Do I need to pay quarterly estimated payments?

There are several reasons you may need to pay quarterly estimated payments:

• Your total withholdings and refundable credits are less than either 90% of your tax liability or 100% of last year’s tax liability
• Your calculated tax liability is more than $1,000.

The following groups are typically required to make estimated payments:

• Self-employed
• Sole proprietors
• Partners
• S-corporation shareholders

If any of the above conditions apply to you, make estimated payments directly to the IRS and file Form 1040-ES with your return.