Figure 4-A. Do You Have To Pay Estimated Tax?

Figure 4-A. Do You Have To Pay Estimated Tax?

Summary: This flowchart is used to determine if you have to pay estimated tax.

Start

This is the starting of the flowchart.

Decision (1)

Will you owe $1,000 or more for 2021 after subtracting income tax withholding and refundable credits (see footnote 1) from your total tax? (Don't subtract any estimated tax payments.)

Footnote 1: Use the refundable credits shown on the 2021 Estimated Tax Worksheet in Pub. 505.

IF Yes Continue To Decision (2)
IF No Continue To Process (a)

Decision (2)

Will your income tax withholding and refundable credits (see footnote 1) be at least 90% (66 2/3% for farmers and fishermen) of the tax shown on your 2021 tax return?

IF Yes Continue To Process (a)
IF No Continue To Decision (3)

Decision (3)

Will your income tax withholding and refundable credits (see footnote 1) be at least 100% (see footnote 2) of the tax shown on your 2020 tax return?

Note: Your 2020 return must have covered a 12-month period.

Footnote 2: 110% if less than two-thirds of your gross income for 2020 and 2021 is from farming or fishing and your 2020 adjusted gross income was more than $150,000 ($75,000 if your filing status for 2020 is married filing a separate return).

IF Yes Continue To Process (a)
IF No Continue To Process (b)

Process (a)

You are NOT required to pay estimated tax.

Continue To End

Process (b)

You MUST make estimated tax payment(s) by the required due date(s). See When To Pay Estimated Tax.

Continue To End

End

This is the ending of the flowchart.