HOME About Us | IRS Taxes E-Filing Self Employment Tax Social Security Fraud Back Taxes Filing An Extension Claiming Dependents Late Penalties Tax Refund Earned Income Tax Credit ASK YOUR TAX QUESTION
How do I know if I have to file quarterly individual estimated tax payments?
Q) How do I know if I have to file quarterly individual estimated tax payments?
A) According to the IRS: You must make estimated tax payments for the current tax year if both of the following apply:
- You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and refundable credits.
- You expect your withholding and refundable credits to be less than the smaller of:
- 90% of the tax to be shown on your current year’s tax return, or
- 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
There are special rules for:
- Farmers and fishermen
- Certain household employers
- Certain higher income taxpayers
Because the IRS processes the first return it receives, if another person claims your dependent first, the IRS will reject your return. The IRS won’t tell you who claimed your dependent. But if you don’t suspect anyone who could have claimed the dependent, your dependent may be a victim of tax identity theft. You’ll need to take some steps to protect your right to claim the dependent and your refund if you don’t think that the other person was eligible to claim your dependent. First, double check that you meet all of the requirements to claim the dependent.
The IRS may delay your refund while the IRS looks into the issue, but you should still receive your refund. File a paper return. Note that when you file a paper return, it can take six to eight weeks for the IRS to process. This includes things like birth certificates and proof of identity, but also documents that show that your dependent lived with you at the same address for more than half of the year. This doesn’t mean that you can’t correct the situation. Don’t panic. The most important thing to remember is to prove with proper documentation that you are entitled to claim the dependent. Document your case as the IRS rules for claiming a dependent can get complicated.