skip navigation
Search Help
Navigation Help

Tax Map Index

Tax Topic Index

Affordable Care Act
Tax Topic Index

Tax Topics

About Tax Map Website
Publication 505

Chapter 3
Credit for Withholding and Estimated Tax for 2014(p47)


When you file your 2014 income tax return, take credit for all the income tax and excess social security or railroad retirement tax withheld from your salary, wages, pensions, etc. Also take credit for the estimated tax you paid for 2014. These credits are subtracted from your total tax. Because these credits are refundable, you should file a return and claim these credits, even if you do not owe tax.
If the total of your withholding and your estimated tax payments for any payment period is less than the amount you needed to pay by the due date for that period, you may be charged a penalty, even if the total of these credits is more than your tax for the year.


If you had income tax withheld during 2014, you generally should be sent a statement by February 2, 2015, showing your income and the tax withheld. Depending on the source of your income, you will receive:

Form W-2(p47)

Your employer is required to provide or send Form W-2 to you no later than February 2, 2015. You should receive a separate Form W-2 from each employer you worked for.
If you stopped working before the end of 2014, your employer could have given you your Form W-2 at any time after you stopped working. However, your employer must provide or send it to you by February 2, 2015.
If you ask for the form, your employer must send it to you within 30 days after receiving your written request or within 30 days after your final wage payment, whichever is later.
If you have not received your Form W-2 by February 2, contact your employer or payer to request a copy. If you still do not get the form by February 16, the IRS can help you by requesting the form from your employer. The phone number for the IRS is listed in chapter 5. You will be asked for the following information.
Form W-2 shows your total pay and other compensation and the income tax, social security tax, and Medicare tax that was withheld during the year. Total the federal income tax withheld (shown in box 2 of all Forms W-2 received) and enter that amount on the appropriate line of your tax return.
In addition, Form W-2 is used to report any taxable sick pay you received and any income tax withheld from your sick pay. Your sick pay may be combined with other wages in one Form W-2 or you may receive a separate Form W-2 for sick pay.
If you file a paper tax return, attach Copy B of Form W-2 to your return.

Form W-2G(p47)

If you had gambling winnings in 2014, the payer may have withheld income tax. If tax was withheld, the payer will give you a Form W-2G showing the amount you won and the amount of tax withheld.
Report the amounts you won on line 21 of Form 1040. Take credit for the tax withheld on line 64 of Form 1040. If you had gambling winnings, you must use Form 1040; you cannot use Form 1040A or Form 1040EZ.
Gambling losses can be deducted on Schedule A (Form 1040) as a miscellaneous itemized deduction. However, you cannot deduct more than the gambling winnings you report on Form 1040.
File Form W-2G with your income tax return only if it shows any federal income tax withheld in box 4.

The 1099 Series(p47)

Most forms in the 1099 series are not filed with your return. In general, these forms should be furnished to you by February 2, 2015. Unless instructed to file any of these forms with your return, keep them for your records.
There are several different forms in this series, including:
If you received the types of income reported on some forms in the 1099 series, you may not be able to use Form 1040A or Form 1040EZ. See the instructions to these forms for details.

Reporting your withholding.(p47)

Report on your tax return all federal income tax withholding shown on your Form 1099, Form SSA-1099, and/or Form RRB-1099. Include the amount withheld in the total on line 64 of Form 1040, line 40 of Form 1040A, or line 7 of Form 1040EZ.
Form 1099-R.(p47)
Attach Form 1099-R to your paper return if federal income tax withholding is shown in box 4. Do not attach any other Form 1099.

Form Not Correct(p47)

If you receive a form with incorrect information, you should ask the payer for a corrected form. Call the telephone number or write to the address given for the payer on the form. The corrected Form W-2G or Form 1099 you receive will have an "X" in the "CORRECTED" box at the top of the form. A special form, Form W-2c, Corrected Wage and Tax Statement, is used to correct a Form W-2.
In certain situations, you will receive two forms in place of the original incorrect form. This will happen when your taxpayer identification number is wrong or missing, your name and address are wrong, or you received the wrong type of form (for example, a Form 1099-DIV instead of a Form 1099-INT). One new form you receive will be the same incorrect form or have the same incorrect information, but all money amounts will be zero. This form will have an "X" in the "CORRECTED" box at the top of the form. The second new form should have all the correct information, prepared as though it is the original (the "CORRECTED" box will not be checked).

Form Received After Filing(p47)

If you file your return and you later receive a form for income that you did not include on your return, report the income and take credit for any income tax withheld by filing Form 1040X, Amended U.S. Individual Income Tax Return.

Separate Returns(p48)

If you are married but file a separate return, you can take credit only for the tax withheld from your own income. Do not include any amount withheld from your spouse's income. However, different rules may apply if you live in a community property state.

Community property states.(p48)

The following are community property states. Generally, if you live in a community property state and file a separate return, you and your spouse each must report half of all community income in addition to your own separate income. If you are required to report half of all community income, you are entitled to take credit for half of all taxes withheld on the community income. If you were divorced during the year, each of you generally must report half the community income and can take credit for half the withholding on that community income for the period before the divorce.
For more information on these rules, and some exceptions, see Publication 555, Community Property.

Fiscal Years (FY)(p48)

If you file your tax return on the basis of a fiscal year (a 12-month period ending on the last day of any month except December), you must follow special rules, described below, to determine your credit for federal income tax withholding.

Fiscal year withholding.(p48)

You can claim credit on your tax return only for the tax withheld during the calendar year (CY) ending within your fiscal year. You cannot claim credit for any of the tax withheld during the calendar year beginning in your fiscal year. You will be able to claim credit for that withholding on your return for your next fiscal year.
The Form W-2 or 1099 you receive for the calendar year that ends during your fiscal year will show the tax withheld and the income you received during that calendar year.
Although you take credit for all the withheld tax shown on the form, report only the part of the income shown on the form that you received during your fiscal year. Add to that the income you received during the rest of your fiscal year.


Miles Hanson files his return for a fiscal year ending June 30, 2014. In January 2014, he received a Form W-2 that showed that his wages for 2013 were $31,200 and that his income tax withheld was $3,380. His records show that he had received $15,000 of the wages by June 30, 2013, and $16,200 from July 1 through December 31, 2013. See Table 3-1.
On his return for the fiscal year ending June 30, 2014, Miles will report the $16,200 he was paid in July through December of 2013, plus the $18,850 he was paid during the rest of the fiscal year, January 1, 2014, through June 30, 2014. However, he takes credit for all $3,380 that was withheld during 2013.
On his return for the fiscal year ending June 30, 2013, he reported the $15,000 he was paid in January through June 2013, but took no credit for the tax withheld during that time. On his return for the fiscal year ending June 30, 2015, he will take the credit for any tax withheld during 2014 but not for any tax withheld during 2015.

Table 3-1. Example for Fiscal Year Ending June 30, 2014—Miles Hanson

Date Form W-2 Miles' records Tax return for FY ending 6/30/20131 Tax return for FY ending 6/30/2014
Wages With-
Wages With-
Wages With-
Wages With-
CY 20132 $31,200$3,380      
1/1/2013 –
  $16,200$1,780  $16,200$3,380
CY 2014 $37,700$4,3163      
  $18,850$2,158  $18,850 
1  Miles' tax return for FY ending 6/30/2013 also included his wages for 7/1–12/31/2012 and the withholding shown on his 2012 Form W-2.
 Calendar year (January 1 – December 31).
3 Withholding shown on 2014 Form W-2 ($4,316) will be included in Miles' tax return for FY ending 6/30/2015, the fiscal year in which calendar year 2014 ends.
4 Wages for 7/1–12/31/2014 ($18,850) will be included in Miles' tax return for FY ending 6/30/2015, the fiscal year in which the wages were received.

Backup withholding.(p48)

If income tax has been withheld under the backup withholding rule, take credit for it on your tax return for the fiscal year in which you received the income.


Emily Smith's records show that she received income in November 2014 and February 2015 from which there was backup withholding ($100 and $50, respectively). Emily takes credit for the entire $150 of backup withholding on her tax return for the fiscal year ending September 30, 2015.