go app to your

mobile device to check your refund status.

•

Call the automated refund hotline at

800-829-1954.

The IRS can’t issue refunds before

mid-February for returns that claimed

the EIC or the additional child tax credit

(ACTC). This applies to the entire refund, not

just the portion associated with these credits.

Making a tax payment. Payments of U.S. tax

must be remitted to the IRS in U.S. dollars.

Digital assets are not accepted. Go to IRS.gov/

Payments for information on how to make a pay-

ment using any of the following options.

•

IRS Direct Pay: Pay your individual tax bill

or estimated tax payment directly from your

checking or savings account at no cost to

you.

•

Debit Card, Credit Card, or Digital Wallet:

Choose an approved payment processor

to pay online or by phone.

•

Electronic Funds Withdrawal: Schedule a

payment when filing your federal taxes us-

ing tax return preparation software or

through a tax professional.

•

Electronic Federal Tax Payment System:

Best option for businesses. Enrollment is

required.

•

Check or Money Order: Mail your payment

to the address listed on the notice or in-

structions.

•

Cash: You may be able to pay your taxes

with cash at a participating retail store.

•

Same-Day Wire: You may be able to do

same-day wire from your financial institu-

tion. Contact your financial institution for

availability, cost, and time frames.

Note. The IRS uses the latest encryption

technology to ensure that the electronic pay-

ments you make online, by phone, or from a

mobile device using the IRS2Go app are safe

and secure. Paying electronically is quick, easy,

and faster than mailing in a check or money or-

der.

What if I can’t pay now? Go to IRS.gov/

Payments for more information about your op-

tions.

•

Apply for an online payment agreement

(IRS.gov/OPA) to meet your tax obligation

in monthly installments if you can’t pay

your taxes in full today. Once you complete

the online process, you will receive imme-

diate notification of whether your agree-

ment has been approved.

•

Use the Offer in Compromise Pre-Qualifier

to see if you can settle your tax debt for

CAUTION

less than the full amount you owe. For

more information on the Offer in Compro-

mise program, go to IRS.gov/OIC.

Filing an amended return. Go to IRS.gov/

Form1040X for information and updates.

Checking the status of your amended re-

turn. Go to IRS.gov/WMAR to track the status

of Form 1040-X amended returns.

It can take up to 3 weeks from the date

you filed your amended return for it to

show up in our system, and processing

it can take up to 16 weeks.

Understanding an IRS notice or letter

you’ve received. Go to IRS.gov/Notices to find

additional information about responding to an

IRS notice or letter.

Responding to an IRS notice or letter. You

can now upload responses to all notices and

letters using the Document Upload Tool. For no-

tices that require additional action, taxpayers

will be redirected appropriately on IRS.gov to

take further action. To learn more about the tool,

go to IRS.gov/Upload.

Note. You can use Schedule LEP (Form

1040), Request for Change in Language Prefer-

ence, to state a preference to receive notices,

letters, or other written communications from

the IRS in an alternative language. You may not

immediately receive written communications in

the requested language. The IRS’s commitment

to LEP taxpayers is part of a multi-year timeline

that began providing translations in 2023. You

will continue to receive communications, includ-

ing notices and letters, in English until they are

translated to your preferred language.

Contacting your local TAC. Keep in mind,

many questions can be answered on IRS.gov

without visiting a TAC. Go to IRS.gov/LetUsHelp

for the topics people ask about most. If you still

need help, TACs provide tax help when a tax is-

sue can’t be handled online or by phone. All

TACs now provide service by appointment, so

you’ll know in advance that you can get the

service you need without long wait times. Be-

fore you visit, go to IRS.gov/TACLocator to find

the nearest TAC and to check hours, available

services, and appointment options. Or, on the

IRS2Go app, under the Stay Connected tab,

choose the Contact Us option and click on “Lo-

cal Offices.”

The Taxpayer Advocate

Service (TAS) Is Here To

Help You

What Is TAS?

TAS is an independent organization within the

IRS that helps taxpayers and protects taxpayer

rights. TAS strives to ensure that every taxpayer

is treated fairly and that you know and under-

stand your rights under the Taxpayer Bill of

Rights.

CAUTION

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Publication 505 (2024) 41

How Can You Learn About Your

Taxpayer Rights?

The Taxpayer Bill of Rights describes 10 basic

rights that all taxpayers have when dealing with

the IRS. Go to TaxpayerAdvocate.IRS.gov to

help you understand what these rights mean to

you and how they apply. These are your rights.

Know them. Use them.

What Can TAS Do for You?

TAS can help you resolve problems that you

can’t resolve with the IRS. And their service is

free. If you qualify for their assistance, you will

be assigned to one advocate who will work with

you throughout the process and will do every-

thing possible to resolve your issue. TAS can

help you if:

•

Your problem is causing financial difficulty

for you, your family, or your business;

•

You face (or your business is facing) an im-

mediate threat of adverse action; or

•

You’ve tried repeatedly to contact the IRS

but no one has responded, or the IRS

hasn’t responded by the date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of

Columbia, and Puerto Rico. To find your advo-

cate’s number:

•

Go to TaxpayerAdvocate.IRS.gov/Contact-

Us;

•

Download Pub. 1546, The Taxpayer Advo-

cate Service Is Your Voice at the IRS, avail-

able at IRS.gov/pub/irs-pdf/p1546.pdf;

•

Call the IRS toll free at 800-TAX-FORM

(800-829-3676) to order a copy of Pub.

1546;

•

Check your local directory; or

•

Call TAS toll free at 877-777-4778.

How Else Does TAS Help

Taxpayers?

TAS works to resolve large-scale problems that

affect many taxpayers. If you know of one of

these broad issues, report it to TAS at IRS.gov/

SAMS. Be sure to not include any personal tax-

payer information.

Low Income Taxpayer Clinics

(LITCs)

LITCs are independent from the IRS and TAS.

LITCs represent individuals whose income is

below a certain level and who need to resolve

tax problems with the IRS. LITCs can represent

taxpayers in audits, appeals, and tax collection

disputes before the IRS and in court. In addi-

tion, LITCs can provide information about tax-

payer rights and responsibilities in different lan-

guages for individuals who speak English as a

second language. Services are offered for free

or a small fee. For more information or to find an

LITC near you, go to the LITC page at

TaxpayerAdvocate.IRS.gov/LITC or see IRS

Pub. 4134, Low Income Taxpayer Clinic List, at

IRS.gov/pub/irs-pdf/p4134.pdf.

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42 Publication 505 (2024)

To help us develop a more useful index, please let us know if you have ideas for index entries.

See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

Index

Additional Medicare Tax 22, 25

Address change 27

Adjustments to income:

Estimated tax 21

AGI:

Expected AGI 21

Alaska Native Corporations 11

Aliens:

Nonresident aliens 21

Annualized estimated tax

worksheets 36, 37

Annualized - Capital gains 38

Annualized - Foreign Earned

Income 39

Annualized - Qualified

dividends 38

Annualized income installment

method 25

Annuities 9

Assistance (See Tax help)

Backup withholding 11, 12

Capital gains and losses:

Annualized estimated tax 25

Estimated tax on net capital

gain 22

Qualified dividends 25

Change of address 27

Commodity credit corporation

loans 11

Compensation 3

Independent contractors, backup

withholding 11

Supplemental wages 8

Tips 8

Wages and salaries 3

Crediting of overpayment 26

Credits:

Expected taxes and credits 22

Criminal penalties:

Willfully false or fraudulent Form

W-4 8

Crop insurance payments 11

Cumulative wage method of

withholding 6

Dividends:

Backup withholding 11

Underreported 11

Domestic help 3

Definition 3

Withholding 3

Eligible rollover distributions 10

Employee business expenses:

Accountable plans 8

Nonaccountable plans 8

Reimbursements 8

Employer Identification Numbers

(EINs) 11

Employers:

Repaying withheld tax 6

Tips 8

Withholding rules 6

Estates:

Estimated tax 21

Estimated tax:

Adjustments to income 21

Aliens 21, 26

Amended tax 24

Annualized income installment

method 25

Change in amount 24

Change of address 27

Crediting of overpayment 26

Estates and trusts 21

Expected AGI 21

Expected taxable income 21

Expected taxes and credits 22

Farmers and fishers 21, 23, 24

Fiscal year taxpayers 23

Higher income individuals 22

How to figure 21, 24

How to pay 26

Instructions for Worksheet 2-7,

annualized estimated tax 25

Itemized deductions 21

Married taxpayers 20

Net capital gain 22, 25

No standard deduction 22

Nonresident aliens 26

Overpayment 26

Payment vouchers 27

Payments not required 26

Regular installment method 24

Required annual payment 22

Self-employment income 25

Sick pay 9

Standard deduction 22, 25

Total estimated tax payments 23

Types of taxes included 19

Underpayment penalty 24

When to pay 23

When to start payments 23

Who does not have to pay 19

Who must pay 20

Estimated tax worksheets 28, 30,

2019 annualized estimated tax

worksheet 36

Amended estimated tax,

illustrated (Worksheet

2-10) 24

Capital gains 34

Capital gains, tax on 22

Foreign earned income 35

Form 1040-ES 30

Qualified dividends 34

Railroad retirement benefits 31

Self-employment tax 32

Social security benefits 31

Standard deduction 33

Exemption from withholding 6

Claiming 7

Good for only one year 8

Itemized deductions 7

Students 6

Expenses:

Allowances 8

Farmers:

Estimated tax 20, 23, 24

Fiscal years 24

Gross income 21

Joint returns 21

Required annual payment 23

Withholding for farmworkers 3

Figures:

Tables and figures (See Tables

and figures)

Fiscal years:

Estimated tax 23

Farmers and fishers 24

Fishers:

Estimated tax 20, 23, 24

Fiscal years 24

Gross income 21

Joint returns 21

Required annual payment 23

Form 1040-ES 19, 26

Form 1040-ES (NR) 21

Form 1041-ES 21

Form 1099 series 11

Form W-2G 10

Form W-4 worksheets:

Tax withholding estimator 6

Form W-4, Employee's Allowance

Withholding Certificate 3

Form W-4P 9

Form W-4S 9

Form W-4V 10

Form W-7 11

Form W-9 11

Fraud:

Form W-4 statements 8

Fringe benefits 8, 9

Gross income 21

Farming 21

Fishing 21

Higher income individuals:

Required annual payment 22

Household workers 3

Individual retirement

arrangements (IRAs) 9

(See also Pensions)

(See also Retirement plans)

Interest income:

Backup withholding 11

Underreported 11

Itemized deductions:

Estimated tax, expected taxable

income 21

Exemption from withholding 7

Joint returns:

Farmers and fishers 21

Married taxpayers:

Estimated tax 20

Military retirement pay 3, 9

Missing children, photographs

of 2

Net investment income tax 22,

NIIT 22, 25

Noncitizens:

Estimated tax 21

Nonqualified deferred

compensation 9

Nonresident aliens:

Estimated tax 21, 26

Individual taxpayer identification

numbers (ITINs) 11

Overpayment:

Crediting to estimated tax 26

Part-year method of

withholding 6

Patronage dividends:

Backup withholding 11

Payment vouchers 27

Penalties:

Backup withholding 12

Willfully false or fraudulent Form

W-4 8

Withholding allowances 8

Pensions 9

New job 3

Rollovers 10

Wages and salaries withholding

rules compared 9

Publications (See Tax help)

Railroad retirement benefits:

Choosing to withhold 11

Regular installment method,

estimated tax 24

Reimbursements 8

Excess 8

Reporting:

Fringe benefits 9

Gambling winnings 10

Tips to employer 8

Required annual payment 22, 23

Retirement plans

Pension plans 9

Pensions 9

Rollovers 10

Royalties:

Backup withholding 11

Salaries 3

Saturday, Sunday, holiday

rule 23

Self-employment tax 25

Sick pay 9

Social security benefits:

Choosing to withhold 11

Social security taxes:

Taxpayer identification numbers

(TINs) 11

Withholding obligation 2

Standard deduction 22, 25

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Publication 505 (2024) 43

Students 6

Supplemental wages 8

Tables and figures:

Do you have to pay estimated

tax? (Figure 2-A) 20

Due dates, estimated tax

(Table 2-1) 24

Exemption from withholding on

Form W-4 (Figure 1-A) 7

Worksheets, where to find 28

Tax help 40

Tax Rate Schedules 29

Tax withholding estimator 6

Taxpayer identification numbers

(TINs) 11

Tips 8

Total income 21

Underpayment penalty:

Amended estimated tax 24

Unemployment

compensation 10, 11

Wages and salaries 3

Withholding

Amount of tax withheld, Form

W-4 3

Annuities 9

Backup withholding 11

Changing 3

Checking amount of 4

Choosing not to withhold 10

Cumulative wage method 6

Domestic help 3

Employers' rules 6

Estimated tax 23

Exemption from 6

Farmworkers 3

Form W-2G 10

Form W-4 3

Fringe benefits 8

Gambling winnings 10

Getting right amount of tax

withheld 5, 6

Household workers 3

Nonperiodic payments 9

Part-year method 6

Penalties 8

Pensions 9

Periodic payments 9

Railroad retirement benefits 11

Repaying withheld tax 6

Rollovers 10

Salaries and wages 3

Sick pay 9

Social security (FICA) tax 2, 11

Tips 8

Types of income 2, 3

Unemployment

compensation 10

Worksheets (blank):

Annualized - Capital gains

(Worksheet 2-8) 38

Annualized - Foreign Earned

Income (Worksheet 2-9) 39

Annualized - Qualified dividends

(Worksheet 2-8) 38

Annualized estimated tax

(Worksheet 2-7) 36, 37

Capital gains tax worksheet:

Worksheet 2-5 34

Dependents (age 65 or older or

blind) exemption from

withholding (Worksheet

1-2) 13

Estimated tax worksheets

(Worksheet 2-1) 30

Foreign earned income

(Worksheet 2-6) 35

Qualified dividends:

Worksheet 2-5 34

Railroad retirement benefits

(Worksheet 2-2) 31

Self-employment tax and

deduction (Worksheet

2-3) 32

Social security benefits

(Worksheet 2-2) 31

Standard deduction (Worksheet

2-4) 33

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44 Publication 505 (2024)