Estimated Tax The requirements for determining who must pay estimated tax are thesame for a U.S. citizen or resident abroad as for a taxpayer in theUnited States. For current instructions on making your estimated taxpayments, seeForm 1040-ES. If you had a tax liability for 1999, you may have to pay estimatedtax for 2000. Generally, you must make estimated tax payments for 2000if you expect to owe at least $1,000 in tax for 2000 after subtractingyour withholding and credits, and you expect your withholding andcredits to be less than the smaller of: 90% of the tax to be shown on your 2000 tax return,or 100% of the tax shown on your 1999 tax return. (The returnmust cover all 12 months.) If less than two thirds of your gross income for 1999 or 2000is from farming or fishing and your adjusted gross income for 1999 ismore than $150,000 ($75,000 if you are married and file separately),substitute 106% for 100% in (2) above. See Publication 505 for moreinformation. Caution: As this publication was being prepared for print, Congress wasconsidering legislation that would increase the percentage (from 106%)that higher income taxpayers would have to deposit in 2000 in order toavoid an estimated tax penalty. For more information about this andother important tax changes, see Publication 553, Highlights of1999 Tax Changes. The first installment of estimated tax is usually due on April 15of the tax year. Because April 15, 2000, falls on Saturday, the firstinstallment for 2000 is due on April 17. When figuring your estimated gross income, subtract amounts youexpect to exclude under the foreign earned income exclusion and theforeign housing exclusion. In addition, you can reduce your income byyour estimated foreign housing deduction. However, if the actualamount of the exclusion or deduction is less than you estimate, youmay have to pay a penalty on the underpayment of estimated tax.