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
  • Interest
  • Dividends

Estimated tax payments for 2018 are due:

  • April 18, 2018
  • June 15, 2018
  • Sept. 15, 2018
  • Jan. 17, 2019

You can make estimated tax payments using any of these methods:

  • Apply your 2017 refund to your 2018 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 2018 tax liability
    • 100% of your 2017 tax liability

Special rules exist for higher-income taxpayers. Your 2017 adjusted gross income (AGI) might be more than:

  • $75,000
  • $150,000 if married filing jointly

If it is, you must prepay 110% instead of 100% of the 2017 tax. You’ll need to do this to avoid a possible underpayment penalty for 2018.

To learn more about the estimated tax penalty, see the Underpayment of Estimated Tax tax tip.

Related Topics

Related Resources

Six Ways Lying On Your Tax Return Can Get You Into Trouble With the IRS

Learn about the consequences you can face if you lie on your tax return. Get the facts from the tax experts at H&R Block.

I have a question about tax extension payments. When I request extension of tax payments, what should I count as my tax

When filing for a tax extension, what counts as tax extension payments? Learn more from the tax experts at H&R Block.

Can’t Pay Taxes

What happens if you can’t pay your taxes on time? Learn more about late payment penalties and installment agreements from the tax experts at H&R Block

Form W-2

Do you need to know how to read Form W-2? Learn more about this wage and tax statement and get tax answers at H&R Block.