You may have income from which no U.S. income tax is withheld. Or,
the amount of tax withheld may not equal the income tax you estimate
you will owe at the end of the year. If this is true, and if you have
income effectively connected with a trade or business in the United
States, you may have to pay estimated tax and file Form
1040-ES(NR). A penalty may be charged if you underpay your
estimated tax by a certain amount.
Income effectively connected with a trade or business includes pay
received as an employee that is subject to withholding. It does not,
however, include pay subject to withholding at a flat 30% rate or
lower treaty rate.
Generally, there will be no penalty for the underpayment of
estimated tax if the total income tax to be withheld from your 2001
income is at least:
- 90% of the tax to be shown on your 2001 U.S. income tax
return, or
- 100% of the tax shown on your 2000 income tax return (if
your 2000 return covered all 12 months of the year).
Also, you will not have to pay a penalty if the tax due (after
subtracting withheld tax) for 2001 is less than $1,000.
If your adjusted gross income for 2000 ( Form 1040NR, line 33) was
more than $150,000 ($75,000 if your filing status for 2001 is married
filing separately), see Publication 505,
Tax Withholding and
Estimated Tax.
When to pay estimated tax.
Generally, you must make your first payment of estimated tax by the
due date for filing the previous year's Form 1040NR or Form
1040NR-EZ.
Additional information.
For more information refer to the instructions for Form
1040-ES(NR), and see Estimated Tax Form 1040-ES(NR)
in chapter 8 of Publication 519.
Residents of Puerto Rico.
If you expect to be a resident of Puerto Rico during the entire
year, use Form 1040-ES.
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