Generally, 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 or 110% of the tax shown on your prior year’s tax return if the adjusted gross income for that year was greater than $150,000 ($75,000 if married filing separately). (Your prior year tax return must cover all 12 months.)

There are special rules for those who have income from farming and fishing, for certain household employers, certain higher income taxpayers, taxpayers whose prior tax return covered less than 12 months and nonresident aliens.