Page 40 - Tax withholding and Estimated Taxes

Page 38 of 47
Fileid: … tions/P505/2020/A/XML/Cycle03/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Worksheet 2-5. 2020 Estimated Tax Worksheet—Line 4 12:15 - 17-Jun-2020
Qualified Dividends and Capital Gain Tax Worksheet
Keep for Your Records

1. Enter the amount from the appropriate worksheet.
• Line 3 of your 2020 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
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
1
3. Enter your net capital gain expected for 2020 1 . . . . . . 3.
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Enter your 28% rate gain or loss expected for
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
2
6. Enter your unrecaptured section 1250 gain expected for
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 $80,000 ($40,000 if single
or married filing separately, or $53,600 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:
• $163,300 if single or married filing separately;
• $163,300 if head of household; or
• $326,600 if married filing jointly or qualifying
widow(er) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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:
• $441,450 if single,
• $248,300 if married filing separately,
• $496,600 if married filing jointly or qualifying widow(er), or
• $469,050 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 line 17 and line 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.

Page 38 Chapter 2 Estimated Tax for 2020