Tax Questions
 

Who do not have to pay estimated tax?

 

A lot of people do not have to pay estimated tax. There are a few ways to avoid paying estimated tax.

 
Ways to avoid paying estimated tax

The first and most obvious way to not have to pay estimated tax is, if you receive salaries or wages, you can avoid having to pay estimated tax by asking your employer to take more tax out of your earnings. While it is easier to ask the employer to withhold more tax, most taxpayers don't like to ask for more tax withholding than needed.

 

When don't I have to pay estimated tax?

You don't have to pay estimated tax for this tax year if you meet all of the three conditions below.

 

  1. You had no tax liability for the previous tax year.

  2. You were a US citizen or resident for the whole year

  3. Your previous tax year covered a 12 month period.