The National Directory of Certified Public Accountants

Ask A CPA - Estimated Payments

Estimate Calculations

Individuals can base their payments on: 90% of the current years tax or 100% of the prior years tax or 110% of the prior years tax if the prior year's AGI is more than $150,000 ($75,000 if filing Married filing Separately) Note that there is no penalty for not paying federal estimates if the current year's tax is less than $1,000 or there was no tax liability in the precedding year.

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