Figure B. Do You Have To Pay Estimated Tax? Summary: This is the flowchart used to determine if a taxpayer has to make estimated tax payments.Start. This is the start of the flowchart.Decision (1). Will you owe $1000 or more for 2004 after subtracting income tax withholding and credits from your total tax? (Do not subtract
any estimated
tax payments.)
| IF Yes Continue To Decision (2)
|
| IF No Continue To Process (a)
|
Decision (2). Will your income tax withholding and credits be at least 90% (66 2/3% for farmers and fishermen) of the tax shown on your
2004 tax
return?
| IF Yes Continue To Process (a)
|
| IF No Continue To Decision (3)
|
Decision (3). Will your income tax withholding and credits be at least 100% (see Footnote) of the tax shown on your 2003 tax return? Note:
Your 2003 return
must have covered a 12-month period.Footnote: 110% if less than two-thirds of your gross income for 2003 and 2004 is from
farming or fishing and your 2003 adjusted gross income
was more than $150,000 ($75,000 if your filing status for 2004 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.
Process (b). You MUST make estimated tax payment(s) by the required due date(s). See When To Pay Estimated Tax.
End. This is the end of the flowchart.
