How does a taxpayer know if they have to pay quarterly individual estimated taxe?
A taxpayer must make estimated tax payments for the current tax year if both of the following situations apply:
1. The taxpayer expects to owe at least $1,000 in tax for the current tax year, after subtracting his or her withholding and credits.
2. The taxpayer expects his or her withholding and credits to be less than the smaller of:
....a)90% of the tax to be shown on your current year’s tax return, or
....b)100% of the tax shown on your prior year’s tax return. (The taxpayers prior year tax return must cover all 12 months.)