SESK: Stuff Everyone Should Know · sesk.info/biz-estimated-tax-1000-rule
After withholding and credits, individuals generally make estimated payments if they expect to owe at least how much?
$1,000 or more when the return is filed.
- $400
- $1,000 ✔
- $5,000
Why: Individuals generally make estimated payments if they expect to owe $1,000 or more after subtracting withholding and refundable credits. Waiting until the return is due can cause an underpayment penalty.
Huh, didn't know that: Do not mix it up with the $400 rule: $400 is when self-employment tax applies, $1,000 is when quarterly payments are expected.
What do you call friends who love math? Algebros.
Like this card?
References
Answer: $1,000. Individuals generally make estimated payments if they expect to owe $1,000 or more after subtracting withholding and refundable credits. Waiting until the return is due can cause an underpayment penalty.
- IRS: Estimated taxes www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
Checked 2026-10-11.
Think this answer is wrong? Tap "Challenge this answer" on the card in the game and tell us why.
More stuff everyone should know
Starting and Running a BusinessWhich form do sole proprietors generally use to figure their estimated tax payments?Starting and Running a BusinessWhen is the first estimated tax payment of the year generally due?Starting and Running a BusinessThe second estimated tax payment, for April 1 to May 31, is generally due when?
That's stuff everyone should know.