Get IRS 1040-ES Form

Get IRS 1040-ES Form

The IRS 1040-ES form is used by individuals to estimate and pay their federal income tax throughout the year. This form is especially important for those who are self-employed or have other income that isn’t subject to withholding. Ready to tackle your taxes? Fill out the form by clicking the button below.

Structure

The IRS 1040-ES form plays a crucial role in the tax planning process for individuals who expect to owe tax at the end of the year. This form is specifically designed for those who earn income that is not subject to withholding, such as self-employment earnings, rental income, or interest and dividends. By using the 1040-ES, taxpayers can calculate their estimated tax payments for the year, ensuring they meet their tax obligations and avoid potential penalties for underpayment. The form includes worksheets to help determine the correct amount to pay, taking into account various deductions and credits. Additionally, it provides payment vouchers that can be submitted with each quarterly payment, making the process straightforward and manageable. Understanding the ins and outs of the 1040-ES is essential for anyone navigating the complexities of self-employment or non-wage income, as it helps maintain compliance with tax laws while effectively managing finances.

IRS 1040-ES Preview

2025

Form 1040-ES

Estimated Tax for Individuals

Purpose of This Package

Exception. You don’t have to pay estimated tax for 2025

Use Form 1040-ES to figure and pay your estimated tax

if you were a U.S. citizen or resident alien for all of 2024

for 2025.

and you had no tax liability for the full 12-month 2024 tax

 

Estimated tax is the method used to pay tax on income

year. You had no tax liability for 2024 if your total tax was

 

zero or you didn’t have to file an income tax return.

that isn’t subject to withholding (for example, earnings

Special Rules

from self-employment, including gig economy work,

interest, dividends, rents, alimony, etc.). In addition, if you

There are special rules for those who have income from

don’t elect voluntary withholding, you should make

farming and fishing, for certain household employers, and

estimated tax payments on other taxable income, such as

certain higher income taxpayers.

unemployment compensation and the taxable part of your

Farming and fishing. If at least two-thirds of your gross

social security benefits.

Preprinted vouchers. If you made estimated tax

income for 2024 or 2025 is from farming or fishing,

substitute 662/3% for 90% in (2a) under General Rule.

payments for 2024, this package may contain vouchers

Household employers. When estimating the tax on your

that are preprinted with your name, address, and SSN.

 

 

If your name or SSN isn't correct, make the

2025 tax return, include your household employment

 

 

taxes if either of the following applies.

TIP

necessary changes on the vouchers. Cross out

You will have federal income tax withheld from wages,

 

 

the name and SSN of a deceased or divorced

pensions, annuities, gambling winnings, or other income.

spouse.

You would be required to make estimated tax payments

Change of address. If your address has changed, file

to avoid a penalty even if you didn’t include household

employment taxes when figuring your estimated tax.

Form 8822, to update your record.

Higher income taxpayers. If your adjusted gross

Future developments. For the latest information about

income (AGI) for 2024 was more than $150,000 ($75,000

developments related to Form 1040-ES and its

if your filing status for 2025 is married filing separately),

instructions, such as legislation enacted after they were

substitute 110% for 100% in (2b) under General Rule,

published, go to

IRS.gov/Form1040ES

.

earlier. If at least two-thirds of your gross income for 2024

 

Who Must Make Estimated Tax

or 2025 is from farming or fishing, this rule doesn't apply.

Payments

Increase Your Withholding

The estimated tax rules apply to:

If you also receive salaries and wages, you may be able to

U.S. citizens and resident aliens;

avoid having to make estimated tax payments on your

Residents of Puerto Rico, the U.S. Virgin Islands,

other income by asking your employer to take more tax out

Guam, the Commonwealth of the Northern Mariana

of your earnings. To do this, file a new Form W-4,

Islands, and American Samoa; and

Employee's Withholding Certificate, with your employer.

Nonresident aliens (use Form 1040-ES (NR)).

Generally, if you receive a pension or annuity you can

General Rule

use Form W-4P, Withholding Certificate for Periodic

Pension or Annuity Payments, to start or change your

In most cases, you must pay estimated tax for 2025 if both

withholding from these payments.

of the following apply.

You can also choose to have federal income tax

 

1. You expect to owe at least $1,000 in tax for 2025,

withheld from certain government payments (see Form

after subtracting your withholding and refundable credits.

W-4V, Voluntary Withholding Request) or from

 

2. You expect your withholding and refundable credits

nonperiodic payments and eligible rollover distributions

to be less than the smaller of:

(see Form W-4R, Withholding Certificate for Nonperiodic

or a.

90% of the tax to be shown on your 2025 tax return,

Payments and Eligible Rollover Distributions).

 

You can use the Tax Withholding Estimator at

 

b. 100% of the tax shown on your 2024 tax return. Your

TIP

IRS.gov/W4App

to determine whether you need to

2024 tax return must cover all 12 months.

 

have your withholding increased or decreased.

Note. These percentages may be different if you have

Additional Information You May Need

income from farming or fishing or are a higher income

You can find most of the information you will need in Pub.

taxpayer. See Special Rules, later.

505, Tax Withholding and Estimated Tax, and in the

 

 

 

 

 

instructions for the 2024 Form 1040 and 1040-SR.

January 21, 2025

Instructions for Form 1040es (2025) Catalog Number 11340T

Department of the Treasury Internal Revenue Service www.irs.gov

For details on how to get forms and publications, see the 2024 Instructions for Form 1040.

What's New

In figuring your 2025 estimated tax, be sure to consider the following.

Standard deduction amount increased. For 2025, the standard deduction amount has been increased for all filers. If you don't itemize your deductions, you can take the 2025 standard deduction listed in the following chart for your filing status.

IF your 2025 filing status is...

THEN your standard

deduction is...

 

Married filing jointly or

$30,000

Qualifying surviving spouse

 

Head of household

$22,500

Single or Married filing separately

$15,000

 

 

 

However, if you can be claimed as a dependent on

another person's 2025 return, your standard deduction is

the greater of:

 

$1,350, or

 

Your earned income plus $450 (up to the standard

deduction amount).

 

 

Your standard deduction is increased by the following

amount if, at the end of 2025, you are:

 

An unmarried individual (single or head of household)

and are:

 

65 or older or blind

$2,000

65 or older and blind

$4,000

A married individual (filing jointly or separately) or a qualifying surviving spouse and are:

65 or older or blind

$1,600

65 or older and blind

$3,200

Both spouses 65 or older

$3,200*

Both spouses 65 or older and blind

$6,400*

*Only if married filing jointly. If married filing separately, these amounts do not apply.

Your standard deduction is zero if (a) your spouse ! itemizes on a separate return, or (b) you were a

CAUTION dual-status alien and you do not elect to be taxed as a resident alien for 2025.

Social security tax. For 2025, the maximum amount of earned income (wages and net earnings from self-employment) subject to the social security tax is $176,100.

Additional child tax credit amount. For 2025, the maximum additional child tax credit amount is $1,700 for each qualifying child.

Adoption credit or exclusion. For 2025, the maximum adoption credit or exclusion for employer-provided adoption benefits has increased to $17,280. In order to

claim either the credit or exclusion, your modified adjusted gross income must be less than $299,190.

Reminders

Expired individual taxpayer identification number (ITIN) and renewal. If you have an ITIN that you haven't included on a tax return in the last 3 consecutive years, it may be expired and you may need to renew it. If your ITIN has expired and you don't have an SSN, you can make estimated tax payments before you renew your ITIN. To renew your ITIN, and for more information, see the Instructions for Form W-7.

Advance payments of the premium tax credit. If you buy health care insurance through the Health Insurance Marketplace, you may be eligible for advance payments of the premium tax credit to help pay for your insurance coverage. Receiving too little or too much in advance will affect your refund or balance due. Promptly report changes in your income or family size to your Marketplace. See Form 8962 and its instructions for more information.

Form 1040-SS filers. The Estimated Tax Worksheet for filers of Form 1040-SS is included on Form 1040-ES.

Access Your Online Account

Go to IRS.gov/Account to securely access information about your federal tax account.

View the amount you owe and a breakdown by tax year.

See payment plan details or apply for a new payment plan.

Make a payment, view 5 years of payment history and any pending or scheduled payments.

Access your tax records, including key data from your most recent tax return and transcripts.

View digital copies of select notices from the IRS.

Approve or reject authorization requests from tax professionals.

View your address on file or manage your communication preferences.

How To Figure Your Estimated Tax

You will need:

The 2025 Estimated Tax Worksheet,

The Instructions for the 2025 Estimated Tax Worksheet,

The 2025 Tax Rate Schedules, and

Your 2024 tax return and instructions to use as a guide to figuring your income, deductions, and credits (but be sure to consider the items listed under What's New, earlier).

Matching estimated tax payments to income. If you receive your income unevenly throughout the year (for example, because you operate your business on a seasonal basis or you have a large capital gain late in the year), you may be able to lower or eliminate the amount of your required estimated tax payment for one or more periods by using the annualized income installment method. See chapter 2 of Pub. 505 for details.

Changing your estimated tax. To amend or correct your estimated tax, see How To Amend Estimated Tax Payments, later.

2

Form 1040-ES (2025)

You can’t make joint estimated tax payments if you ! or your spouse is a nonresident alien, you are

CAUTION separated under a decree of divorce or separate maintenance, or you and your spouse have different tax years.

Additionally, individuals who are in registered domestic partnerships, civil unions, or other similar formal relationships that aren’t marriages under state law cannot make joint estimated tax payments. These individuals can take credit only for the estimated tax payments that they made.

Payment Due Dates

You can pay all of your estimated tax by April 15, 2025, or in four equal amounts by the dates shown below.

1st payment

April 15, 2025

2nd payment

June 16, 2025

3rd payment

Sept. 15, 2025

4th payment

Jan. 15, 2026*

*You don’t have to make the payment due January 15, 2026, if you file your 2025 tax return by February 2, 2026, and pay the entire balance due with your return.

If you mail your payment and it is postmarked by the due date, the date of the U.S. postmark is considered the date of payment. If your payments are late or you didn’t pay enough, you may be charged a penalty for underpaying your tax. See When a Penalty Is Applied, later.

You can make more than four estimated tax TIP payments. To do so, make a copy of one of your

unused estimated tax payment vouchers, fill it in, and mail it with your payment. If you make more than four payments, to avoid a penalty, make sure the total of the amounts you pay during a payment period is at least as much as the amount required to be paid by the due date for that period. For other payment methods, see How To Pay Estimated Tax, later.

No income subject to estimated tax during first pay- ment period. If, after March 31, 2025, you have a large change in income, deductions, additional taxes, or credits that requires you to start making estimated tax payments, you should figure the amount of your estimated tax payments by using the annualized income installment method, explained in chapter 2 of Pub. 505. If you use the annualized income installment method, file Form 2210, including Schedule AI, with your 2025 tax return even if no penalty is owed.

Farming and fishing. If at least two-thirds of your gross income for 2024 or 2025 is from farming or fishing, you can do one of the following.

Pay all of your estimated tax by January 15, 2026.

File your 2025 Form 1040 or 1040-SR by March 2, 2026, and pay the total tax due. In this case, 2025 estimated tax payments aren’t required to avoid a penalty. Fiscal year taxpayers. You are on a fiscal year if your

12-month tax period ends on any day except December 31. Due dates for fiscal year taxpayers are the 15th day of the 4th, 6th, and 9th months of your current fiscal year and

the 1st month of the following fiscal year. If any payment date falls on a Saturday, Sunday, or legal holiday, use the next business day. See Pub. 509, Tax Calendars, for a list of all legal holidays.

Name Change

If you changed your name because of marriage, divorce, etc., and you made estimated tax payments using your former name, attach a statement to the front of your 2025 paper tax return. On the statement, show all of the estimated tax payments you (and your spouse, if filing jointly) made for 2025 and the name(s) and SSN(s) under which you made the payments.

Be sure to report the change to your local Social Security Administration office before filing your 2025 tax return. This prevents delays in processing your return and issuing refunds. It also safeguards your future social security benefits. For more details, call the Social Security Administration at 800-772-1213 (TTY/TDD 800-325-0778).

How To Amend Estimated Tax Payments

To change or amend your estimated tax payments, refigure your total estimated tax payments due (see the 2025 Estimated Tax Worksheet). Then, to figure the payment due for each remaining payment period, see Amended estimated tax in chapter 2 of Pub. 505. If an estimated tax payment for a previous period is less than one-fourth of your amended estimated tax, you may owe a penalty when you file your return.

When a Penalty Is Applied

In some cases, you may owe a penalty when you file your return. The penalty is imposed on each underpayment for the number of days it remains unpaid. A penalty may be applied if you didn’t pay enough estimated tax for the year or you didn’t make the payments on time or in the required amount.

The penalty may be waived under certain conditions. See the Instructions for Form 2210 for details.

How To Pay Estimated Tax

Pay Online

Paying online is convenient and secure and helps make sure we get your payments on time. To pay your taxes online or for more information, go to IRS.gov/Payments.

Once you are issued a social security number (SSN), use it when paying your estimated taxes online. Use your SSN even if your SSN does not authorize employment or if you have been issued an SSN that authorizes employment and you lose your employment authorization. An ITIN will not be issued to you once you have been issued an SSN. If you received your SSN after previously using an ITIN, stop using your ITIN. Use your SSN instead.

Payments of U.S. tax must be remitted to the IRS in U.S. dollars. Digital assets are not accepted.

You can pay using any of the following methods.

Form 1040-ES (2025)

3

Your Online Account. You can make tax payments through your online account, including balance payments, estimated tax payments, or other types. You can also see your payment history and other tax records there. Go to IRS.gov/Account.

IRS Direct Pay. For online transfers directly from your checking or savings account at no cost to you, go to IRS.gov/Payments.

Debit Card, Credit Card, or Digital Wallet. To pay by debit or credit card or digital wallet, go to IRS.gov/ Payments. A fee is charged by these service providers.You can also pay by phone with a debit or credit card. See Debit or credit card under Pay by Phone, later.

Electronic Fund Withdrawal. (EFW) is an integrated e-file/e-pay option offered when filing your federal taxes electronically using tax preparation software, through a tax professional, or the IRS at IRS.gov/Payments.

Online Payment Agreement. If you can’t pay in full by the due date of your tax return, you can apply for an online monthly installment agreement at IRS.gov/OPA. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved. A user fee is charged.

Electronic Federal Tax Payment System (EFTPS)

Allows you to pay your taxes online or by phone directly from your checking or saving account.There is no fee for this service. You must be enrolled either online or have an enrollment form mailed to you. See EFTPS under Pay by Phone, later.

Pay by Phone

Paying by phone is another safe and secure method of paying electronically. Use one of the following methods:

(1) call one of the debit or credit card service providers, or

(2) the Electronic Federal Tax Payment System (EFTPS) to pay directly from your checking or savings account. Debit or credit card. Call one of our service providers. Each charges a fee that varies by provider, card type, and payment amount.

Link2Gov Corporation

888-PAY-1040TM (888-729-1040) www.PAY1040.com

ACI Payments, Inc.

888-UPAY-TAXTM (888-872-9829) fed.acipayonline.com

EFTPS. To get more information about EFTPS or to enroll in EFTPS, visit EFTPS.gov or call 800-555-4477. To contact EFTPS using Telecommunications Relay Services (TRS) for people who are deaf, hard of hearing, or have a speech disability, dial 711 and then provide the TRS assistant the 800-555-4477 number above or

800-733-4829. Additional information about EFTPS is also available in Pub. 966.

Mobile Device

To pay through your mobile device, download the IRS2Go app.

Pay by Cash

You can pay your taxes in cash. To find out about the different cash payment methods, go to IRS.gov/PayCash. Don't send cash payments through the mail.

Pay by Check or Money Order Using the Estimated Tax Payment Voucher

Before submitting a payment through the mail using the estimated tax payment voucher, please consider alternative methods. One of our safe, quick, and easy online payment options might be right for you.

If you choose to mail in your payment, there is a separate estimated tax payment voucher for each due date. The due date is shown in the upper right corner. Complete and send in the voucher only if you are making a payment by check or money order. If you and your spouse plan to file separate returns, file separate vouchers instead of a joint voucher.

To complete the voucher, do the following.

Print or type your name, address, and SSN in the space provided on the estimated tax payment voucher. Enter your SSN even if your SSN does not authorize employment or if you have been issued an SSN that authorizes employment and you lose your employment authorization. If you have an ITIN, enter it wherever your SSN is requested. An ITIN will not be issued to you once you have been issued an SSN. If you received your SSN after previously using an ITIN, stop using your ITIN. Use your SSN instead. If filing a joint voucher, also enter your spouse's name and SSN. List the names and SSNs in the same order on the joint voucher as you will list them on your joint return.

Enter in the box provided on the estimated tax payment voucher only the amount you are sending in by check or money order. When making payments of estimated tax, be sure to take into account any 2024 overpayment that you choose to credit against your 2025 tax, but don’t include the overpayment amount in this box.

Make your check or money order payable to “United States Treasury.” Don’t send cash. To help process your payment accurately, enter the amount on the right side of the check like this: $ XXX.XX. Don’t use dashes or lines (for example, don’t enter “$ XXX—” or “$ XXX xx/100”).

Enter “2025 Form 1040-ES” and your SSN on your check or money order. If you are filing a joint estimated tax payment voucher, enter the SSN that you will show first on your joint return.

Enclose, but don’t staple or attach, your payment with the estimated tax payment voucher.

Notice to taxpayers presenting checks. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.

No checks of $100 million or more accepted. The IRS can’t accept a single check (including a cashier’s

4

Form 1040-ES (2025)

check) for amounts of $100,000,000 ($100 million) or more. If you are sending $100 million or more by check, you will need to spread the payment over 2 or more checks with each check made out for an amount less than

$100 million. This limit doesn’t apply to other methods of payment (such as electronic payments). Please consider a method of payment other than check if the amount of the payment is over $100 million.

Where To File Your Estimated Tax Payment Voucher if Paying by Check or Money Order

Mail your estimated tax payment voucher and check or money order to the address shown below for the place where you live. Do not mail your tax return to this address or send an estimated tax payment without a payment voucher. Also, do not mail your estimated tax payments to the address shown in the Form 1040 instructions. If you need more payment vouchers, you can make a copy of one of your unused vouchers.

Caution: Only the U.S. Postal Service can deliver to P.O. boxes. You can't use a private delivery service to make estimated tax payments required to be sent to a P.O. box. For proper delivery of your estimated tax payment to a P.O. box, you must include the box number in the address.

IF you live in . . .

THEN send it to . . .

IF you live in . . .

THEN send it to . . .

 

 

 

 

Alabama, Arizona, Florida, Georgia,

Internal Revenue Service

A foreign country, American Samoa,

Internal Revenue Service

Louisiana, Mississippi, New Mexico,

P.O. Box 1300

or Puerto Rico (or are excluding

P.O. Box 1303

North Carolina, South Carolina,

Charlotte, NC 28201-1300

income under Internal Revenue

Charlotte, NC 28201-1303

Tennessee, Texas

 

Code 933), or use an APO or FPO

 

 

 

address, or file Form 2555 or 4563,

 

 

 

or are a dual-status alien or

 

 

 

nonpermanent resident of Guam or

 

 

 

the U.S. Virgin Islands

 

Arkansas, Connecticut, Delaware,

Internal Revenue Service

Guam:

Department of

District of Columbia, Illinois, Indiana,

P.O. Box 931100

Bona fide residents*

Revenue and Taxation

Iowa, Kentucky, Maine, Maryland,

Louisville, KY 40293-1100

 

Government of Guam

Massachusetts, Minnesota, Missouri,

 

 

P.O. Box 23607

New Hampshire, New Jersey, New

 

 

GMF, GU 96921

York, Oklahoma, Rhode Island,

 

 

 

Vermont, Virginia, West Virginia,

 

 

 

Wisconsin

 

 

 

Alaska, California, Colorado, Hawaii,

Internal Revenue Service

U.S. Virgin Islands:

Virgin Islands Bureau

Idaho, Kansas, Michigan, Montana,

P.O. Box 802502

Bona fide residents*

of Internal Revenue

Nebraska, Nevada, Ohio, Oregon,

Cincinnati, OH 45280-2502

 

6115 Estate Smith Bay

North Dakota, Pennsylvania, South

 

 

Suite 225

Dakota, Utah, Washington, Wyoming

 

 

St. Thomas, VI 00802

*Bona fide residents must prepare separate vouchers for estimated income tax and self-employment tax payments. Send the income tax vouchers to the address for bona fide residents and the self-employment tax vouchers to the address for non-bona fide residents.

Instructions for the 2025 Estimated Tax Worksheet

If you file Form 1040-SS, use the 2025 Estimated ! Tax Worksheet for Filers of Form 1040-SS.

CAUTION

Line 1. Adjusted gross income. When figuring the adjusted gross income you expect in 2025, be sure to consider the items listed under What’s New, earlier. For more details on figuring your AGI, see Expected AGI—Line 1 in chapter 2 of Pub. 505.

If you are self-employed, be sure to take into account the deduction for self-employment tax. Use the 2025 Self-Employment Tax and Deduction Worksheet for Lines 1 and 9 of the Estimated Tax Worksheet to figure the amount to subtract when figuring your expected AGI. This worksheet will also give you the amount to enter on line 9 of your estimated tax worksheet.

Line 7. Credits. See the 2024 Form 1040 or 1040-SR, line 19, and Schedule 3 (Form 1040), lines 1 through 6z, and the related instructions for the types of credits allowed.

Line 9. Self-employment tax. If you and your spouse make joint estimated tax payments and both of you have self-employment income, figure the self-employment tax

for each of you separately. Enter the total on line 9. When estimating your 2025 net earnings from self-employment, be sure to use only 92.35% (0.9235) of your total net profit from self-employment.

Line 10. Other taxes. Use the 2024 Instructions for Form 1040 to determine if you expect to owe, for 2025, any of the taxes that would have been entered on your 2024 Schedule 2 (Form 1040), line 8 through 12, 14 through 17z, and line 19 (see Exception 2, later). On line 10, enter the total of those taxes, subject to the following two exceptions.

Exception 1. Include household employment taxes from Schedule 2 (Form 1040), line 9, on this line only if:

You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income; or

You would be required to make estimated tax payments (to avoid a penalty) even if you didn’t include household employment taxes when figuring your estimated tax.

If you meet either of the above, include the total of your household employment taxes on line 10.

Exception 2. Because the following taxes are not required to be paid until the due date of your income tax (not including extensions), do not include them on line 10.

Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance (Schedule 2, line 13),

Form 1040-ES (2025)

5

2025 Self-Employment Tax and Deduction Worksheet for

Keep for Your Records

Lines 1 and 9 of the Estimated Tax Worksheet

1a. Enter your expected income and profits subject to self-employment tax*

1a.

b.If you will have farm income and also receive social security retirement or disability benefits, enter your expected Conservation Reserve Program payments that will be

 

included on Schedule F (Form 1040) or listed on Schedule K-1 (Form 1065)

b.

 

2.

. . . . . . . . . .Subtract line 1b from line 1a

2.

 

3.

. . . . . . . . . .Multiply line 2 by 92.35% (0.9235)

3.

 

4.

. . . . . . . . . . . . .Multiply line 3 by 2.9% (0.029)

. . . . . . . . . . . . . . . . .

5.

Social security tax maximum income

5.

$176,100

6.Enter your expected wages (if subject to social security tax or the 6.2% portion of

 

tier 1 railroad retirement tax)

6.

7.

Subtract line 6 from line 5

7.

 

Note. If line 7 is zero or less, enter -0- on line 9 and skip to line 10.

 

8.

Enter the smaller of line 3 or line 7

8.

9.

Multiply line 8 by 12.4% (0.124)

. . . . . . . . . . . . . . . . . .

10.

Add lines 4 and 9. Enter the result here and on line 9 of your 2025 Estimated Tax Worksheet

. . . . . . . . . . . . . . . . . .

11.

Multiply line 10 by 50% (0.50). This is your expected deduction for self-employment tax on

 

 

Schedule 1 (Form 1040), line 15. Subtract this amount when figuring your expected AGI on

11.

 

line 1 of your 2025 Estimated Tax Worksheet

4.

9.

10.

* Your net profit from self-employment is found on Schedule C (Form 1040), line 31; Schedule F (Form 1040), line 34; and Schedule K-1 (Form 1065), box 14, code A.

Recapture of federal mortgage subsidy (Schedule 2, line 17b),

Excise tax on excess golden parachute payments (Schedule 2, line 17k),

Excise tax on insider stock compensation from an expatriated corporation (Schedule 2, line 17m), and

Look-back interest under section 167(g) or 460(b) (Schedule 2, line 17n).

Additional Medicare Tax. For information about the Additional Medicare Tax, see the Instructions for Form 8959.

Net Investment Income Tax (NIIT). For information about the Net Investment Income Tax, see the Instructions for Form 8960.

Line 12b. Prior year's tax. Enter the 2024 tax you figure according to the instructions in Figuring your 2024 tax unless you meet one of the following exceptions.

If the AGI shown on your 2024 return is more than $150,000 ($75,000 if married filing separately for 2025), enter 110% of your 2024 tax as figured next.

Note. If at least two-thirds of your gross income for 2024 was from farming or fishing, this doesn't apply.

If you will file a joint return for 2025 but you didn’t file a joint return for 2024, add the tax shown on your 2024 return to the tax shown on your spouse's 2024 return and enter the total on line 12b.

If you filed a joint return for 2024 but you will not file a joint return for 2025, first figure the tax both you and your spouse would have paid had you filed separate returns for 2024 using the same filing status as for 2025. Then multiply the tax on the joint return by a fraction, the numerator being the tax you would have paid had you filed a separate return, over the total tax you and your spouse would have paid had you filed separate returns. Enter this amount on line 12b.

If you didn’t file a return for 2024 or your 2024 tax year was less than 12 full months, don’t complete line 12b. Instead, enter the amount from line 12a on line 12c.

Figuring your 2024 tax. Use the following instructions to figure your 2024 tax.

The tax shown on your 2024 Form 1040 or 1040-SR is the amount on Form 1040 or 1040-SR, line 24, reduced by:

1.Unreported social security and Medicare tax or RRTA tax from Schedule 2 (Form 1040), lines 5 and 6;

2.Any tax included on Schedule 2 (Form 1040), line 8, on excess contributions to an IRA, Archer MSA, Coverdell education savings account, health savings account, ABLE account, or on excess accumulations in qualified retirement plans;

3.Amounts on Schedule 2 (Form 1040) as listed under Exception 2, earlier; and

4.Any refundable credit amounts on Form 1040 or 1040-SR, lines 27, 28, and 29, and Schedule 3 (Form 1040), lines 9 and 12.

6

Form 1040-ES (2025)

2025 Tax Rate Schedules

Caution. Don’t use these Tax Rate Schedules to figure your 2024 taxes. Use only to figure your 2025 estimated taxes.

Schedule X—Use if your 2025 filing status is

 

Schedule Z—Use if your 2025 filing status is

 

 

Single

 

 

 

 

 

Head of household

 

 

 

 

If line 3

 

The tax is:

 

 

 

If line 3

 

The tax is:

 

 

 

is:

 

 

 

of the

is:

 

 

 

of the

 

But not

 

 

 

 

But not

 

 

 

Over—

 

 

 

amount

Over—

 

 

 

amount

over—

 

 

 

over—

over—

 

 

 

over—

$0

$11,925

$-----------1,192.50

+

10%

$0

$0

$17,000

$-----------1,700.00

+

10%

$0

11,925

48,475

+

12%

11,925

17,000

64,850

+

12%

17,000

48,475

103,350

5,578.50

+

22%

48,475

64,850

103,350

7,442.00

+

22%

64,850

103,350

197,300

17,651.00

+

24%

103,350

103,350

197,300

15,912.00

+

24%

103,350

197,300

250,525

40,199.00

+

32%

197,300

197,300

250,500

38,460.00

+

32%

197,300

250,525

626,350

57,231.00

+

35%

250,525

250,500

626,350

55,484.00

+

35%

250,500

626,350

-----------

188,769.75

+

37%

626,350

626,350

-----------

187,031.50

+

37%

626,350

Schedule Y-1— Use if your 2025 filing status is

 

Schedule Y-2—Use if your 2025 filing status is

 

Married filing jointly or Qualifying surviving spouse

Married filing separately

 

 

 

 

If line 3

 

The tax is:

 

 

 

If line 3

 

The tax is:

 

 

 

is:

 

 

 

 

of the

is:

 

 

 

 

of the

 

But not

 

 

 

 

But not

 

 

 

Over—

 

 

 

amount

Over—

 

 

 

amount

over—

 

 

 

over—

over—

 

 

 

over—

$0

$23,850

$-----------2,385.00

+

10%

$0

$0

$11,925

$1,192.50---------

+

10%

$0

23,850

96,950

+

12%

23,850

11,925

48,475

+

12%

11,925

96,950

206,700

11,157.00

+

22%

96,950

48,475

103,350

5,578.50

+

22%

48,475

206,700

394,600

35,302.00

+

24%

206,700

103,350

197,300

17,651.00

+

24%

103,350

394,600

501,050

80,398.00

+

32%

394,600

197,300

250,525

40,199.00

+

32%

197,300

501,050

751,600

114,462.00

+

35%

501,050

250,525

375,800

57,231.00

+

35%

250,525

751,600

---------

202,154.50

+

37%

751,600

375,800

-----------

101,077.25

+

37%

375,800

2025 Estimated Tax Worksheet for Filers of Form 1040-SS

Keep for Your Records

1.Complete lines 1 through 10 of the 2025 Self-Employment Tax and Deduction Worksheet and enter the amount from

 

line 10

1.

2.

Household employment taxes and the Additional Medicare Tax

2.

3.

Add lines 1 and 2

3.

4.

Bona fide residents of Puerto Rico only, enter the amount of your additional child tax credit (if any)

4.

5.Subtract line 4 from line 3. If less than the sum of $1,000 and household employment taxes, no payment is

 

required

5.

6a.

Multiple line 5 by 90% (66 2/3% for farming and fishing)

6a.

 

 

b.

Enter the tax amount from your 2024 tax return (the amount from Form 1040-SS, line 7 minus the sum of Form

6b.

 

1040-SS, lines 9 through 11b)

c.

Enter the smaller of line 6a or 6b (minus the expected amount of Additional Medicare Tax withholding). This is the

 

 

6c.

 

annual payment you must make

 

 

Caution: Generally, if you do not prepay at least the amount shown on line 6c, you may owe a penalty for not paying enough estimated tax. To avoid a penalty, make sure your estimate on line 1 is as accurate as possible. If you are not sure of the amount of estimated tax, and line 6a is smaller than line 6b, it would be convenient for you to pay an amount of at least the amount shown on line 6b. Even if you pay the required annual payment, you may still owe tax when you file your return. If you prefer, you can pay the amount shown on line 1. For details, see chapter 2 of Pub. 505.

7.Amount of the installments. If the first payment you are required to make is due April 15, 2025, enter ¼ of line 6c (minus any 2024 overpayment that you are applying to this installment) here, and on your estimated tax payment voucher(s) if you are paying by check or money order. (Even when you are not required to make the payment due on April 15, 2025, your economic situation might change in a way that you might need to present a payment voucher and make a payment in the future. See Annualized Income Installment Method in chapter 2 of Pub. 505, for

more information.)

7.

 

 

 

 

 

 

 

 

 

 

Form 1040-ES (2025)

7

2025 Estimated Tax Worksheet

Keep for Your Records

1

Adjusted gross income you expect in 2025 (see instructions)

2a

Deductions

 

• If you plan to itemize deductions, enter the estimated total of your itemized deductions.

 

• If you don’t plan to itemize deductions, enter your standard deduction.

bIf you can take the qualified business income deduction, enter the estimated amount of the deduction

c Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 Subtract line 2c from line 1 . . . . . . . . . . . . . . . . . . . . . . . . .

4Tax. Figure your tax on the amount on line 3 by using the 2025 Tax Rate Schedules.

Caution: If you will have qualified dividends or a net capital gain, or expect to exclude or deduct foreign earned income or housing, see Worksheets 2-5 and 2-6 in Pub. 505 to figure the tax . . . . . .

5 Alternative minimum tax from Form 6251 . . . . . . . . . . . . . . . . . . . .

6Add lines 4 and 5. Add to this amount any other taxes you expect to include in the total on Form 1040

or 1040-SR, line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

Credits (see instructions). Do not include any income tax withholding on this line

8

Subtract line 7 from line 6. If zero or less, enter -0-

9

Self-employment tax (see instructions)

10

Other taxes (see instructions)

11a

Add lines 8 through 10

bEarned income credit, additional child tax credit, fuel tax credit, net premium tax credit, refundable

 

American opportunity credit, and section 1341 credit

c

Total 2025 estimated tax. Subtract line 11b from line 11a. If zero or less, enter -0-

12a

Multiply line 11c by 90% (662/3% for farming and fishing)

 

12a

 

 

 

b

Required annual payment based on prior year’s tax (see instructions) . . .

 

12b

 

cRequired annual payment to avoid a penalty. Enter the smaller of line 12a or 12b . . . . . .

Caution: Generally, if you do not prepay (through income tax withholding and estimated tax payments) at least the amount on line 12c, you may owe a penalty for not paying enough estimated tax. To avoid a penalty, make sure your estimate on line 11c is as accurate as possible. Even if you pay the required annual payment, you may still owe tax when you file your return. If you prefer, you can pay the amount shown on line 11c. For details, see chapter 2 of Pub. 505.

13Income tax withheld and estimated to be withheld during 2025 (including income tax withholding on pensions, annuities, certain deferred income, and Additional Medicare Tax withholding) . . . . .

14a

Subtract line 13 from line 12c

14a

 

 

Is the result zero or less?

 

 

 

Yes. Stop here. You are not required to make estimated tax payments.

 

 

 

No. Go to line 14b.

 

 

b

Subtract line 13 from line 11c

14b

 

 

Is the result less than $1,000?

 

 

Yes. Stop here. You are not required to make estimated tax payments.

No. Go to line 15 to figure your required payment.

15If the first payment you are required to make is due April 15, 2025, enter ¼ of line 14a (minus any 2024 overpayment that you are applying to this installment) here, and on your estimated tax payment

voucher(s) if you are paying by check or money order . . . . . . . . . . . . . . . .

1

2a

2b

2c

3

4

5

6

7

8

9

10

11a

11b

11c

12c

13

15

Form 1040-ES (2025)

-8-

Record of Estimated Tax Payments (Farming, fishing, and fiscal year taxpayers, see Payment Due Dates.)

Keep for Your Records

Payment number

Payment

 

 

(c) Check or

(d) Amount paid

(e) 2024

(f) Total amount

(a) Amount

(b) Date

money order number, or

due

(do not include

overpayment

paid and credited

due

paid

credit or debit card

date

any convenience fee)

credit applied

(add (d) and (e))

 

 

confirmation number

 

 

 

 

 

 

 

 

1

4/15/2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

6/16/2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

9/15/2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

1/15/2026*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

*You do not have to make this payment if you file your 2025 tax return by February 2, 2026, and pay the entire balance due with your return.

Privacy Act and Paperwork Reduction Act Notice. We ask for this information to carry out the tax laws of the United States. We need it to figure and collect the right amount of tax. Our legal right to ask for this information is Internal Revenue Code section 6654, which requires that you pay your taxes in a specified manner to avoid being penalized. Additionally, sections 6001, 6011, and 6012(a) and their regulations require you to file a return or statement for any tax for which you are liable; section 6109 requires you to provide your identifying number. Failure to provide this information, or providing false or fraudulent information, may subject you to penalties.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as stated in Code section 6103.

We may disclose the information to the Department of Justice for civil and criminal litigation and to other federal agencies, as provided by law.

We may disclose it to cities, states, the District of Columbia, and U.S. commonwealths or territories to carry out their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.

If you do not file a return, do not give the information asked for, or give fraudulent information, you may be charged penalties and be subject to criminal prosecution.

Please keep this notice with your records. It may help you if we ask you for other information. If you have any questions about the rules for filing and giving information, please call or visit any Internal Revenue Service office.

The average time and expenses required to complete and file this form will vary depending on individual circumstances. For the estimated averages, see the instructions for your income tax return.

If you have suggestions for making this package simpler, we would be happy to hear from you. See the instructions for your income tax return.

-9-

Form 1040-ES (2025)

Need to make a payment?

Save time by paying online. Paying online is convenient and secure.

The IRS offers easy ways to electronically pay your taxes.

Use Your

 

Pay by

Online Account

 

Bank Account

(no fees)

 

(no fees)

 

 

 

Pay by

Card

(processing fees apply)

Go to www.irs.gov/Account to login and make a payment.

Make a tax payment online directly from your checking or savings account.

View your balance, payment plan details and options, digital copies of certain notices, and more.

Use Direct Pay online to make an individual tax payment from your checking or savings account without registration.

Register for the Electronic Federal Tax Payment System (EFTPS) to make one-time or recurring payments from your checking or savings account.

When you e-file with tax software or a tax professional, you can schedule an electronic funds withdrawal (EFW).

Pay online or by phone.

When e-filing pay through tax preparation software.

Processing fees go to a payment processor and limits apply. The IRS does not receive any fees.

Go to www.irs.gov/Payments for more details or to make a payment.

Separate here.

Pay online at www.irs.gov/ etpay

Simple.

Fast.

Secure.

Form

1040-ES

 

 

2025 Estimated Tax

Payment

4

OMB No. 1545-0074

 

Internal Revenue Service

 

 

Voucher

 

 

Department of the Treasury

 

 

 

 

 

 

 

 

 

 

File only if you are making a payment of estimated tax by check or money order. Mail this

Calendar year—Due Jan. 15, 2026

 

 

 

 

 

 

voucher with your check or money order payable to “United States Treasury.” Write your

Amount of estimated tax you are paying

social security number and “2025 Form 1040-ES” on your check or money order. Do not send

by check or

 

 

 

 

cash. Enclose, but do not staple or attach, your payment with this voucher.

money order.

 

 

 

 

 

 

 

 

 

 

 

 

Your first name and middle initial

Your last name

 

 

Your social security number

 

 

 

 

 

 

 

 

 

 

If joint payment, complete for spouse

 

 

 

 

 

 

 

 

 

 

 

 

 

 

or type

Spouse’s first name and middle initial

Spouse’s last name

 

 

Spouse’s social security number

 

 

 

 

 

 

 

 

 

 

 

Address (number, street, and apt. no.)

 

 

 

 

 

 

 

Print

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

City, town, or post office. If you have a foreign address, also complete spaces below.

State

 

 

 

ZIP code

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign country name

 

Foreign province/county

 

 

Foreign postal code

 

 

 

 

 

 

 

 

 

 

 

 

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see instructions.

Form 1040-ES (2025)

-10-

Document Data

Fact Name Description
Purpose The IRS 1040-ES form is used by individuals to estimate and pay their federal income tax for the current tax year.
Who Should Use It? Self-employed individuals, freelancers, and anyone who expects to owe tax of $1,000 or more when filing their return should consider using this form.
Filing Frequency Estimated taxes are typically paid quarterly, with due dates falling in April, June, September, and January of the following year.
Payment Methods Taxpayers can pay their estimated taxes online, via check, or through various electronic payment methods approved by the IRS.
State-Specific Forms Many states have their own estimated tax forms, governed by state tax laws. For example, California uses Form 540-ES, governed by the California Revenue and Taxation Code.
Penalties If you do not pay enough tax through estimated payments, you may face penalties. It’s essential to calculate your estimated tax accurately to avoid surprises.

How to Use IRS 1040-ES

Completing the IRS 1040-ES form is an important step for individuals who need to make estimated tax payments. This form helps you calculate and pay your estimated taxes for the year. By following the steps below, you can ensure that you fill out the form accurately and submit it on time.

  1. Gather necessary documents, including your previous year's tax return, income statements, and any other relevant financial information.
  2. Locate the IRS 1040-ES form on the IRS website or through your tax software. Ensure you have the correct version for the current tax year.
  3. Fill in your personal information at the top of the form. This includes your name, address, and Social Security number.
  4. Estimate your total income for the year. Use your previous year's income as a reference if necessary.
  5. Calculate your estimated tax liability. This may involve applying the current tax rates to your estimated income and considering any deductions or credits you may qualify for.
  6. Determine your total estimated tax payments for the year. Divide this amount by the number of payment periods (usually four) to find out how much you need to pay each quarter.
  7. Complete the payment voucher included with the form. Ensure that you indicate the correct payment period for your estimated tax payment.
  8. Review the entire form for accuracy and completeness. Double-check your calculations and personal information.
  9. Submit the form and payment to the IRS by the due date. You can mail the form or make payments electronically, depending on your preference.

Following these steps will help you complete the IRS 1040-ES form correctly. Make sure to keep a copy for your records, as you may need it for future reference or when filing your tax return.

Key Facts about IRS 1040-ES

What is the IRS 1040-ES form?

The IRS 1040-ES form is used by individuals to estimate and pay their quarterly income tax. It is particularly relevant for self-employed individuals, freelancers, and anyone else who does not have taxes withheld from their income. This form helps taxpayers calculate their estimated tax liability for the year and make payments accordingly.

Who needs to file the 1040-ES?

Individuals who expect to owe tax of $1,000 or more when they file their tax return should file the 1040-ES. This includes self-employed individuals, those with rental income, and anyone who has other sources of income that are not subject to withholding. If you do not meet this threshold, you may not need to file.

How do I calculate my estimated tax payments?

To calculate your estimated tax payments, start by estimating your total income for the year. Deduct any applicable expenses and exemptions to arrive at your taxable income. Then, apply the current tax rates to determine your estimated tax liability. Divide this amount by four to find your quarterly payment. The IRS provides a worksheet in the 1040-ES instructions to assist with these calculations.

When are the payments due?

Estimated tax payments are generally due on the 15th of April, June, September, and January of the following year. If the due date falls on a weekend or holiday, the payment is due on the next business day. It is essential to pay on time to avoid penalties and interest.

Can I pay my estimated taxes online?

Yes, you can pay your estimated taxes online through the IRS website. The IRS offers several options, including direct debit from your bank account or using a credit or debit card. You can also use the Electronic Federal Tax Payment System (EFTPS) for making payments.

What happens if I underpay my estimated taxes?

If you underpay your estimated taxes, you may incur penalties and interest charges. The IRS generally assesses a penalty if you owe more than $1,000 when you file your return and did not pay at least 90% of your current year’s tax or 100% of your prior year’s tax. It is important to review your payments regularly to avoid underpayment.

Can I change my estimated tax payments during the year?

Yes, you can adjust your estimated tax payments at any time during the year if your income or tax situation changes. If you find that your income is higher or lower than initially expected, you can recalculate your estimated payments and submit the new amounts accordingly.

Where do I send my 1040-ES payments?

The mailing address for your 1040-ES payments depends on your location and whether you are sending a payment with a voucher or not. The IRS provides specific addresses for different states on the 1040-ES instructions. Ensure you check the correct address to avoid delays in processing your payment.

Common mistakes

Filling out the IRS 1040-ES form can be a daunting task for many taxpayers. This form is used to estimate and pay quarterly taxes, but mistakes can lead to penalties or unexpected tax bills. Here are nine common errors people often make when completing this form.

One frequent mistake is not accurately estimating income. Many individuals base their estimates on previous years’ income without considering changes in their current situation. This can lead to either underpayment or overpayment of taxes. It’s essential to review your current financial status carefully.

Another common error is neglecting to account for all sources of income. People sometimes forget to include side jobs, freelance work, or investment income. Every dollar counts, and failing to report all income can result in penalties later on.

Some taxpayers also miscalculate their deductions. It’s easy to overlook specific deductions or credits that could significantly lower tax liability. Familiarizing yourself with available deductions can help ensure that you’re not leaving money on the table.

People often forget to adjust their payments based on changes in tax law. Tax laws can change from year to year, affecting how much you owe. Staying informed about these changes can help you make more accurate estimates.

Additionally, some individuals do not keep track of their payments. It’s crucial to document when and how much you’ve paid towards your estimated taxes. This record can help prevent overpayment and ensure that you don’t miss any deadlines.

Another mistake is failing to file on time. The IRS has strict deadlines for estimated tax payments, and missing these can lead to penalties. Marking your calendar with due dates can help you stay on track.

Many taxpayers also forget to sign and date the form. While it may seem minor, an unsigned form is considered incomplete and can cause delays in processing. Always double-check that you’ve signed and dated your submission.

Some individuals mistakenly believe that filing the 1040-ES form is optional. However, if you expect to owe more than a certain amount in taxes, making estimated payments is not just advisable; it’s required. Understanding your tax obligations can help avoid unnecessary penalties.

Lastly, people often fail to seek help when needed. Tax laws can be complex, and it’s okay to ask for assistance. Consulting with a tax professional can provide clarity and ensure that you’re filling out the form correctly.

Documents used along the form

The IRS 1040-ES form is used for estimating and paying your federal income tax throughout the year. While this form is crucial for many taxpayers, there are several other documents that often accompany it. Understanding these forms can help ensure that you are fully prepared for tax season and can assist in managing your tax obligations effectively.

  • IRS Form 1040: This is the standard individual income tax return form. It summarizes your income, deductions, and credits to determine your overall tax liability.
  • IRS Form W-2: Employers provide this form to report wages paid to employees and the taxes withheld. It is essential for filling out your 1040 accurately.
  • IRS Form 1099: This form is used to report various types of income other than wages, salaries, and tips. Freelancers and contractors often receive this form from clients.
  • IRS Schedule C: If you are self-employed, this form reports income and expenses from your business. It helps determine your net profit or loss.
  • IRS Schedule SE: This form is used to calculate self-employment tax. If you have self-employment income, you’ll need to file this along with your 1040.
  • IRS Form 4868: If you need more time to file your tax return, this form allows you to request an extension. It’s important to remember that it does not extend the time to pay any taxes owed.
  • IRS Form 8889: If you have a Health Savings Account (HSA), this form is necessary to report contributions and distributions, which can affect your tax situation.

Being aware of these forms can simplify your tax preparation process. They help you gather necessary information, ensure compliance, and ultimately support your financial well-being. Always consider consulting with a tax professional if you have questions about your specific situation.

Similar forms

The IRS 1040-ES form is used for estimated tax payments. It shares similarities with several other tax-related documents. Here are four documents that are comparable to the 1040-ES:

  • Form 1040: This is the standard individual income tax return form. Like the 1040-ES, it is used to report income and calculate taxes owed, but the 1040 is filed annually, while the 1040-ES is for estimated quarterly payments.
  • Form 1040-V: This is a payment voucher that accompanies your tax payment when filing Form 1040. Similar to the 1040-ES, it facilitates the payment process, ensuring that payments are properly credited to your account.
  • Form 4868: This is an application for an automatic extension of time to file your tax return. Both forms deal with timing and payment, allowing taxpayers to manage their obligations without incurring penalties for late filing.
  • Form W-4: This form is used to determine the amount of federal income tax withheld from your paycheck. Like the 1040-ES, it helps individuals manage their tax liabilities throughout the year, ensuring they pay enough to avoid a large tax bill at year-end.

Dos and Don'ts

When filling out the IRS 1040-ES form, it is important to follow certain guidelines to ensure accuracy and compliance. Here are some key do's and don'ts to keep in mind:

  • Do make sure to estimate your income accurately. This will help you avoid underpayment penalties.
  • Do use the most recent tax rates and guidelines provided by the IRS. Keeping up to date will ensure your calculations are correct.
  • Don't forget to include all sources of income. This includes wages, self-employment income, and any other earnings.
  • Don't neglect to double-check your math. Simple errors can lead to significant issues later on.

By adhering to these guidelines, you can confidently complete your IRS 1040-ES form and stay on track with your tax obligations.

Misconceptions

The IRS 1040-ES form is an important document for taxpayers who need to pay estimated taxes. However, several misconceptions exist regarding its purpose and usage. Below is a list of common misunderstandings about the 1040-ES form:

  • Only self-employed individuals need to file Form 1040-ES. Many people believe that only those who are self-employed are required to use this form. In reality, anyone who expects to owe tax of $1,000 or more when filing their return may need to make estimated tax payments, including retirees and investors.
  • Form 1040-ES is only for individuals. While this form is primarily designed for individual taxpayers, certain estates and trusts may also need to file estimated taxes using this form if they expect to owe taxes.
  • Estimated taxes are only for the wealthy. This misconception suggests that only high-income earners need to worry about estimated taxes. However, anyone with income that is not subject to withholding—such as freelance work, rental income, or dividends—may need to pay estimated taxes, regardless of their overall income level.
  • Filing Form 1040-ES is optional. Some taxpayers think that filing this form is merely a suggestion. In fact, if you do not pay enough estimated tax throughout the year, you may face penalties when you file your annual tax return.
  • Payments made on Form 1040-ES are final. Many believe that once they submit their estimated payments, they cannot change them. However, taxpayers can adjust their estimated payments based on changes in income or deductions throughout the year.
  • Form 1040-ES only needs to be filed once a year. This is a common misunderstanding. In fact, estimated taxes are typically due quarterly, and taxpayers must file Form 1040-ES four times a year to stay compliant.
  • All taxpayers can use the same calculation method for estimated taxes. While some taxpayers may use the prior year’s tax liability to estimate payments, others may need to calculate their expected current year tax liability. Different situations call for different calculation methods.

Understanding these misconceptions can help taxpayers navigate their obligations more effectively and avoid potential penalties. It is always advisable to seek guidance if there are uncertainties about tax responsibilities.

Key takeaways

The IRS 1040-ES form is essential for individuals who need to make estimated tax payments. Below are key takeaways regarding its use and completion.

  • The form is specifically designed for taxpayers who expect to owe tax of $1,000 or more when filing their annual return.
  • It is important to determine your estimated tax liability accurately to avoid underpayment penalties.
  • The form includes payment vouchers that can be mailed along with your estimated tax payments.
  • Taxpayers can choose to make payments quarterly, with deadlines typically falling in April, June, September, and January of the following year.
  • Using the form allows individuals to calculate their estimated tax based on income, deductions, and credits expected for the year.
  • Online payment options are available, providing a convenient alternative to mailing checks.
  • Keep a copy of the completed form and payment records for your files, as they may be needed for future reference or in case of an audit.