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Individual Income Tax Guide

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Line 79 – Estimated Tax Penalty: You may owe this penalty if:

For most people, the “tax shown on your return” is the amount on your 2016 Form 1040, line 63, minus the total of any amounts shown on:

Also subtract from line 63:

When figuring the amount on line 63, include household employment taxes only if line 64 is more than zero or you would owe the penalty even if you did not include those taxes.

Exception: You will not owe the penalty if your 2015 tax return was for a tax year of 12 full months and either of the following applies:

Figuring the Penalty: If the exception described above does not apply and you choose to calculate the penalty yourself, use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts (Instructions) (or 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen (Instructions), for farmers and fishermen).

Enter any penalty on line 79. Add the penalty to any tax due and enter the total on line 78.

However, if you have an overpayment on line 75, subtract the penalty from the amount you would otherwise enter on line 76a or line 77. Lines 76a, 77, and 79 must equal line 75.

If the penalty is more than the overpayment on line 75, enter -0- on lines 76a and 77. Then subtract line 75 from line 79 and enter the result on line 78.

Do not file Form 2210 with your return unless Form 2210 indicates that you are required to do so. Instead, keep it for your records.

IRS Will Calculate the Penalty for You: Because Form 2210 is complicated and difficult for many taxpayers to fill out correctly, the IRS allows you to leave line 79 blank and let the IRS calculate your penalty and send you a bill. The IRS will not charge you interest on the penalty if you pay by the date specified on the bill. If your income varied during the year, the annualized income installment method may reduce the amount of your penalty; however, you are required to file Form 2210 if you use this method. See the Instructions for Form 2210 for other situations in which you may be able to lower your penalty by filing Form 2210.

Page 2: Form 1040, line 79

Chapter 7 – Refund/Amount Due