The American Recovery and Reinvestment Act of 2009 (ARRA) reduced the estimated tax payment requirements for certain qualified individuals for 2009. For 2009, the required annual payment is the lesser of 90% of the tax shown on the return for 2009 or 90% of the tax shown on the return for the preceding year.

Under this rule, a qualified individual is defined as any individual whose adjusted gross income for the preceding year is less than $500,000 and that individual certifies that more than 50% of the gross income shown on the return for the preceding year was income from a small business. A small business for this purpose is one that employs less than 500 employees.

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