Important Changes for 2001

Estimated tax safe harbor for higher income taxpayers.
For installment payments for tax years beginning in 2001, the estimated tax safe harbor for higher income individuals (other than farmers and fishermen) has been modified. If your 2000 adjusted gross income was more than $150,000 ($75,000 if you are married filing a separate return for 2001), you will have to deposit the smaller of 90% of your expected tax for 2001 or 110% of the tax shown on your 2000 return to avoid an estimated tax penalty.

Tax law changes for 2001.
When you figure how much income tax you want withheld from your pay and when you figure your estimated tax for 2001, consider tax law changes effective in 2001. See Publication 553, Highlights of 2000 Tax Changes.

Payment of estimated tax by direct debit.
Beginning in 2001, you may be able to pay your estimated tax by authorizing an automatic withdrawal from your checking or savings account. For more information on this, and other methods of payment, see How To Pay Estimated Tax.

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