Instructions For Form 540-Es - Estimated Tax For Individuals -1999
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21999 Instructions for Form 540-ES
Estimated Tax For Individuals
A Purpose
annualization schedule included with form FTB 5805, Underpayment of
Estimated Tax by Individuals and Fiduciaries.
Use this form to make installment payments of estimated tax. Esti-
Farmers and Fishermen. If at least two-thirds of your gross income
mated tax is the tax you expect to owe for 1999 after subtracting the
for 1998 or 1999 is from farming or fishing, you may:
tax you expect to have withheld and any credits you plan to take. Use
•
Pay all of your estimated tax by January 18, 2000; or
these instructions and the Estimated Tax Worksheet to determine if
•
File your tax return for 1999 on or before March 1, 2000, and pay
you owe estimated tax and to figure the required installment amount.
the total tax due. In this case, you need not make estimated tax
Generally, the required installment amount is based on the lesser of
payments for 1999. Attach form FTB 5805F, Underpayment of Esti-
80% of the current year’s tax or 100% of the prior year’s tax. However,
mated Tax by Farmers and Fishermen, to the front of your return.
for tax years beginning on or after January 1, 1999, certain taxpayers
Fiscal Year. If you file your return on a fiscal-year basis, your due
are limited in their use of the prior year’s tax as a basis for figuring
dates will be the 15th day of the 4th, 6th and 9th months of your fiscal
their estimated tax. See paragraph C, Limit on the Use of Prior Year’s
year and the 1st month of the following fiscal year. If a due date falls
Tax, below for more information.
on a Saturday, Sunday or legal holiday, use the next business day.
B Who Must Make Estimated Tax Payments
E How To Use Form 540-ES Payment Voucher
Important note: California and federal estimated tax payment require-
Use the Estimated Tax Worksheet and your 1998 California income tax
ments are not the same.
return as a guide for figuring your 1999 estimated tax. There is a sepa-
Generally, you must make 1999 estimated tax payments unless:
rate payment voucher for each due date. Please be sure you use the
•
voucher with the correct due date shown on the right side of the
More than 80% of your 1998 tax was paid by withholding; or
•
voucher. Fill in Form 540-ES:
More than 80% of your 1999 California adjusted gross income
1. Print your name, address and social security number in the space
(AGI) will be wages subject to withholding; or
•
More than 80% of your 1999 tax will be paid by withholding; or
provided on Form 540-ES. Use black or blue ballpoint pen. Scan-
•
ning machines may not be able to read other colors of ink or pencil.
Your tax for 1998 (after subtracting withholding and credits) was
Print all names and words in CAPITAL LETTERS. Fill in your name
less than $200 ($100 if married filing separate); or
•
Your tax for 1999 (after subtracting withholding and credits) will be
as in the following example:
less than $200 ($100 if married filing separate).
Your first name
Initial
Last name
Generally, you and your spouse may make either joint or separate esti-
A D O E
J O H N
mated tax payments. However, you must make separate estimated tax
payments if you are separated under a decree of divorce or separate
If your name or address is too long to fit in the boxes provided, do
maintenance or you and your spouse have different taxable years.
not shorten your name or address. Instead, ignore the boxes and fit
the information in the space provided. Example:
If you make joint estimated tax payments but you and your spouse do
not file a joint return for the taxable year, you and your spouse must
Your first name
Initial
Last name
agree on how to divide the estimated tax payments. You and your
Y R S T O N E
O N A T H A N
A Z I G
G E H
P
Z
J
spouse may agree to claim the entire estimated tax on either spouse’s
separate return or divide the payments in any manner.
2. Complete the payment box of the voucher by entering the amount
of the payment that you are sending in. Your entry must match the
C Limit on the Use of Prior Year’s Tax
amount you are sending in. When making payments of estimated
tax, be sure to take into account any 1998 overpayment that you
For taxable years beginning on or after January 1, 1999, individuals
chose to credit against your 1999 tax, but do not include the over-
with adjusted gross income greater than $150,000 (single, married fil-
payment amount in the amount of your payment. Therefore, the
ing joint, head of household or qualifying widow(er)) or $75,000 (mar-
amount shown on line 19 of the Estimated Tax Worksheet should
ried filing separate) must base their estimated tax on the lesser of 80%
be reduced by any overpaid tax on your 1998 return that you chose
of their current year’s tax or 105% of the prior year’s tax.
to apply toward your 1999 estimated tax payment.
3. Make your check or money order payable to ‘‘Franchise Tax
D When To Make Your Estimated Tax Payments
Board.’’ Write your social security number and ‘‘Form 540-ES
1999’’ on the check or money order. Mail your Form 540-ES and
For estimated tax purposes, the year is divided into four payment
your check or money order to:
periods. Each period has a specific payment due date. If you do not
FRANCHISE TAX BOARD
pay enough tax by the due date of each of the payment periods, you
PO BOX 942867
may be charged a penalty even if you are due a refund when you file
SACRAMENTO CA 94267-0031
your income tax return. The chart below lists the payment periods and
4. Fill in the Record of Estimated Tax Payments (located on the bot-
payment due dates.
tom of the Estimated Tax Worksheet) for your files.
For the period
Due date
5. Fiscal-year filers: If you file your return on a fiscal year basis, be
January 1 through March 31, 1999
April 15, 1999
sure to enter the month of your fiscal year end.
April 1 through May 31, 1999
June 15, 1999
June 1 through August 31, 1999
September 15, 1999
F Failure To Make Estimated Tax Payments
Sept. 1 through Dec. 31, 1999
January 18, 2000
Filing An Early Return In Place of the 4th Installment. If you file
If you are required to make estimated tax payments and do not, or if
your 1999 tax return by January 31, 2000, and pay the entire balance
you underpay any installment, a penalty will be assessed (with certain
due, you do not have to make your last estimated tax payment.
exceptions) on the portion of estimated tax that was underpaid from
Annualization Option. If you do not receive your taxable income
the due date of the installment to the date of payment or the due date
evenly during the year, it may be to your advantage to annualize your
of your tax return, whichever is earlier. For more information, refer to
income. This method allows you to match your estimated tax payments
form FTB 5805.
to the actual period when you earned the income. You may use the
Form 540-ES Instructions (REV. 1998)
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