Federal and VA State Quarterly Taxes

[aharrisclark]

I just started to do part-time contract work last Fall. For 2015 we received a refund. For 2016, I still do not think we will owe Federal or State (assuming not filing quarterly taxes). If we do end up owing it would likely only be for state (Virginia) taxes and only a small amount. Do I still need to file quarterly taxes for federal and/or Virginia State?

[HelenaC]

To avoid a Federal income tax underpayment penalty, you need to make sure you pay in at least: 

•  90% of your expected tax for 2016 or
• 110% of the taxes shown on your 2015 return. See Do I need to make estimated tax payments to the IRS?

To avoid a Virginia income tax underpayment penalty:

• You are required to file a tax return and your Virginia income tax liability, after subtracting income tax withheld and any allowable credits, is expected to be more than $150, then you must make estimated tax payments or have additional income tax withheld throughout the year from your wages or other income.

• You may not be required to file a Virginia income tax return or make estimated tax payments depending on your filing status and estimated annual income. Review Who Must File to see the income-threshold requirements. See the Virginia Individual Estimated Tax Payments .