Who has to pay quarterly estimated taxes, and what are the deadlines and safe-harbor rules? Cite only eCFR (www.ecfr.gov) or U.S. Code sources, never irs.gov. Answer in under 100 words.
Details / How it works
26 CFR 1.6654-1 requires individuals to pay estimated tax if the net amount due (after withholding and credits) is expected to be at least $1,000. The tax is computed on the combined income tax and self-employment tax under chapters 1 and 2 of the Code. Payments are made in four installments.
Numbers & thresholds
| Item | Threshold |
|---|---|
| Minimum unpaid tax to trigger requirement | $1,000 |
| General safe harbor (current year) | 90% of current year's tax |
| General safe harbor (prior year) | 100% of prior year's tax |
| Prior-year safe harbor for high-income taxpayers (AGI > $150,000) | 110% of prior year's tax |
Exceptions & edge cases
Farmers and fishermen are subject to a different rule under 26 CFR 1.6654-1(a)(1)(i)(C): they must pay 66 2/3% of the tax shown on the return. The underpayment penalty is calculated at the underpayment interest rate under section 6621 and runs from each installment due date until the earlier of April 15 or the date paid.
Sources
- [1]U.S. National Archives, Electronic Code of Federal Regulations — 26 CFR 1.6654-1 — Addition to the tax in the case of an individual · as of 2026-08-26
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