You should make quarterly estimated tax payments if your withholdings throughout the year will not be sufficient to prevent the IRS from imposing an underpayment of tax penalty. The IRS requires that taxes be paid as income is earned or received. If your only source of income is W-2 wages, your employer is withholding tax and remitting it to the IRS on your behalf. If this is the case, estimated tax payments are often not required. If however, you have other sources of income from which no withholdings have been made (e.g., alimony, self-employment income, interest, dividends, sale of assets, K-1 income, etc.), estimates may be necessary.

No estimates are required if:

• You will owe less than $1,000 after subtracting credits and withholdings.

• You had no tax liability in the prior year, were a U.S. citizen or resident for the whole year and your prior tax year covered a 12-month period.

If you will owe $1,000 or more on your 2017 individual income tax return, you may need to make quarterly estimated tax payments (or have your employer withhold more of your wages by adjusting your Form W-4). To avoid underpayment penalties, your withholdings and estimated tax payments must exceed:

• The lessor of 90% of your current year tax liability or 100% of your prior year tax liability (110% if your adjusted gross income exceeded $150,000).

Use IRS Form 1040-ES to calculate your required payments. Estimated tax payments for 2017 are due as follows:

1st Payment—April 18, 2017 2nd Payment—June 15, 2017 3rd Payment—September 15, 2017 4th Payment—January 16, 2018

Estimates can be paid by mail, online or over the phone.

For additional information on tax estimates, see IRS Publication 505, Tax Withholding and Estimated Tax or speak with your tax advisor.