Knowledge Base

Frequently Asked Questions

Estimated Tax for Individuals - Form 1040-ES

Form 1040-ES allows you to calculate and pay your estimated tax. If you are not required to make estimated tax payments, you can disregard this form.

You must pay estimated tax on income that is not subject to withholding, such as self-employment earnings, interest, dividends, rents, alimony etc. Be aware that if you also receive a salary or wages, you can choose to increase withholding on this income to avoid paying estimated tax on your other income.

In general, you must pay estimated tax if you expect to owe at least $1,000 in tax after subtracting withholding and refundable credits. Furthermore you must anticipate that those withholding and credits will amount to less than 90% of your current year tax or 100% of last year’s tax, whichever is smaller.

Calculate your estimated tax using the Estimated Tax Worksheet that comes along with the IRS’s Form 1040-ES package and mail your payments of estimated tax in along with a Form 1040-ES payment voucher, found in the same packet.

Payments of estimated tax are due four times a year, on April 18, June 15, September 15, and January 17, though the dates can fluctuate slightlty by year.