You must make estimated tax payments for the current tax year if both of the following apply:
▪ You 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:
- 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. (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
