Second Quarter 2019 estimated payments are due for:
All individual taxpayers, except farmers and ranchers, must make estimated income tax payments if their estimated tax liability for 2019 after withholding and credits is more than $500.
Taxpayers receiving income from a source other than wages must use the Individual Estimated Income Tax Worksheet (ESW) to determine if they need to make estimated tax payments and to calculate their quarterly payments.
The ESW worksheet for the 2019 tax year is located in Publication 1: Prepaying Income Tax available in My Revenue.
The pre-payment must equal either:
- 100% of the preceding tax year (safe harbor) if the individual filed a Montana individual income tax return for 12 months, or
- 90% of the tax for 2019 tax year.
If your income decreases in 2019 for reasons unforeseen, or your activity is seasonal, use the annualization worksheet, which allows you to adjust your quarterly payments accordingly.
The annualization worksheet is also available in Publication 1.
We require estimated tax payments when the taxes owed after the deduction of credits and withholding is more than $500. Publication 1 describes when a taxpayer must make estimated taxes.
You do not need to make estimated tax payments if you derive at least 2/3 of your gross income from farming or ranching operations. If estimated tax payments aren’t required, there cannot be an underpayment and no interest is due.
Be sure to mark the “2/3 farming gross income” box on the Contributions, Penalties and Interest Schedule, line 3 when claiming the exemption to pay estimated taxes for farmers and ranchers.