2009 Federal Quarterly Estimated Tax Payments

1.   Am I required to make 2009 federal quarterly estimated tax payments?

The Internal Revenue Service (IRS) requires you to make quarterly estimated tax payments for calendar year 2009 if both of the following apply:

• you expect to owe at least $1,000 in federal tax for 2009, after subtracting federal tax withholding and credits, and
• you expect federal withholding and credits to be less than the smaller of:
  •  90% of the tax to be shown on your 2009 federal tax return, or
  • 100% of the tax shown on your 2008 federal tax return (only applies if your 2008 tax return covered 12 months - otherwise refer to 90% rule above only).

2.   How do I calculate the amount of my federal quarterly estimated tax payments?

To calculate your federal quarterly estimated tax payments, you must estimate your adjusted gross income, taxable income, taxes, deductions, and credits for the calendar year 2009.  Form 1040-ES includes an Estimated Tax Worksheet to help you calculate your federal estimated tax payments.  For examples of completed estimated tax worksheets, please refer to the Examples section of this site.

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