How do I know if I have to file quarterly individual estimated tax payments?

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:

• 90 percent of the tax to be shown on your current year's tax return, or
• 100 percent 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:

• Certain small-business taxpayers
• Certain taxpayers with higher adjusted gross income
• Farmers and commercial fishermen
• Aliens
• Estates and trusts

See IRS Pub 505 for more details.