Estimated Tax Payments(p10)

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, 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.

Generally, you must make estimated tax payments for 2009 if you expect to owe at least $1,000 in tax and you expect your withholding and credits to be less than the smaller of:

1. 90% of the tax to be shown on your 2009 income tax return, or
2. 100% of the tax shown on your 2008 income tax return (if your 2008 return covered all 12 months of the year).

If your adjusted gross income for 2008 was more than $150,000 ($75,000 if your filing status for 2009 is married filing separately), substitute 110% for 100% in (2) above if you are not a farmer or fisherman. But if you have an eligible small business as discussed next, substitute 90% for 100% in (2) above. Item (2) also does not apply if you did not file a 2008 return.

If you have an eligible small business, substitute 90% for 100% in (2). above. You have an eligible small business if you satisfy the following.

• You certify that more than 50% of your gross income in 2008 was income from a small business.
• The average number of employees for the 2008 calendar year was less than 500.
• Your adjusted gross income for 2008 was less than $500,000 ($250,000 if your filing status for 2009 is married filing separately).

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.

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.

If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Forma 1040-ES (Español).