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previous page Previous Page: Publication 505 - Tax Withholding and Estimated Tax - Estimated Tax for 2009
next page Next Page: Publication 505 - Tax Withholding and Estimated Tax - How To Figure Estimated Tax
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p505-011.htm#en_us_publink10007327

Who Must Pay 
Estimated Tax(p19)


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If you owed additional tax for 2008, you may have to pay estimated tax for 2009.
taxmap/pubs/p505-011.htm#en_us_publink10007328

General Rule(p19)


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You must pay estimated tax for 2009 if both of the following apply.
  1. You expect to owe at least $1,000 in tax for 2009, after subtracting your withholding and credits.
  2. You expect your withholding and credits to be less than the smaller of:
    1. 90% of the tax to be shown on your 2009 tax return, or
    2. 100% of the tax shown on your 2008 tax return. Your 2008 tax return must cover all 12 months.
Note. These percentages may be different if you are an eligible small business, farmer, fisherman, or higher income taxpayer. See Special Rules beginning on page 20.
You may find Figure 2-A on page 20 helpful in determining if you must pay estimated tax.
Deposit
If all your income will be subject to income tax withholding, you probably do not need to pay estimated tax.
taxmap/pubs/p505-011.htm#en_us_publink10007330

Example 1.(p19)

To figure whether she should pay estimated tax for 2009, Jane, who files as head of household, uses Figure 2-A and the following information.
Expected adjusted gross income (AGI) for 2009$82,800
AGI for 2008$73,700
Tax shown on 2008 return$  9,744
Tax expected to be shown on 2009 return$11,640
Tax expected to be withheld in 2009$10,500
Jane's answer to the chart's first question is YES; she expects to owe at least $1,000 for 2009 after subtracting her withholding from her expected tax ($11,640 − $10,500 = $1,140). Her answer to the chart's second question is also YES; she expects her income tax withholding ($10,500) to be at least 90% of the tax to be shown on her 2009 return ($11,640 × 90% = $10,476). Jane does not need to pay estimated tax.
taxmap/pubs/p505-011.htm#en_us_publink10007331

Example 2.(p19)

The facts are the same as in Example 1, except that Jane expects only $8,500 tax to be withheld in 2009. Because that is less than $10,476, her answer to the chart's second question is NO.
Jane's answer to the chart's third question is also NO; she does not expect her income tax withholding ($8,500) to be at least 100% of the tax shown on her 2008 return ($9,744). Jane must pay estimated tax for 2009.
taxmap/pubs/p505-011.htm#en_us_publink10007332

Example 3.(p19)

The facts are the same as in Example 2, except that the tax shown on Jane's 2008 return was $8,000. Because she expects to have more than $8,000 withheld in 2009 ($8,500), her answer to the chart's third question is YES. Jane does not need to pay estimated tax for 2009.
taxmap/pubs/p505-011.htm#en_us_publink10007334

Married Taxpayers(p19)


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If you qualify to make joint estimated tax payments, apply the rules discussed here to your joint estimated income.
You and your spouse can qualify to make joint estimated tax payments even if you are not living together.
However, you and your spouse cannot make joint estimated tax payments if:
If you do not qualify to make joint estimated tax payments, apply these rules to your separate estimated income.
Making joint or separate estimated tax payments will not affect your choice of filing a joint tax return or separate returns for 2009.
taxmap/pubs/p505-011.htm#en_us_publink10007335

2008 separate returns and 2009 joint return.(p19)


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If you plan to file a joint return with your spouse for 2009, but you filed separate returns for 2008, your 2008 tax is the total of the tax shown on your separate returns. You filed a separate return if you filed as single, head of household, or married filing separately.
taxmap/pubs/p505-011.htm#en_us_publink10007336

2008 joint return and 2009 separate returns.(p19)


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If you plan to file a separate return for 2009, but you filed a joint return for 2008, your 2008 tax is your share of the tax on the joint return. You file a separate return if you file as single, head of household, or married filing separately.
To figure your share of the tax on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2008 using the same filing status as for 2009. Then multiply the tax on the joint return by the following fraction.
 The tax you would have paid had you filed a separate return 
The total tax you and your spouse would have paid had you filed separate returns
taxmap/pubs/p505-011.htm#en_us_publink10007337

Example.(p20)

Joe and Heather filed a joint return for 2008 showing taxable income of $48,500 and a tax of $6,476. Of the $48,500 taxable income, $40,100 was Joe's and the rest was Heather's. For 2009, they plan to file married filing separately. Joe figures his share of the tax on the 2008 joint return as follows:
Tax on $40,100 based on separate return$6,375
Tax on $8,400 based on separate return863
Total$7,238
Joe's percentage of total ($6,375 ÷ $7,238)88%
Joe's share of tax on joint return
($6,476 × 88%)
$5,699
taxmap/pubs/p505-011.htm#en_us_publink10007338

Special Rules(p20)


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There are special rules for eligible small businesses, farmers, fishermen, and certain higher income taxpayers.
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Eligible Small Businesses(p20)


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Eligible Small Businesses

If you have an eligible small business, substitute 90% for 100% in (2b) under General Rule on the previous page.
You have an eligible small business if you satisfy the following.
taxmap/pubs/p505-011.htm#en_us_publink10007339

Farmers and Fishermen(p20)


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If at least two-thirds of your gross income for 2008 or 2009 is from farming or fishing, substitute 662/3% for 90% in (2a) under General Rule on the previous page.
taxmap/pubs/p505-011.htm#en_us_publink10007340

Gross income.(p20)


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Your gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. To determine whether two-thirds of your gross income for 2008 was from farming or fishing, use as your gross income the total of the income (not loss) amounts.
taxmap/pubs/p505-011.htm#en_us_publink10007341

Joint returns.(p20)


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On a joint return, you must add your spouse's gross income to your gross income to determine if at least two-thirds of your total gross income is from farming or fishing.
taxmap/pubs/p505-011.htm#en_us_publink10007342

Gross income from farming.(p20)


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This is income from cultivating the soil or raising agricultural commodities. It includes the following amounts.
For 2008, gross income from farming is the total of the following amounts.
Wages you receive as a farm employee and wages you receive from a farm corporation are not gross income from farming.
taxmap/pubs/p505-011.htm#en_us_publink10007343

Gross income from fishing.(p20)


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This is income from catching, taking, harvesting, cultivating, or farming any kind of fish, shellfish (for example, clams and mussels), crustaceans (for example, lobsters, crabs, and shrimp), sponges, seaweeds, or other aquatic forms of animal and vegetable life.
Gross income from fishing includes the following amounts. Services normally performed in connection with fishing include:
taxmap/pubs/p505-011.htm#en_us_publink10007344

Higher Income Taxpayers(p21)


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Higher Income Taxpayers

If your AGI for 2008 was more than $150,000 ($75,000 if your filing status for 2009 is married filing a separate return), substitute 110% for 100% in (2b) under General Rule on page 19.
For 2008, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4.
Note.This rule does not apply to farmers and fishermen.
taxmap/pubs/p505-011.htm#en_us_publink10007346

Aliens(p21)


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Resident and nonresident aliens also may have to pay estimated tax. Resident aliens should follow the rules in this publication, unless noted otherwise. Nonresident aliens should get Form 1040-ES (NR), U.S. Estimated Tax for Nonresident Alien Individuals.
You are an alien if you are not a citizen or national of the United States. You are a resident alien if you either have a green card or meet the substantial presence test.
See Publication 519 for more information about Form 1040-ES (NR) and withholding (chapter 8) and the substantial presence test (chapter 1).
taxmap/pubs/p505-011.htm#en_us_publink10007347

Estates and Trusts(p21)


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Estates and Trusts

Estates and trusts also must pay estimated tax. However, estates (and certain grantor trusts that receive the residue of the decedent's estate under the decedent's will) are exempt from paying estimated tax for the first two years after the decedent's death.
Estates and trusts must use Form 1041-ES, Estimated Income Tax for Estates and Trusts, to figure and pay estimated tax.
previous pagePrevious Page: Publication 505 - Tax Withholding and Estimated Tax - Estimated Tax for 2009
next pageNext Page: Publication 505 - Tax Withholding and Estimated Tax - How To Figure Estimated Tax
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication