Line 65 and 75 on 1040 for 2006?

Question

This is my first time filing so I don't have to fill out line 65, right?

What should I put, if anything, in line 75?
How do you figure out what to put in line 75?

What is the point of this estimated tax business?

I'm not getting a refund. The amount I owe is less than $100. I suspect my 2006 income to be very different from my 2007 income.

Answer 1

You do not have to put anything on line 65 since you did not file last year.

Line 75 is if you had a refund due on line 73 and you wanted to apply it to your next years tax bill, not too common. There is no calculation, you put in what you would want applied to next year.

The IRS states that if you have a business and you make over a certain amount, detailed in Publication 505 (link below), you will need to send in estimated tax payments through out the year. The link below is more detailed and will spell out what you would have to do for your situation.

Answer 2

If you did not make estimated payments then you would leave line 65 blank

As you do not have a refund coming for the 2006 return you can not have a portion of the refund applied to the 2007 return so this stays blank


Line 76 should show the amount that you owe
As your balance owed is less than 1000.00 you would also leave line 77 blank

instructions to the 1040

http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Answer 3

If your not getting a refund, you can't put anything on line 75. If you were getting a refund, you could ask the IRS to keep some or all of it as a payment toward next years taxes. That would go on line 75. This years line 75 is next years line 65.

Answer 4

I not sure what these lines ask for as I not have my 1040 here. I know there instructions for each line in the book. I have never done an estimated tax. I just keep my Books and fill everything in at the end of the year. I think the estimated tax is for when you owe a lot at the end of the year. By estimating what you owe for next year you can pay a certain amount in Quarterly and not owe as much at the end of the year, also, IRS get some sooner. From what you owe I not think the estimated tax would be relevant. But, you may want to call the IRS to clarify, if, you ever get to talk to someone. I can imagine how busy they are now. May find some information @ http://www.irs.gov
I found you this;
General Rule
You must pay estimated tax for 2007 if both of the following apply.
You expect to owe at least $1000 in tax for 2007 after subtracting your withholding and credits.
You expect your withholding and credits to be less than the smaller of;
90% of the tax to be shown on your 2007 tax return, or
100% of the tax shown on your 2006 tax return. Your 2006 tax return must cover all 12 months.

http://www.irs.gov/businesses/small/article/0,,id=110413,00.html