Business & Finance Taxes

How to Know if You Have to File Quarterly Taxes

By Business & Finance Last updated Thursday, June/13/2024

1). If you think you are going to owe $1,000 or more to the IRS (after deducting your federal withholding and credits), then you have to pay quarterly taxes. If you don't pay quarterly taxes, you may risk penalties (especially if you are short at the end of the year). Remember that marginal tax rates range from 10% to 35% for 2009 (based on your taxable income).
2). If you think the federal withholding from your paychecks and potential credits will be less than 90% of your current year tax bill or less than 100% of last year's tax bill (whichever is a lower number), then you need to pay quarterly taxes.
3). Read IRS Publication 505 - Tax Withholding and Estimated Tax for further guidance.