The Mystery Shopper’s Manual

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If you pay quarterly estimated income taxes, remember that your fourth-quarter estimated tax payment (using form 1040-ES) for 2007 is due on January15, 2008. Need to know more? Read on . . .You may delay making this payment until Jan. 31 if you file your 2007 return (Form 1040) and pay any tax due by January 31, 2008.

Not sure if you have to pay? You can figure it out by consulting the IRS web site at http://www.irs.gov/publications/p505/ch02.html

Here are some general rules about who has to pay estimated taxes:

If most of your income is from being an employee, and you have tax withheld from your paychecks at your primary job, you may not need to pay estimated taxes. (This could also apply if your spouse is the primary wage earner and s/he has taxes withheld from his or her check.)

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:
1. 90% of the tax to be shown on your 2007 tax return, or
2. 100% of the tax shown on your 2006 tax return. Your 2006 tax return must cover all 12 months.