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.
Do you need to file an amended return (Form 1040X)? Read the IRS definition and get more insight from the tax experts at H&R Block.
Get the facts about employment-related tax identity theft, which happens when someone uses your information to get a job and report income under your name.
Learn more about notice CP161 and how to handle an IRS bill for unpaid taxes with help from the tax experts at H&R Block.