Provisions under the American Recovery and Reinvestment Act of 2009 reduced the estimated tax payments that certain individuals were required to make for tax years beginning in 2009. Today’s regulations provide rules implementing these changes.
With the 2009 Act changes, concerning estimated tax payments of eligible individual taxpayers, the applicable percentage of tax shown on the taxpayer’s return for the preceding tax year (either 100% or 110%) is reduced to 90% for tax years beginning in 2009.
The temporary regulations define the terms:
- “Qualified individual”—In general, any individual whose adjusted gross income for the preceding tax year is less than $500,000 ($250,000 if married filing separately) and who certifies that more than 50% of such gross income was from a small business
- Income from a “small business”—In general, income from a trade or business the average number of employees of which was less than 500 for calendar year 2008
The regulations are effective on March 1, 2010—the date when they are scheduled to be published in the