Pennsylvania Estimated Tax Payments - For PA Personal Income Tax Brochure

Estimated Tax Payments - For PA Personal Income Tax Brochure
Brochure: Estimated Tax Payments - For PA Personal Income Tax (REV-577)
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Paid 100 percent of your tax liability based on your
total taxable income from the previous tax year,
multiplied by the tax rate for the current tax year.
I usually receive a large, lump-sum check at the
end of the year. May I make only one estimated
payment for the last quarter without having to pay
a penalty?
Yes, if that is the only income you receive not subject to
withholding by a PA employer.
Use Form REV-1630 or REV-1630F (Underpayment of
Estimated Tax by Individuals and Fiduciaries) to
determine the safe harbor amount based on the income
you received for each quarter.
REV-1630 and REV-1630F forms are available on the
department’s Web site or by calling 1-800-362-2050.
Mail the form to:
PA Department of Revenue
Bureau of Individual Taxes
PO Box 280431
Harrisburg, PA 17128-0431
Do I have to make estimated payments on
compensation I earn in another state?
You may have to make estimated payments, depending
upon whether you work in a state having a reciprocal tax
agreement with Pennsylvania (WV, VA, OH, IN, NJ, MD).
If you don’t work in one of these states, you qualify for a
resident tax credit using Schedule G-S or G-L. You do not
have to make estimated payments on compensation you
earn in a non-reciprocal state. However, if you have
income other than compensation earned in the nonreciprocal state that equals $8,000 or more, you should
make estimated payments for the tax on that income.

FOR GENERAL TAX QUESTIONS:

ESTIMATED TAX
PAYMENTS

Online Customer Service Center
www.revenue.state.pa.us
Taxpayer Service & Information Center
Personal Taxes: 717.787.8201
Business Taxes: 717.787.1064
e-Business Center: 717.783.6277
Automated 24-hour FACT & Information Line
1.888.PATAXES (728.2937)
Touch-tone service is required.
Automated Forms Ordering Service
1.800.362.2050
Services for Taxpayers with Special Hearing
and/or Speaking Needs (TTY)
1.800.447.3020
Call or visit the Revenue district office nearest
you, listed in the government pages of your
local phone directory.

If you work in one of the above-named states and your
employer is withholding PA personal income tax, you do
not have to make estimated payments. However, if your
employer does not withhold PA income tax, you should
make estimated payments. Because you cannot claim a
resident tax credit for compensation you earn in a
reciprocal state, you will need to file a nonresident tax
return with the reciprocal state, claim zero taxable
income and request a refund.

FOR PERSONAL INCOME TAX

www.revenue.state.pa.us

REV-577 (01-14)

Who has to make estimated tax payments?
Any individual who expects to receive more than $8,000
of Pennsylvania-taxable income not subject to
withholding by a PA employer must estimate and pay
personal income tax quarterly. Tax due dates for
individuals are April 15, June 15, Sept. 15 and Jan. 15, or
the first following business day if any deadline falls on a
weekend or holiday.
Any estate or trust that expects to realize more than
$8,000 of Pennsylvania-taxable income that it does not
distribute to beneficiaries must make a declaration of
estimated tax and installment payments. Estates and
trusts created by decedents to receive the residue of the
decedent's estate are only required to make estimated
payments beginning with taxable years ending two or
more years after a decedent's death.
If the estate or trust operates on a fiscal year basis, the
due dates are the 15th day of the fourth, sixth and ninth
months of the fiscal year and 15th day of the first month
following the close of the fiscal year. Estates and trusts on
a calendar year report on the same due date as
individuals.

How do I estimate what I will owe?
Estimate income not subject to withholding by a
Pennsylvania employer that you expect to earn, receive
and/or realize for the entire year. Allow for increases you
know will occur, such as the sale of stock or property.
Multiply your estimated income by 3.07 percent (0.0307),
then divide the result by four. This amount is your
estimated quarterly payment.

May I make one payment?
You may file a declaration for the current tax year and pay
the entire estimated tax by April 15 of the current tax
year. If you determine you will owe estimated tax during
the year, you can calculate your tax liability and pay the
entire amount on the next quarterly due date.

How do I file estimated payments?
You may file your estimated payments electronically and
have them withdrawn from a checking or savings
account, or you may pay by credit or debit card. For more
information or to pay your estimated payments using an
electronic method, visit the department’s e-Services
Center at www.revenue.state.pa.us or call
1-800-2PAYTAX (272-9829).
To file estimated payments by mail, use Form PA-40ES for
individuals and Form PA-40ES (F/C) for fiduciaries.

My income consists of Social Security, a pension
and some interest income. Must I file and pay
estimated tax?
If your interest income is $8,000 or more, you are
required to file and pay estimated tax.

If I will receive 100 percent Tax Forgiveness,
am I required to make estimated payments?
No.
I did not have to make estimated tax payments last
year because my income not subject to withholding
was less than $8,000. However, this year my
income not subject to withholding is greater than
$8,000 because I sold stock. Am I required to make
estimated tax payments?
Yes. You are required to make estimated tax payments
beginning in the period in which it is known that your
income subject to withholding exceeds $8,000. You must
make an estimated installment payment at the end of the
period you realize your annual income not subject to
withholding will be greater than $8,000. The payment for
the first period should include a make-up payment for
previous periods that payments were not made. Calculate
the estimated tax due in this scenario by taking your total
estimated tax, divide by four and multiply by the number
of periods the payment was not made, plus one for the
current period.
For example, let’s say you are single and were not
required to make estimated tax payments in the previous
year because your income not subject to withholding was
$3,000. In the current year, you sold stock for a gain of
$6,000 in August and expect to have interest and
dividend income totaling $3,500. Your income not subject
to withholding is expected to be about $9,500. Since you
sold the stock in August, you must make an estimated tax
payments on September 15. Your estimated tax payment
due on September 15 is $219 ($9,500 X 3.07% = $292;
$292/4 = $73; $73 X 3 = $219). You must also make an
estimated tax payment of $73 for the January payment
period.
You should also complete the Special Exception
Information section of REV-1630 or REV-1630F,
(Underpayment of Estimated Tax by Individuals and
Fiduciaries) as well as the Exception 2 area, to show when
the income was earned to qualify for an exception to the
estimated underpayment penalty.

www.revenue.state.pa.us

I went into business in April. Am I still required
to make four estimated payments?
No. If you determine you must make estimated payments
after March 31 of a taxable year, calculate your tax and
divide by the remaining due dates. In this example,
there are three — June 15, Sept. 15 and Jan. 15. Divide
your estimated tax by three and pay by the due dates.

One of my estimated payments was not credited
to my account. What should I do?
Mail a clear photocopy of both sides of your canceled
check to the department along with your Social Security
number and an explanation. Send your information to:
PA Department of Revenue
Bureau of Individual Taxes
PO Box 280510
Harrisburg, PA 17128-0510

My estimated payment intended for the PA
Department of Revenue was sent to the
Internal Revenue Service (IRS) in error. What
should I do?
Make a new payment to the department and request a
refund from the IRS.

My estimated payment intended for the IRS was
sent to the PA Department of Revenue in error.
What should I do?
Submit a signed request for a refund to the nearest
Revenue district office, or mail your request to:
PA Department of Revenue
Bureau of Individual Taxes
PO Box 280510
Harrisburg, PA 17128-0510
You must include with your request a photocopy of both
sides of your canceled check, along with your Social
Security number.
You may request a full refund or request only the
difference between the federal and PA estimated payment
be refunded. You may alternately claim the amount when
filing your tax return.

Is there a safe harbor amount for estimated
payments?
Yes. The safe harbor is the minimum amount of payments
and credits paid toward your tax liability that protects you
from a penalty for underpayment of your estimated
taxes. Generally, you will not be charged an estimated
underpayment penalty if you made payments in equal
installments for each due date and you either:
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Paid 90 percent of the liability for this tax year; or