Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. You may also have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough to cover your anticipated tax liability.

You can enter the following on this screen:

• Any estimated tax payments you made for 2012
• Amounts credited from your 2011 return
• Any amounts prepaid with extension requests

Do NOT enter any amount of your 2012 Alabama income tax withheld by your employer(s) as shown on any wage or tax statements.