IRS U.S. Estimated Tax for Nonresident Alien Individuals
This is to figure and pay your estimated tax. Estimated tax is the method used to pay tax on income that is not subject to withholding. The form provided here is a 2001 Form 1040-ES (NR) and is simply a sample of what you will need to complete. Please be aware the tax returns differ every year.
U.S. Estimated Tax for Nonresident Alien Individuals
OMB No. 1545-0087
Form 1040-ES (NR)
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Purpose of This Package
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If you are a nonresident alien, use this package to figure and pay your estimated tax. Estimated tax is the method used to pay tax on income that is not subject to withholding.
Do not use the payment vouchers in this package to notify the IRS of a change of address. Instead, use Form 8822, Change of Address.
You can order Form 8822 and other forms and publications by writing to the Eastern Area Distribution Center, P.O. Box 85074, Richmond, VA 23261-5074, USA. Or, if you have a computer and modem, you can access the IRS Web Site 24 hours a day, 7 days a week, at www.irs.gov. For file transfer protocol, connect to ftp.irs.gov.
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Who Must Make Estimated Tax Payments
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Generally, you must make estimated tax payments if you expect to owe at least $1,000 in tax for 2001 (after subtracting your withholding and credits) and you expect your withholding and credits to be less than the smaller of:
1. 90% of the tax on your 2001 tax return or
2. The tax shown on your 2000 tax return (110% of that amount if you are not a farmer or fisherman and the adjusted gross income shown on that return is more than $150,000 or, if married filing separately for 2001, more than $75,000).
However, if you did not file a 2000 tax return or that return did not cover all 12 months, item 2 above does not apply.
For this purpose, include household employment taxes (before subtracting advance EIC payments made to your employee(s)) when figuring the tax shown on your tax return if:
1. You will have Federal income tax withheld from wages, pensions, annuities, or other income effectively connected with a U.S. trade or business or
2. You would be required to make estimated tax payments to avoid a penalty even if you did not include household employment taxes when figuring your estimated tax.
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Changes Effective for 2001
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Caution: Legislation enacted after December 8, 2000, may affect the computation of your 2001 tax. To find out if such legislation was enacted and for details on any changes, visit the IRS Web Site at www.irs.gov.
Use your 2000 tax return as a guide in figuring your 2001 estimated tax, but be sure to consider the changes noted in this section. For more information on changes that may affect your 2001 estimated tax, see Pub. 553, Highlights of 2000 Tax Changes.
Estimated tax safe harbor for some taxpayers. For 2001, the estimated tax safe harbor that is based on the tax shown on your 2000 tax return is 110% of that amount if you are not a farmer or fisherman and the adjusted gross income shown on that return is more than $150,000 or, if married filing separately for 2001, more than $75,000.
Student loan interest deduction. You may be able to deduct up to $2,500 of interest you pay during 2001 on a qualified student loan.
Standard mileage rate. The rate for business use of a vehicle has increased to 341⁄2 cents a mile. The rate for use of your car to get medical care or for figuring deductible moving expenses has increased to 12 cents a mile.
IRA deduction allowed to more people covered by retirement plans. You may be able to take an IRA deduction for 2001 if you are covered by a retirement plan and your 2001 modified AGI is less than $43,000 if single or married filing separately and you lived apart from your spouse for all of 2001; or $63,000 if qualifying widow(er).
Section 179 expense deduction. Generally, the maximum deduction to expense certain property under section 179 for 2001 is $24,000.
Lower capital gains tax rate. For 2001, gains on assets held more than 5 years are taxed at 8% to the extent the gains would have otherwise been taxed at 10%.
Election to recognize gain on certain assets held on January 1, 2001. You may elect to treat certain assets held on January 1, 2001, as having been sold and then reacquired on the same date. The purpose of the election is to make future gain on the asset eligible for a capital gains tax rate of 18% instead of 20% if the asset is held more than 5 years. Only gains that would otherwise be taxed at 20% on assets acquired after December 31, 2000, or that you are electing to treat as having been reacquired after that date, are eligible for the 18% rate. For details on how to make the election, see Pub. 553.
Research credit. A special rule applies when figuring your research credit for estimated tax purposes. The credit attributable to the second suspension period (defined below) cannot be used to reduce any estimated tax payments due before October 1, 2001. Instead, it is allowed as if it were an installment payment made on October 1, 2001.
For the 2001 tax year, the second suspension period begins January 1 and ends September 30, 2001. The credit attributable to the suspension period generally is figured by multiplying the total research credit for the tax year by the ratio of (a) the number of months in the suspension period that are included in the tax year to (b) the number of months in the tax year. For the 2001 tax year, 75% of the research credit generally is attributable to the second suspension period. See Form 6765, Credit for Increasing Research Activities, for more details.
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To Figure Your Estimated Tax, Use:
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● The 2001 Estimated Tax Worksheet on page 3.
● The instructions below for the worksheet on page 3.
● The 2001 Tax Rate Schedules on page 4 for your filing status.*
● Your 2000 tax return and instructions as a guide to figuring your income, deductions, and credits (but be sure to consider the changes noted earlier).
*If you are married, you must generally use Tax Rate Schedule Y. For exceptions, see Pub. 519, U.S. Tax Guide for Aliens.
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Instructions for Worksheet on Page 3
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Line 8. Include on this line the additional taxes from Form 4972, Tax on Lump-Sum Distributions, or Form 8814, Parents' Election To Report Child's Interest and Dividends.
Line 9. Credits. See the 2000 Form 1040NR, lines 42 through 46, and the related instructions. However, be sure to consider the special rule for the research credit noted earlier.
Line 11. Other Taxes. Except as noted below, enter any other taxes, such as the taxes on accumulation distribution of trusts, distributions from an MSA, and early distributions from (a) an IRA or other qualified retirement plan, (b) an annuity, or (c) a modified endowment contract entered into after June 20, 1988.
Include household employment taxes (before subtracting advance EIC payments made to your employee(s)) on line 11 if:
● You will have Federal income tax withheld from wages, pensions, annuities, or other income effectively connected with a U.S. trade or business or
● You would be required to make estimated tax payments (to avoid a penalty) even if you did not include household employment taxes when figuring your estimated tax.
Do not include tax on recapture of a Federal mortgage subsidy, social security and Medicare tax on unreported tip income, or uncollected employee social security and Medicare or RRTA tax on tips or group-term life insurance. These taxes are not required to be paid until the due date of your income tax return (not including extensions).
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Payment Due Dates
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If you have wages subject to U.S. income tax withholding, you may pay all of your estimated tax by April 16, 2001, or in four equal amounts by the dates shown below.
1st payment April 16, 2001
2nd payment June 15, 2001
3rd payment Sept. 17, 2001
4th payment Jan. 15, 2002*
If you do not have wages subject to U.S. income tax withholding, you may pay all of your estimated tax by June 15, 2001, or you may pay it in three installments. If you pay the tax in installments, 1⁄2 is due by June 15, 2001, 1⁄4 is due by September 17, 2001, and 1⁄4 by January 15, 2002.*
*You do not have to make the payment due January 15, 2002, if you file your 2001 Form 1040NR or 1040NR-EZ by January 31, 2002, and pay the entire balance due with your return.
We do not send notices reminding you to make your estimated tax payments. You must make each payment by the due date.
Even if you are not required to make an estimated tax payment by the first payment due date, you may meet the requirements to make estimated tax payments later. In this case, you should figure the amount of your estimated tax payments by using the annualized income installment method, explained in Pub. 505. Although your payment due dates will be the same, the payment amounts will vary based on your income, deductions, additional taxes, and credits for the months ending before each payment due date. As a result, this method may allow you to skip or lower the amount due for one or more payments. If you use the annualized income installment method, be sure to file Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, with your 2001 tax return, even if no penalty is owed.
Fiscal year taxpayers. Due dates for fiscal year taxpayers are the 15th day of the 4th (if applicable), 6th, and 9th months of your current fiscal year, and the 1st month of the following fiscal year. If any date falls on a Saturday, Sunday, or legal holiday, use the next business day.
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Name Change
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If you changed your name and made estimated tax payments using your old name, attach a statement to the front of your 2001 income tax return. List all of the estimated tax payments you made for 2001, the address where you made the payments, and the name and identifying number under which you made the payments.
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Amending Estimated Tax Payments
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To change or amend your estimated tax payments, refigure your total estimated tax payments due (line 18 of the worksheet on page 3). Then, use the worksheets under Amended estimated tax in Pub. 505 to figure the payment due for each remaining payment period. If an estimated tax payment for a previous period is less than 1⁄4 of your amended estimated tax, you may owe a penalty when you file your return.
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When a Penalty Is Applied
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In some cases, you may owe a penalty when you file your return. The penalty is imposed on each underpayment for the number of days it remains unpaid. A penalty may be applied if you did not pay enough estimated tax for the year, or you did not make the payments on time or in the required amount. A penalty may apply even if you have an overpayment on your tax return. The penalty may be waived under certain conditions. See Pub. 505 for details.
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Record of Estimated Tax Payments
(see above for payment due dates)
Payment number 1
(a) Date ______________
(b) Check or money order number __________________
(c) Amount Paid _______________
(d) 2000 overpayment credit applied _______________
(e) Total amount paid and credited (add (c) and (d)) ___________________
Payment number 2
(a) Date ______________
(b) Check or money order number __________________
(c) Amount Paid _______________
(d) 2000 overpayment credit applied _______________
(e) Total amount paid and credited (add (c) and (d)) ___________________
Payment number 3
(a) Date ______________
(b) Check or money order number __________________
(c) Amount Paid _______________
(d) 2000 overpayment credit applied _______________
(e) Total amount paid and credited (add (c) and (d)) ___________________
Total
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2001 Estimated Tax Worksheet--For Nonresident Alien Individuals (keep for your records)
1 Total expected 2001 income effectively connected with a U.S. trade or business. Caution: If this amount is over $132,950 ($66,475 if married filing separately), your itemized deductions and your deduction for exemptions may be limited. See Pub. 505 for details 1 ______________
2 Enter itemized deductions (see the 2000 Form 1040NR or 1040NR-EZ instructions) 2 ______________
3 Subtract line 2 from line 1 3 ________________
4 Exemptions. Multiply $2,900 by the number of exemptions claimed. (Residents of Canada, India, Japan, Republic of Korea, Mexico, and U.S. nationals, see the 2000 Form 1040NR or 1040NR-EZ instructions.) 4 _______________
5 Subtract line 4 from line 3 5 ________________
6 Tax. Figure your tax on the amount on line 5 by using the 2001 Tax Rate Schedules on page 4. Caution: If you have a net capital gain, see Pub. 505 to figure the tax 6 ________________
7 Alternative minimum tax from Form 6251 7 ___________________
8 Add lines 6 and 7. Also include any tax from Forms 4972 and 8814 (see instructions) 8 _______________
9 Credits (see instructions). Do not include any income tax withholding on this line 9 ______________
10 Subtract line 9 from line 8. If zero or less, enter -0- 10 ___________________
11 Other taxes (see instructions) ___________________
12 Estimated 2001 tax on income effectively connected with a U.S. trade or business (add lines 10 and 11) 12 ____________________
13 Total expected 2001 income not effectively connected with a U.S. trade or business 13 _________________
14 Multiply line 13 by 30% or lower treaty rate (see the 2000 Form 1040NR instructions) 14 __________________
15a Add lines 12 and 14 15a _________________
b Credit for Federal tax paid on fuels (from Form 4136) and additional child tax credit 15b _____________
c Total 2001 Estimated Tax. Subtract line 15b from line 15a 15c __________________
16a Multiply line 15c by 90% (662⁄3% for farmers and fishermen) 16a _________________
b Enter the tax shown on your 2000 tax return (110% of that amount if you are not a farmer or fisherman and the adjusted gross income shown on line 34 of that return is more than $150,000 ($75,000 if married filing separately for 2001)) 16b ___________________
c Required Annual Payment To Avoid a Penalty. Enter the smaller of line 16a or 16b. 16c __________________
Caution: If you do not prepay (through income tax withholding and estimated tax payments) at least the amount on line 16c, you may owe a penalty for not paying enough estimated tax. To avoid a penalty, make sure your estimate on line 15c 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 may pay the amount shown on line 15c. For more details, see Pub. 505.
17 Income tax withheld and estimated to be withheld during 2001 plus any amount paid with Form 1040-C 17 ____________________
18 Subtract line 17 from line 16c. (Note: If zero or less or line 15c minus line 17 is less than $1,000, stop here. You are not required to make estimated tax payments.) 18 __________________
19 ● If your first payment is due April 16, 2001, enter 1⁄4 of line 18 (minus any 2000 overpayment you are applying to this installment) here and on your payment voucher(s).
● If you do not have wages subject to U.S. income tax withholding and your first payment is due June 15, 2001, enter 1⁄2 of line 16c on your first voucher and 1⁄4 of line 16c on your second and third vouchers.
Note: If you are not required to file the voucher due April 16 (or June 15), 2001, at this time, you may have to file by a later date.
2001 1040-ES (NR)
Department of the Treasury
Payment Voucher 4
Internal Revenue Service 4 OMB No. 1545-0087
File only if you are making a payment of estimated tax. Return this voucher with your check or money order payable to the "United States Treasury." Write your identifying number and "2001 Form 1040-ES (NR)" on your check or money order. Do not send cash. Enclose, but do not staple or attach, your payment with this voucher.
Amount of estimated tax you are paying by check or money order. $____________________
Your identifying number (SSN or ITIN) (employer identification number for an estate or trust) _____________________
Your first name and initial ____________________________________
Your last name _________________________________
Address ________________________________________
City _________________________________
State _____________________________
ZIP code _______________________
If a foreign address, enter city, province or state, and country. Include postal code.
For Disclosure and Paperwork Reduction Act Notices, see instructions on page 4.
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How To Complete and Use the Payment Voucher
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There is a separate payment voucher for each due date. The due date is shown in the upper right corner. Please be sure you use the voucher with the correct due date for each payment you make. To complete the voucher:
● Type or print your name, address, and social security number (SSN) in the space provided on the voucher. If you do not have, and are not eligible to obtain, an SSN, enter your IRS-issued individual taxpayer identification number (ITIN). To apply for an ITIN, get Form W-7, Application for IRS Individual Taxpayer Identification Number.
● Enter on the payment line of the voucher only the amount you are sending. When making payments of estimated tax, be sure to take into account any 2000 overpayment that you choose to credit against your 2001 tax, but do not include the overpayment amount on the payment line.
● Make your check or money order payable to the "United States Treasury." Do not send cash. To help us process your payment, enter the amount on the right side of the check like this: $ XXX.XX. Do not use dashes or lines (for example, do not enter "$ XXX-" or "$ XXX
● Enclose, but do not staple or attach, your payment with the voucher.
● Write your identifying number (SSN or ITIN) and "2001 Form 1040-ES (NR)" on your check or money order.
● Mail your payment voucher to the Internal Revenue Service, P.O. Box 8318, Philadelphia, PA 19162-8318.
● Fill in the Record of Estimated Tax Payments on page 2 for your files.
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2001 Tax Rate Schedules
Caution: Do not use these Tax Rate Schedules to figure your 2000 taxes. Use only to figure your 2001 estimated taxes.
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Schedule X--Single
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
Schedule Y--Married filing separately
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
Schedule Z--Qualifying widows and widowers
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
If line 5 is over $0 but not over $27,050 The tax is --- 15% of the amount over $0
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Disclosure and Paperwork Reduction Act Notices. The IRS Restructuring and Reform Act of 1998 requires that we tell you the conditions under which return information may be disclosed to any party outside the Internal Revenue Service. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need the information to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.
This notice applies to all papers you file with us. It also applies to any questions we need to ask you so we can complete, correct, or process your return; figure your tax; and collect tax, interest, or penalties.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as stated in Internal Revenue Code section 6103.
However, section 6103 allows or requires the Internal Revenue Service to disclose or give the information you write on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of Justice, to enforce the tax laws, both civil and criminal, and to cities, states, the District of Columbia, U. S. commonwealths or possessions, and certain foreign governments to carry out their tax laws. We may disclose your tax information to the Department of Treasury and contractors for tax administration purposes; and to other persons as necessary to obtain information that we cannot get in any other way in order to determine the amount of or to collect the tax you owe. We may disclose your tax information to the Comptroller General of the United States to permit the Comptroller General to review the Internal Revenue Service. We may also disclose your tax information to Committees of Congress; Federal, state, and local child support agencies; and to other Federal agencies for purposes of determining entitlement for benefits or the eligibility for and the repayment of loans.
Keep this notice with your records. It may help you if we ask you for other information. If you have any questions about the rules for filing and giving information, call or visit any Internal Revenue Service office.
The time needed to complete the worksheets and prepare and file the payment vouchers will vary depending on individual circumstances. The estimated average time is: Recordkeeping, 40 min.; Learning about the law, 12 min.; Preparing the worksheets and payment vouchers, 59 min.; Copying, assembling, and sending the payment voucher to the IRS, 10 min. If you have comments concerning the accuracy of these time estimates or suggestions for making this package simpler, we would be happy to hear from you. You can e-mail us your suggestions and comments through the IRS Internet Web Site (www.irs.gov/help/email.html) or write to the Tax Forms Committee, Western Area Distribution Center, Rancho Cordova, CA 95743-0001. Do not send the payment vouchers to this address. Instead, see How To Complete and Use the Payment Voucher above.
2001 1040-ES (NR)
Department of the Treasury
Payment Voucher 3
Internal Revenue Service 4 OMB No. 1545-0087
File only if you are making a payment of estimated tax. Return this voucher with your check or money order payable to the "United States Treasury." Write your identifying number and "2001 Form 1040-ES (NR)" on your check or money order. Do not send cash. Enclose, but do not staple or attach, your payment with this voucher.
Amount of estimated tax you are paying by check or money order. $____________________
Your identifying number (SSN or ITIN) (employer identification number for an estate or trust) _____________________
Your first name and initial ____________________________________
Your last name _________________________________
Address ________________________________________
City _________________________________
State _____________________________
ZIP code _______________________
If a foreign address, enter city, province or state, and country. Include postal code.
2001 1040-ES (NR)
Department of the Treasury
Payment Voucher 2
Internal Revenue Service 4 OMB No. 1545-0087
File only if you are making a payment of estimated tax. Return this voucher with your check or money order payable to the "United States Treasury." Write your identifying number and "2001 Form 1040-ES (NR)" on your check or money order. Do not send cash. Enclose, but do not staple or attach, your payment with this voucher.
Amount of estimated tax you are paying by check or money order. $____________________
Your identifying number (SSN or ITIN) (employer identification number for an estate or trust) _____________________
Your first name and initial ____________________________________
Your last name _________________________________
Address ________________________________________
City _________________________________
State _____________________________
ZIP code _______________________
If a foreign address, enter city, province or state, and country. Include postal code.
2001 1040-ES (NR)
Department of the Treasury
Payment Voucher 1
Internal Revenue Service 4 OMB No. 1545-0087
File only if you are making a payment of estimated tax. Return this voucher with your check or money order payable to the "United States Treasury." Write your identifying number and "2001 Form 1040-ES (NR)" on your check or money order. Do not send cash. Enclose, but do not staple or attach, your payment with this voucher.
Amount of estimated tax you are paying by check or money order. $____________________
Your identifying number (SSN or ITIN) (employer identification number for an estate or trust) _____________________
Your first name and initial ____________________________________
Your last name _________________________________
Address ________________________________________
City _________________________________
State _____________________________
ZIP code _______________________
If a foreign address, enter city, province or state, and country. Include postal code.