Answer: You must make estimated tax payments for the current tax year if both of the following apply:
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You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
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You expect your withholding and credits to be less than the smaller of:
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90% of the tax to be shown on your current year’s tax return, or
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100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
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There are special rules for:
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Certain small business taxpayers for periods beginning 2009
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Certain taxpayers with higher adjusted gross income
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Farmers and commercial fishermen
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Aliens
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Estates and Trusts
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