Tax Trails - Do You Have to Pay Estimated Tax?
Do you expect your income tax withholding and refundable credits* for the current year to be at least 100%** of the tax shown on your prior year's tax return?
Note: Your prior year's return must have covered a 12-month period.
*Refer to the refundable credits shown on line 13b of the 2015 Estimated Tax Worksheet, in Form 1040-ES (.pdf), Estimated Tax for Individuals.
**Use 110% if your prior year's adjusted gross income was more than $150,000 ($75,000 if your filing status for the current year will be married filing a separate return) and less than two-thirds of your gross income for the current and prior years is from farming or fishing.