The first installment of 1987 estimated federal income tax payments by individuals other than farmers and fishermen is due by April 15.
Generally, taxpayers must pay estimated tax if they expect to owe, after withholding and credits, at least $500 in tax of 1987 and they expect their withholding to be less that the lesser of:
90% of the tax shown on their 1987 tax return, or
100% of the tax shown on their 1986 tax return.
Form 1040-ES, Estimated Tax For Individuals, must be filed.
Single Social Security recipients whose total income for 1987, including half of their Social Security income, is expected to be more than $25,000 and married Social Security recipients who expect their joint income, including half of the Social Security income, to exceed $32,000 may have to pay tax on part of their Social Security Income. Therefore, they may need to file and pay estimated tax.
The Form 1040-ES package, containing instructions, a tax worksheet and four payment vouchers, will be sent to those taxpayers who filed estimated tax last year. Also, 1040-ES are stocked at some local IRS offices.
The IRS also has free reference Publication 505, Tax Withholding and Estimated Tax, which provides information about paying estimated tax. The publication may be ordered using their handy order form in the tax forms package, or by calling the IRS toll-free number.