Q&A with a Tax Professional
Posted on January 28, 2010 by Tiana Favila, Staff Accountant
Question: How do I know if I have to file quarterly individual estimated tax payments?
Answer: You must make estimated tax payments for the current tax year if both of the following apply:
- You expect to owe at least $1,000 in tax for the current tax year, 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 current year’s tax return, or
- 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
There are special rules for:
- Certain small business taxpayers for periods beginning 2009
- Certain taxpayers with higher adjusted gross income
- Farmers and commercial fishermen
- Aliens
- Estates and Trusts
This is a question some of our clients ask regularly. For more information, visit www.irs.gov.
