The IRS 1040-ES form is a document used by individuals to estimate and pay their taxes on income that isn't subject to withholding. This includes earnings from self-employment, interest, dividends, and other sources. For those who need to manage their tax payments throughout the year, it's crucial to understand how to properly fill out and submit this form. Ready to take the next step? Click the button below to begin filling out your form.
Navigating the landscape of taxes can often feel like traversing a labyrinth, particularly when encountering the IRS 1040-ES form for the first time. This form serves as a cornerstone for individuals who earn income not subject to tax withholding, including freelancers, entrepreneurs, and investors, among others. It's designed to facilitate the payment of estimated taxes on a quarterly basis, ensuring taxpayers meet their obligations and avoid potential fines for underpayment. The essence of the 1040-ES lies not only in its role as a financial planning tool but also in its capacity to guide taxpayers in calculating their estimated tax liability. This calculation encompasses various types of income such as wages, dividends, and interest, demanding a thorough understanding of one's financial landscape. Furthermore, the form includes instructions that help taxpayers determine the correct amount to pay each quarter, making it an invaluable asset in managing one's tax responsibilities proactively.
2023
Form 1040-ES
Department of the Treasury
Internal Revenue Service
Estimated Tax for Individuals
Purpose of This Package
Farmers and fishermen. If at least two-thirds of your
Use Form 1040-ES to figure and pay your estimated tax
gross income for 2022 or 2023 is from farming or fishing,
for 2023.
substitute 662/3% for 90% in (2a) under General Rule.
Estimated tax is the method used to pay tax on income
Household employers. When estimating the tax on your
2023 tax return, include your household employment
that isn’t subject to withholding (for example, earnings
taxes if either of the following applies.
from self-employment, interest, dividends, rents, alimony,
• You will have federal income tax withheld from wages,
etc.). In addition, if you don’t elect voluntary withholding,
you should make estimated tax payments on other
pensions, annuities, gambling winnings, or other income.
• You would be required to make estimated tax payments
taxable income, such as unemployment compensation
and the taxable part of your social security benefits.
to avoid a penalty even if you didn’t include household
employment taxes when figuring your estimated tax.
Change of address. If your address has changed, file
Higher income taxpayers. If your adjusted gross
Form 8822, to update your record.
income (AGI) for 2022 was more than $150,000 ($75,000
Future developments. For the latest information about
if your filing status for 2023 is married filing separately),
developments related to Form 1040-ES and its
substitute 110% for 100% in (2b) under General Rule,
instructions, such as legislation enacted after they were
earlier. This rule doesn’t apply to farmers or fishermen.
published, go to IRS.gov/Form1040ES.
Increase Your Withholding
Who Must Make Estimated Tax
If you also receive salaries and wages, you may be able to
Payments
avoid having to make estimated tax payments on your
The estimated tax rules apply to:
other income by asking your employer to take more tax
•
U.S. citizens and resident aliens;
out of your earnings. To do this, file a new Form W-4,
Residents of Puerto Rico, the U.S. Virgin Islands,
Employee's Withholding Certificate, with your employer.
Guam, the Commonwealth of the Northern Mariana
Generally, if you receive a pension or annuity you can
Islands, and American Samoa; and
use Form W-4P, Withholding Certificate for Periodic
Nonresident aliens (use Form 1040-ES (NR)).
Pension or Annuity Payments, to start or change your
General Rule
withholding from these payments.
You can also choose to have federal income tax
In most cases, you must pay estimated tax for 2023 if both
withheld from certain government payments (see Form
of the following apply.
W-4V, Voluntary Withholding Request) or from
1. You expect to owe at least $1,000 in tax for 2023,
nonperiodic payments and eligible rollover distributions
after subtracting your withholding and refundable credits.
(see Form W-4R, Withholding Certificate for Nonperiodic
2. You expect your withholding and refundable credits
Payments and Eligible Rollover Distributions).
to be less than the smaller of:
You can use the Tax Withholding Estimator at
or
a. 90% of the tax to be shown on your 2023 tax return,
TIP
IRS.gov/W4App to determine whether you need
b. 100% of the tax shown on your 2022 tax return.
to have your withholding increased or decreased.
Additional Information You May Need
Your 2022 tax return must cover all 12 months.
Note. These percentages may be different if you are a
You can find most of the information you will need in Pub.
505, Tax Withholding and Estimated Tax, and in the
farmer, fisherman, or higher income taxpayer. See
instructions for the 2022 Form 1040 and 1040-SR.
Special Rules, later.
For details on how to get forms and publications, see
Exception. You don’t have to pay estimated tax for 2023
the 2022 Instructions for Form 1040.
if you were a U.S. citizen or resident alien for all of 2022
and you had no tax liability for the full 12-month 2022 tax
What's New
year. You had no tax liability for 2022 if your total tax was
In figuring your 2023 estimated tax, be sure to consider
zero or you didn’t have to file an income tax return.
the following.
Special Rules
There are special rules for farmers, fishermen, certain household employers, and certain higher income taxpayers.
Standard deduction amount increased. For 2023, the standard deduction amount has been increased for all filers. If you don't itemize your deductions, you can take the 2023 standard deduction listed in the following chart for your filing status.
Nov 02, 2022
Cat. No. 11340T
IF your 2023 filing status is...
THEN your standard
deduction is...
Married filing jointly or
$27,700
Qualifying surviving spouse
Head of household
$20,800
Single or Married filing separately
$13,850
However, if you can be claimed as a dependent on
another person's 2023 return, your standard deduction is
the greater of:
$1,250, or
Your earned income plus $400 (up to the standard
deduction amount).
Your standard deduction is increased by the following
amount if, at the end of 2023, you are:
An unmarried individual (single or head of household)
and are:
65 or older or blind
$1,850
65 or older and blind
$3,700
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.
Access Your Online Account (Individual Taxpayers Only)
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, your economic impact payment amounts, and transcripts.
• View digital copies of select notices from the IRS.
• Approve or reject authorization requests from tax professionals.
• Update your address or manage your communication preferences.
•A married individual (filing jointly or separately) or a qualifying surviving spouse and are:
$1,500
$3,000
Both spouses 65 or older
$3,000*
Both spouses 65 or older and blind
$6,000*
*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 2023.
Social security tax. For 2023, the maximum amount of earned income (wages and net earnings from self-employment) subject to the social security tax is $160,200.
Adoption credit or exclusion. For 2023, the maximum adoption credit or exclusion for employer-provided adoption benefits has increased to $15,950. In order to claim either the credit or exclusion, your modified adjusted gross income must be less than $279,230.
Reminders
Individual taxpayer identification number (ITIN) re- newal. If you were assigned an ITIN before January 1, 2013, or if you have an ITIN that you haven’t included on a tax return in the last 3 consecutive years, you may need to renew it. 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
How To Figure Your Estimated Tax
You will need:
• The 2023 Estimated Tax Worksheet,
• The Instructions for the 2023 Estimated Tax Worksheet,
• The 2023 Tax Rate Schedules, and
• Your 2022 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.
You can’t make joint estimated tax payments if
you or your spouse is a nonresident alien, you are
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 18, 2023, or in four equal amounts by the dates shown below.
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Form 1040-ES (2023)
1st payment
April 18, 2023
2nd payment
June 15, 2023
3rd payment
Sept. 15, 2023
4th payment
Jan. 16, 2024*
*You don’t have to make the payment due January 16, 2024, if you file your 2023 tax return by January 31, 2024, 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, 2023, 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 2023 tax return even if no penalty is owed.
Farmers and fishermen. If at least two-thirds of your gross income for 2022 or 2023 is from farming or fishing, you can do one of the following.
• Pay all of your estimated tax by January 16, 2024.
• File your 2023 Form 1040 or 1040-SR by March 1, 2024, and pay the total tax due. In this case, 2023 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 2023 paper tax return. On the statement, show all of the estimated tax payments you (and your spouse, if filing jointly) made for 2023 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 2023 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
To change or amend your estimated tax payments, refigure your total estimated tax payments due (see the 2023 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. A penalty may apply even if you have an overpayment on your tax return.
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.
You can pay using any of the following methods.
• Your Online Account. You can now 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.
• Pay by Card. To pay by debit or credit card, go to IRS.gov/Payments. A convenience fee is charged by these service providers.
• 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/Payments.
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Once you complete the online process, you will receive immediate notification of whether your agreement has been approved. A user fee is charged.
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). Debit or credit card. Call one of our service providers. Each charges a fee that varies by provider, card type, and payment amount.
ACI Payments, Inc.
888-UPAY-TAXTM (888-872-9829) fed.acipayonline.com
Link2Gov Corporation
888-PAY-1040TM (888-729-1040) www.PAY1040.com
WorldPay US, Inc.
844-PAY-TAX-8TM (844-729-8298) www.payUSAtax.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
Cash is an in-person payment option for individuals provided through retail partners with a maximum of $1,000 per day per transaction. To make a cash payment, you must first be registered online at fed.acipayonline.com, our official payment provider. 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 2022 overpayment that you choose to credit against your 2023 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 “2023 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 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.
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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
A foreign country, American Samoa,
shown below for the place where you live. Do not mail your tax return to this address or
or Puerto Rico (or are excluding
P.O. Box 1303
send an estimated tax payment without a payment voucher. Also, do not mail your
income under Internal Revenue Code
Charlotte, NC 28201-1303
estimated tax payments to the address shown in the Form 1040 instructions. If you
933), or use an APO or FPO address,
need more payment vouchers, you can make a copy of one of your unused vouchers.
or file Form 2555 or 4563, or are a
dual-status alien or nonpermanent
resident of Guam or the U.S. Virgin
Islands
Caution: For proper delivery of your estimated tax payment to a P.O. box, you must
Guam:
Department of
include the box number in the address. Also, note that only the U.S. Postal Service can
Bona fide residents*
Revenue and Taxation
deliver to P.O. boxes. Therefore, you cannot use a private delivery service to make
Government of Guam
estimated tax payments required to be sent to a P.O. box.
P.O. Box 23607
GMF, GU 96921
IF you live in . . .
THEN send it to . . .
U.S. Virgin Islands:
Virgin Islands Bureau
of Internal Revenue
6115 Estate Smith Bay
Suite 225
St. Thomas, VI 00802
Alabama, Arizona, Florida, Georgia,
Louisiana, Mississippi, New Mexico,
P.O. Box 1300
North Carolina, South Carolina,
Charlotte, NC 28201-1300
Tennessee, Texas
Arkansas, Connecticut, Delaware,
District of Columbia, Illinois, Indiana,
P.O. Box 931100
Iowa, Kentucky, Maine, Maryland,
Louisville, KY 40293-1100
Massachusetts, Minnesota, Missouri,
New Hampshire, New Jersey, New
York, Oklahoma, Rhode Island,
Vermont, Virginia, West Virginia,
Wisconsin
Alaska, California, Colorado, Hawaii,
Idaho, Kansas, Michigan, Montana,
P.O. Box 802502
Nebraska, Nevada, Ohio, Oregon,
Cincinnati, OH 45280-2502
North Dakota, Pennsylvania, South
Dakota, Utah, Washington, Wyoming
*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 2023 Estimated Tax Worksheet
Line 1. Adjusted gross income. When figuring the adjusted gross income you expect in 2023, 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 2023 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 2022 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 2023 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 2022 Instructions for Form 1040 to determine if you expect to owe, for 2023, any of the taxes that would have been entered on your 2022 Schedule 2 (Form 1040), line 8 through 12 and 14 through 17z (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),
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2023 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
3.
. . . . . . . . . .Multiply line 2 by 92.35% (0.9235)
4.
. . . . . . . . . . . . .Multiply line 3 by 2.9% (0.029)
. . . . . . . . . . . . . . . . .
5.
Social security tax maximum income
$160,200
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
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
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 2023 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
line 1 of your 2023 Estimated Tax Worksheet
*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.
Repayment of first-time homebuyer credit. You must repay the first-time homebuyer credit if you bought the home in 2008.
For details about repaying the first-time homebuyer credit, see the Instructions for Form 5405.
Line 12b. Prior year's tax. Enter the 2022 tax you figure according to the instructions in Figuring your 2022 tax unless you meet one of the following exceptions.
• If the AGI shown on your 2022 return is more than $150,000 ($75,000 if married filing separately for 2023), enter 110% of your 2022 tax as figured next.
Note. This doesn’t apply to farmers or fishermen.
• If you will file a joint return for 2023 but you didn’t file a joint return for 2022, add the tax shown on your 2022 return to the tax shown on your spouse's 2022 return and enter the total on line 12b.
•If you filed a joint return for 2022 but you will not file a joint return for 2023, first figure the tax both you and your spouse would have paid had you filed separate returns for 2022 using the same filing status as for 2023. 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 2022 or your 2022 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 2022 tax. Use the following instructions to figure your 2022 tax.
The tax shown on your 2022 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, 12, 13b, 13d, and 13h.
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2023 Tax Rate Schedules
Caution. Don’t use these Tax Rate Schedules to figure your 2022 taxes. Use only to figure your 2023 estimated taxes.
Schedule X—Use if your 2023 filing status is
Schedule Z—Use if your 2023 filing status is
Single
If line 3
The tax is:
is:
of the
But not
Over—
amount
over—
$0
$11,000
$-----------1,100.00
+
10%
$15,700
$-----------1,570.00
11,000
44,725
12%
15,700
59,850
95,375
5,147.00
22%
95,350
6,868.00
182,100
16,290.00
24%
14,678.00
231,250
37,104.00
32%
35,498.00
578,125
52,832.00
35%
578,100
51,226.00
-----------
174,238.25
37%
172,623.50
Schedule Y-1— Use if your 2023 filing status is
Schedule Y-2—Use if your 2023 filing status is
Married filing jointly or Qualifying surviving spouse
Married filing separately
$22,000
$-----------2,200.00
$1,100.00---------
22,000
89,450
190,750
10,294.00
364,200
32,580.00
462,500
74,208.00
693,750
105,664.00
346,875
---------
186,601.50
93,300.75
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2023 Estimated Tax Worksheet
1
Adjusted gross income you expect in 2023 (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 2023 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 2023 estimated tax. Subtract line 11b from line 11a. If zero or less, enter -0-
12a
Multiply line 11c by 90% (662/3% for farmers and fishermen)
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 2023 (including income tax withholding on
pensions, annuities, certain deferred income, etc.)
14a
Subtract line 13 from line 12c
Is the result zero or less?
Yes. Stop here. You are not required to make estimated tax payments.
No. Go to line 14b.
Subtract line 13 from line 11c
14b
Is the result less than $1,000?
No. Go to line 15 to figure your required payment.
15If the first payment you are required to make is due April 18, 2023, enter ¼ of line 14a (minus any 2022 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 . . . . . . . . . . . . . . . .
2b
2c
3
4
5
6
11b
11c
12c
13
15
-8-
Record of Estimated Tax Payments (Farmers, fishermen, and fiscal year taxpayers, see Payment Due Dates.)
Payment number
Payment
(c) Check or
(d) Amount paid
(e) 2022
(f) Total amount
(a) Amount
(b) Date
money order number, or
due
(do not include
overpayment
paid and credited
paid
credit or debit card
date
any convenience fee)
credit applied
(add (d) and (e))
confirmation number
4/18/2023
2
6/15/2023
9/15/2023
1/16/2024*
Total
* You do not have to make this payment if you file your 2023 tax return by January 31, 2024, 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 possessions 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.
Tear off here
Pay online at www.irs.gov/ etpay
Simple.
Fast.
Secure.
Form
1040-ES
2023 Estimated Tax
OMB No. 1545-0074
Voucher
File only if you are making a payment of estimated tax by check or money order. Mail this
Calendar year—Due Jan. 16, 2024
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 “2023 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 Privacy Act and Paperwork Reduction Act Notice, see instructions.
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When you're required to pay estimated taxes, the IRS 1040-ES form is how you'll do it. This process involves calculating your expected adjusted gross income, taxable income, deductions, and credits for the year. Whether you're self-employed, have significant investment income, or other earnings without withholdings, this form is crucial.
Successfully submitting your IRS 1040-ES form helps ensure you're covering your tax liability throughout the year, avoiding underpayment penalties. It's advisable to review and, if necessary, adjust your estimated taxes each quarter to reflect any changes in income or deductions. This approach helps maintain accurate payments and financial peace of mind.
What is the IRS 1040-ES form used for?
The IRS 1040-ES form is utilized by individuals to figure and pay their estimated tax on income that is not subject to withholding. This includes earnings from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Essentially, if you do not have taxes automatically withheld from your income, you may need to make estimated tax payments using the 1040-ES form.
Who needs to file the IRS 1040-ES form?
Individuals who expect to owe at least $1,000 in tax for the year, after subtracting their withholding and refundable credits, should file the 1040-ES form. Additionally, if your total withholding and refundable credits are expected to be less than the smaller of 90% of the tax to be shown on your current year tax return or 100% of the tax shown on your prior year tax return, you must also make estimated tax payments using this form. This requirement often applies to self-employed individuals, investors, and retirees.
How often must estimated tax payments be made?
Estimated tax payments should be made quarterly. The deadlines for these payments are typically April 15 for the first quarter, June 15 for the second quarter, September 15 for the third quarter, and January 15 of the following year for the fourth quarter. If any of these dates fall on a weekend or a legal holiday, the payment is due the next business day. It's important to meet these deadlines to avoid penalties for late payments.
How can one calculate the amount to pay using the 1040-ES form?
To calculate the estimated tax payment using the 1040-ES form, you'll need to estimate your adjusted gross income, taxable income, taxes, deductions, and credits for the year. The form includes a worksheet to help you estimate these amounts. You'll compare the total amount of tax you expect to owe with the amount that will be withheld. If the difference is more than $1,000, you'll need to make estimated payments. Remember, the goal is to pay enough throughout the year to avoid a penalty but not so much that you significantly overpay.
Filing taxes is a responsibility that, while not always straightforward, is integral to the functioning of public services and governance. When it comes to individuals and businesses estimating their taxes for the coming year, the IRS 1040-ES form is a critical document. Despite the importance of accurately completing this form, several common errors often occur. Highlighting these mistakes can help filers avoid potential penalties and ensure their financial responsibilities are met with precision.
Not updating personal information: Taxpayers sometimes forget to update their personal information, such as a change of address or marital status. This oversight can lead to misdirected correspondence or incorrect calculation of tax liabilities.
Miscalculating estimated tax: Properly estimating the amount of tax owed for the year is paramount. Underestimating can result in penalties, whereas overestimation ties up funds unnecessarily.
Ignoring changes in income: Failing to account for changes in income, whether an increase or decrease, affects the accuracy of the 1040-ES calculation. This fluctuation impacts the estimated payments required.
Overlooking deductible expenses: Taxpayers often miss including deductible expenses, such as certain business costs, educational expenses, or health insurance premiums, which could lower their overall taxable income.
Incorrectly applying tax credits: Misunderstanding or misapplying tax credits, from educational credits to energy-efficient appliance credits, can lead to discrepancies in the estimated tax calculation.
Failing to account for additional taxes: Certain situations call for additional taxes, such as self-employment tax or alternative minimum tax (AMT). These are frequently overlooked by filers when estimating their taxes.
To prevent these mistakes, taxpayers are encouraged to review their previous year's tax situation, stay informed about changes in tax law, and consider consulting with a tax professional. This approach ensures that the 1040-ES form is completed with the utmost accuracy, reflecting one's financial situation and obligations to the federal government accurately.
When it comes to managing taxes, especially for those who are self-employed or have other sources of income besides wages, the IRS 1040-ES form is often a starting point. Yet, this form doesn't stand alone in the world of tax documentation. A plethora of other forms and documents usually accompany or support the information you need to complete the 1040-ES efficiently. Whether you're setting aside quarterly payments or making adjustments based on changes in income, understanding these companions can make the process smoother and keep you compliant with tax regulations.
Navigating taxes can be complex, but having a comprehensive understanding of the forms and documents that support your 1040-ES filing can alleviate much of the stress. By keeping track of your various income streams, updating your information as necessary, and reporting your earnings accurately, you lay the groundwork for a smoother tax filing process. Each of these documents serves as a piece of the larger financial puzzle, ensuring that you stay on top of your tax obligations and avoid any surprises when it's time to file.
The IRS 1040-ES form is designed for taxpayers to calculate and pay estimated quarterly taxes. This form is particularly relevant for individuals who do not have their taxes automatically withheld. Several other documents share similarities with the IRS 1040-ES form, either in purpose, in the audience they are designed for, or in how they are filed. Here are ten such documents:
Each of these documents plays a distinct role in the vast landscape of tax preparation and financial planning. Understanding how they interconnect can provide individuals with a clearer roadmap for managing their taxes effectively and avoiding common pitfalls.
When filling out the IRS 1040-ES form, there are key actions you should and shouldn't do to ensure the process is smooth and error-free. Below are ten guidelines to assist you.
Verify your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to ensure it's correct.
Gather all necessary documents, such as your previous year’s tax return and records of estimated tax payments, before starting.
Use the IRS’s Estimated Tax Worksheet to accurately calculate your estimated taxes.
Check the due dates for each payment period to avoid late payments. These dates are typically April 15, June 15, September 15 of the current year, and January 15 of the following year.
Keep a copy of the form and any records of payment for your files.
Don't estimate your income too low, as this can result in a penalty for underpayment.
Don't overlook the option to pay online through the Electronic Federal Tax Payment System (EFTPS) for convenience.
Don't ignore changes in income or life events (such as marriage or the birth of a child) that might affect your tax situation.
Don't forget to sign and date the form if you're mailing it. An unsigned form is not valid.
Avoid rounding numbers on the form. Report exact amounts to ensure accuracy.
The IRS 1040-ES form is an integral document for individuals who must file estimated tax payments throughout the year. Unfortunately, several misconceptions surround this form, leading to confusion and potential missteps. Here are ten common misunderstandings clarified to help taxpayers navigate their obligations more effectively.
Only self-employed individuals need to use it: While it's true that many self-employed taxpayers must make estimated tax payments using the 1040-ES, it's also necessary for individuals, including those in traditional employment, who have other sources of income not subject to withholding, such as interest, dividends, alimony, rental income, and some kinds of freelance or gig economy work.
It’s optional to file: Filing the 1040-ES isn't optional for those who meet the criteria for making estimated tax payments. If you owe $1,000 or more in taxes after subtracting withholdings and credits, you're generally required to make estimated tax payments to avoid penalties.
You only need to file once a year: The 1040-ES is used to make quarterly estimated tax payments. These payments are typically due on April 15, June 15, September 15, and January 15 of the following year. Not adhering to this schedule can result in interest charges and penalties.
Calculating your payment is too complicated: While determining the exact amount to pay can seem daunting, the IRS provides worksheets in the 1040-ES package to help taxpayers estimate their tax liability for the year. This calculation considers estimated income, taxable income, deductions, and credits.
You have to pay the same amount each quarter: Although many opt for equal payments to simplify the process, the IRS allows taxpayers to make unequal payments. This approach can benefit those with seasonal or fluctuating income, as long as the total estimated tax paid is accurate by the end of the tax year.
If you overestimate, you lose money: Overestimating your tax payments doesn’t mean you lose that money. When filing your annual tax return, if you've overpaid, you can either get a refund or apply the overpayment to your next year’s estimated tax.
If you miss a payment, it’s better not to bother: Missing a payment deadline doesn’t mean you should skip making payments altogether. It’s better to pay as soon as possible to minimize penalties and interest. The IRS may also work with taxpayers who encounter genuine hardship in making timely payments.
Using last year’s figures guarantees no penalties: While using last year's figures as a guide can help avoid penalties under certain conditions, it doesn't guarantee immunity from penalties, especially if your financial situation changes significantly, increasing your income and thus your tax liability.
Direct payment is the only way to pay: Although direct payment is an option, the IRS offers multiple payment methods for 1040-ES filers, including electronic funds transfer, credit card payments, the Electronic Federal Tax Payment System (EFTPS), and even a check or money order.
Penalties are unavoidable if you underestimate your payments: While penalties can apply for underestimating your payments, they can be avoided if you meet certain criteria, such as owing less than $1,000 in tax after withholdings and credits or paying at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller.
Understanding these misconceptions about the IRS 1040-ES form can demystify the process of making estimated tax payments. It empowers taxpayers to navigate their tax responsibilities confidently and effectively, minimizing the risk of penalties and ensuring compliance with the tax code.
The IRS Form 1040-ES is essential for individuals who need to pay estimated taxes throughout the year. Here are key takeaways to help understand and effectively use this form:
The IRS 1040-ES form is used for calculating and paying estimated taxes on income that is not subject to withholding taxes. This includes earnings from self-employment, interest, dividends, rents, and alimony.
Estimated taxes must be paid quarterly. The due dates are typically April 15, June 15, September 15 of the current year, and January 15 of the following year.
Failure to pay estimated taxes or underpayment can result in penalties. It's crucial to calculate your estimated taxes accurately to avoid these charges.
The form includes a worksheet to help determine the amount of estimated taxes you should pay. This worksheet takes into account expected adjusted gross income, taxable income, taxes, deductions, and credits for the year.
To avoid penalties, individuals should aim to pay at least 90% of their current year's tax liability or 100% of the tax shown on the previous year's return, whichever is smaller. However, higher income taxpayers may need to pay 110% of the prior year's taxes to avoid penalties.
If your income changes significantly during the year, you may need to re-calculate your estimated taxes to avoid underpayment or overpayment.
You can make estimated tax payments online through the IRS website, by phone, or by mail.
If you overestimate your payments, you may be eligible for a refund when you file your annual tax return.
Self-employed individuals can also use the IRS 1040-ES form to figure and pay their self-employment tax, which covers Social Security and Medicare taxes.
Keeping accurate records of your earnings and deductions is vital for filling out the IRS 1040-ES accurately. This includes maintaining receipts, invoices, and any other documents related to your income and expenses.
Understanding and properly managing estimated tax payments with the IRS 1040-ES form helps to avoid unexpected tax bills and penalties. Consider consulting with a tax professional if you have complex tax situations or need guidance in calculating your estimated taxes.
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