Monday, March 24, 2008

Who Does Not Have To Pay Estimated Tax

If you receive salaries and wages, you can avoid having to pay estimated tax by asking your employer to take out more tax. To do this, file a W-4 with your employer. You do not have to pay estimated tax for 2007 if you meet all three of the following conditions.

-You had no tax liability in 2007
-You were US citizen or resident alien for a whole year
-Your 2007 tax year covered for a 12 month period
-You had no tax liability for 2007, if your total tax was zero or you did not have to file an income tax return.

As a general rule, those that need to pay estimated tax payments are as followed :
-You expect to owe at least $1000 in a tax for 2007 , after subtracting your withholding and credits.

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