[jively]

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What if you don't file professionally? I am a student that plays part time. I don't have another job. If I pay say 5k in taxes, but do NOT file professionally do I have to pay estimated tax payments?

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Maybe. Go to the same form I linked to above. Line 13c is your estimated tax for the year. 14a is 13c x 90%. 14b is 100% of the tax that was due in 2006. 14c is the smaller of those numbers. In line 15 you subtract estimated tax withholding to see how much is left.

In line 16b, it says if it's over $1,000, you have to file estimated payments.

Now, that calculation in 13 and 14 basically says that if your income is more this year than last year, you don't have to file estimated payments*. But if your income is the same or smaller than last year, you do.

So, if in 2006 you owed $0 tax, in 2007 you do not have to file estimated payments.

But if in 2006 you paid $5,000 in tax and in 2007 you estimate you will also owe $5,000 in tax, then yes you do have to make estimated tax payments.

-Tom

P.S. It wouldn't hurt to run this by a tax professional.

* As long as the IRS receives as much as 90% of what you owed last year.