Tax Publication 505 Introduction The federal income tax is a pay-as-you-go tax.

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



Withholding come during the year. There are two ways to

pay as you go.



and Estimated • Withholding. If you are an employee, your

employer probably withholds income tax

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



Tax 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



For use in ted tax. People who are in business for 2025 tax that way, you might have to pay estima-

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, nonresident alien employees should



see Notice 1392, Supplemental Form W-4 In-

structions 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) Personal Services of a Nonresident

Alien Individual. Also, see chapter 8 of Pub.

519.

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

Get forms and other information faster and easier at: feedback and will consider your comments and

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Publication 505 (2025) Catalog Number 15008E

Mar 12, 2025 Department of the Treasury Internal Revenue Service www.irs.gov





Getting answers to your tax questions. Advance payments of the premium tax




If you have a tax question not answered by this credit. If you buy health insurance through the 1. publication or the How To Get Tax Help section Health Insurance Marketplace, you may be eli-at the end of this publication, go to the IRS In- gible to have advance payments of the premium

teractive Tax Assistant page at IRS.gov/ tax credit paid on your behalf to the insurance



Help/ITA where you can find topics by using the company. Receiving too little or too much in ad- Tax Withholding search feature or viewing the categories listed. vance will affect your refund or balance due.



lications. Go to IRS.gov/Forms to download and its instructions for more information. current and prior-year forms, instructions, and for 2025 Getting tax forms, instructions, and pub- ily size to your Marketplace. See Form 8962 Promptly report changes in your income or fam-publications. Additional Medicare Tax. Generally, a 0.9%



Additional Medicare Tax applies to Medicare Introduction

Ordering tax forms, instructions, and wages, Railroad Retirement Tax Act compensa-

publications. Go to IRS.gov/OrderForms to or- tion, and self-employment income over der current forms, instructions, and publica- $200,000 if you are filing as single, head of This chapter discusses income tax withholding tions; call 800-829-3676 to order prior-year household, or qualifying surviving spouse; over on: forms and instructions. The IRS will process $250,000 if you are married filing jointly; and • Salaries and wages, your order for forms and publications as soon over $125,000 if you are married filing sepa- • Tips, as possible. Don’t resubmit requests you’ve al- rately. You may need to include this amount • Taxable fringe benefits, ready sent us. You can get forms and publica- when figuring your estimated tax. You may also • Sick pay, tions faster online. request that your employer deduct and withhold • Pensions and annuities,



What's New for 2025 an additional amount of income tax withholding • Gambling winnings, from your wages on Form W-4. • Unemployment compensation, and



Use your 2024 tax return as a guide in figuring be subject to NIIT. NIIT is a 3.8% tax on the This chapter explains in detail the rules for with-your 2025 estimated tax, but be sure to lesser of net investment income or the excess of Net Investment Income Tax (NIIT). You may • Certain federal payments. consider the following. your MAGI over $200,000 ($250,000 if married holding tax from each of these types of income.

The discussion of salaries and wages includes

Standard deduction amount increased. For filing jointly or qualifying surviving spouse; an explanation of how to complete Form W-4. 2025, the standard deduction amount has been $125,000 if married filing separately). NIIT may This chapter also covers backup withholding increased for all filers, and the amounts are as need to be included when figuring estimated on interest, dividends, and other payments. follows. tax. You may also request that your employer



• Single or Married Filing Sepa- deduct and withhold an additional amount of in- Useful Items rately—$15,000. come tax withholding from your wages on Form You may want to see: • Married Filing Jointly or Qualifying Surviv-W-4. ing Spouse—$30,000. Access your online account. Go to IRS.gov/ Form (and Instructions) • Head of Household—$22,500. Account to securely access information about



come limits increased. In order to claim this • View the amount you owe and a break- W-4P W-4P Withholding Certificate for Periodic credit for 2025, your MAGI must not be more Retirement savings contribution credit in- your federal tax account. W-4 W-4 Employee's Withholding Certificate than $39,500 ($79,000 if married filing jointly; See payment plan details or apply for a • Pension or Annuity Payments down by tax year. $59,250 if head of household). new payment plan. W-4R W-4R Withholding Certificate for Adoption credit or exclusion. The maximum • Make a payment, view 5 years of payment Nonperiodic Payments and Eligible



Reminders • View digital copies of select notices from See How To Get Tax Help at the end of this pub-lication for information about getting these pub-the IRS. Future developments. The IRS has created a • Approve or reject authorization requests lications and forms. page on IRS.gov for information about Pub. 505 from tax professionals. at IRS.gov/Pub505 . Information about any fu-• Update your address or manage your com-ture developments affecting Pub. 505 (such as munication preferences. Salaries and Wages legislation enacted after we release it) will be Photographs of missing children. The IRS is posted on that page. Income tax is withheld from the pay of most em-a proud partner with the National Center for Social security tax. Generally, each employer ployees. Your pay includes your regular pay, bo-Missing & Exploited Children® (NCMEC) . Pho-for whom you work during the tax year must $17,280. In order to claim either the credit or ex- Access your tax records, including key Withholding From Sick Pay data from your most recent tax return, your clusion, your MAGI must be less than $299,190. economic impact payment amounts, and W-4V W-4V Voluntary Withholding Request transcripts. ded adoption benefits has increased to ments. W-4S W-4S Request for Federal Income Tax • adoption credit or exclusion for employer-provi- history and any pending or scheduled pay- Rollover Distributions withhold social security tax up to the annual tographs of missing children selected by the nuses, commissions, and vacation allowances.

limit. The annual limit is $176,100 in 2025. Center may appear in this publication on pages It also includes reimbursements and other ex-

that would otherwise be blank. You can help pense allowances paid under a nonaccountable

Form 1040-SS filers. The Estimated Tax plan. See Supplemental Wages, later, for defini-bring these children home by looking at the



ded on the Form 1040-ES. See Form 1040-ES (800-843-5678) if you recognize a child. If your income is low enough that you won’t and its instructions for more information. Worksheet for filers of Form 1040-SS is inclu- tions of accountable and nonaccountable plans. photographs and calling 800-THE-LOST

Expired individual taxpayer identification exempt from withholding. This is explained un- have to pay income tax for the year, you may be

number (ITIN) and renewal. If you have an der Exemption From Withholding, later. ITIN that you haven't included on a tax return in

the last 3 consecutive years, it may be expired You can ask your employer to withhold in-

and you may need to renew it. If your ITIN has come tax from noncash wages and other wages

expired and you don't have an SSN, you can not subject to withholding. If your employer

make estimated tax payments before you renew does not agree to withhold tax, or if not enough

your ITIN. To renew your ITIN, and for more is withheld, you may have to pay estimated tax,

information, see the Instructions for Form W-7. as discussed in chapter 2.

2 Chapter 1 Tax Withholding for 2025 Publication 505 (2025) Military retirees. Military retirement pay is your tax return. Also, complete this step if you you or your spouse select the checkbox in treated in the same manner as regular pay for want to include an estimate of your other tax Step 2(c) (in this case, you must furnish a income tax withholding purposes, even though credits (for example, an education credit or the new Form W-4 for your first job and select it is treated as a pension or annuity for other tax foreign tax credit). the checkbox in Step 2(c)). purposes. • You or your spouse expect a raise of more





Step 4. Complete this optional step to make than $10,000 in regular wages (not a bo-


Household workers. If you are a household other adjustments. nus) at a second or third job, and the Form worker, you can ask your employer to withhold • Other income (not from jobs). W-4, Step 2(c), checkbox is not selected income tax from your pay. A household worker • Deductions (other than the standard de- on your Forms W-4. is an employee who performs household work duction). • You no longer expect to be able to claim a in a private home, local college club, or local fra- • Any additional amounts you want to with- Child Tax Credit you took into account on a ternity or sorority chapter. hold from each check. previously furnished Form W-4.



and your employer agrees to withhold it. If you a previously furnished Form W-4 decrease New Job don’t have enough income tax withheld, you by more than $500. • Tax is withheld only if you want it withheld • Your other credits you took into account on

may have to pay estimated tax, as discussed in Your deductions decrease by more than When you start a new job, you must fill out a





chapter 2. $2,300 from the amount you took into ac- Form W-4 and give it to your employer. Your


employer should have copies of the form. If you count on a previously furnished Form W-4.

Farmworkers. Generally, income tax is with- • You no longer reasonably expect to claim need to change the information later, you must held from your cash wages for work on a farm exemption from withholding. fill out a new form. unless your employer both:

• Pays you cash wages of less than $150 Change of status resulting in withholding If you work only part of the year (for exam-



• Has expenditures for agricultural labor to- change of status listed in the previous section, year), too much tax may be withheld. You may you don't have to furnish a new Form W-4 for during the year, and that will cover your tax liability. If you have a ple, you start working after the beginning of the

taling less than $2,500 during the year. be able to avoid overwithholding if your em-

ployer agrees to use the part-year method. See 2025 if after the change you will have enough

Differential wage payments. When employ- tax withheld for the remainder of 2025 to cover Part-Year Method , later, for more information.

ees are on leave from employment for military your income tax liability. However, if you will

duty, some employers make up the difference have enough tax withheld for 2025 to cover your Employee also receiving pension income. If

between the military pay and civilian pay. Pay- income tax liability after a change or changes in you receive pension or annuity income and be-

ments to an employee who is on active duty for status, but your filing status changes from Mar- gin a new job, you will need to file Form W-4

a period of more than 30 days will be subject to ried Filing Jointly (or Qualifying Surviving with your new employer. You should also con-

income tax withholding, but not subject to social Spouse) to Head of Household or to Single (or sider furnishing a new Form W-4P.

security or Medicare taxes. The wages and Married Filing Separately) or from Head of

withholding will be reported on Form W-2, Household to Single (or Married Filing Sepa- Changing Your Withholding

Wage and Tax Statement. rately) during 2025, you are required to furnish



Determining Amount of Tax During the year, changes may occur to your your employer a new Form W-4 for 2026 by De- cember 1, 2025, or, if later, 10 days after the marital status, adjustments, deductions, or date of the change in filing status, to take effect Withheld Using Form W-4 credits you expect to claim on your tax return. in 2026. When this happens, you may need to give your



The amount of income tax your employer with- employer a new Form W-4 to change your with- Otherwise, if you want to change your with-holding. holds from your regular pay depends on three holding for any other reason, you can generally things. do that whenever you wish. See Table 1-1 for If a change in personal circumstances re-• The amount you earn in each payroll pe-examples of personal and financial changes duces the amount of withholding you are enti-riod. you should consider. tled to claim, you are required to give your em-• Your payroll period. ployer a new Form W-4 within 10 days after the • The information you give your employer on change occurs. Form W-4.

Form W-4 includes four steps that will give The following rules apply in determining

information to your employer to figure your with- whether you are required to furnish a new Form holding. Complete Steps 2 through 4 only if they W-4 to your employer. apply to you.

Change of status resulting in withholding

Step 1. Enter your personal information, in- less than your tax liability. If you have one of cluding your anticipated filing status. Your antici- the changes in the following bullet list and you pated filing status will determine the standard won't have enough tax withheld for the remain-deduction and tax rates used to figure your der of 2025 to cover your income tax liability for withholding. 2025, you are required to furnish a new Form

W-4 to your employer within 10 days after the

Step 2. Complete this step if you (1) hold more date of the change. than one job at a time, or (2) are married and • Your filing status changes from Married Fil-plan to file a joint return and your spouse also ing Jointly (or Qualifying Surviving Spouse) works. to Head of Household or Single (or Married



most accurate if you do this on the Form W-4 for CAUTION ! complete Steps 3 through 4(b) on only rately). one Form W-4. Your withholding will be • You or your spouse start another job, and you chose to use the Multiple Jobs Work-If you or your spouse have another job, hold to Single (or Married Filing Sepa-Filing Separately) or from Head of House-the highest paying job. sheet or the Tax Withholding Estimator to

account for your other job in determining

Step 3. Complete this step if you have depend- your withholding. ents and think you may be eligible to claim the • You or your spouse start another job, and child tax credit or credit for other dependents on as a result file a new 2025 Form W-4, and

Publication 505 (2025) Chapter 1 Tax Withholding for 2025 3 Table 1-1. Personal and Financial When Should You Check Your Form W-4. To see if you should request an addi-





Changes Withholding? tional amount be withheld, complete Work-


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

Factor Examples The earlier in the year you check your withhold- if the amount on Worksheet 1-5, line 5:



Lifestyle ing, the easier it is to get the right amount of tax 1. Is more than you want to pay with your tax Marriage withheld. return or in estimated tax payments change Divorce throughout the year, or Birth or adoption of child You should check your withholding when Purchase of a new home any of the following situations occur. 2. Would cause you to pay a penalty when Retirement you file your tax return for 2025. Filing chapter 11 bankruptcy 1. You receive a paycheck stub (statement) covering a full pay period in 2025 showing What if I have more than one job or my Wage income You or your spouse start or tax withheld based on 2025 tax rates. spouse also has a job? You are more likely to stop working, or start or stop a 2. You prepare your 2024 tax return and get need to increase your withholding if you have second job a: more than one job or if you are married filing

amount of a. Big refund, or Dividends Change in the Interest income jointly and your spouse also works. If this is the

case, you can increase your withholding for one

taxable Capital gains b. Balance due that is: or more of the jobs.



ing, you can request that your employer with-income not Self-employment income You can apply the amount on Worksheet i. More than you can comfortably subject to IRA (including certain Roth 1-5, line 5, to only one job or divide it between withholding IRA) distributions pay, or the jobs any way you wish. For each job, deter-ii. Subject to a penalty. mine the extra amount that you want to apply to Change in the IRA deduction that job and divide that amount by the number amount of Student loan interest 3. There are changes in your life or financial adjustments to deduction of paydays remaining in 2025 for that job. This situation that affect your tax liability. See income Alimony expense will give you the additional amount to enter on Table 1-1 . the Form W-4 you will file for that job. You need Change in the Medical expenses 4. There are changes in the tax law that af-to give your employer a new Form W-4 for each amount of Taxes fect your tax liability. job for which you are changing your withhold-itemized Interest expense ing. deductions or Gifts to charity How Do You Check Your tax credits Dependent care expenses Example. You work in a store and earn Education credit Withholding? $46,000 a year. Your spouse works in a factory, Child tax credit earns $68,000 a year, and has 49 pay periods Earned income credit You can use the worksheets and tables in this left. In 2025, you will also have $184 in taxable publication to see if you are having the right interest and $1,000 of other taxable income. amount of tax withheld. You can also use the If you change the amount of your withhold-You expect to file a joint income tax return. You Tax Withholding Estimator at IRS.gov/W4App . If and your spouse complete Worksheets 1-3, you use the worksheets and tables in this publi-hold using the Cumulative Wage Method , later. 1-4, and 1-5. Line 5 of Worksheet 1-5 shows cation, follow these steps. that you will owe an additional $4,459 after sub-1. Fill out Worksheet 1-3 to project your total Checking Your Withholding tracting your withholding for the year. You can federal income tax liability for 2025. divide the $4,459 any way you want. You can



After you have given your employer a Form enter an additional amount on either of your 2. Fill out Worksheet 1-5 to project your total Forms W-4, or divide it between the two of you. W-4, you can check to see whether the amount federal withholding for 2025 and compare of tax withheld from your pay is too much or too You decide to have the additional amount with- that with your projected tax liability from little. If too much or too little tax is being with- held from your spouse’s wages, so your spouse Worksheet 1-3. held, you should give your employer a new enters $91 ($4,459 ÷ 49 remaining paydays) on

Form W-4 to change your withholding. You can their Form W-4 in Step 4(c). If you are not having the correct amount of get a blank Form W-4 from your employer or tax withheld, line 6 of Worksheet 1-5 will show



print the form from IRS.gov. you how to adjust the amount withheld each How Do You Decrease Your You can use the Tax Withholding Esti- payday. For ways to increase the amount of tax Withholding? withheld, see

TIP How Do You Increase Your With-mator at IRS.gov/W4App instead of the holding , later. worksheets in this publication or inclu- If your completed Worksheets 1-3 and 1-5 show

need to have your withholding increased or de- If line 5 of Worksheet 1-5 shows that you are ded with Form W-4 to determine whether you that you may have more tax withheld than your

creased. having more tax withheld than necessary, see projected tax liability for 2025, you may be able

How Do You Decrease Your Withholding, later, structions in Worksheet 1-5. to decrease your withholding by following the in-for ways to decrease the amount of tax you

You should try to have your withholding have withheld each payday.

match your actual tax liability. If not enough tax Tax Credits is withheld, you will owe tax at the end of the Detailed instructions for completing a new

year and may have to pay interest and a pen- Form W-4 to adjust your withholding follow Table 1-2 shows many of the tax credits you alty. If too much tax is withheld, you will lose the Worksheet 1-5. may be able to use to decrease your withhold-



ways check your withholding if there are per- able to claim, see the 2024 Instructions for How Do You Increase Your sonal or financial changes in your life or use of that money until you get your refund. Al- ing. For a complete list of credits you may be

changes in the law that might change your tax li- Withholding? Form 1040.

ability. See Table 1-1 for examples. You can increase your withholding by entering Step 3 of Form W-4 provides instructions for



ment to cover federal income tax withholding on Note. You can’t give your employer a pay- an additional amount that you want withheld determining the amount of the child tax credit from each paycheck on Form W-4. and the credit for other dependents. You can also include other tax credits in Step 3 of Form salaries and wages for past pay periods or a Requesting an additional amount be with- W-4. To do so, complete Worksheet 1-6 and payment for estimated tax. held. You can request that an additional add the amount from line 11 of that worksheet

amount be withheld from each paycheck by en- to the amount you are entering for other de-

tering the additional amount in Step 4(c) of pendents in Step 3 of Form W-4. Including

4 Chapter 1 Tax Withholding for 2025 Publication 505 (2025) Table 1-2. Tax Credits for 2025





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) 2024 Instructions for Schedule 8812 (Form 1040)

Credit for other dependents 2024 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 Pub. 514, Foreign Tax Credit for Individuals

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

withholding by a foreign country)

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 Instructions for Form 8801

earlier year)

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)

these credits will increase your paycheck and Step 2. Complete this step if you (1) have in- And remember, this isn’t a final decision. If reduce the amount of any refund you may re- come from a job or more than one pension/ you don’t get the correct amount of withholding ceive when you file your tax return. annuity, and/or (2) are married filing jointly and with the first Forms W-4 and W-4P you submit,

your spouse receives income from a job or a you should refigure your withholding using the



When Will Your New Form W-4 Go pension/annuity. information and worksheets in this publication, or the resources mentioned above. Into Effect? If you (or if married filing jointly, you



If the change is for the current year, your em- ! and/or your spouse) have a job(s), You should go through this same process CAUTION don't complete Steps 3 through 4b on each time your life situation changes, whether it ployer must put your new Form W-4 into effect Form W-4P. Instead, complete Steps 3 through be for personal or financial reasons. You may no later than the start of the first payroll period 4b on the Form W-4 for the job. If you (or if mar- need more tax withheld, or you may need less. ending on or after the 30th day after the day on ried filing jointly, you and your spouse) don't have a job, complete Steps 3 through 4b on which you give your employer your revised Form W-4P for only the pension or annuity that Form W-4. Getting the Right Amount pays the most annually. Leave those steps of Tax Withheld blank for the other pensions or annuities. If the change is for next year, your new Form

W-4 won’t take effect until next year. In most situations, the tax withheld from your



Form W-4P ents and think you may be eligible to claim the turn if you follow these two rules. child tax credit or credit for other dependents on Step 3. Complete this step if you have depend- pay will be close to the tax you figure on your re-

• You accurately complete all the Form W-4

When you first began receiving your pension, your tax return. Also, complete this step if you worksheets that apply to you. you told the payer how much tax to withhold, if want to include an estimate of your other tax • You give your employer a new Form W-4

any, by completing Form W-4P, Withholding credits (for example, an education credit or the when changes occur.



similar form). However, if your retirement pay is Step 4. Complete this optional step to make ing methods don’t account for all possible situa-from the military or certain deferred compensa-other adjustments. tions, you may not be getting the right amount tion plans, you completed Form W-4 instead of • Certificate for Pension or Annuity Payments (or But because the worksheets and withhold- foreign tax credit).

Form W-4P. You completed either form based • Deductions (other than the standard de- lowing situations. on your projected income at that time. If you are Other estimated income (Step 4a). withheld. This is most likely to happen in the fol-

returning to the workforce, your new Form W-4 duction)(Step 4b) you expect to claim. Use • You are married and both you and your

(given to your employer) and your Form W-4 or the instructions for Form W-4P to help you the Step 4(b)—Deductions Worksheet in spouse work. W-4P (on file with your pension plan) must work • You have more than one job at a time.

together to determine the correct amount of determine the amount to enter on line 4b. • You have nonwage income, such as inter-

withholding for your new amount of income. • Any additional amounts you want to with- est, dividends, alimony, or unemployment

hold from each payment (Step 4c). compensation.

• You will owe additional amounts with your

Form W-4P includes four steps that will give Note. If you don't give Form W-4P to your return.

information to the payer of your pension or an- payer, you don't provide an SSN, or the IRS no- • Your withholding is based on obsolete nuity for how to figure your withholding. Com- tifies the payer that you gave an incorrect SSN, Form W-4 information for a substantial part plete Steps 2 through 4 only if they apply to you. then the payer will withhold tax from your pay- of the year.

ments as if your filing status is single with no ad- • You work only part of the year.

Step 1. Enter your personal information, in- justments in Steps 2 through 4. For payments • You change the amount of your withholding cluding your anticipated filing status. Your antici- that began before 2025, your current withhold- during the year. pated filing status will determine the standard ing election (or your default rate) remains in ef- • You are subject to Additional Medicare Tax deduction and tax rates used to figure your fect unless you submit a new Form W-4P. or NIIT. If you anticipate liability for Addi-withholding. tional Medicare Tax or NIIT, you may

Publication 505 (2025) Chapter 1 Tax Withholding for 2025 5





request that your employer withhold an ad- provides a withholding estimator on its website. to the IRS. Contact information (a toll-free num-


ditional amount of income tax withholding Go to IRS.gov/W4App. It can help you deter- ber and an IRS office address) will be provided on Form W-4. mine the correct amount to be withheld any time in the lock-in letter. At the end of this period, if

during the year. you haven’t responded or if your response isn’t



can use the Tax Withholding Estimator at withhold based on the original lock-in letter. Rules Your Employer If any of these situations apply to you, you adequate, your employer will be required to

IRS.gov/W4App to see if you need to change After the lock-in letter takes effect, your em- your withholding. Must Follow ployer must withhold tax on the basis of the



self-employment tax, you should use the work-If you have self-employment income or owe withholding rate (marital status) and maximum It may be helpful for you to know some of the withholding specified in that letter. withholding rules your employer must follow. If you later believe that you are entitled to sheets in this publication to determine if you These rules can affect how to fill out your Form claim exemption from withholding or otherwise should pay estimated tax. W-4 and how to handle problems that may adjust your withholding, you can complete a arise. new Form W-4 and a written statement to sup- Part-Year Method port the claims made on the Form W-4 and New Form W-4. When you start a new job, send them directly to the IRS address shown on If you work only part of the year and your em- your employer should give you a Form W-4 to fill the lock-in letter. Your employer must continue ployer agrees to use the part-year withholding out. Beginning with your first payday, your em- to figure your withholding on the basis previ- method, less tax will be withheld from each ployer will use the information you give on the ously determined by the IRS until the IRS advi- wage payment than would be withheld if you form to figure your withholding. ses your employer otherwise. worked all year. To be eligible for the part-year If you later fill out a new Form W-4, your em- At any time, either before or after the lock-in method, you must meet both of the following re- ployer can put it into effect as soon as possible. letter becomes effective, you may give your em- quirements. The deadline for putting it into effect is the start ployer a new Form W-4 that does not claim • You must use the calendar year (the 12 of the first payroll period ending 30 or more complete exemption from withholding and re- months from January 1 through December days after you turn it in. sults in more income tax withheld than specified 31) as your tax year. You can’t use a fiscal in the lock-in letter. Your employer must then year. No Form W-4. If you don't give your employer withhold tax based on this new Form W-4. • You must not expect to be employed for a Form W-4, your employer should treat you as Additional information is available at more than 245 days during the year. To fig- though you checked the box for Single or Mar- IRS.gov. Enter ``withholding compliance ure this limit, count all calendar days that ried filing separately in Step 1(c) and made no questions'' in the search box. you are employed (including weekends, entries in Step 2, Step 3, or Step 4 of the 2025 vacations, and sick days) beginning with Form W-4. the first day you are on the job for pay and Exemption From Withholding ending with your last day of work. If you are Repaying withheld tax. If you find you are temporarily laid off for 30 days or less, having too much tax withheld because you If you claim exemption from withholding, your count those days too. If you are laid off for didn’t account for all your dependents or deduc- employer won’t withhold federal income tax more than 30 days, don’t count those days. tions you are entitled to, you should give your from your wages. The exemption applies only to You won’t meet this requirement if you be- employer a new Form W-4. Your employer can’t income tax, not to social security or Medicare gin working before May 1 and expect to repay any of the tax previously withheld. In- tax. work for the rest of the year. stead, claim the full amount withheld when you



How to apply for the part-year method. You However, if your employer has withheld for 2025 only if both of the following situations must ask your employer in writing to use this file your tax return. You can claim exemption from withholding

method. The request must state all three of the more than the correct amount of tax for the apply. following. Form W-4 you have in effect, you don’t have to • For 2024, you had a right to a refund of all

• fill out a new Form W-4 to have your withholding federal income tax withheld because you The date of your last day of work for any lowered to the correct amount. Your employer

prior employer during the current calendar can repay the amount that was withheld incor- had no tax liability.



• more than 245 days during the current cal- you would claim when you file your tax return. endar year. Use Figure 1-A to help you decide whether That you use the calendar year as your tax IRS review of your withholding. Your with-you can claim exemption from withholding. year. holding or any claim for a complete exemption Don’t use Figure 1-A if you: • • That you don’t expect to be employed rectly. If you are not repaid, your Form W-2 will income tax withheld because you expect to reflect the full amount actually withheld, which have no tax liability. year. • For 2025, you expect a refund of all federal

from withholding is subject to review by the IRS. Are 65 or older,

Cumulative Wage Method Your employer may be required to send a copy • Are blind,

of the Form W-4 to the IRS. There is a penalty • Will itemize deductions on your 2025 re-

If you change your withholding during the year, for supplying false information on Form W-4. turn, or

too much or too little tax may have been with- See Penalties, later. • Will claim any tax credits on your 2025 re-



You may be able to compensate for this if your ted your withholding or can’t claim a complete These situations are discussed later. employer agrees to use the cumulative wage held for the period before you made the change. If the IRS determines that you have oversta- turn. exemption from withholding, the IRS will issue a



withholding method for the rest of the year. You notice that specifies the withholding arrange- Students. If you are a student, you are not au-must ask your employer in writing to use this ment permitted for the employee (commonly re-tomatically exempt. If you work only part time or method. ferred to as a “lock-in letter”) to both you and during the summer, you may qualify for exemp-your employer. tion from withholding. To be eligible, your payroll periods (weekly, The IRS will provide a period of time during biweekly, etc.) must have been the same since which you can dispute the determination before Example 1. You are a high school student the beginning of the year. your employer adjusts your withholding. If you and expect to earn $2,500 from a summer job. believe that you are entitled to claim complete You don’t expect to have any other income dur-Aids for Figuring Your Withholding exemption from withholding or that the IRS de-ing the year, and your parents will be able to termination was otherwise incorrect, you must claim you as a dependent on their tax return. submit a new Form W-4 and a written statement Tax Withholding Estimator. If you are con-You worked last summer and had $375 federal to support your claims made on Form W-4 that cerned that you may be having too much or too income tax withheld from your pay. The entire would decrease federal income tax withholding little income tax withheld from your pay, the IRS $375 was refunded when you filed your 2024

6 Chapter 1 Tax Withholding for 2025 Publication 505 (2025)





Figure 1-A. Exemption From Withholding on Form W-4 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 2025 Estimated Tax Worksheet.





Start Here

For 2024, did you have a

right to a refund of ALL You CAN’T claim No

federal income tax withheld exemption from because you had NO tax withholding. liability?



Yes Yes



Will your 2025 total income be more than the amount shown below for

your filing status?

Single $15,000



someone (such as Head of household 22,500 No Married filing separately for For 2025, will

your parent) be able

to claim you as a BOTH 2024 and 2025 15,000 dependent? Other married status (include BOTH

spouses’ income whether filing

separately or jointly) 30,000

Yes

Qualifying surviving spouse 30,000



Will your 2025 income No No be more than $1,350?



Yes



Will your 2025 income



of unearned income exemption from exemption from withholding. withholding. (interest, dividends, etc.)? include more than $450 Yes You CAN’T claim You CAN claim



No No



Will your 2025 total income be

$15,000 or less?

Yes



return. Using Figure 1-A, you find that you can Age 65 or older or blind. If you are 65 tal expected tax liability (line 11c of the work-

claim exemption from withholding. or older or blind, use Worksheet 1-1 or sheet) is zero.

Worksheet 1-2 to help you decide

Example 2. The facts are the same as in whether you can claim exemption from with- Claiming exemption from withholding. To

Example 1, except that you also have a savings holding. Don’t use either worksheet if you will claim exemption, you must give your employer a account and expect to have $475 interest in- itemize deductions or claim tax credits on your Form W-4. Write “Exempt” on the form in the come during the year. Using Figure 1-A, you 2025 return. Instead, see Itemizing deductions space below Step 4(c) and complete Steps find that you can’t claim exemption from with- or claiming credits next. 1(a), 1(b), and 5. Don’t complete any other holding because your unearned income will be steps.



more than $450 and your total income will be If you claim exemption, but later your situa- Itemizing deductions or claiming credits. If more than $1,350. tion changes so that you will have to pay in- you had no tax liability for 2024, and you will: come tax after all, you must file a new Form W-4 You may have to file a tax return, even if • Itemize deductions, or within 10 days after the change. If you claim ex- ! you are exempt from withholding. See • Claim a tax credit, emption in 2025 but you expect to owe income CAUTION Pub. 501 to see whether you must file a use Worksheet 2-1 (also, see chapter 2 ) to fig- tax for 2026, you must file a new Form W-4 by return. ure your 2025 expected tax liability. You can December 1, 2025. claim exemption from withholding only if your to-



Publication 505 (2025) Chapter 1 Tax Withholding for 2025 7





Your claim of exempt status may be re- • You return any excess reimbursement Not enough pay to cover taxes. If your regu-


viewed by the IRS. See IRS review of your with- within 120 days after the expense was paid lar pay isn’t enough for your employer to with-

holding, earlier. or incurred. hold all the tax (including income tax and social

An exemption is good for only 1 year. • You are given a periodic statement (at least security and Medicare taxes (or the equivalent

You must give your employer a new Form W-4 adequately account for outstanding advan-quarterly) that asks you to either return or railroad retirement tax)) due on your pay plus

by February 15 each year to continue your ex- ces and you comply within 120 days of the your tips, you can give your employer money to emption. statement. cover the shortage.

If you don’t give your employer money to

Supplemental Wages cover the shortage, your employer first with-

Nonaccountable plan. Any plan that does not holds as much Medicare tax and social security

meet the definition of an accountable plan is or railroad retirement tax as possible, up to the

Supplemental wages include bonuses, commis- considered a nonaccountable plan. proper amount, and then withholds income tax



sions, overtime pay, vacation allowances, cer- up to the full amount of your pay. If not enough For more information about accountable and tain sick pay, and expense allowances under tax is withheld, you may have to pay estimated nonaccountable plans, see chapter 6 of Pub. certain plans. The payer can figure withholding tax. When you file your return, you may also 463. on supplemental wages using the same method have to pay any Medicare and social security

used for your regular wages. However, if these tax or railroad retirement tax your employer Penalties

payments are identified separately from regular could not withhold. wages, your employer or other payer of supple-

mental wages can withhold income tax from You may have to pay a penalty of $500 if both of Tips not reported to your employer. On your these wages at a 22% flat rate under certain cir- the following apply. tax return, you must report all the tips you re-cumstances, as explained in the section on sup- • You make statements on your Form W-4 ceive during the year, even tips you don’t report plemental wages in Pub. 15. that reduce the amount of tax withheld. to your employer (this includes the value of any

• You have no reasonable basis for those noncash tips you received, such as tickets,

Expense allowances. Reimbursements or statements at the time you prepare your passes, or other items of value). Make sure you other expense allowances paid by your em- Form W-4. are having enough tax withheld, or are paying

as supplemental wages. A nonaccountable plan There is also a criminal penalty for willfully ployer under a nonaccountable plan are treated enough estimated tax (see chapter 2), to cover



require you to account for, or prove, your busi- Form W-4 or for willfully failing to supply infor- Allocated tips. If you work in a large food or mation that would increase the amount with-ness expenses to your employer or does not re-beverage establishment, your employer may held. The penalty upon conviction can be either is a reimbursement arrangement that does not supplying false or fraudulent information on your all your tip income. that are more than your proven expenses. a fine of up to $1,000 or imprisonment for up to quire you to return your employer's payments have to report an allocated amount of tips on

your Form W-2.

1 year, or both.

Reimbursements or other expense allowan- Your employer should not withhold income

ces paid under an accountable plan that are These penalties will apply if you deliberately tax, Medicare tax, and social security or railroad more than your proven expenses are treated as and knowingly falsify your Form W-4 in an at- retirement tax on the allocated amount. With-paid under a nonaccountable plan if you don’t tempt to reduce or eliminate the proper with- holding is based only on your pay plus your re-return the excess payments within a reasonable holding of taxes. A simple error or an honest ported tips. Your employer should refund to you period of time. mistake won’t result in one of these penalties. any incorrectly withheld tax.



Accountable plan. To be an accountable plan, More information. For more information on Tips

your employer's reimbursement or allowance the reporting and withholding rules for tip in-

arrangement must include all three of the follow- come and on tip allocation, see Pub. 531.



ing rules. The tips you receive while working on your job • Your expenses must have a business con-are considered part of your pay. You must in-nection. That is, you must have paid or in-clude your tips on your tax return on the same Taxable Fringe Benefits curred deductible expenses while perform-line as your regular pay. However, tax isn’t with-ing services as an employee of your held directly from tip income, as it is from your The value of certain noncash fringe benefits you employer. regular pay. Nevertheless, your employer will receive from your employer is considered part • You must adequately account to your em-take into account the tips you report when figur-of your pay. Your employer must generally with-ployer for these expenses within a reason-ing how much to withhold from your regular pay. hold income tax on these benefits from your able period of time. regular pay. • You must return any excess reimbursement Reporting tips to your employer. If you re-Although the value of your personal use of or allowance within a reasonable period of ceive tips of $20 or more in a month while work-time. an employer-provided car, truck, or other high-ing for any one employer, you must report to way motor vehicle is taxable, your employer can An excess reimbursement or allowance is your employer the total amount of tips you re-choose not to withhold income tax on that any amount you are paid that is more than the ceive on the job during the month. The report is amount. Your employer must notify you if this due by the 10th day of the following month. business-related expenses that you adequately choice is made. accounted for to your employer. If you have more than one job, make a sepa-rate report to each employer. Report only the The definition of reasonable period of time When benefits are considered paid. Your depends on the facts and circumstances of your tips you received while working for that em-employer can choose to treat a fringe benefit as situation. However, regardless of those facts ployer, and only if they total $20 or more for the paid by the pay period, by the quarter, or on and circumstances, actions that take place month. some other basis as long as the benefit is con-within the times specified in the following list will sidered paid at least once a year. Your employer How employer figures amount to withhold. be treated as taking place within a reasonable can treat the benefit as being paid on one or The tips you report to your employer are coun-period of time. more dates during the year, even if you get the ted as part of your income for the month you re-• You receive an advance within 30 days of entire benefit at one time. port them. Your employer can figure your with-the time you have an expense. holding in either of two ways. • You adequately account for your expenses Special rule. Your employer can choose to within 60 days after they were paid or in-• By withholding at the regular rate on the treat a benefit provided during November or De-sum of your pay plus your reported tips. curred. cember as paid in the next year. Your employer • By withholding at the regular rate on your must notify you if this rule is used. pay plus a percentage of your reported

tips.

8 Chapter 1 Tax Withholding for 2025 Publication 505 (2025)





Example. Your employer considers the Union agreements. If you receive sick pay un- for Form W-4P and the rules discussed under


value of benefits paid from November 1, 2023, der a collective bargaining agreement between Form W-4P, earlier, to fill out your 2025 Form through October 31, 2024, as paid to you in your union and your employer, the agreement W-4P. 2024. To determine the total value of benefits may determine the amount of income tax with-paid to you in 2025, your employer will add the holding. See your union representative or your Note. Use Form W-4, not Form W-4P, if you value of any benefits paid in November and De- employer for more information. receive any of the following. cember of 2024 to the value of any benefits paid • Military retirement pay. in January through October of 2025. Form W-4S. If you choose to have income tax • Payments from certain nonqualified defer-

withheld from sick pay paid by a third party, red compensation plans. These are em-



when to withhold tax on the transfer of either Form W-4S. Its instructions contain a worksheet sation at a later time, but are not real property or personal property of a kind nor-Exceptions. Your employer can’t choose such as an insurance company, you must fill out ployer plans that pay part of your compen-

you can use to figure the amount you want with- tax-qualified deferred compensation plans.

mally held for investment (such as stock). Your held. They also explain restrictions that may ap- See Nonqualified Deferred Compensation employer must withhold tax on these benefits at ply. and Section 457 Plans in Pub. 957. the time of the transfer. Give the completed form to the payer of your How withholding is figured. Your employer sick pay. The payer must withhold according to Withholding rules. The withholding rules for

can either add the value of a fringe benefit to your directions on the form. pensions and annuities differ from those for sal-

your regular pay and figure income tax withhold- Form W-4S remains in effect until you aries and wages in the following ways. ing on the total or withhold a flat 22% of the change or cancel it, or stop receiving payments. • If a 2025 Form W-4P is used for withhold-

benefit's value. You can change your withholding by giving a ing for payments beginning in 2025, and

If the benefit's actual value can’t be deter- new Form W-4S or a written notice to the payer you don't fill out a withholding certificate,

mined when it is paid or treated as paid, your of your sick pay. tax will be withheld as if your filing status is



employer can use a reasonable estimate. Your 2 through 4. Estimated tax. If you don’t request withholding employer must determine the actual value of the single with no adjustments made in Steps

benefit by January 31 of the next year. If the ac- regardless of how much tax you owed last withheld, you may have to pay estimated tax. If tual value is more than the estimate, your em- on Form W-4S, or if you don’t have enough tax • You can choose not to have tax withheld,

ployer must pay the IRS any additional with- you don’t pay enough tax, either through esti- year or expect to owe this year. You don’t

holding tax required. Your employer has until mated tax or withholding, or a combination of have to qualify for exemption. See Choos-

April 1 of that next year to recover from you the both, you may have to pay a penalty. See ing Not To Have Income Tax Withheld, chap-

additional income tax paid to the IRS for you. ter 2 later. .

• If a 2025 Form W-4P is used for withhold-



How your employer reports your benefits. you don't give the payer your SSN in the Pensions and Annuities ing for payments beginning in 2025, and



held for the benefits. These amounts can be pension or annuity distributions unless you made that you gave an incorrect SSN, tax will be withheld as if your filing status is sin- choose not to have it withheld. This rule applies shown either on the Form W-2 for your regular gle with no adjustments in Steps 2 through to distributions from: pay or on a separate Form W-2. If your em- 4. ployer provided you with a car, truck, or other tal of the taxable fringe benefits paid or treated payer before any payment or distribution is Income tax will usually be withheld from your as paid to you during the year and the tax with- Your employer must report on Form W-2 the to- required manner or the IRS notifies the



of it as personal, its value must be either sepa- you give your withholding certificate (Form • A pension, annuity, or profit-sharing plan; rately shown on Form W-2 or reported to you on W-4P or a similar form) to the payer on or before a separate statement. • A stock bonus plan; and the date your payments start, it will be put into • Any other plan that defers the time you re- effect by the first payment made more than 30 ceive compensation. motor vehicle and chose to treat all of your use • A life insurance company under an endow- Effective date of withholding certificate. If ment, annuity, or life insurance contract; • An IRA;



benefits, see Fringe Benefits under Employee The amount withheld depends on whether If you give the payer your certificate after Compensation in Pub. 525. More information. For information on fringe days after you submit the certificate.

you receive payments spread out over more your payments start, it will be put into effect with

than 1 year (periodic payments), within 1 year the first payment, which is at least 30 days after

Sick Pay (nonperiodic payments), or as an eligible roll- you submit it. However, the payer can elect to

over distribution (ERD). Income tax withholding put it into effect earlier. from an ERD is mandatory. ERDs are discussed

Sick pay is a payment to you to replace your under Eligible Rollover Distributions, later. Nonperiodic Payments regular wages while you are temporarily absent

from work due to sickness or personal injury. To Nontaxable part. The part of your pension or qualify as sick pay, it must be paid under a plan Tax will be withheld at a flat 10% rate on any annuity that is a return of your investment in

to which your employer is a party. nonperiodic payments you receive, unless you your retirement plan (the amount you paid into

the plan or its cost to you) isn’t taxable. Income choose a different withholding rate.



an agent of your employer, income tax must be Use Form W-4R, line 2, to choose a with- sion or annuity that isn’t taxable. The tax with- holding rate other than the default 10% rate. If you receive sick pay from your employer or tax won’t be withheld from the part of your pen-



tax at a flat rate. For information about figuring the part of withheld by entering “-0-” on line 2. Generally, your pension or annuity that isn’t taxable, see However, if you receive sick pay from a third you can't choose less than 10% for payments to Pub. 575. party who isn’t acting as an agent of your em-wages to you may choose to withhold income You can choose a rate between 0% and 100%. the taxable part. You can choose to have no federal income tax withheld. An agent who does not pay regular held will be figured on, and can’t be more than,

be delivered outside of the United States and its

choose to have it withheld. See Form W-4S, have tax withheld, see Periodic Payments ployer, income tax will be withheld only if you territories. If you want to revoke a choice not to

Choosing Not To Have

later. Income Tax Withheld, later.

If you receive payments under a plan in You may need to use Form W-4R to Withholding from periodic payments of a pen-

which your employer does not participate (such ask for additional withholding. If you sion or annuity is figured similarly to withholding from certain salaries and wages. To tell the !



the premiums), the payments are not sick pay may need to pay estimated tax, as explained in want withheld, fill out Form W-4P or a similar chapter 2 as an accident or health plan where you paid all CAUTION don’t have enough tax withheld, you payer of your pension or annuity how much you

and are usually not taxable. . form provided by the payer. Follow instructions

Publication 505 (2025) Chapter 1 Tax Withholding for 2025 9 Eligible Rollover home address in the United States or in a U.S. Identical wagers. You may have to give the territory. payer a statement of the amount of your win-Distributions nings, if any, from identical wagers. If this state-Distributions you receive from qualified retire- Notice required of payer. The payer of your ment is required, the payer will ask you for it.





ment plans (for example, 401(k) plans and sec- pension or annuity must send you a notice tell- You provide this statement by signing Form


tion 457(b) plans maintained by a governmental ing you about your right to choose not to have W-2G or, if required, Form 5754.



employer) or tax-sheltered annuities that are eli- tax withheld. Identical wagers include two bets placed in Generally, the payer won’t send a notice to a pari-mutuel pool on one horse to win a partic- gible to be rolled over to an IRA or qualified plan you if it is reasonable to believe that the entire ular race. However, the bets are not identical if are subject to a 20% default rate of withholding amount you will be paid isn’t taxable. one bet is “to win” and one bet is “to place.” In on the taxable amount of the distribution. You addition, they are not identical if the bets were can’t choose withholding at a rate of less than Revoking a choice not to have tax withheld. placed in different pari-mutuel pools. For exam- 20% (including “-0-”). Note that the default rate The payer of your pension or annuity will tell you ple, a bet in a pool conducted by the racetrack of withholding may be too low for your tax situa- how to revoke your choice not to have income and a bet in a separate pool conducted by an tion. You may choose to enter a rate higher than tax withheld from periodic or nonperiodic pay- offtrack betting establishment in which the bets 20% on Form W-4R, line 2. Don’t give Form ments. You can tell the payer exactly how much are not pooled with those placed at the track W-4R to your payer unless you want more than to withhold by completing a new Form W-4P for are not identical wagers. 20% withheld. periodic payments or Form W-4R for nonperi-

Note that the following payments are not eli- odic payments. Backup withholding on gambling winnings.

gible rollover distributions for purposes of these If you have any kind of gambling winnings and

withholding rules: don’t give the payer your SSN, the payer may Gambling Winnings



• Distributions required by federal law, such $1,200 from bingo or slot machines or $1,500 Income tax is withheld at a flat 24% rate from as required minimum distributions; from keno, and to certain other gambling win- certain kinds of gambling winnings. • Generally, distributions from a pen- nings of at least $600. sion-linked emergency savings account; • Qualifying “hardship” distributions; This rule also applies to winnings of at least have to withhold income tax at a flat 24% rate.

Gambling winnings of more than $5,000



• Eligible distributions to a domestic abuse from the following sources are subject to in- Unemployment victim; come tax withholding.

• Qualified birth or adoption distributions; payments made to winners of poker tour- Compensation • Qualified disaster recovery distributions; • Any sweepstakes; wagering pool, including

and naments; or lottery.

• Emergency personal expense distribu- • Any other wager if the proceeds are at You can choose to have income tax withheld

tions. least 300 times the amount of the bet. from unemployment compensation. To make



Choosing Not To Have It does not matter whether your winnings are this choice, fill out Form W-4V (or a similar form provided by the payer) and give it to the payer. paid in cash, in property, or as an annuity. Win-



Income Tax Withheld nings not paid in cash are taken into account at All unemployment compensation is taxable. their fair market value. So, if you don’t have income tax withheld, you



For payments other than eligible rollover distri- may have to pay estimated tax. See chapter 2. Exception. Gambling winnings from bingo, butions, you can choose not to have income tax keno, and slot machines are generally not sub-If you don’t pay enough tax, either through withheld. The payer will tell you how to make ject to income tax withholding. However, you withholding or estimated tax, or a combination this choice. If you use Form W-4R, enter “-0-” may need to provide the payer with an SSN to of both, you may have to pay a penalty. on line 2 to choose not to have withholding. This avoid withholding. See Backup withholding on choice will remain in effect until you decide you gambling winnings , later. If you receive gam-Form 1099-G. If you receive $10 or more in un-want withholding and inform the payer. See Re-bling winnings not subject to withholding, you employment compensation, you will receive a voking a choice not to have tax withheld , later. may need to pay estimated tax. See chapter 2 . Form 1099-G, Certain Government Payments.



lowing applies. The payer must withhold if either of the fol- Box 1 will show the amount of unemployment If you don’t pay enough tax, either through compensation you got for the year. Box 4 will withholding or estimated tax, or a combination • You don’t give the payer your SSN in the show the amount of federal income tax with- of both, you may have to pay a penalty. required manner. held, if any. • The IRS notifies the payer, before any pay- Form W-2G. If a payer withholds income tax ment or distribution is made, that you gave from your gambling winnings, you should re- it an incorrect SSN. ceive a Form W-2G, Certain Gambling Win- Federal Payments



from your pension or annuity, or if you don’t If you don’t have any income tax withheld nings, showing the amount you won and the amount withheld. You can choose to have income tax withheld Report the tax withheld on your 2025 Form from certain federal payments you receive. have enough withheld, you may have to pay es-1040 or 1040-SR, along with all other federal in-These payments are the following. timated tax. See chapter 2 . come tax withheld, as shown on Forms W-2 1. Social security benefits. If you don’t pay enough tax, either through and 1099. 2. Tier 1 railroad retirement benefits. estimated tax or withholding, or a combination Information to give payer. If the payer asks, of both, you may have to pay a penalty. 3. Commodity credit corporation loans you you must give the payer all the following infor-choose to include in your gross income. Payments delivered outside the United mation. • States. You must generally have tax withheld Your name, address, and SSN. 4. Payments under the Agricultural Act of from pension or annuity benefits delivered out-• Whether you made identical wagers (ex-1949 (7 U.S.C. 1421 et seq.), as amen-side the United States. However, if you are a plained below). ded, or title II of the Disaster Assistance • U.S. citizen or resident alien, you can choose Whether someone else is entitled to any Act of 1988 that are treated as insurance not to have tax withheld if you give the payer of part of the winnings subject to withholding. proceeds and that you received because:



the benefits a home address in the United If so, you must complete Form 5754, State- a. Your crops were destroyed or dam-States or in a U.S. territory. The payer must ment by Person(s) Receiving Gambling aged by drought, flood, or any other withhold tax if you provide a U.S. address for a Winnings, and return it to the payer. The natural disaster; or nominee, trustee, or agent to whom the benefits payer will use it to prepare a Form W-2G are to be delivered, but don’t provide your own for each of the winners.

10 Chapter 1 Tax Withholding for 2025 Publication 505 (2025)





b. You were unable to plant crops be- • Patronage dividends, but only if at least get an ITIN. Use Form W-7 to apply for an


cause of a natural disaster described half the payment is in money (Form ITIN.



similar form provided by the payer) and give it to 5. Dividends and other distributions from in (a). 1099-PATR); An ITIN is for federal tax use only. It does not • Rents, profits, or other gains (Form entitle you to social security benefits or change 1099-MISC); Alaska Native Corporations to their share-your employment or immigration status under • Commissions, fees, or other payments for holders. U.S. law. For more information on ITINs, see work you do as an independent contractor Pub. 1915. 6. Any other payment under federal law as (Form 1099-NEC); • determined by the Secretary. Payments by brokers (Form 1099-B); If you have an ITIN that you haven't in-• Payments by fishing boat operators, but cluded on a tax return in the last 3 con-! To make this choice, fill out Form W-4V (or a only the part that is in money and that rep-CAUTION secutive years, it may be expired and resents a share of the proceeds of the you may need to renew it. If your ITIN has ex-the payer. catch (Form 1099-MISC); and pired and you don't have an SSN, you can make • If you don’t choose to have income tax with-Royalty payments (Form 1099-MISC). estimated tax payments before you renew your ITIN. To renew your ITIN, and for more informa-held, you may have to pay estimated tax. See Backup withholding may also apply to gambling tion, see the Instructions for Form W-7. chapter 2 . winnings. See Backup withholding on gambling



withholding or estimated tax, or a combination If you don’t pay enough tax, either through winnings under Gambling Winnings, earlier. How to prevent or stop backup withholding. Payments not subject to backup withhold-If you have been notified by a payer that the TIN of both, you may have to pay a penalty. ing. Backup withholding does not apply to pay-you gave is incorrect, you can usually prevent backup withholding from starting or stop backup ments reported on Form 1099-MISC (other than More information. For more information about payments by fishing boat operators and royalty withholding once it has begun by giving the the tax treatment of social security and railroad payments) unless at least one of the following payer your correct name and TIN. You must cer-retirement benefits, see Pub. 915. Get Pub. 225 three situations applies. tify that the TIN you give is correct. for information about the tax treatment of com-• The amount you receive from any one However, the payer will provide additional in-modity credit corporation loans or crop disaster payer is $600 or more. structions if the TIN you gave needs to be vali-payments. • The payer had to give you a Form 1099 last dated by the Social Security Administration or year. by the IRS. This may happen if both the follow-Payment to shareholders of Alaska Native • The payer made payments to you last year ing conditions exist. Corporations (ANCs). If you are a share-that were subject to backup withholding. holder of an ANC, you can request to have in-1. The IRS notifies the payer twice within 3 come tax withheld from dividends and other dis-Form 1099 and backup withholding are gen-calendar years that a TIN you gave for the tributions you receive from the ANC. To make erally not required for a payment of less than same account is incorrect. this request, fill out Form W-4V (or a similar $10. 2. The incorrect TIN is still being used on the form provided by the payer) and give it to the account when the payer receives the sec-payer. A request for withholding isn’t effective Withholding rules. When you open a new ac-ond notice. until the ANC indicates in writing that it accepts count, make an investment, or begin to receive



the request or begins withholding. Contact the payments reported on Form 1099, the bank or Underreported interest or dividends. If payer if it isn’t clear that the payer has accepted other business will give you Form W-9, Request you have been notified that you underreported your Form W-4V. for Taxpayer Identification Number and Certifi-interest or dividends, you must request and re-If you don’t choose to have income tax with-cation, or a similar form. You must enter your ceive a determination from the IRS to prevent held, or the ANC doesn’t accept your request, TIN on the form and, if your account or invest-backup withholding from starting or to stop you may have to pay estimated tax. See chap-ment will earn interest or dividends, you must backup withholding once it has begun. Your re-ter 2 . also certify (under penalties of perjury) that your quest must show that at least one of the follow-If you don’t pay enough tax, either through TIN is correct and that you are not subject to ing situations applies. backup withholding. withholding or estimated tax, or a combination • No underreporting occurred. of both, you may have to pay a penalty. The payer must withhold at a flat 24% rate in • You have a bona fide dispute with the IRS the following situations. about whether an underreporting occurred. • You don’t give the payer your TIN in the re-• Backup withholding will cause or is caus-Backup Withholding quired manner. ing an undue hardship and it is unlikely that • The IRS notifies the payer that the TIN you you will underreport interest and dividends gave is incorrect. Banks or other businesses that pay you certain in the future. • You are required, but fail, to certify that you kinds of income must file an information return • You have corrected the underreporting by are not subject to backup withholding. (Form 1099) with the IRS. The information re-filing an original return if you didn’t previ-• The IRS notifies the payer to start withhold-turn shows how much you were paid during the ously file one, or by filing an amended re-ing on interest or dividends because you year. It also includes your name and taxpayer turn, and by paying all taxes, penalties, and have underreported interest or dividends identification number (TIN). TINs are explained interest due for any underreported interest on your income tax return. The IRS will do later in this discussion. or dividend payments. this only after it has mailed you four notices If the IRS determines that backup withhold-These payments are generally not subject to over at least a 210-day period. ing should stop, it will provide you with certifica-withholding. However, “backup” withholding is Taxpayer identification number (TIN). tion and will notify the payers who were sent no-required in certain situations. Your TIN is one of the following three numbers. tices earlier. • Payments subject to backup withholding. An SSN. • An employer identification number (EIN). Penalties. There are civil and criminal penal-Backup withholding can apply to most kinds of • payments that are reported on Form 1099. An IRS individual taxpayer identification ties for giving false information to avoid backup number (ITIN). Aliens who don’t have an withholding. The civil penalty is $500. The crimi-These include: SSN and are not eligible to get one should nal penalty, upon conviction, is a fine of up to • Interest payments (Form 1099-INT); $1,000 or imprisonment of up to 1 year, or both. • Government payments (Form 1099-G); • Dividends (Form 1099-DIV);



Publication 505 (2025) Chapter 1 Tax Withholding for 2025 11 Worksheets for Chapter 1

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

Use... To...

Worksheet 1-1 and Figure your total expected income for 2025 to determine if you are exempt from withholding. Use Worksheet

Worksheet 1-2 1-1 if, in 2024, you had a right to a refund of all federal income tax withheld because of no tax liability. Use

Exemption From Withholding for Worksheet 1-2 if you are a dependent for 2025 and, for 2024, you had a refund of all federal income tax Persons/Dependents Age 65 or withheld because of no tax liability. Older or Blind

Worksheet 1-3 Project the taxable income you will have for 2025 and figure the amount of tax you will have to pay on that

Projected Tax for 2025 income.

Worksheet 1-4 Figure the amount of tax on your projected taxable income. Tax Computation Worksheets for

2025

Worksheet 1-5 Project the amount of federal income tax that you will have withheld in 2025, compare your projected Projected Withholding for 2025 withholding with your projected tax, and determine whether the amount withheld each payday should be

adjusted.

Worksheet 1-6 Figure any extra amount to include in Step 3 of Form W-4 or Form W-4P to account for your projected tax

Tax Credits for 2025 Form W-4 or credits that are not otherwise taken into consideration. Form W-4P



12 Chapter 1 Tax Withholding for 2025 Publication 505 (2025) Worksheet 1-1. Exemption From Withholding for Persons Age 65 or Older or Blind Use this worksheet only if, for 2024, 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.


1. Check the boxes below that apply to you.

65 or older Blind

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

65 or older Blind

3. Add the number of boxes you checked in

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

You can claim exemption from withholding if:

and your 2025

total income will

Your filing status is: and the number on line 3 above is: be no more than:

Single 1 $17,000

2 19,000

Head of 1 $24,500 household 2 26,500 Married filing 1 $16,600 separately for 2 18,200 both 2024 and 3 19,800 2025 4 21,400 Other married 1 $31,600** status 2 33,200**

3 34,800**

4 36,400**

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

Qualifying 1 $31,600

surviving spouse 2 33,200

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 1-2. Exemption From Withholding for Dependents Age 65 or Older or Blind Use this worksheet only if, for 2025, you are a dependent and if, for 2024, 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Minimum amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,350 2.

3. Compare lines 1 and 2. Enter the larger amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000 4.

5. Compare lines 3 and 4. Enter the smaller amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Enter the appropriate amount from the following table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

Single

Either 65 or older or blind $2,000 Both 65 or older and blind 4,000

Married filing separately

Either 65 or older or blind 1,600 Both 65 or older and blind 3,200

7. Add lines 5 and 6. Enter the result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Enter your total expected income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

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.



Publication 505 (2025) Chapter 1 Tax Withholding for 2025 13





Worksheet 1-3. Projected Tax for 2025 Keep for Your Records


.

Use this worksheet to figure your projected tax for 2025. Note. Enter combined amounts if married filing jointly.

1. Enter amount of adjusted gross income (AGI) you expect in 2025. (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 2025, 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

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

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.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

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

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

7. Enter the amount of any expected tax credits. See Table 1-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Subtract line 7 from line 6 (if zero or less, enter -0-) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 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.) . . . . . . . . 9.

10. Enter the total of any other expected taxes* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Projected tax for 2025. Add lines 8 through 10. Enter the total here and on Worksheet 1-5, line 1 . . . . . . . . . . . 11.



* Use the 2024 Instructions for Form 1040 to determine if you expect to owe, for 2025, any of the taxes that would have been entered on your 2024 Schedule 2 (Form 1040), lines 7 through 17z and 19.



14 Chapter 1 Tax Withholding for 2025 Publication 505 (2025)





Worksheet 1-4. Tax Computation Worksheets for 2025 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 2025 to be Single.

Expected Taxable (a) (b) (c) (d) (e)

Income Enter amount Multiplication amount Multiply Subtraction Subtract (d) from (c). Enter the result



Over If Worksheet 1-3, from (a) by (b) amount here and on Worksheet 1-3, line 4* Worksheet 1-3, line 3* is — line 3* But not

over

$0 $11,925 × 10% (0.10) $0

11,925 48,475 × 12% (0.12) 238.50 48,475 103,350 × 22% (0.22) 5,086.00

103,350 197,300 × 24% (0.24) 7,153.00 197,300 250,525 × 32% (0.32) 22,937.00 250,525 626,350 × 35% (0.35) 30,452.75 626,350 - - - - - × 37% (0.37) 42,979.75

* 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 2025

to be Head of Household.

Expected Taxable (a) (b) (c) (d) (e)

Income Enter amount Multiplication Multiply Subtraction Subtract (d) from (c). Enter the result



If Worksheet 1-3, from amount (a) by (b) amount here and on Worksheet 1-3, line 4* Worksheet 1-3, line 3* is — line 3* Over But not

over

$0 $17,000 × 10% (0.10) $0

17,000 64,850 × 12% (0.12) 340.00 64,850 103,350 × 22% (0.22) 6,825.00

103,350 197,300 × 24% (0.24) 8,892.00 197,300 250,500 × 32% (0.32) 24,676.00 250,500 626,350 × 35% (0.35) 32,191.00 626,350 - - - - - × 37% (0.37) 44,718.00

* 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.



Publication 505 (2025) Chapter 1 Tax Withholding for 2025 15 Tax Computation Worksheet for 2025 (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 2025 to be Married Filing Jointly or Qualifying Surviving Spouse.

Expected Taxable (a) (b) (c) (d) (e)

Income Enter amount Multiplication Multiply Subtraction Subtract (d) from (c). Enter the result



If Worksheet 1-3, from amount (a) by (b) amount here and on Worksheet 1-3, line 4* Worksheet 1-3, line 3* is — line 3* Over But not

over

$0 $23,850 × 10% (0.10) $0

23,850 96,950 × 12% (0.12) 477.00 96,950 206,700 × 22% (0.22) 10,172.00

206,700 394,600 × 24% (0.24) 14,306.00 394,600 501,050 × 32% (0.32) 45,874.00 501,050 751,600 × 35% (0.35) 60,905.50 751,600 - - - - - × 37% (0.37) 75,937.50

* 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 2025 to

be Married Filing Separately.

Expected Taxable (a) (b) (c) (d) (e)

Income Enter amount from Multiplication amount Multiply Subtraction Subtract (d) from (c). Enter the result



If Worksheet 1-3, Worksheet 1-3, (a) by (b) amount here and on Worksheet 1-3, line 4* line 3* line 3* is —

Over But not

over

$0 11,925 × 10% (0.10) $0

11,925 48,475 × 12% (0.12) 238.50 48,475 103,350 × 22% (0.22) 5,086.00

103,350 197,300 × 24% (0.24) 7,153.00 197,300 250,525 × 32% (0.32) 22,937.00 250,525 375,800 × 35% (0.35) 30,452.75 375,800 - - - - - × 37% (0.37) 37,968.75

* 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.



16 Chapter 1 Tax Withholding for 2025 Publication 505 (2025)





Worksheet 1-5. Projected Withholding for 2025 Keep for Your Records


.

Use this worksheet to figure the amount of your projected withholding for 2025, compare it to your projected tax for 2025, 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 2025 from Worksheet 1-3, line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Enter your total federal income tax withheld to date in 2025 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 2025.

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 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 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 2025 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 2025 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 2025 Form W-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.



Instructions for line 6—If your Instructions for line 6—If your Instructions for line 6—If your withholding to date was figured withholding to date was figured withholding to date was figured based on a 2019 (or earlier) Form based on a 2019 (or earlier) Form based on a 2025 Form W-4. W-4. W-4. Use the following instructions to either Use the following instructions to Use the following instructions to increase or decrease your increase your withholding. decrease your withholding. withholding.

How do you increase your withholding? Follow How do you decrease your withholding? Follow How do you increase your withholding? Follow

these steps to increase your withholding by completing these steps to decrease your withholding by completing these steps to increase your withholding by completing

a 2025 Form W-4. a 2025 Form W-4. a 2025 Form W-4.

Step 1: • If your filing status was "Single" or Step 1: • If your filing status was "Single" or • Complete your new 2025 Form W-4

"Married, but withhold at higher "Married, but withhold at higher through Step 4(b) in the same way you Single rate," check "Single." Single rate," check "Single." completed your previous Form W-4.

• If your filing status was "Married," • If your filing status was "Married," • Add the amount, if any, on Step 4(c) of

check "Married filing jointly." check "Married filing jointly." your previous Form W-4 to the amount

Note. Head of household filing status Note. Head of household filing status was on line 6 of Worksheet 1-5 above and was not a choice on the 2019 (or not a choice on the 2019 (or earlier) enter the result on Step 4(c) of your earlier) Form(s) W-4. Form(s) W-4. new Form W-4.



Step 4(a): • If your filing status was "Single" or Step 3: Multiply the amount on line 6 of How do you decrease your withholding? "Married, but withhold at higher Worksheet 1-5 by the number of paydays • Complete Steps 1, 2(c), 4(a), 4(b), Single rate," enter $10,400 (the in 2025 and enter this amount on Step 3. and 4(c) in the same way as you equivalent of 2 allowances) on Step 4(a): • If your filing status was "Single" or completed your previous Form W-4. Step 4(a). "Married, but withhold at higher • Add the amount, if any, on Step 3 of • If your filing status was "Married," Single rate," enter $10,400 (the your previous Form W-4 to the product enter $15,600 (the equivalent of 3 equivalent of 2 allowances) on Step of line 6 of Worksheet 1-5 multiplied allowances) on Step 4(a). 4(a). by the total number of paydays in 2025 Step 4(b): • If there was an entry on line 5 • If your filing status was "Married," and enter the result on Step 3 of your (number of allowances), multiply enter $15,600 (the equivalent of 3 new Form W-4. each claimed allowance by allowances) on Step 4(a).



Step 4(c): $5,200 and enter the result on Step 4(b): • If there was an entry on line 5 If you make a mid-year change to your Step 4(b). (number of allowances), multiply withholding, you should complete and • If there is an amount on line 6, ! each claimed allowance by $5,200 add it to the amount on line 6 of and enter the result on Step 4(b). CAUTION give to your employer a new Form W-4 in January. The later in the year you change Worksheet 1-5 above, and enter Step 4(c): • If there was an amount on line 6, the result on Step 4(c). add it to the amount on Step 4(c). your Form W-4, the more important it is that you

submit a new form the following January.



Publication 505 (2025) Chapter 1 Tax Withholding for 2025 17





Worksheet 1-6. Tax Credits for 2025 Form W-4 or Form W-4P 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Credit for child and dependent care expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Education credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Adoption credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Foreign tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Retirement savings contributions credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7. Earned income credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Premium tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

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

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.



18 Chapter 1 Tax Withholding for 2025 Publication 505 (2025)





you may be charged a penalty even if you are Worksheets. You may need to use several of




2. due a refund when you file your tax return. For the blank worksheets included in this chapter.

information on when the penalty applies, see See Worksheets for Chapter 2 to locate what the Instructions for Form 2210. you need.



Estimated Tax It would be helpful for you to have a TIP copy of your 2024 tax return and an es- Who Does Not Have To

while reading this chapter. Also, keep in mind

for 2025 timate of your 2025 income nearby Pay Estimated Tax

the items under What's New for 2025, earlier.

If you receive salaries and wages, you may be



Introduction Topics able to avoid paying estimated tax by asking your employer to take more tax out of your earn- This chapter discusses: ings. To do this, file a new Form W-4 with your



Estimated tax is the method used to pay tax on employer. See chapter 1. • Who must pay estimated tax, income that isn’t subject to withholding. This in-• How to figure estimated tax (including Estimated tax not required. You don’t have to cludes income from self-employment, interest, illustrated examples), pay estimated tax for 2025 if you meet all three dividends, rent, gains from the sale of assets, • When to pay estimated tax, of the following conditions. prizes, and awards. You may also have to pay • How to figure each payment, and • You had no tax liability for 2024. estimated tax if the amount of income tax being • How to pay estimated tax. • You were a U.S. citizen or resident alien for withheld from your salary, pension, or other in-the whole year. come isn’t enough. Useful Items • Your 2024 tax year covered a 12-month pe-Estimated tax is used to pay both income You may want to see: riod. tax and self-employment tax, as well as other You had no tax liability for 2024 if your total taxes and amounts reported on your tax return. Form (and Instructions) If you don’t pay enough tax, either through with-tax (defined later under Total tax for 2024—line 12b holding or estimated tax, or a combination of 1040-ES 1040-ES Estimated Tax for Individuals ) was zero or you didn’t have to file an income tax return. both, you may have to pay a penalty. If you don’t See How To Get Tax Help at the end of this pub-pay enough by the due date of each payment lication for information about how to get this period (see When To Pay Estimated Tax , later), publication and form.



Publication 505 (2025) Chapter 2 Estimated Tax for 2025 19





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




Start Here



1. Will you owe $1,000 or 2a. Will your income 2b. Will your income tax withholding more for 2025 after withholding and refundable and refundable credits* be at No subtracting income tax Yes credits* be at least 90% No least 100%** of the tax shown

withholding and refundable (662⁄3% for farming and fishing) on your 2024 tax return? credits* from your total of the tax shown on your 2025 tax? (Don’t subtract any tax return? Note: Your 2024 return must estimated tax payments.) have covered a 12-month

period.

Yes

No Yes



You are You MUST make estimated NOT required to pay estimated tax. tax payment(s) by the

required due date(s).

See When To Pay Estimated Tax.



* Use the refundable credits shown on the 2025 Estimated Tax Worksheet, line 11b.

** 110% if less than two-thirds of your gross income for 2024 or 2025 is from farming or fishing and your 2024 adjusted gross income was

more than $150,000 ($75,000 if your filing status for 2025 is married filing a separate return).



Figure 2-A takes you through the general Making joint or separate estimated tax pay-

Who Must Pay rule. You may find this helpful in determining if ments won’t affect your choice of filing a joint

you must pay estimated tax. tax return or separate returns for 2025.



Estimated Tax If all your income will be subject to in- 2024 separate returns and 2025 joint return. TIP come tax withholding, you probably If you plan to file a joint return with your spouse don’t need to pay estimated tax. If you owed additional tax for 2024, you may for 2025, but you filed separate returns for 2024, have to pay estimated tax for 2025. your 2024 tax is the total of the tax shown on

Married Taxpayers your separate returns. You filed a separate re-

You can use the following general rule as a turn if you filed as single, head of household, or

guide during the year to see if you will have married filing separately. enough withholding, or should increase your If you qualify to make joint estimated tax pay-withholding or make estimated tax payments. ments, apply the rules discussed here to your 2024 joint return and 2025 separate returns.

joint estimated income. If you plan to file a separate return for 2025, but



General Rule you filed a joint return for 2024, your 2024 tax is You and your spouse can make joint estima- your share of the tax on the joint return. You file ted tax payments even if you are not living to- a separate return if you file as single, head of In most cases, you must pay estimated tax for gether. household, or married filing separately. 2025 if both of the following apply. To figure your share of the tax on a joint re- However, you and your spouse can’t make turn, first figure the tax both you and your 1. You expect to owe at least $1,000 in tax for joint estimated tax payments if: 2025 after subtracting your withholding spouse would have paid had you filed separate • You are legally separated under a decree and tax credits. returns for 2024 using the same filing status for of divorce or separate maintenance, 2025. Then, multiply the tax on the joint return 2. You expect your withholding and tax cred- • You and your spouse have different tax by the following fraction. its to be less than the smaller of: years, or • Either spouse is a nonresident alien (un- a. 90% of the tax to be shown on your less that spouse elected to be treated as a The tax you would have paid 2025 tax return, or resident alien for tax purposes). See had you filed a separate Choosing Resident Alien Status in Pub. b. 100% of the tax shown on your 2024 return



Note. The percentages in (2a) or (2b) just listed tax return. Your 2024 tax return must 519. The total tax you and your cover all 12 months. spouse would have paid Note. Individuals who are in registered do-had you filed separate mestic partnerships, civil unions, or other simi-returns may be different if you have income from farm-lar formal relationships that are not marriages ing or fishing or are a higher income taxpayer. under state law can’t make joint estimated tax See Special Rules , later. payments. These individuals can take credit Special Rules only for the estimated tax payments that he or If the result from using the general rule she made. ! above suggests that you won’t have There are special rules for those who have in-enough withholding, complete the CAUTION come from farming and fishing, for certain If you and your spouse can’t make joint esti-2025 Estimated Tax Worksheet for a more ac-household employers, and certain higher in-mated tax payments, apply these rules to your curate calculation. come taxpayers. separate estimated income.

20 Chapter 2 Estimated Tax for 2025 Publication 505 (2025) Farming and Fishing Services normally performed in connection with When figuring your 2025 estimated tax, it





fishing include: may be helpful to use your income, deductions,


If at least two-thirds of your gross income for • Shore service as an officer or crew mem- and credits for 2024 as a starting point. Use 2024 or 2025 is from farming or fishing, substi- ber of a vessel engaged in fishing; and your 2024 federal tax return as a guide. You can

tute 662/3% for 90% in (2a) under General Rule, • Services that are necessary for the imme- use Form 1040-ES to figure your estimated tax. earlier. diate preservation of the catch, such as Nonresident aliens use Form 1040-ES (NR) to

cleaning, icing, and packing the catch. figure estimated tax.



changes in your own situation and for recent



tax. To determine whether two-thirds of your changes in the tax law. Some of these changes When estimating the tax on your 2025 tax re- gross income for 2024 was from farming or fish- are discussed earlier under What's New for turn, include your household employment taxes ing, use as your gross income the total of the in- 2025 . For information about these and other if either of the following applies. come (not loss) amounts. changes in the law, visit the IRS website at • You will have federal income tax withheld IRS.gov. from wages, pensions, annuities, gambling Joint returns. On a joint return, you must add come you receive in the form of money, goods, You must make adjustments both for Household Employers property, and services that isn’t exempt from Gross income. Your gross income is all in-



your spouse's gross income to your gross in- winnings, or other income. The instructions for Form 1040-ES include a • You would be required to make estimated worksheet to help you figure your estimated tax. come to determine if at least two-thirds of your tax payments to avoid a penalty even if you Keep the worksheet for your records. total gross income is from farming or fishing. didn’t include household employment

taxes when figuring your estimated tax. 2025 Estimated Tax

Gross income from farming. This is income

commodities. It includes the following amounts. Higher Income Taxpayers from cultivating the soil or raising agricultural Worksheet

• Income from operating a stock, dairy, poul-



total of the following amounts. • try, bee, fruit, or truck farm. If your AGI for 2024 was more than $150,000 ! ($75,000 if your filing status for 2025 is married If you file Form 1040-SS use the Esti-Income from a plantation, ranch, nursery, CAUTION mated Tax Worksheet for Filers of Form filing a separate return), substitute 110% for range, orchard, or oyster bed. 1040-SS, in Form 1040-ES to figure your esti-100% in (2b) under General Rule , earlier. • Crop shares for the use of your land. mated tax. • Gains from sales of draft, breeding, dairy, For 2024, AGI is the amount shown on Form or sporting livestock. Use Worksheet 2-1 to help guide you 1040 or 1040-SR, line 11. through the information about completing the For 2024, gross income from farming is the 2025 Estimated Tax Worksheet. You can also Note. If at least two-thirds of your gross in-find a copy of the worksheet in the instructions • Schedule F (Form 1040), Profit or Loss come for 2024 or 2025 is from farming or fish-for Form 1040-ES. From Farming, line 9. ing, this rule doesn't apply. • Form 4835, Farm Rental Income and Ex-penses, line 7. Expected AGI—Line 1 Aliens • Your share of the gross farming income from a partnership, S corporation, estate or Your expected AGI for 2025 (line 1) is your ex-Resident and nonresident aliens may also have trust from Schedule K-1 (Form 1065), pected total income minus your expected ad-to pay estimated tax. Resident aliens should fol-Schedule K-1 (Form 1120-S), or Sched-justments to income. low the rules in this publication, unless noted ule K-1 (Form 1041). otherwise. Nonresident aliens should get Form • Your gains from sales of draft, breeding, Total income. Include in your total income all 1040-ES (NR), U.S. Estimated Tax for Nonresi-dairy, or sporting livestock shown on Form the income you expect to receive during the dent Alien Individuals. 4797, Sales of Business Property. year, even income that is subject to withholding.

Wages you receive as a farm employee and You are an alien if you are not a citizen or na- However, don’t include income that is tax ex-

wages you receive from a farm corporation are empt. tional of the United States. You are a resident not gross income from farming. alien if you either have a green card or meet the Total income includes all income and loss

substantial presence test. for 2025 that, if you had received it in 2024,

Gross income from fishing. This is income would have been included on your 2024 tax re-

from catching, taking, harvesting, cultivating, or For more information about withholding, the turn in the total on line 9 of Form 1040 or



weeds, or other aquatic forms of animal and ment benefits. If you expect to receive Estates and Trusts social security or tier 1 railroad retire- vegetable life. ment benefits during 2025, use Worksheet 2-2 Gross income from fishing includes the fol- Estates and trusts must also pay estimated tax. to figure the amount of expected taxable bene- lowing amounts. However, estates (and certain grantor trusts fits you should include on line 1. • clams and mussels), crustaceans (for example, (NR), see Pub. 519. Social security and railroad retire-lobsters, crabs, and shrimp), sponges, sea-farming any kind of fish, shellfish (for example, substantial presence test, and Form 1040-ES 1040-SR.

Schedule C (Form 1040), Profit or Loss that receive the residue of the decedent's estate

• Adjustments to income. Be sure to subtract From Business, line 7. under the decedent's will) are exempt from pay-

member of a vessel while the vessel is en- from your expected total income all of the ad- decedent's death. justments you expect to take on your 2025 tax Income for services as an officer or crew ing estimated tax for the first 2 years after the

• Estates and trusts must use Form 1041-ES, return. gaged in fishing.



• trust from Schedule K-1 (Form 1065), figure and pay estimated tax. income from self-employment, use Schedule K-1 (Form 1120S), or Sched-Worksheet 2-3 to figure your expected ule K-1 (Form 1041). How To Figure from a partnership, S corporation, estate or Estimated Income Tax for Estates and Trusts, to Self-employed. If you expect to have Your share of the gross fishing income self-employment tax and your allowable deduc-

age awards received in connection with the amount from Worksheet 2-3 in your expected Estimated Tax Certain taxable interest and punitive dam- tion for self-employment tax. Include the

• Income for services normally performed in and both you and your spouse have net earn- To figure your estimated tax, you must figure Exxon Valdez litigation. adjustments to income. If you file a joint return

connection with fishing. ings from self-employment, each of you must your expected AGI, taxable income, taxes, de- complete a separate worksheet. ductions, and credits for the year.

Publication 505 (2025) Chapter 2 Estimated Tax for 2025 21 Expected Taxable Income— Note. The tax rate on your capital gains and 4. Additional Medicare Tax. A 0.9% Addi-Line 2 dividends will depend on your income. tional Medicare Tax applies to your com-





your standard deduction. listed in the following chart, based on your the foreign earned income exclusion or the filing status. housing exclusion or deduction on Form 2555, Itemized deductions—line 2a. If you expect use Worksheet 2-6 to figure your estimated tax. to claim itemized deductions on your 2025 tax Filing Status Threshold Amount return, enter the estimated amount on line 2a. Married filing jointly $250,000 Step 2. Total your expected taxes (line 6). In- Itemized deductions are the deductions that Reduce your expected AGI for 2025 (line 1) by come or excluding or deducting for-either your expected itemized deductions or compensation that exceeds the amount eign housing. If you expect to claim Tax if excluding foreign earned in- ment income and/or your RRTA bined Medicare wages and self-employ-


can be claimed on Schedule A (Form 1040). clude on line 6 the sum of the following. Married filing separately $125,000



Standard deduction—line 2a. If you expect Head of household $200,000 2. Your expected alternative minimum tax 1. Your tax on line 6. Single $200,000 to claim the standard deduction on your 2025 Qualifying surviving spouse $200,000 (AMT) from Form 6251. tax return, enter the amount on line 2a. Use



Worksheet 2-4 to figure your standard deduc- 3. Your expected additional taxes from Form Medicare wages and self-employment tion. 8814, Parents' Election To Report Child's income are combined to determine if your Interest and Dividends, and Form 4972, income exceeds the threshold. A self-em-No standard deduction. The standard de-Tax on Lump-Sum Distributions. ployment loss should not be considered duction for some individuals is zero. Your stand-for purposes of this tax. RRTA compensa-ard deduction will be zero if you: 4. Any recapture of education credits. tion should be separately compared to the • File a separate return and your spouse threshold. Your employer is responsible for itemizes deductions, Step 3. Subtract your expected credits (line 7). withholding the 0.9% Additional Medicare • Are a dual-status alien, or If you are using your 2024 return as a guide and Tax on Medicare wages or RRTA compen-• File a return for a period of less than 12 filed Form 1040 or 1040-SR, your total credits sation it pays to you in excess of $200,000 months because you change your ac-for 2024 were shown on line 21. in 2025. You should consider this withhold-counting period. If your credits on line 7 are more than your ing, if applicable, in determining whether taxes on line 6, enter -0- on line 8 and go to you need to make an estimated payment. Expected Taxes and Credits— Step 4. Lines 4–11c 5. Net Investment Income Tax (NIIT). The Step 4. Add your expected self-employment NIIT is 3.8% of the lesser of your net in-tax (line 9). You should already have figured After you have figured your expected taxable in-vestment income or the excess of your your self-employment tax (see Self-employed come (line 3), follow the steps next to figure MAGI over the amount listed in the follow-under Expected AGI—Line 1, earlier). your expected taxes, credits, and total tax for ing chart, based on your filing status.

few of these steps. However, you should check Step 5. Add your expected other taxes Filing Status 2025. Most people will have entries for only a

every step to be sure you don’t overlook any- Married filing jointly (line 10). Threshold Amount

thing. Other taxes include the following. The total $250,000

of these taxes are entered on line 10. Married filing separately $125,000



Step 1. Figure your expected income tax Single $200,000 1. Additional tax on early distributions from: (line 4). Generally, you will use the 2025 Tax Head of household $200,000 Rate Schedules to figure your expected income a. An IRA or other qualified retirement Qualifying surviving spouse $250,000 tax. plan,



must use a different method to figure your esti-However, see below for situations where you b. A tax-sheltered annuity, or Step 6. Subtract your refundable credits c. A modified endowment contract en-mated tax. (line 11c). These include the earned income tered into after June 20, 1988. credit, additional child tax credit, fuel tax credit, Tax on child's investment income. You net premium tax credit, refundable American 2. Household employment taxes if: must use a special method to figure tax on the opportunity credit, and section 1341 credit. income of the following children who have more a. You will have federal income tax with-To figure your expected fuel tax credit, don’t than $2,700 of investment income. held from wages, pensions, annuities, include fuel tax for the first 3 quarters of the gambling winnings, or other income; year that you expect to have refunded to you. 1. Children under age 18 at the end of 2025. or The result of Steps 1 through 6 is your total 2. The following children if their earned in-estimated tax for 2025 (line 11c). b. You would be required to make esti-come isn’t more than half their support. mated tax payments even if you didn’t a. Children age 18 at the end of 2025. include household employment taxes Required Annual Payment— when figuring your estimated tax. b. Children who are full-time students at Line 12c



come tax rates for individuals don’t apply to a Tax on net capital gain. The regular in-least age 19 but under age 24 at the 3. Amounts entered on Schedule 2 (Form On lines 12a through 12c, figure the total end of 2025. 1040), line 14 through 17z and 19. But amount you must pay for 2025, through with-don’t include the following. holding and estimated tax payments, to avoid a. Line 17b, recapture of a federal mort-paying a penalty. net capital gain. Instead, your net capital gain is gage subsidy;



taxed at a lower maximum rate. General rule. The total amount you must pay b. Line 17k, tax on excess golden para- The term “net capital gain” means the is the smaller of: chute payments; amount by which your net long-term capital gain 1. 90% of your total expected tax for 2025, or for the year is more than your net short-term c. Line 17m, excise tax on insider stock

capital loss. compensation from an expatriated 2. 100% of the total tax shown on your 2024



Tax on capital gain and qualified corporation; or return. Your 2024 tax return must cover all 12 months. dividends. If the amount on line 1 in- d. Line 17n, look-back interest due un-

cludes a net capital gain or qualified der section 167(g) or 460(b) of the In-

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



22 Chapter 2 Estimated Tax for 2025 Publication 505 (2025) Special rules. There are special rules for 4. Any refundable credit amounts on Form Saturday, Sunday, holiday rule. If the due those who have income from farming and fish- 1040 or 1040-SR, line 27, 28, and 29, and date for an estimated tax payment falls on a ing and for certain higher income taxpayers. Schedule 3 (Form 1040), lines 9, and 12. Saturday, Sunday, or legal holiday, the payment





2024 was more than $150,000 ($75,000 if your Total Estimated Tax Payments Pub. 509 for a list of all legal holidays. filing status for 2025 is married filing sepa-Higher income taxpayers. If your AGI for that isn’t a Saturday, Sunday, or a holiday. See will be on time if you make it on the next day


Needed—Line 14a



rately), substitute 110% for 100% in (2) above. If January payment. If you file your 2025 Form at least two-thirds of your gross income for 2024 Use lines 13 and 14a to figure the total estima- 1040 or 1040-SR by January 31, 2026, and pay or 2025 is from farming or fishing, this rule ted tax you may be required to pay for 2025. the rest of the tax you owe, you don’t need to doesn't apply. Subtract your expected withholding from your make the payment due on January 15, 2026. required annual payment (line 12c). You must



1040 or 1040-SR, line 11. For 2024, AGI is the amount shown on Form usually pay this difference in four equal install- Example. You do not pay any estimated tax ments. See When To Pay Estimated Tax and for 2025. You file the 2025 income tax return How To Figure Each Payment , later. and pay the balance due shown on the return Example. Your total tax on the 2024 return on January 26, 2026. was $42,581, and the expected tax for 2025 is You don’t have to pay estimated tax if: Your estimated tax for the fourth payment $71,253. Your 2024 AGI was $180,000. Be-• Line 12c minus line 13 is zero or less, or period is considered to have been paid on time. cause you had more than $150,000 of AGI in • Line 11c minus line 13 is less than $1,000. However, you may owe a penalty for not making 2024, you figure the required annual payment the first three estimated tax payments, if re-as follows. You determine that 90% of the ex-Withholding—line 13. Your expected with-quired. Any penalty for not making those pay-pected tax for 2025 is $64,128 (90% (0.90) × holding for 2025 (line 13) includes the income ments will be figured up to January 26, 2026. $71,253). Next, you determine that 110% of the tax you expect to be withheld from all sources tax shown on the 2024 return is $46,839 (110% (wages, pensions and annuities, etc.). It in-Fiscal-year taxpayers. If your tax year does (1.10) x $42,581). Finally, you determine that cludes excess social security and tier 1 railroad not start on January 1, your payment due dates the required annual payment is $46,839, the retirement tax you expect to be withheld from are: smaller of the two. your wages and compensation. For this pur-1. The 15th day of the 4th month of your fis-pose, you will have excess social security or tier Farming and fishing. If at least two-thirds cal year, 1 railroad retirement tax withholding for 2025 of your gross income for 2024 or 2025 is from only if your wages and compensation from two farming or fishing, your required annual pay-2. The 15th day of the 6th month of your fis-or more employers are more than $176,100. ment is the smaller of: cal year, It also includes Additional Medicare Tax you 1. 66 2 / 3 % (0.6667) of your total tax for 2025, 3. The 15th day of the 9th month of your fis-expect to be withheld from your wages or com-or cal year, and pensation. Your employer is responsible for

2. 100% of the total tax shown on your 2024 withholding the 0.9% Additional Medicare Tax 4. The 15th day of the 1st month after the

return. (Your 2024 tax return must cover all on Medicare wages or RRTA compensation it end of your fiscal year. 12 months.) pays to you in excess of $200,000. You don’t have to make the last payment lis-



For definitions of “gross income from farm- ted above if you file your income tax return by When To Pay

ing” and “gross income from fishing,” see Farm- the last day of the first month after the end of

ing and Fishing, earlier, under Special Rules. your fiscal year and pay all the tax you owe with Estimated Tax

your return.

Total tax for 2024—line 12b. Your 2024 total



tax is the amount on line 24 reduced by the fol- For estimated tax purposes, the year is divided When To Start lowing. into four payment periods. Each period has a

1. Unreported social security and Medicare specific payment due date. If you don’t pay You don’t have to make estimated tax payments

tax or RRTA tax from Forms 4137 or 8919 enough tax by the due date of each of the pay- until you have income on which you will owe in-included on Schedule 2 (Form 1040), lines ment periods, you may be charged a penalty come tax. If you have income subject to estima-5 and 6. even if you are due a refund when you file your ted tax during the first payment period, you

2. Amounts from Form 5329, Parts III through income tax return. must make your first payment by the due date

for the first payment period.

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

3. The following amounts from Schedule 2 postmark is considered the date of payment. You have several options when paying esti-

(Form 1040). The general payment periods and due dates for mated taxes. You can:

estimated tax payments are shown next. For ex- • Apply an overpayment from the previous

a. Excise tax on excess golden para- ceptions to the dates listed, see Saturday, Sun- tax year,

chute payments (Schedule 2, day, holiday rule. • Pay all your estimated tax by the due date line 17k). of your first payment, or

b. Excise tax on insider stock compen- Tax year • Pay it in installments.

sation from an expatriated corporation For the General due 2025 due If you choose to pay in installments, make (Schedule 2, line 17m). period: date: date: your first payment by the due date for the first



c. Look-back interest due under section Jan. 1 ment payments by the due dates for the later 1 payment period. Make your remaining install- 167(g) (Schedule 2, line 17n). – March 31 . . . April 15 April 15, 2025 periods.

d. Look-back interest due under section April 1 460(b) (Schedule 2, line 17n). To avoid any estimated tax penalties, all in-

– May 31 . . . . . June 15 June 16, 2025

stallments must be paid by their due date and

e. Recapture of federal mortgage sub- June 1 for the required amount.

sidy (Schedule 2, line 17b). – Aug. 31 . . . . Sept. 15 Sept. 15, 2025

f. Uncollected social security and Medi- Sept. 1 No income subject to estimated tax during Jan. 15, next



group-term life insurance (Schedule 2, If your tax year does not begin on January 1, you must make your first payment by the due 1 to estimated tax until a later payment period, care tax or RRTA tax on tips or – Dec. 31 first period. If you don’t have income subject . . . . year 2 Jan. 15, 2026

line 13). see Fiscal-year taxpayers, later. date for that period. You can pay your entire 2 See January payment , later. estimated tax by the due date for that period or

Publication 505 (2025) Chapter 2 Estimated Tax for 2025 23 you can pay it in installments by the due date for at that time, you don’t need to make an estima- amended estimated tax by the next payment that period and the due dates for the remaining ted tax payment. due date after the change or in installments by periods. Table 2-1 shows the general due dates that date and the due dates for the remaining





for making installment payments when the due Fiscal year. If at least two-thirds of your gross payment periods.


iday. If you don’t receive your income evenly date does not fall on a Saturday, Sunday, or hol- income for 2024 or 2025 is from farming or fish-



Table 2-1. payments may not be the same for each period. General Due Dates for • Pay all your estimated tax by the 15th day See Annualized Income Installment Method , Estimated Tax after the end of your tax year, or later. • 1, you can either: throughout the year, your required estimated tax ing, but your tax year does not start on January

Installment Payments File your return and pay all the tax you owe



income on which end of your tax year. ure your estimated tax during the year, Make a Make later or if your first estimated tax payment is If you first have by the 1st day of the 3rd month after the Amended estimated tax. If you refig-

you must pay payment installments due after April 15, 2025, figure your required How To Figure estimated tax: by:* by:*

Before April 1 April 15 June 15 ing Worksheet 2-10.

Each Payment payment for each remaining payment period us-

Sept. 15



April 1–May 31 Jan. 15 next year Example. Early in 2025, you figure estima- After you have figured your total estimated tax, June 15 Sept. 15 ted tax due of $1,800. You make estimated tax figure how much you must pay by the due date Jan. 15 next year payments on April 15 and June 16 of $450 each of each payment period. You should pay ($1,800 ÷ 4). June 1–Aug. 31 Sept. 15 Jan. 15 next year enough by each due date to avoid a penalty for On July 10, you sell investment property at a After Aug. 31 Jan. 15 (None) that period. If you don’t pay enough during any gain. Your refigured estimated tax is $4,100. next year payment period, you may be charged a penalty The required estimated tax payment for the third even if you are due a refund when you file your payment period is $2,175. tax return. The penalty is discussed in the In- *See January payment and Saturday, Sunday, If your estimated tax does not change again, structions for Form 2210. holiday rule , earlier. the required estimated tax payment for the

How much to pay to avoid penalty. To deter-

Regular Installment Method fourth payment period will be $1,025.

mine how much you should pay by each pay- Underpayment penalty. The penalty is fig-

ment due date, see How To Figure Each Pay- ured separately for each payment period. If you If your first estimated tax payment is due April

ment, later. figure your payments using the regular install- 15, 2025, you can figure your required payment



Farming and Fishing ted tax due (line 14a of the 2025 Estimated Tax because of an increase in income, you may be charged a penalty for underpayment of estima- for each period by dividing your annual estima- ment method and later refigure your payments

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

If at least two-thirds of your gross income for amount on line 15. However, use this method ted tax for the period(s) before you changed

2024 or 2025 is from farming or fishing, you only if your income is basically the same your payments. To see how you may be able to

have only one payment due date for your 2025 throughout the year. avoid or reduce this penalty, see Sched-



for the first three payment periods, discussed Change in estimated tax. After you make an estimated tax payment, changes in your in-under estimated tax: January 15, 2026. The due dates in the Instructions for Form 2210. ule AI—Annualized Income Installment Method

apply to you. come, adjustments, deductions, or credits may When To Pay Estimated Tax, earlier, don’t

make it necessary for you to refigure your esti-

If you file your 2025 Form 1040 or 1040-SR mated tax. Pay the unpaid balance of your

by March 2, 2026, and pay all the tax you owe



24 Chapter 2 Estimated Tax for 2025 Publication 505 (2025)





Worksheet 2-10. Amended Estimated Tax Worksheet


Keep for Your Records



1. Amended total estimated tax due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Multiply line 1 by:

50% (0.50) if next payment is due June 16, 2025

75% (0.75) if next payment is due September 15, 2025

100% (1.00) if next payment is due January 15, 2026 . . . . . . . . . . . . . . . . . 2.

3. Estimated tax payments for all previous periods . . . . . . . . . . . . . . . . . . . . . . 3. 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, 2026, stop here. Otherwise,

go to line 5.

5. Add lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Subtract line 5 from line 1 and enter the result (but not less than zero) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7. Each following required payment: If the payment on line 4 is due June 16, 2025, enter one-half of the

amount on line 6 here and on the payment vouchers for your payments due September 15, 2025, and January 15, 2026. If the amount on line 4 is due September 15, 2025, enter the amount from line 6 here and on the payment voucher for your payment due January 15, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.



Publication 505 (2025) Chapter 2 Estimated Tax for 2025 25





Annualized Income Line 7. If you won’t itemize your deductions, deduction to figure each credit. For example, if use Worksheet 2-4 to figure your standard de-you need to use your AGI to figure a credit, use Installment Method duction. line 3 of Worksheet 2-7 to figure the credit for




If you don’t receive your income evenly through- each column. Line 12. Generally, you will use the Tax Rate out the year (for example, your income from a Schedules to figure the tax on your annualized Line 18. Add your expected other taxes. repair shop you operate is much larger in the income. However, see below for situations Other taxes include the following. summer than it is during the rest of the year), where you must use a different method to figure your required estimated tax payment for one or 1. Additional tax on early distributions from: your estimated tax. more periods may be less than the amount fig-a. An IRA or other qualified retirement ured using the regular installment method. Tax on child's investment income. You plan, must use a special method to figure tax on the The annualized income installment method income of the following children who have more b. A tax-sheltered annuity, or annualizes your tax at the end of each period than $2,700 of investment income. c. A modified endowment contract en-based on a reasonable estimate of your in-1. Children under age 18 at the end of 2025. come, deductions, and other items relating to tered into after June 20, 1988.



events that occurred from the beginning of the 2. The following children if their earned in- 2. Household employment taxes if: tax year through the end of the period. To see come isn’t more than half their support. a. You will have federal income tax with-whether you can pay less for any period, com-a. Children age 18 at the end of 2025. plete the 2025 Annualized Estimated Tax Work-held from wages, pensions, annuities, gambling winnings, or other income; sheet ( Worksheet 2-7 ). b. Children who are full-time students at or least age 19 but under age 24 at the You first must complete the 2025 Esti-end of 2025. mated Tax Worksheet (Worksheet 2-1) b. You would be required to make esti-! through line 14b. CAUTION mated tax payments even if you didn’t Tax on net capital gain. The regular in-include household employment taxes come tax rates for individuals don’t apply to a when figuring your estimated tax. Use the result you figure on line 32 of Work-net capital gain. Instead, your net capital gain is sheet 2-7 to make your estimated tax payments taxed at a lower maximum rate. 3. Amounts on Schedule 2 (Form 1040), and complete your payment vouchers. The term “net capital gain” means the lines 14 through 16, and 17a, 17c through 17j, 17l, and 17o through 17z and 19. amount by which your net long-term capital gain Note. If you use the annualized income in-for the year is more than your net short-term 4. Additional Medicare Tax. A 0.9% Addi-stallment method to figure your estimated tax capital loss. tional Medicare Tax applies to your com-payments, you must file Form 2210 with your bined Medicare wages and self-employ-2025 tax return. See Schedule AI—Annualized Tax on qualified dividends and capital ment income and/or your RRTA Income Installment Method in the Instructions gains. For 2025, your capital gain and divi-compensation that exceeds the amount for Form 2210 for more information. dends rate will depend on your income. listed in the following chart, based on your Tax on capital gain or qualified divi-filing status. Instructions for the 2025 dends. If the amount on line 1 includes Annualized Estimated Tax a net capital gain or qualified divi-Worksheet (Worksheet 2-7) Filing Status Threshold Amount dends, use Worksheet 2-8 to figure the amount Married filing jointly $250,000 to enter on line 10. Use Worksheet 2-7 to help you follow Married filing separately $125,000 TIP these instructions. Tax if excluding foreign earned in-Single $200,000 come or excluding or deducting for-Head of household $200,000 eign housing. If you expect to claim The purpose of this worksheet is to deter-the foreign earned income exclusion or the Qualifying surviving spouse $200,000 mine your estimated tax liability as your income housing exclusion or deduction on Form 2555, accumulates throughout the year, rather than di-Medicare wages and self-employment use Worksheet 2-9 to figure the amount to enter viding your entire year's estimated tax liability by income are combined to determine if your on line 10. 4 as if your income was earned equally through-income exceeds the threshold. A self-em-out the year. The top of the worksheet shows ployment loss should not be considered Line 13. Add the tax from Forms 8814, 4972, the dates for each payment period. The periods for purposes of this tax. RRTA compensa-and 6251 for the period. Also, include any re-build; that is, each period includes all previous tion should be separately compared to the periods. After the end of each payment period, capture of an education credit for each period. threshold. You may owe this tax if you claimed an educa-complete the corresponding worksheet column Your employer is responsible for with-tion credit in an earlier year and you received ei-to figure the payment due for that period. holding the 0.9% Additional Medicare Tax ther tax-free educational assistance or a refund on Medicare wages or RRTA compensa-Line 1. Enter your AGI for the period. This is of qualifying expenses for the same student af-tion it pays you in excess of $200,000 in your gross income for the period, including your ter filing your 2024 return. 2025. You should consider this withhold-share of partnership or S corporation income or Use the 2024 forms or worksheets to see if ing, if applicable, in determining whether loss, minus your adjustments to income for that you will owe any of the taxes just discussed. you need to make an estimated payment. period. See Expected AGI—Line 1 , earlier. Figure the tax based on your income and de-ductions during the period shown in the column 5. Net Investment Income Tax (NIIT). The Self-employment income. If you had NIIT is 3.8% of the lesser of your net in-headings. Multiply this amount by the annuali-self-employment income, first complete Sec-vestment income or the excess of your zation amounts shown for each column on tion B of this worksheet. Use the amounts on line 2 of the 2025 Annualized Estimated Tax MAGI over a specified threshold amount. line 41 when figuring your expected AGI to enter Worksheet ( Worksheet 2-7 ). Enter the result on Threshold amounts: in each column of Section A, line 1. line 13 of this worksheet.



ured on Schedule A (Form 1040), such as the you expect to claim because of events that will $10,000 limit on state and local taxes. Figure Line 4. Be sure to consider deduction limits fig- Line 15. Include all the nonrefundable credits

occur during the period.

your deduction limits using your expected AGI

in the corresponding column of line 1 (2025 An- Note. When figuring your credits for each

nualized Estimated Tax Worksheet (Worksheet period, annualize any item of income or

2-7)).

26 Chapter 2 Estimated Tax for 2025 Publication 505 (2025)





Filing Status However, if you can use a treaty rate Example. When you finished filling out the Threshold Amount


lower than 30%, use the percentages de- 2024 tax return, the result was an overpayment

Married filing jointly $250,000 termined by multiplying your treaty rate by of $750. You knew additional tax would be owed

Married filing separately $125,000 2.4, 1.5, and 1, respectively. in 2025. You credited $600 of the overpayment



Single $200,000 to the 2025 estimated tax and had the remain-4. On line 26, enter one-half of the amount ing $150 issued as a refund. Head of household $200,000 from line 14c of the Form 1040-ES (NR) In September, you amended the 2024 return 2024 Estimated Tax Worksheet in column Qualifying surviving $250,000 by filing Form 1040-X, Amended U.S. Individual spouse (b), and one-fourth in columns (c) and (d) Income Tax Return. It turned out that you owed of Worksheet 2-7. $250 more in tax than was originally thought. Line 20. Include all the refundable credits 5. On lines 24 and 27, skip column (b). This reduced the 2024 overpayment from $750



(other than withholding credits) you can claim to $500. Because the $750 had already been 6. On line 31, if you don’t use the actual with- because of events that occurred during the pe- applied to the 2025 estimated tax or refunded, holding method, include one-half of your riod. These include the earned income credit, the IRS billed you for the additional $250 owed, total expected withholding in column (b) additional child tax credit, fuel tax credit, net plus penalties and interest. You could not use and one-fourth in columns (c) and (d). premium tax credit, and refundable American any of the $600 that had been credited to the

opportunity credit. See Pub. 519 for more information. 2025 estimated tax to pay this bill.



Note. When figuring your refundable credits Estimated Tax Pay Online

deduction used to figure each credit. Paying online is convenient and secure and Payments Not Required for each period, annualize any item of income or



Line 29. If line 28 is smaller than line 25 and helps make sure we get your payments on time. You don’t have to pay estimated tax if your with- To pay your taxes online or for more information, you are not certain of the estimate of your 2025 holding in each payment period is at least as go to IRS.gov/Payments . Payments of U.S. tax tax, you can avoid a penalty by entering the much as: must be remitted to the IRS in U.S. dollars. Digi- amount from line 25 on line 29. • One-fourth of your required annual pay- tal assets are not accepted. You can pay using ment, or any of the following methods. Line 31. For each period, include estimated • Your required annualized income install- • Your Online Account. You can make tax tax payments made and any excess social se- ment for that period. payments through your online account, in- curity and railroad retirement tax. cluding balance payments, estimated tax Also, include estimated federal income tax You also don’t have to pay estimated tax if payments, or other types. You can also see withholding. One-fourth of your estimated with- you will pay enough through withholding to keep your payment history and other tax records holding is considered withheld on the due date the amount you will owe with your return under there. Go to IRS.gov/Account . of each payment period. To figure the amount to $1,000. • IRS Direct Pay. For online transfers di- include on line 31 for each period, multiply your rectly from your checking or savings ac- total expected withholding for 2025 by: • 25% (0.25) for the first period, How To Pay count at no cost to you, go to IRS.gov/ Payments . • 50% (0.50) for the second period, • 75% (0.75) for the third period, and Estimated Tax • Debit Card, Credit Card, or Digital Wal- let. To pay by debit or credit card or digital • 100% (1.00) for the fourth period. wallet, go to IRS.gov/Payments . There is a There are several ways to pay estimated tax. However, you may choose to include your fee charged by these service providers. • Credit an overpayment on your 2024 return withholding according to the actual dates on You can also pay by phone with a debit or to your 2025 estimated tax. which the amounts will be withheld. For each credit card. See Debit or credit card under • Pay by direct transfer from your bank ac- period, include withholding made from the be- Pay by Phone, later. count, or pay by debit or credit card using a ginning of the period up to and including the • Electronic Funds Withdrawal (EFW) is pay-by-phone system or the Internet. payment due date. You can make this choice an integrated e-file/e-pay option offered • Send in your payment (check or money or- separately for the taxes withheld from your wa- when filing your federal taxes electronically der) with a payment voucher from Form ges and all other withholding. For an explana- using tax preparation software, through a 1040-ES. tion of what to include in withholding, see Total tax professional, or the IRS at IRS.gov/ Estimated Tax Payments Needed—Line 14a , Payments . earlier. Credit an Overpayment • Online Payment Agreement. If you can’t pay in full by the due date of your tax re- Nonresident aliens. If you will file Form If you show an overpayment of tax after com- turn, you can apply for an online monthly 1040-NR and you don’t receive wages as an installment agreement at IRS.gov/OPA . pleting your Form 1040 or 1040-SR for 2024, employee subject to U.S. income tax withhold- Once you complete the online process, you can apply part or all of it to your estimated ing, the instructions for the worksheet are modi- you will receive immediate notification of tax for 2025. On Form 1040 or 1040-SR, enter fied as follows. the amount you want credited to your estimated whether your agreement has been ap- proved. A user fee is charged. 1. Skip column (a). tax rather than refunded. Take the amount you have credited into account when figuring your 2. On line 1, enter your income for the period estimated tax payments. If you timely file your Electronic Federal Tax that is effectively connected with a U.S. 2024 return, treat the credit as a payment made trade or business. Payment System (EFTPS) on April 15, 2025.



3. On line 21, increase your entry by the Allows you to pay your taxes online or by phone If you are a beneficiary of an estate or trust, amount determined by multiplying your in- directly from your checking or saving ac- and the trustee elects to credit 2025 trust pay- come for the period that isn’t effectively count.There is no fee for this service. You must ments of estimated tax to you, you can treat the connected with a U.S. trade or business by be enrolled either online or have an enrollment amount credited as paid by you on January 15, the following. form mailed to you. See EFTPS under Pay by 2026. a. 72% (0.72) for column (b). Phone, later.

b. 45% (0.45) for column (c). If you choose to have an overpayment of tax credited to your estimated tax, you can’t have c. 30% (0.30) for column (d). 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.

Publication 505 (2025) Chapter 2 Estimated Tax for 2025 27 Pay by Phone Pay by Cash fer from your account or to process the payment as a check transaction. When we use informa-Paying by phone is another safe and secure tion from your check to make an electronic fund You can pay your taxes in cash. To find out





method of paying electronically. Use one of the transfer, funds may be withdrawn from your ac- about the different cash payment methods, go


following methods: (1) call one of the debit or count as soon as the same day we receive your to IRS.gov/PayCash . Don't send cash payments

credit card service providers, or (2) use the payment, and you will not receive your check through the mail.

Electronic Federal Tax Payment System back from your financial institution. (EFTPS) to pay directly from your checking or Pay by Check or Money savings account. No checks of $100 million or more accep- Order Using the Estimated

Debit or credit card. Call one of our service cluding a cashier's check) for amounts of Tax Payment Voucher $100,000,000 ($100 million) or more. If you are ted. The IRS can’t accept a single check (in-

providers. Each charges a fee that varies by

provider, card type, and payment amount. sending $100 million or more by check, you'll Before submitting a payment through the mail,

please consider alternative methods. One of need to spread the payment over two or more

Link2GOV Corporation checks with each check made out for an our safe, quick, and easy electronic payment

888-PAY-1040TM amount less than $100 million. This limit doesn't (888-729-1040) options might be right for you. Each payment of

www.PAY1040.com apply to other methods of payment (such as estimated tax by check or money order must be

accompanied by a payment voucher from Form electronic payments). Please consider a



EFTPS. To get more information about EFTPS fed.acipayonline.com Joint estimated tax payments. If you file a payment vouchers to the address shown in the joint return and are making joint estimated tax Form 1040-ES instructions for the place where payments, enter the names and social security you live. or to enroll in EFTPS, visit EFTPS.gov or call numbers on the payment voucher in the same 800-555-4477. To contact EFTPS using Tele- 888-UPAY-TAXTM not the window envelope that comes with the amount of the payment is over $100 million. (888-872-9829) 1040-ES package), make sure you mail your ACI Payments, Inc. 1040-ES. If you use your own envelopes (and method of payment other than check if the

communications Relay Services (TRS) for peo- ! structions for Form 1040. ple who are deaf, hard of hearing, or have a CAUTION Change of address. You must notify the IRS if Don’t use the address shown in the In- order as they will appear on the joint return.



speech disability, dial 711 and then provide the you are making estimated tax payments and If you didn’t pay estimated tax last year, get TRS assistant the 800-555-4477 number above you changed your address during the year. a copy of Form 1040-ES from the IRS (see How or 800-733-4829. Additional information about Complete Form 8822 and mail it to the address To Get Tax Help , later). Follow the instructions EFTPS is also available in Pub. 966. shown in the instructions for that form. to make sure you use the vouchers correctly.

Pay by Mobile Device Notice to taxpayers presenting checks.

When you provide a check as payment, you au-

To pay through your mobile device, download thorize us either to use information from your the IRS2Go application. check to make a one-time electronic fund trans-



28 Chapter 2 Estimated Tax for 2025 Publication 505 (2025) Worksheets for Chapter 2





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




IF you need... THEN use...

2025 Tax Rate Schedules 2025 Tax Rate Schedules

the 2025 Estimated Tax Worksheet Worksheet 2-1



to estimate your taxable social security and railroad retirement benefits—line 1 of ES Worksheet (or Worksheet 2-2 Annualized ES Worksheet (Worksheet 2-7))



to estimate your self-employment (SE) tax and your deduction for SE tax—lines 1 and 11 of ES Worksheet Worksheet 2-3 (lines 1 and 17 of Annualized ES Worksheet (Worksheet 2-7))



to estimate your standard deduction—line 2 of ES Worksheet (line 7 of Annualized ES Worksheet Worksheet 2-4 (Worksheet 2-7))



to estimate your income tax if line 1 of your ES Worksheet includes a net capital gain or qualified Worksheet 2-5 dividends—line 4 of ES Worksheet



to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing Worksheet 2-6 exclusion or deduction on Form 2555—line 4 of ES Worksheet

the 2025 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 Worksheet 2-8 qualified dividends—line 10 of Annualized ES Worksheet



to estimate your income tax if you expect to claim a foreign earned income exclusion or foreign housing Worksheet 2-9 exclusion or deduction on Form 2555—line 10 of Annualized ES Worksheet

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



Publication 505 (2025) Chapter 2 Estimated Tax for 2025 29





2025 Tax Rate Schedules




!

CAUTION Don’t use these Tax Rate Schedules to figure your 2024 taxes. Use them only to figure your 2025 estimated

taxes.

Schedule X—Use if your 2025 filing status is Schedule Z— Use if your 2025 filing status is Single Head of household If line 3 is: The tax is: If line 3 is: The tax is:

of the of the

But not amount But not amount

Over— over— over— Over— over— over—

$0 $11,925 10% $0 $0 $17,000 10% $0

11,925 48,475 $1,192.50 + 12% 11,925 17,000 64,850 $1,700.00 + 12% 17,000 48,475 103,350 5,578.50 + 22% 48,475 64,850 103,350 7,442.00 + 22% 64,850

103,350 197,300 17,651.00 + 24% 103,350 103,350 197,300 15,912.00 + 24% 103,350 197,300 250,525 40,199.00 + 32% 197,300 197,300 250,500 38,460.00 + 32% 197,300 250,525 626,350 57,231.00 + 35% 250,525 250,500 626,350 55,484.00 + 35% 250,500 626,350 - - - - - - 188,769.75 + 37% 626,350 626,350 - - - - - - 187,031.50 + 37% 626,350

Schedule Y-1— Use if your 2025 filing status is Schedule Y-2— Use if your 2025 filing status is Married filing jointly or Qualifying surviving spouse Married filing separately If line 3 is: The tax is: If line 3 is: The tax is:

of the of the

But not amount But not amount

Over— over— over— Over— over— over—

$0 $23,850 10% $0 $0 $11,925 10% $0

23,850 96,950 $2,385.00 + 12% 23,850 11,925 48,475 $1,192.50 + 12% 11,925 96,950 206,700 11,157.00 + 22% 96,950 48,475 103,350 5,578.50 + 22% 48,475

206,700 394,600 35,302.00 + 24% 206,700 103,350 197,300 17,651.00 + 24% 103,350 394,600 501,050 80,398.00 + 32% 394,600 197,300 250,525 40,199.00 + 32% 197,300 501,050 751,600 114,462.00 + 35% 501,050 250,525 375,800 57,231.00 + 35% 250,525 751,600 - - - - - - 202,154.50 + 37% 751,600 375,800 - - - - - - 101,077.25 + 37% 375,800



30 Chapter 2 Estimated Tax for 2025 Publication 505 (2025)





Worksheet 2-1. 2025 Estimated Tax Worksheet Keep for Your Records




!

CAUTION When this worksheet refers you to instructions, you can find those instructions in the 2025 Form 1040-ES.



1. Adjusted gross income you expect in 2025 (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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Tax. Figure your tax on the amount on line 3 by using the 2025 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Alternative minimum tax from Form 6251 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Credits (see instructions). Don’t include any income tax withholding on this line . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Subtract line 7 from line 6. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. Self-employment tax (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

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 2025 estimated tax. Subtract line 11b from line 11a. If zero or less, enter -0- . . . . . . . . . . . . . . . . .

11c.

12a. Multiply line 11c by 90% (0.90) (662/3% (0.6667) for farming and fishing) . . . . . 12a.



b. Required annual payment based on prior year's tax (see instructions) . . . . . . . 12b. ▶ c. 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 2025 (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, 2025, enter ¼ of line 14a (minus any 2024 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.



Publication 505 (2025) Chapter 2 Estimated Tax for 2025 31 Worksheet 2-2. 2025 Estimated Tax Worksheet—Line 1





Estimated Taxable Social Security and Railroad Retirement Benefits 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, 2025 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 . . . . . . . . . . . . . . . . 1. 2. Enter one-half of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 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 2025 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 2025 Estimated Tax Worksheet (Worksheet 2-1) (or Annualized Estimated Tax Worksheet (Worksheet 2-7)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.



32 Chapter 2 Estimated Tax for 2025 Publication 505 (2025) Worksheet 2-3. 2025 Estimated Tax Worksheet—Lines 1 and 9





Estimated Self-Employment Tax and Deduction Worksheet 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Maximum income subject to social security tax . . . . . . . . . . . . . . . . . . . . . 5. $176,100 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

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

10. Add line 4 and line 9. Enter the result here and on line 9 of your 2025 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 2025 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).



Publication 505 (2025) Chapter 2 Estimated Tax for 2025 33 Worksheet 2-4. 2025 Estimated Tax Worksheet—Line 2





Standard Deduction Worksheet 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—$15,000

• Married filing jointly or Qualifying surviving spouse—$30,000

• Head of household—$22,500 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

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 $900?

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



No. Enter $1,350 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.



4. Enter the smaller of line 1 or line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Were you (or your spouse if filing jointly) born before January 2, 1961, or blind?

No. Go to line 6.



Yes. Check if:



a. You were Born before January 2, 1961 Blind b. Your spouse was Born before January 2, 1961 Blind

c. Total boxes checked in 5a and 5b

▶ Multiply $1,600 ($2,000 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 2025 Estimated Tax

Worksheet (Worksheet 2-1) (or line 7 of your 2025 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).



34 Chapter 2 Estimated Tax for 2025 Publication 505 (2025) Worksheet 2-5. 2025 Estimated Tax Worksheet—Line 4





Qualified Dividends and Capital Gain Tax Worksheet


Keep for Your Records



1. Enter the amount from the appropriate worksheet.

• Line 3 of your 2025 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 1 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter your net capital gain expected for 20251 . . . . . . 3.

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

5. Enter your 28% rate gain or loss expected for 2 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Enter your unrecaptured section 1250 gain expected for

2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

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

8. Enter the smaller of line 3 or line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. Subtract line 8 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Subtract line 9 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . 10. 11. Enter the smaller of line 1 or $96,700 ($48,350 if single

or married filing separately, or $64,750 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:

• $197,300 if single or married filing separately;

• $197,300 if head of household; or

• $394,600 if married filing jointly or qualifying

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

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

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:

• $533,400 if single,

• $300,000 if married filing separately,

• $600,050 if married filing jointly or qualifying surviving spouse, or • $566,700 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.



Publication 505 (2025) Chapter 2 Estimated Tax for 2025 35 Worksheet 2-5. 2025 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 2025 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 2025 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 2025 Estimated Tax Worksheet (Worksheet 2-1) (or line 4 of Worksheet 2-6) . . . . . . . . . 40.

1 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.

2 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.



Worksheet 2-6. 2025 Estimated Tax Worksheet—Line 4

Foreign Earned Income Tax Worksheet Keep for Your Records



Before you begin: If line 3 of your 2025 Estimated Tax Worksheet (Worksheet 2-1) is zero, don’t complete this worksheet.

1. Enter the amount from line 3 of your 2025 Estimated Tax Worksheet (Worksheet 2-1) . . . . . . . . . . . . . . . . . 1. 2. Enter the total foreign earned income and housing amount you (and your spouse if filing jointly) expect to

exclude or deduct in 2025 on Form 2555 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Tax on the amount on line 3. Use the 2025 Tax Rate Schedules or Worksheet 2-5,* as appropriate . . . . . 4.

5. Tax on the amount on line 2. Use the 2025 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Subtract line 5 from line 4. Enter the result here and on line 4 of your 2025 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 2025 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.



36 Chapter 2 Estimated Tax for 2025 Publication 505 (2025)





Worksheet 2-7. 2025 Annualized Estimated Tax Worksheet Keep for Your Records


Note. For instructions, see Annualized Income Installment Method, earlier.



Before you begin: Complete the 2025 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) (b) (c) (d)

1/1/25–3/31/25 1/1/25–5/31/25 1/1/25–8/31/25 1/1/25–

12/31/25

 1. Adjusted gross income (AGI) for each period (see instructions). Complete

Section B first . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

 2. Annualization amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 4 2.4 1.5 1  3. Annualized income. Multiply line 1 by line 2 . . . . . . . . . . . . . . . . . . . . . . . 3.  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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

 5. Annualization amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 4 2.4 1.5 1  6. Multiply line 4 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.  7. Standard deduction from Worksheet 2-4 (see instructions) . . . . . . . . . . . . 7.  8. Enter the larger of line 6 or line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.  9. Deduction for qualified business income . . . . . . . . . . . . . . . . . . . . . . . . . 9. 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 2025 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.



Publication 505 (2025) Chapter 2 Estimated Tax for 2025 37





Worksheet 2-7. 2025 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) (b) (c) (d) 1/1/25–3/31/25 1/1/25–5/31/25 1/1/25–8/31/25 1/1/25–12/31/25

33. Net earnings from self-employment for the period . . . . . . . . . . 33. 34. Prorated social security tax limit . . . . . . . . . . . . . . . . . . . . . . . 34. $44,025 $73,375 $117,400 $176,100 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.



38 Chapter 2 Estimated Tax for 2025 Publication 505 (2025) Worksheet 2-8. 2025 Annualized Estimated Tax Worksheet—Line 10





Qualified Dividends and Capital Gain Tax Worksheet 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 2025 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 1 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Enter your annualized net capital gain expected for 20251 . . . . . . 3. 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Enter your annualized 28% rate gain or loss expected for 2 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Enter your annualized unrecaptured section 1250 gain expected for

2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Enter the smaller of line 3 or line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. Subtract line 8 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Subtract line 9 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Enter the smaller of line 1 or $96,700 ($48,350 if single or married

filing separately, or $64,750 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:

• $197,300 if single or married filing separately;

• $197,300 if head of household; or

• $394,600 if married filing jointly or qualifying surviving

spouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b.

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

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:

• $533,400 if single,

• $300,000 if married filing separately,

• $600,050 if married filing jointly or qualifying surviving spouse, or • $566,700 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.



Publication 505 (2025) Chapter 2 Estimated Tax for 2025 39 Worksheet 2-8. 2025 Annualized Estimated Tax Worksheet—Line 10





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 2025 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 2025 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 2025 Annualized Estimated Tax Worksheet (or line 4 of Worksheet 2-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.

1 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.

2 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.



Worksheet 2-9. 2025 Annualized Estimated Tax Worksheet—Line 10

Foreign Earned Income Tax Worksheet Keep for Your Records



Before you begin: If line 11 of Worksheet 2-7 (2025 Annualized Estimated Tax Worksheet) is zero for the period, don’t complete this

worksheet.



1. Enter the amount from line 11 of your 2025 Annualized Estimated Tax Worksheet for the period . . . . . . 1. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Tax on the amount on line 3. Use the 2025 Tax Rate Schedules or Worksheet 2-8,** as

appropriate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Tax on the amount on line 2. Use the 2025 Tax Rate Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Subtract line 5 from line 4. Enter the result here and on line 12 of your 2025 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.



40 Publication 505 (2025)





• The Tax Withholding Estimator (IRS.gov/ services. At the IRS, privacy and security are


How To Get Tax Help W4App) makes it easier for you to estimate our highest priority. We use these tools to share

the federal income tax you want your em- public information with you. Don’t post your so-

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If you have questions about a tax issue; need This is tax withholding. See how your with- information on social media sites. Always pro-help preparing your tax return; or want to down- holding affects your refund, take-home pay, tect your identity when using any social net-



ments (Forms W-2, W-2G, 1099-R, 1099-MISC, The Sales Tax Deduction Calculator • Youtube.com/irsvideosASL. ( IRS.gov/SalesTax ) figures the amount you 1099-NEC, etc.); unemployment compensation can claim if you itemize deductions on statements (by mail or in a digital format) or Watching IRS videos. The IRS Video portal Schedule A (Form 1040). other government payment statements (Form ( IRSVideos.gov ) contains video and audio pre-1099-G); and interest, dividend, and retirement Getting answers to your tax ques-sentations for individuals, small businesses, statements from banks and investment firms tions. On IRS.gov, you can get and tax professionals. (Forms 1099), you have several options to up-to-date information on current choose from to prepare and file your tax return. events and changes in tax law. Online tax information in other languages. You can prepare the tax return yourself, see if You can find information on IRS.gov/ • IRS.gov/Help : A variety of tools to help you you qualify for free tax preparation, or hire a tax MyLanguage if English isn’t your native lan-get answers to some of the most common professional to prepare your return. Preparing and filing your tax return. After Look-up short, informative videos on various tax-related ( IRS.gov/HomeBuyer ) tool pro- topics in English, Spanish, and ASL. vides information on your repayments and • Youtube.com/irsvideos . account balance. receiving all your wage and earnings state- • Youtube.com/irsvideosmultilingua . • to IRS.gov to find resources that can help you The following IRS YouTube channels provide • The First-Time Homebuyer Credit Account right away. load free publications, forms, or instructions, go or tax due. working site.



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Publication 505 (2025) 41

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your federal tax account. vents someone else from filing a tax return turn. Go to IRS.gov/WMAR to track the status

• View the amount you owe and a break- with your SSN. To learn more, go to of Form 1040-X amended returns.



Get a transcript of your return. With an on-• down by tax year. IRS.gov/IPPIN. It can take up to 3 weeks from the date See payment plan details or apply for a ! new payment plan. you filed your amended return for it to Ways to check on the status of your refund. • Make a payment or view 5 years of pay-CAUTION show up in our system, and processing • Go to IRS.gov/Refunds . it can take up to 16 weeks. ment history and any pending or sched-• Download the official IRS2Go app to your uled payments. mobile device to check your refund status. • Access your tax records, including key • Call the automated refund hotline at Understanding an IRS notice or letter data from your most recent tax return, and 800-829-1954. you’ve received. Go to IRS.gov/Notices to find additional information about responding to an transcripts. The IRS can’t issue refunds before • View digital copies of select notices from IRS notice or letter. mid-February for returns that claimed the IRS. ! • Approve or reject authorization requests CAUTION the EIC or the additional child tax credit Responding to an IRS notice or letter. You (ACTC). This applies to the entire refund, not can now upload responses to all notices and from tax professionals. just the portion associated with these credits. letters using the Document Upload Tool. For no-• View your address on file or manage your tices that require additional action, taxpayers communication preferences. Making a tax payment. Payments of U.S. tax will be redirected appropriately on IRS.gov to take further action. To learn more about the tool, must be remitted to the IRS in U.S. dollars. Digital assets line account, you can access a variety of infor- are not accepted. Go to IRS.gov/ go to IRS.gov/Upload .

mation to help you during the filing season. You Payments for information on how to make a pay-can get a transcript, review your most recently ment using any of the following options. Note. You can use Schedule LEP (Form

filed tax return, and get your adjusted gross in- • IRS Direct Pay: Pay your individual tax bill 1040), Request for Change in Language Prefer-come. Create or access your online account at or estimated tax payment directly from your ence, to state a preference to receive notices,

IRS.gov/Account letters, or other written communications from . checking or savings account at no cost to

you. the IRS in an alternative language. You may not

Tax Pro Account. This tool lets your tax pro- • Debit Card, Credit Card, or Digital Wallet: immediately receive written communications in fessional submit an authorization request to ac- Choose an approved payment processor the requested language. The IRS’s commitment cess your individual taxpayer IRS online ac- to LEP taxpayers is part of a multi-year timeline to pay online or by phone.

count. For more information, go to IRS.gov/ • Electronic Funds Withdrawal: Schedule a that began providing translations in 2023. You

TaxProAccount. payment when filing your federal taxes us- will continue to receive communications, includ-

ing tax return preparation software or ing notices and letters, in English until they are

Using direct deposit. The safest and easiest translated to your preferred language. through a tax professional.

way to receive a tax refund is to e-file and • Electronic Federal Tax Payment System: choose direct deposit, which securely and elec- Contacting your local TAC. Keep in mind, Best option for businesses. Enrollment is

tronically transfers your refund directly into your many questions can be answered on IRS.gov required.

financial account. Direct deposit also avoids the without visiting a TAC. Go to IRS.gov/LetUsHelp • Check or Money Order : Mail your payment possibility that your check could be lost, stolen, for the topics people ask about most. If you still to the address listed on the notice or in-

destroyed, or returned undeliverable to the IRS. need help, TACs provide tax help when a tax is- structions.

Eight in 10 taxpayers use direct deposit to re- sue can’t be handled online or by phone. All • Cash : You may be able to pay your taxes

ceive their refunds. If you don’t have a bank ac- TACs now provide service by appointment, so with cash at a participating retail store.

count, go to IRS.gov/DirectDeposit for more in- you’ll know in advance that you can get the • Same-Day Wire : You may be able to do

formation on where to find a bank or credit service you need without long wait times. Be- same-day wire from your financial institu-

union that can open an account online. fore you visit, go to IRS.gov/TACLocator to find tion. Contact your financial institution for

availability, cost, and time frames. the nearest TAC and to check hours, available

Reporting and resolving your tax-related services, and appointment options. Or, on the

identity theft issues. Note. The IRS uses the latest encryption IRS2Go app, under the Stay Connected tab,

• Tax-related identity theft happens when choose the Contact Us option and click on “Lo- technology to ensure that the electronic pay-

someone steals your personal information ments you make online, by phone, or from a cal Offices.” to commit tax fraud. Your taxes can be af- mobile device using the IRS2Go app are safe fected if your SSN is used to file a fraudu- and secure. Paying electronically is quick, easy, The Taxpayer Advocate



• der. The IRS doesn’t initiate contact with tax- Help You payers by email, text messages (including What if I can’t pay now? Go to lent return or to claim a refund or credit. and faster than mailing in a check or money or- Service (TAS) Is Here To shortened links), telephone calls, or social IRS.gov/ What Is TAS? Payments for more information about your op-media channels to request or verify per-tions. sonal or financial information. This includes TAS is an independent organization within the • Apply for an online payment agreement requests for personal identification num-IRS that helps taxpayers and protects taxpayer ( IRS.gov/OPA ) to meet your tax obligation bers (PINs), passwords, or similar informa-rights. TAS strives to ensure that every taxpayer in monthly installments if you can’t pay



• tion for credit cards, banks, or other finan- is treated fairly and that you know and under- your taxes in full today. Once you complete cial accounts. stand your rights under the Taxpayer Bill of the online process, you will receive imme- Go to IRS.gov/IdentityTheft , the IRS Iden- Rights . diate notification of whether your agree- tity Theft Central webpage, for information ment has been approved. on identity theft and data security protec- • Use the Offer in Compromise Pre-Qualifier tion for taxpayers, tax professionals, and to see if you can settle your tax debt for businesses. If your SSN has been lost or



42 Publication 505 (2025) How Can You Learn About Your How Can You Reach TAS? Low Income Taxpayer Clinics

Taxpayer Rights? (LITCs) TAS has offices in every state, the District of



The Taxpayer Bill of Rights describes 10 basic Columbia, and Puerto Rico. To find your advo- LITCs are independent from the IRS and TAS. rights that all taxpayers have when dealing with cate’s number: LITCs represent individuals whose income is the IRS. Go to TaxpayerAdvocate.IRS.gov to • Go to TaxpayerAdvocate.IRS.gov/Contact-below a certain level and who need to resolve help you understand what these rights mean to Us ; tax problems with the IRS. LITCs can represent you and how they apply. These are your rights. • Download Pub. 1546, The Taxpayer Advo-taxpayers in audits, appeals, and tax collection Know them. Use them. cate Service Is Your Voice at the IRS, avail-disputes before the IRS and in court. In addi-able at IRS.gov/pub/irs-pdf/p1546.pdf ; tion, LITCs can provide information about tax-• Call the IRS toll free at 800-TAX-FORM What Can TAS Do for You? payer rights and responsibilities in different lan-(800-829-3676) to order a copy of Pub. guages for individuals who speak English as a 1546; TAS can help you resolve problems that you second language. Services are offered for free • Check your local directory; or can’t resolve with the IRS. And their service is or a small fee. For more information or to find an • Call TAS toll free at 877-777-4778. free. If you qualify for their assistance, you will LITC near you, go to the LITC page at be assigned to one advocate who will work with TaxpayerAdvocate.IRS.gov/LITC or see IRS you throughout the process and will do every-How Else Does TAS Help Pub. 4134, Low Income Taxpayer Clinic List , at thing possible to resolve your issue. TAS can Taxpayers? IRS.gov/pub/irs-pdf/p4134.pdf . help you if: • Your problem is causing financial difficulty TAS works to resolve large-scale problems that for you, your family, or your business; affect many taxpayers. If you know of one of • You face (or your business is facing) an im-these broad issues, report it to TAS at IRS.gov/ mediate threat of adverse action; or SAMS . Be sure to not include any personal tax-• You’ve tried repeatedly to contact the IRS payer information. but no one has responded, or the IRS

hasn’t responded by the date promised.



Publication 505 (2025) 43

To help us develop a more useful index, please let us know if you have ideas for index entries.



Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.



Tips 8



Additional Medicare Tax Estates: 22 , 26 Farmers: Married taxpayers: Estimated tax 21 Address change A Withholding rules 6 F M

Adjustments to income: Estimated tax: 28 Estimated tax 23 Estimated tax 20



Annualized income installment worksheets Crediting of overpayment Figures: NIIT 22, 26 27 37 , 38 Tables and figures (See Tables Noncitizens: Estates and trusts 21 Annualized - Capital gains 39 and figures) Estimated tax 21 Expected AGI 21 Annualized - Foreign Earned Fiscal years: Nonqualified deferred Expected taxable income 22 Income 40 Estimated tax 23 compensation 9 Expected taxes and credits 22 Annualized - Qualified Farming and fishing 24 Nonresident aliens: dividends 39 Farming and fishing 21 , 23 , 24 Fishers: Estimated tax 21 , 27 Fiscal year taxpayers 23 Gross income 21 Individual taxpayer identification method 26 Higher income individuals 23 Joint returns 21 numbers (ITINs) 11 Annuities 9 How to figure 21 , 24 Required annual payment 23 Assistance (See Tax help) How to pay 27 Fishing: O Instructions for Worksheet 2-7, Estimated tax 20 , 23 , 24 annualized estimated tax 26 B Overpayment: Fiscal years 24 Itemized deductions 22 Crediting to estimated tax 27 Backup withholding 11 Form 1040-ES 19 , 27 Married taxpayers Alaska Native Corporations Expected AGI 24 21 Farming: Annualized income installment 11 Estimated tax 20, 24 N method 26 Aliens: Fiscal years 24 Change in amount 24 Net investment income tax 22, Nonresident aliens 21 Required annual payment 23 26 Change of address 28 Annualized estimated tax AGI: 21 Joint returns 21 Missing children, photographs Aliens 21 , 27 Withholding for farmworkers 3 of 2 Amended tax Estimated tax Adjustments to income 21 Gross income 21 Military retirement pay 3, 9



Change of address 26 Regular installment method 24 Withholding Certificate 3 Penalties: 28 Required annual payment 22 Form W-4P 9 Backup withholding 11 Commodity credit corporation Self-employment income 26 Form W-4S 9 Willfully false or fraudulent Form loans 10 Sick pay 9 W-4 8 Form W-4V 10 Compensation 2 Standard deduction 22 , 26 Withholding allowances 8 Form W-7 11 Independent contractors, backup Total estimated tax payments 23 Pensions 9 withholding 11 Form W-9 11 Types of taxes included 19 New job 3 Fraud: Supplemental wages 8 Underpayment penalty 24 Rollovers 10 Tips 8 Form W-4 statements 8 When to pay 23 Wages and salaries withholding Wages and salaries 2 Fringe benefits 8 , 9 When to start payments 23 rules compared 9 Crediting of overpayment 27 Who does not have to pay 19 Publications (See Tax help) Credits: G Who must pay 20 Expected taxes and credits 22 Estimated tax worksheets 29 , 31 , Gross income 21 R Criminal penalties: 32 Capital gains and losses: 11 Part-year method of Nonresident aliens 27 withholding 6 Form W-2G 10 Annualized estimated tax 26 Overpayment 27 Patronage dividends: Form W-4 worksheets: Estimated tax on net capital Payment vouchers 28 Backup withholding 11 Tax withholding estimator 6 gain 22 Payments not required 27 Payment vouchers 28 Form W-4, Employee's Allowance Qualified dividends C 22, 26 P Form 1041-ES 21 No standard deduction 22 Form 1099 series Net capital gain Form 1040-ES (NR) 21 20



Crop insurance payments W-4 Fishing 21 8 worksheet 37 Choosing to withhold 10 Willfully false or fraudulent Form Railroad retirement benefits: 2019 annualized estimated tax Farming 21

Cumulative wage method of 10 Amended estimated tax, Regular installment method, H illustrated (Worksheet estimated tax 24 withholding 6 2-10) 25 Higher income individuals: Reimbursements 8

Capital gains 35 Required annual payment 23 Excess 8

D Capital gains, tax on 22 Household workers 3 Reporting:



E Withholding 32 (See also Retirement plans) Pension plans 9 3 Standard deduction 34 Interest income: Pensions 9 Exemption from withholding 6 Backup withholding 11 Rollovers 10 Claiming 7 Underreported 11 Rollovers 10 Eligible rollover distributions 10 Good for only one year 8 Itemized deductions: Royalties: Employee business expenses: Itemized deductions 7 Estimated tax, expected taxable Backup withholding 11 Accountable plans 8 Students 6 income 22 Nonaccountable plans 8 Expenses: Exemption from withholding 7 S Reimbursements 8 Allowances 8 Salaries 2 Employer Identification Numbers J Saturday, Sunday, holiday Domestic help Underreported 35 Tips to employer 8 11 Individual retirement Railroad retirement benefits 32 Required annual payment 22, 23 3 arrangements (IRAs) 9 Self-employment tax 33 (See also Pensions) Retirement plans Definition 3 Social security benefits Dividends: Foreign earned income 36 Fringe benefits 9 Backup withholding Form 1040-ES 31 I Gambling winnings 10 11 Qualified dividends

Employers: Joint returns: rule 23 (EINs) 11

Repaying withheld tax Farmers and fishers 21 Self-employment tax 26 6 Sick pay 9

44 Publication 505 (2025)

Social security benefits: Fringe benefits 8 Annualized - Qualified dividends



Social security taxes: Annualized estimated tax Getting right amount of tax Underpayment penalty: (Worksheet 2-7) 37 , 38 Taxpayer identification numbers Choosing to withhold 10 U Gambling winnings 10 (Worksheet 2-8) 39

(TINs) Amended estimated tax 24 withheld 5, 6



T 8 Pensions 9 1-2) 13 Wages and salaries 2 Periodic payments 9 Estimated tax worksheets Withholding Railroad retirement benefits 10 (Worksheet 2-1) 31 Amount of tax withheld, Form Repaying withheld tax 6 Foreign earned income Tables and figures: W-4 3 Rollovers 10 (Worksheet 2-6) 36 Do you have to pay estimated Annuities 9 Salaries and wages 2 Qualified dividends: tax? (Figure 2-A) 20 Backup withholding 11 Sick pay 9 Worksheet 2-5 35 Due dates, estimated tax Changing 3 (Table 2-1) 24 Social security (FICA) tax 2 , 10 Railroad retirement benefits Checking amount of Standard deduction 10 22 , 26 Part-year method 6 Dependents (age 65 or older or blind) exemption from Students 6 Penalties 8 W withholding (Worksheet Supplemental wages Withholding obligation Unemployment 2 Nonperiodic payments 9 Worksheet 2-5 35 compensation 11 Household workers 3 Capital gains tax worksheet:



Tax help Exemption from withholding on 4 Tips 8 (Worksheet 2-2) 32 Choosing not to withhold 10 Form W-4 (Figure 1-A) 7 Types of income 2 Self-employment tax and Cumulative wage method 6 deduction (Worksheet Worksheets, where to find 29 Unemployment 2-3) 33 Domestic help 3 compensation 10 41 Social security benefits Employers' rules 6 Tax Rate Schedules 30 Worksheets (blank): (Worksheet 2-2) 32 Estimated tax 23 Tax withholding estimator 6 Annualized - Capital gains Standard deduction (Worksheet Exemption from 6 (Worksheet 2-8) 39 Taxpayer identification numbers 2-4) 34 (TINs) 11 Farmworkers 3 Annualized - Foreign Earned Income (Worksheet 2-9) 40 Tips 8 Form W-2G 10 Form W-4 Total income 21 3



Publication 505 (2025) 45





