Figure 5-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 2005 after subtracting income tax withholding and credits from your total tax? (Do not subtract
any estimated
tax payments.)
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IF Yes Continue To Decision (2)
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IF No Continue To Process (a)
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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
2005 tax
return?
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IF Yes Continue To Process (a)
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IF No Continue To Decision (3)
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Decision (3). Will your income tax withholding and credits be at least 100% (see Footnote) of the tax shown on your 2004 tax return?Note:
Your 2004 return must have covered a 12-month period.Footnote: 110% if less than two-thirds of your gross income for 2004
and 2005 is from farming or fishing and your 2004 adjusted gross income
was more than $150,000 ($75,000 if your filing status for 2005 is married filing a separate return).
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IF Yes Continue To Process (a)
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IF No Continue To Process (b)
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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.
