Question: How do I know if I have to file quarterly individual estimated tax payments?
Quality1 Tax Pros: 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:
• 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.)