required annual payment
(1) Amount (A) In general Except as provided in paragraph (2), the amount of any required installment shall be 25 percent of the required annual payment. (B) Required annual payment For purposes of subparagraph (A), the term “required annual payment” means the lesser of— (i) 90 percent of the tax shown on the return for the taxable year (or, if no return is filed, 90 percent of the tax for such year), or (ii) 100 percent of the tax shown on the return of the individual for the preceding taxable year. Clause (ii) shall not apply if the preceding taxable year was not a taxable year of 12 months or if the individual did not file a return for such preceding taxable year. (C) Limitation on use of preceding year’s tax (i) In general If the adjusted gross income shown on the return of the individual for the preceding taxable year beginning in any calendar year exceeds $150,000, clause (ii) of subparagraph (B) shall be applied by substituting “110 percent” for “100 percent”. (ii) Separate returns In the case of a married individual (within the meaning of section 7703) who files a separate return for the taxable year for which the amount of the installment is being determined, clause (i) shall be applied by substituting “$75,000” for “$150,000”. (iii) Special rule In the case of an estate or trust, adjusted gross income shall be determined as provided in section 67(e).