Question: How do I know if I have to file quarterly individual estimated tax payments?
Answer: If you owed additional tax for the prior tax year, you may have to make estimated tax payments for the current tax year.
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, or100% 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 taxpayers with higher adjusted gross income
- Farmers and commercial fishermenAliens
- Estates and Trusts
Contact us if you are unsure of your need to make an estimated tax payment. The first estimated payment for 2010 is due April 15, 2010.