If you owe additional tax for 2012, you may have to pay estimated tax during 2013.
You can use the following general rule as a guide during the year to see if you will have enough withholding, or if you should increase your withholding or make estimated tax payments.
General rule: In most cases, you must pay estimated tax during 2013 if both of the following apply:
- You expect to owe at least $1,000 in tax for 2013, after subtracting your withholding and refundable credits.
- You expect your withholding plus your refundable credits to be less than the smaller of:
- 90% of the tax to be shown on your 2013 tax return, or
- 100% of the tax shown on your 2012 tax return (but see Special rules for farmers, fishermen, and higher income taxpayers below). Your 2012 tax return must cover all 12 months.
There are other rules to consider if you make a lot of money. Just give us a call and we’ll help you sort it all out. 386-232-8321