How to Make 1040-ES Payments
The U.S. Internal Revenue Code requires taxpayers to prepay their federal income taxes throughout the year. For most workers, this is done through withholding from their paychecks. However, those with non-employee compensation, significant investment income or other income sources may be required to make estimated income tax payments using IRS Form 1040-ES.
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Instructions
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Calculate the amount of your estimated tax payments for the year. Most taxpayers make payments equal to 100 percent of the federal tax they owed the previous year, or 110 percent for taxpayers with an adjusted gross income of $150,000 or higher. You also can pay 90 percent of the current year's tax, or 100 percent if you have an adjusted gross income of $150,000 or higher. This method is used less frequently because it involves forecasting future income and is more prone to error.
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Divide the amount of your estimated tax payments by four to determine your quarterly payment amount.
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Subtract the amount of federal withholding or estimated tax payments from other sources made on your behalf, if any, from the quarterly payment amount. This is the amount of the estimated tax payment you must make for each quarterly period -- January 1 through April 15, April 16 through June 15, July 16 through September 15, and September 16 through January 15.
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Write your name, address and Social Security number on the Form 1040-ES payment voucher for the quarter of the year you are paying. You can print vouchers from the IRS website.
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Enter the amount you must pay for each quarterly period in the box labeled "Amount of estimated tax you are paying by check or money order" on Form 1040-ES.
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Make a check or money order payable to "United States Treasury" in the amount of your quarterly payment. The IRS instructs you to include your Social Security number on your check.
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Ensure each voucher is mailed by the appropriate April 15, June 15, September 15 or January 15 payment date and mail it to the address in the instructions for Form 1040-ES. The payment address depends on where you live.
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Tips & Warnings
If the payment date falls on a weekend or a federal holiday, the deadline is extended to the next federal business day.
