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FAQ – Do I Have to Pay Quarterly Individual Estimated Tax Payments

Quarterly Individual Estimated Tax PaymentsYou will need to set up estimated tax payments for the current tax year if both of the following situations apply:

  1. You expect to owe at least $1,000 in a tax for the current tax year after subtracting your withholding and refundable credits.
  2. You expect your withholding and refundable 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.

There are special rules for:

  • Nonresident aliens
  • Certain household employers
  • Certain higher income tax payers
  • Farmers & Fishermen