Evening star., 1951-02-17

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come, such as doctors. lawyers,
landlords and self-employed peo-
pie.
2. Those who will have some tax
but not the full tax withheld from
their 1850 income. This applies to
some wage earners and salarieo
people.
Persons in those two groups
must do the following by March
IS:
/. Estimate what their 1851 in
come will be and what the tax on
1t will be.
2. Start paying the difference
between the tax withheld, If any
and the full tax that would be
owed for the year.
That payment will be in four
quarterly installments. The first
is due March Is, when you file the
estimated return. The next three
are due on June Is. September
is and January Is, 1852.
Taxes to Go Up.
This year Congress is expected
to increase everyone's taxes, and
this may cause some changes In
the size Of your estimated tax or
the payments you have to make
But that's months away. and its
6. bridge you can cross when you
come to 1t. Meanwhile, II you're
one of those required to file an
estimated tax return by March
Is and make the first payment on
it, it's sensible to go ahead and dc
that.
You shouldn't have any trouble
figuring out pretty quickly whether
you're in the estimated" group
You know how much tax. If any
is being withheld from you now
So, first, figure out what your In
come for 1851 will be.
Then figure what the full tax
on your 1851 income will be, based
on the tax rate now in effect. You
can do it easily enough but-this
is important-you must do 1t on
Form 1040-ES, special single
sheet for people filing an esti-
mated tax. If you don't have it.
get 1t. There'll be more about
Form 1040-ES In moment.
II your income will be under
SIS 900, find your tax in the table
on the back Of Form 1040-ES. Il
it's going to be $1,000 or more
work out your tax according to the
formula on the back of Form
i040-ES.
If you find the full tax will be
withheld from you, then forget
his whole business.
Should File Estimate.
If you find you'll owe more taz
than will be withheld, then you're
supposed to file an estimate by
March Is and start paying the
first of those four quarterly In
stallments on the difference be-
tween the tax to be withheld and
the full tax you'll owe.
Remember, you must use Form
1o40-ES. It has a table and for
mula similar to-but not at all
identical with-thoSe you used
with Form 1040 in figuring your
1850 tax.
Don't make the mistake of fig
uring your tax on Form 1040 and
then just filling in Form 1040-ES.
The figures in the table on Form
1040-ES are different from the
regular Form 1040.
And the formula used with
Form 1040-ES is different from
that on Form 1040. In both cases
the table and the formula-on
Form 1040-ES your tax will be
higher than on Form 1040. Why?
Because taxes, although raised
last year, were raised only on the
last quarter of 1850. So your total
tax this year will be fair bit
higher than your total 1850 tax.
And the table and formula on
Form 1040-ES were revised to take
care of that boost.
The Internal Revenue Collector
has mailed a Form 1O40-ES to
those who have been paying on
their estimated tax in previous
years. If you didn't get it but
need it, you can get it from the
collector for your district, or from
a bank or post Office.
Be sure, in figuring your esti-
mated tax. you claim all the
exemptions and the usual deduc-
tion to which you're entitled.
These have been explained in
detail in previous stories in this
series.
Things to Keep in Mind.
Here are a couple of things to
keep in mind:
Persons with less than $500
income don't have to file any kind
of return anyway. So what follows
deals only with those with $500 or
more income.
If full tax is withheld from your
entire income, meaning wages or
salary, in 1851 you don't have to
file an estimated tax return.
And you don't have to file it if
full tax is withheld from your
income except for no more than
an untaxed 500 from any source,