Fresh Start Tax LLC            IRS Tax Experts           Former IRS Agents & Managers            Since 1982

Question:   How do you know if you have to file quarterly individual estimated tax payments? ( also called ES payments )

Answer:   You must make estimated tax payments for the current tax year if both of the following apply:

1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
2. You expect your withholding and credits to be less than the smaller of:
3. 90% of the tax to be shown on your current year’s tax return, or
4. 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:

1.Certain small business taxpayers for any tax year beginning  in 2009
2. Certain taxpayers with higher adjusted gross income
3.Farmers and commercial fishermen
4.Aliens
5.Estates and Trusts

Contact us directly for more details.