Figure 4-A. Do You Have To Pay Estimated Tax?

Summary: This flowchart is used to determine if you have to pay estimated tax.

Start

This is the starting of the flowchart.

Decision (1)

Will you owe $1,000 or more for 2016 after subtracting income tax withholding and refundable credits (see footnote 1) from your total tax? (Don't subtract any estimated tax payments.)
Footnote 1: Use the refundable credits shown on the 2016 Estimated Tax Worksheet, line 13b.

Decision (2)

Will your income tax withholding and refundable credits (see footnote 1) be at least 90% (66 2/3% for farmers and fishermen) of the tax shown on your 2015 tax return?

Decision (3)

Will your income tax withholding and refundable credits (see footnote 1) be at least 100%** of the tax shown on your 2015 tax return?
Note: Your 2015 return must have covered a 12-month period.
Footnote 2: 110% if less than two-thirds of your gross income for 2015 and 2016 is from farming or fishing and your 2015 adjusted gross income was more than $150,000 ($75,000 if your filing status for 2016 is married filing a separate return).

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 ending of the flowchart.

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