Estimated Tax Form 1040ES
Income tax is a pay-as-you-go system. If you’re an employee, you pay as you go through withholding. But if you’re self-employed, you must make quarterly estimated tax payments toward the amount you expect to owe the IRS. These payments should include both your income and self-employment taxes.
If you have other income that includes W-2 wages, you might be able to withhold enough to cover self-employment taxes. That way, you might not need to make estimated tax payments. However, in some cases, you might still need to make estimated payments. Ex: You receive a substantial amount of taxable income not subject to withholding.
You might make estimated tax payments for income that’s not tax-free and comes from:
- Stock sales
- Personal residence sale
Estimated tax payments for 2019 are due:
- April 18, 2019
- June 15, 2019
- Sept. 15, 2019
- Jan. 17, 2020
You can make estimated tax payments using any of these methods:
- Apply your 2018 refund to your 2019 estimated tax.
- Mail a check or money order with Form 1040-ES: Estimated Tax for Individuals.
- Use the Electronic Federal Tax Payment System (EFTPS) to submit payments electronically. Visit www.eftps.gov or call 800-555-4477. You can make payments weekly, monthly, or quarterly. You can schedule payments up to 365 days in advance.
- You can learn more about credit card options at www.irs.gov. You might be charged a convenience fee for using your credit card.
To learn more, see Form 1040-ES instructions at www.irs.gov.
You must make estimated tax payments and file Form 1040-ES if both of these apply:
- Your estimated tax due is $1,000 or more.
- The total amount of your tax withholding and refundable credits is less than the smaller of:
- 90% of your 2019 tax liability
- 100% of your 2018 tax liability
Special rules exist for higher-income taxpayers. Your 2018 adjusted gross income (AGI) might be more than:
- $150,000 if married filing jointly
If it is, you must prepay 110% instead of 100% of the 2018 tax. You’ll need to do this to avoid a possible underpayment penalty for 2019.
To learn more about the estimated tax penalty, see the Underpayment of Estimated Tax tax tip.
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