IndividualsQuestion: 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 refundable credits.

You expect your withholding and refundable credits to be less than the smaller of:

o 90% of the tax to be shown on your current year’s tax return, or

o 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:

Farmers and fishermen Certain household employers

Certain higher income taxpayers

Nonresident aliens