Estimated Tax for Individuals
Department of the Treasury
Internal Revenue Service
Purpose of This Package
Use Form 1040-ES to figure and pay your estimated tax
Estimated tax is the method used to pay tax on income
that is not subject to withholding (for example, earnings
from self-employment, interest, dividends, rents, alimony,
etc.). In addition, if you do not elect voluntary withholding,
you should make estimated tax payments on other
taxable income, such as unemployment compensation
and the taxable part of your social security benefits.
Change of address. If your address has changed, file
Form 8822, Change of Address, to update your record.
Future developments. For the latest information about
developments related to Form 1040-ES and its
instructions, such as legislation enacted after they were
published, go to www.irs.gov/form1040es.
Who Must Make Estimated Tax
The estimated tax rules apply to:
U.S. citizens and resident aliens;
Residents of Puerto Rico, the U.S. Virgin Islands,
Guam, the Commonwealth of the Northern Mariana
Islands, and American Samoa; and
Nonresident aliens (use Form 1040-ES (NR)).
In most cases, you must pay estimated tax for 2015 if both
of the following apply.
1. You expect to owe at least $1,000 in tax for 2015,
after subtracting your withholding and refundable credits.
2. You expect your withholding and refundable credits
to be less than the smaller of:
a. 90% of the tax to be shown on your 2015 tax return,
b. 100% of the tax shown on your 2014 tax return.
Your 2014 tax return must cover all 12 months.
Note. These percentages may be different if you are a
farmer, fisherman, or higher income taxpayer. See
Special Rules, later.
Exception. You do not have to pay estimated tax for
2015 if you were a U.S. citizen or resident alien for all of
2014 and you had no tax liability for the full 12-month
2014 tax year. You had no tax liability for 2014 if your total
tax was zero or you did not have to file an income tax
There are special rules for farmers, fishermen, certain
household employers, and certain higher income
Farmers and fishermen. If at least two-thirds of your
gross income for 2014 or 2015 is from farming or fishing,
% for 90% in (2a) under General Rule.
Household employers. When estimating the tax on your
2015 tax return, include your household employment
taxes if either of the following applies.
You will have federal income tax withheld from wages,
pensions, annuities, gambling winnings, or other income.
You would be required to make estimated tax payments
to avoid a penalty even if you did not include household
employment taxes when figuring your estimated tax.
Higher income taxpayers. If your adjusted gross
income (AGI) for 2014 was more than $150,000 ($75,000
if your filing status for 2015 is married filing separately),
substitute 110% for 100% in (2b) under General Rule,
earlier. This rule does not apply to farmers or fishermen.
Increase Your Withholding
If you also receive salaries and wages, you may be able to
avoid having to make estimated tax payments on your
other income by asking your employer to take more tax
out of your earnings. To do this, file a new Form W-4,
Employee's Withholding Allowance Certificate, with your
Generally, if you receive a pension or annuity you can
use Form W-4P, Withholding Certificate for Pension or
Annuity Payments, to start or change your withholding
from these payments.
You also can choose to have federal income tax
withheld from certain government payments. For details,
see Form W-4V, Voluntary Withholding Request.
Additional Information You May Need
You can find most of the information you will need in Pub.
505, Tax Withholding and Estimated Tax.
Other available information:
Instructions for the 2014 Form 1040 or Form 1040A.
Important Changes. Go to IRS.gov, click on Forms &
Pubs, and then on Changes to Current Forms and
For details on how to get forms and publications, see
the 2014 Instructions for Form 1040 or Form 1040A. If you
have tax questions, call 1-800-829-1040 for assistance.
For TTY/TDD help, call 1-800-829-4059. Persons who are
deaf, hard of hearing, or have a speech disability can also
contact the IRS through relay services such as the
Federal Relay Service available at www.gsa.gov/fedrelay.
Use your 2014 tax return as a guide in figuring your 2015
estimated tax, but be sure to consider the following.
Jan 21, 2015
Cat. No. 11340T