Per the IRS Instructions for Form 1040-ES
: Who Must Make Estimated Tax Payments
The estimated tax rules apply to:
- U.S. citizens and resident aliens;
- Residents of Puerto Rico, the U.S. Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa; and
- Nonresident aliens (use Form 1040-ES (NR)).
In most cases, you must pay estimated tax for 2020 if both of the following apply.
- You expect to owe at least $1,000 in tax for 2020, 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 2020 tax return, or
- 100% of the tax shown on your 2019 tax return. Your 2019 tax return must cover all 12 months.
Note. These percentages may be different if you are a farmer, fisherman, or higher income taxpayer. See Special Rules next.
Exception. You don’t have to pay estimated tax for 2020 if you were a U.S. citizen or resident alien for all of 2019 and you had no tax liability for the full 12-month 2019 tax year. You had no tax liability for 2019 if your total tax was zero or you didn’t have to file an income tax return.
To enter the applicable information into the TaxAct program in order to estimate your next year's estimated tax payments:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
- Click 2020 Estimated Tax Payments
- Click Yes and the program will proceed with the interview questions for you to enter or review the appropriate information