Summary (continued)

Taxpayers may have to pay an estimated tax penalty if they:

• Expect to owe $1,000 or more in tax for the tax year after subtracting income tax withheld and credits, and
  
  
• Expect the tax withheld and credits on this year's tax return to be less than the smaller of:
  
  
  • 90% of the tax to be shown on this year's tax return or,
    
    
  • 100% of the tax shown on last year's tax return