Who Must Pay Estimated Tax
If you owed additional tax for 2006, you may have to pay estimated tax for 2007.
General Rule
You Must Pay estimated tax for 2007 if both of the following apply.
1. You expect to owe at least $1,000 in tax for 2007, after subtracting your withholding and credits.
2. You expect your withholding and credits to be less than the smaller of:
-------a. 90% of the tax to be shown on your 2007 tax return, or
-------b. 100% of the tax shown on your 2006 tax return. *Your 2006 tax return must cover all 12 months.
--------* Certain taxpayers with higher adjusted gross income must substitute 110% for 100%. Refer to Chapter 2 of Publication 505, Tax Withholding and Estimated Tax, for the income amounts that the higher percentage applies to.
References:
* Publication 505, Tax Withholding and Estimated Tax
* Form 1040-ES (PDF), Estimated Tax for Individuals
What should I do if I made a mistake on my federal return that I have already filed?
It depends on the type of mistake that you made. Many mathematical errors are caught in the processing of the tax return itself. If you did not attach a required schedule the service will contact you and ask for the missing information.
If you did not report all your income or did not claim a credit, you are entitled to file an amended or corrected return using Form 1040X (PDF), Amended U.S. Individual Income Tax Return. Include copies of any schedules that have been changed or any Form W-2 (PDF) you did not include. The Form 1040X (PDF) should be submitted after you receive your refund or by the due date of the return, whichever, is earlier. Generally, to claim a refund, the Form 1040X (PDF) must be received within three years after the date you filed your original return or within two years after the date you paid the tax, whichever is later.
