Get IRS 1040-ES Form

2023

Form 1040-ES

Department of the Treasury

Internal Revenue Service

Special Rules

There are special rules for farmers, fishermen, certain household employers, and certain higher income taxpayers.

Standard deduction amount increased. For 2023, the standard deduction amount has been increased for all filers. If you don't itemize your deductions, you can take the 2023 standard deduction listed in the following chart for your filing status.

affect your refund or balance due. Promptly report changes in your income or family size to your Marketplace. See Form 8962 and its instructions for more information.

Access Your Online Account (Individual Taxpayers Only)

Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a breakdown by tax year.

• See payment plan details or apply for a new payment plan.

• Make a payment, view 5 years of payment history and any pending or scheduled payments.

• Access your tax records, including key data from your most recent tax return, your economic impact payment amounts, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

• Update your address or manage your communication preferences.

•A married individual (filing jointly or separately) or a qualifying surviving spouse and are:

Social security tax. For 2023, the maximum amount of earned income (wages and net earnings from self-employment) subject to the social security tax is $160,200.

Adoption credit or exclusion. For 2023, the maximum adoption credit or exclusion for employer-provided adoption benefits has increased to $15,950. In order to claim either the credit or exclusion, your modified adjusted gross income must be less than $279,230.

Reminders

Individual taxpayer identification number (ITIN) re- newal. If you were assigned an ITIN before January 1, 2013, or if you have an ITIN that you haven’t included on a tax return in the last 3 consecutive years, you may need to renew it. For more information, see the Instructions for Form W-7.

Advance payments of the premium tax credit. If you buy health care insurance through the Health Insurance Marketplace, you may be eligible for advance payments of the premium tax credit to help pay for your insurance coverage. Receiving too little or too much in advance will

How To Figure Your Estimated Tax

You will need:

• The 2023 Estimated Tax Worksheet,

• The Instructions for the 2023 Estimated Tax Worksheet,

• The 2023 Tax Rate Schedules, and

• Your 2022 tax return and instructions to use as a guide to figuring your income, deductions, and credits (but be sure to consider the items listed under What's New, earlier).

Matching estimated tax payments to income. If you receive your income unevenly throughout the year (for example, because you operate your business on a seasonal basis or you have a large capital gain late in the year), you may be able to lower or eliminate the amount of your required estimated tax payment for one or more periods by using the annualized income installment method. See chapter 2 of Pub. 505 for details.

Changing your estimated tax. To amend or correct your estimated tax, see How To Amend Estimated Tax Payments, later.

maintenance, or you and your spouse have different tax years.

Additionally, individuals who are in registered domestic partnerships, civil unions, or other similar formal relationships that aren’t marriages under state law cannot make joint estimated tax payments. These individuals can take credit only for the estimated tax payments that they made.

Payment Due Dates

You can pay all of your estimated tax by April 18, 2023, or in four equal amounts by the dates shown below.

*You don’t have to make the payment due January 16, 2024, if you file your 2023 tax return by January 31, 2024, and pay the entire balance due with your return.

If you mail your payment and it is postmarked by the due date, the date of the U.S. postmark is considered the date of payment. If your payments are late or you didn’t pay enough, you may be charged a penalty for underpaying your tax. See When a Penalty Is Applied, later.

You can make more than four estimated tax TIP payments. To do so, make a copy of one of your

unused estimated tax payment vouchers, fill it in, and mail it with your payment. If you make more than four payments, to avoid a penalty, make sure the total of the amounts you pay during a payment period is at least as much as the amount required to be paid by the due date for that period. For other payment methods, see How To Pay Estimated Tax, later.

No income subject to estimated tax during first pay- ment period. If, after March 31, 2023, you have a large change in income, deductions, additional taxes, or credits that requires you to start making estimated tax payments, you should figure the amount of your estimated tax payments by using the annualized income installment method, explained in chapter 2 of Pub. 505. If you use the annualized income installment method, file Form 2210, including Schedule AI, with your 2023 tax return even if no penalty is owed.

Farmers and fishermen. If at least two-thirds of your gross income for 2022 or 2023 is from farming or fishing, you can do one of the following.

• Pay all of your estimated tax by January 16, 2024.

• File your 2023 Form 1040 or 1040-SR by March 1, 2024, and pay the total tax due. In this case, 2023 estimated tax payments aren’t required to avoid a penalty. Fiscal year taxpayers. You are on a fiscal year if your

12-month tax period ends on any day except December 31. Due dates for fiscal year taxpayers are the 15th day of the 4th, 6th, and 9th months of your current fiscal year and the 1st month of the following fiscal year. If any payment date falls on a Saturday, Sunday, or legal holiday, use the next business day. See Pub. 509, Tax Calendars, for a list of all legal holidays.

Name Change

If you changed your name because of marriage, divorce, etc., and you made estimated tax payments using your former name, attach a statement to the front of your 2023 paper tax return. On the statement, show all of the estimated tax payments you (and your spouse, if filing jointly) made for 2023 and the name(s) and SSN(s) under which you made the payments.

Be sure to report the change to your local Social Security Administration office before filing your 2023 tax

Form 1040-ES (2023)

return. This prevents delays in processing your return and issuing refunds. It also safeguards your future social security benefits. For more details, call the Social Security Administration at 800-772-1213 (TTY/TDD 800-325-0778).

How To Amend Estimated Tax

Payments

To change or amend your estimated tax payments, refigure your total estimated tax payments due (see the 2023 Estimated Tax Worksheet). Then, to figure the payment due for each remaining payment period, see Amended estimated tax in chapter 2 of Pub. 505. If an estimated tax payment for a previous period is less than one-fourth of your amended estimated tax, you may owe a penalty when you file your return.

When a Penalty Is Applied

In some cases, you may owe a penalty when you file your return. The penalty is imposed on each underpayment for the number of days it remains unpaid. A penalty may be applied if you didn’t pay enough estimated tax for the year or you didn’t make the payments on time or in the required amount. A penalty may apply even if you have an overpayment on your tax return.

The penalty may be waived under certain conditions. See the Instructions for Form 2210 for details.

How To Pay Estimated Tax

Pay Online

Paying online is convenient and secure and helps make sure we get your payments on time. To pay your taxes online or for more information, go to IRS.gov/Payments.

Once you are issued a social security number (SSN), use it when paying your estimated taxes online. Use your SSN even if your SSN does not authorize employment or if you have been issued an SSN that authorizes employment and you lose your employment authorization. An ITIN will not be issued to you once you have been issued an SSN. If you received your SSN after previously using an ITIN, stop using your ITIN. Use your SSN instead.

You can pay using any of the following methods.

• Your Online Account. You can now make tax payments through your online account, including balance payments, estimated tax payments, or other types. You can also see your payment history and other tax records there. Go to IRS.gov/Account.

• IRS Direct Pay. For online transfers directly from your checking or savings account at no cost to you, go to IRS.gov/Payments.

• Pay by Card. To pay by debit or credit card, go to IRS.gov/Payments. A convenience fee is charged by these service providers.

• Electronic Fund Withdrawal (EFW) is an integrated e-file/e-pay option offered when filing your federal taxes electronically using tax preparation software, through a tax professional, or the IRS at IRS.gov/Payments.

• Online Payment Agreement. If you can’t pay in full by the due date of your tax return, you can apply for an online monthly installment agreement at IRS.gov/Payments.

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Once you complete the online process, you will receive immediate notification of whether your agreement has been approved. A user fee is charged.

Pay by Phone

Paying by phone is another safe and secure method of paying electronically. Use one of the following methods:

(1) call one of the debit or credit card service providers, or

(2) the Electronic Federal Tax Payment System (EFTPS). Debit or credit card. Call one of our service providers. Each charges a fee that varies by provider, card type, and payment amount.

ACI Payments, Inc.

888-UPAY-TAXTM (888-872-9829) fed.acipayonline.com

Link2Gov Corporation

888-PAY-1040TM (888-729-1040) www.PAY1040.com

WorldPay US, Inc.

844-PAY-TAX-8TM (844-729-8298) www.payUSAtax.com

EFTPS. To get more information about EFTPS or to enroll in EFTPS, visit EFTPS.gov or call 800-555-4477. To contact EFTPS using Telecommunications Relay Services (TRS) for people who are deaf, hard of hearing, or have a speech disability, dial 711 and then provide the TRS assistant the 800-555-4477 number above or

800-733-4829. Additional information about EFTPS is also available in Pub. 966.

Mobile Device

To pay through your mobile device, download the IRS2Go app.

Pay by Cash

Cash is an in-person payment option for individuals provided through retail partners with a maximum of $1,000 per day per transaction. To make a cash payment, you must first be registered online at fed.acipayonline.com, our official payment provider. Don't send cash payments through the mail.

Pay by Check or Money Order Using the Estimated Tax Payment Voucher

Before submitting a payment through the mail using the estimated tax payment voucher, please consider alternative methods. One of our safe, quick, and easy online payment options might be right for you.

If you choose to mail in your payment, there is a separate estimated tax payment voucher for each due

date. The due date is shown in the upper right corner. Complete and send in the voucher only if you are making a payment by check or money order. If you and your spouse plan to file separate returns, file separate vouchers instead of a joint voucher.

To complete the voucher, do the following.

• Print or type your name, address, and SSN in the space provided on the estimated tax payment voucher. Enter your SSN even if your SSN does not authorize employment or if you have been issued an SSN that authorizes employment and you lose your employment authorization. If you have an ITIN, enter it wherever your SSN is requested. An ITIN will not be issued to you once you have been issued an SSN. If you received your SSN after previously using an ITIN, stop using your ITIN. Use your SSN instead. If filing a joint voucher, also enter your spouse's name and SSN. List the names and SSNs in the same order on the joint voucher as you will list them on your joint return.

• Enter in the box provided on the estimated tax payment voucher only the amount you are sending in by check or money order. When making payments of estimated tax, be sure to take into account any 2022 overpayment that you choose to credit against your 2023 tax, but don’t include the overpayment amount in this box.

• Make your check or money order payable to “United States Treasury.” Don’t send cash. To help process your payment accurately, enter the amount on the right side of the check like this: $ XXX.XX. Don’t use dashes or lines (for example, don’t enter “$ XXX—” or “$ XXX xx/100”).

• Enter “2023 Form 1040-ES” and your SSN on your check or money order. If you are filing a joint estimated tax payment voucher, enter the SSN that you will show first on your joint return.

• Enclose, but don’t staple or attach, your payment with the estimated tax payment voucher.

Notice to taxpayers presenting checks. When you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction. When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your payment, and you will not receive your check back from your financial institution.

No checks of $100 million or more accepted. The IRS can’t accept a single check (including a cashier’s check) for amounts of $100,000,000 ($100 million) or more. If you are sending $100 million or more by check, you will need to spread the payment over 2 or more checks with each check made out for an amount less than $100 million. This limit doesn’t apply to other methods of payment (such as electronic payments). Please consider a method of payment other than check if the amount of the payment is over $100 million.

Instructions for the 2023 Estimated Tax Worksheet

Line 1. Adjusted gross income. When figuring the adjusted gross income you expect in 2023, be sure to consider the items listed under What’s New, earlier. For more details on figuring your AGI, see Expected AGI—Line 1 in chapter 2 of Pub. 505.

If you are self-employed, be sure to take into account the deduction for self-employment tax. Use the 2023 Self-Employment Tax and Deduction Worksheet for Lines 1 and 9 of the Estimated Tax Worksheet to figure the amount to subtract when figuring your expected AGI. This worksheet will also give you the amount to enter on line 9 of your estimated tax worksheet.

Line 7. Credits. See the 2022 Form 1040 or 1040-SR, line 19, and Schedule 3 (Form 1040), lines 1 through 6z, and the related instructions for the types of credits allowed.

Line 9. Self-employment tax. If you and your spouse make joint estimated tax payments and both of you have self-employment income, figure the self-employment tax for each of you separately. Enter the total on line 9. When estimating your 2023 net earnings from self-employment,

be sure to use only 92.35% (0.9235) of your total net profit from self-employment.

Line 10. Other taxes. Use the 2022 Instructions for Form 1040 to determine if you expect to owe, for 2023, any of the taxes that would have been entered on your 2022 Schedule 2 (Form 1040), line 8 through 12 and 14 through 17z (see Exception 2, later). On line 10, enter the total of those taxes, subject to the following two exceptions.

Exception 1. Include household employment taxes from Schedule 2 (Form 1040), line 9, on this line only if:

• You will have federal income tax withheld from wages, pensions, annuities, gambling winnings, or other income; or

• You would be required to make estimated tax payments (to avoid a penalty) even if you didn’t include household employment taxes when figuring your estimated tax.

If you meet either of the above, include the total of your household employment taxes on line 10.

Exception 2. Because the following taxes are not required to be paid until the due date of your income tax (not including extensions), do not include them on line 10.

• Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance (Schedule 2, line 13),

b.If you will have farm income and also receive social security retirement or disability benefits, enter your expected Conservation Reserve Program payments that will be

6.Enter your expected wages (if subject to social security tax or the 6.2% portion of

4.

9.

10.

•Recapture of federal mortgage subsidy (Schedule 2, line 17b),

•Excise tax on excess golden parachute payments (Schedule 2, line 17k),

•Excise tax on insider stock compensation from an expatriated corporation (Schedule 2, line 17m), and

•Look-back interest under section 167(g) or 460(b) (Schedule 2, line 17n).

Additional Medicare Tax. For information about the Additional Medicare Tax, see the Instructions for Form 8959.

Net Investment Income Tax (NIIT). For information about the Net Investment Income Tax, see the Instructions for Form 8960.

Repayment of first-time homebuyer credit. You must repay the first-time homebuyer credit if you bought the home in 2008.

For details about repaying the first-time homebuyer credit, see the Instructions for Form 5405.

Line 12b. Prior year's tax. Enter the 2022 tax you figure according to the instructions in Figuring your 2022 tax unless you meet one of the following exceptions.

• If the AGI shown on your 2022 return is more than $150,000 ($75,000 if married filing separately for 2023), enter 110% of your 2022 tax as figured next.

Note. This doesn’t apply to farmers or fishermen.

• If you will file a joint return for 2023 but you didn’t file a joint return for 2022, add the tax shown on your 2022 return to the tax shown on your spouse's 2022 return and enter the total on line 12b.

•If you filed a joint return for 2022 but you will not file a joint return for 2023, first figure the tax both you and your spouse would have paid had you filed separate returns for 2022 using the same filing status as for 2023. Then multiply the tax on the joint return by a fraction, the numerator being the tax you would have paid had you filed a separate return, over the total tax you and your spouse would have paid had you filed separate returns. Enter this amount on line 12b.

•If you didn’t file a return for 2022 or your 2022 tax year was less than 12 full months, don’t complete line 12b. Instead, enter the amount from line 12a on line 12c.

Figuring your 2022 tax. Use the following instructions to figure your 2022 tax.

The tax shown on your 2022 Form 1040 or 1040-SR is the amount on Form 1040 or 1040-SR, line 24, reduced by:

1.Unreported social security and Medicare tax or RRTA tax from Schedule 2 (Form 1040), lines 5 and 6;

2.Any tax included on Schedule 2 (Form 1040), line 8, on excess contributions to an IRA, Archer MSA, Coverdell education savings account, health savings account, ABLE account, or on excess accumulations in qualified retirement plans;

3.Amounts on Schedule 2 (Form 1040) as listed under Exception 2, earlier; and

4.Any refundable credit amounts on Form 1040 or 1040-SR, lines 27, 28, and 29 and Schedule 3 (Form 1040), lines 9, 12, 13b, 13d, and 13h.

bIf you can take the qualified business income deduction, enter the estimated amount of the deduction

c Add lines 2a and 2b . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 Subtract line 2c from line 1 . . . . . . . . . . . . . . . . . . . . . . . . .

4Tax. Figure your tax on the amount on line 3 by using the 2023 Tax Rate Schedules.

Caution: If you will have qualified dividends or a net capital gain, or expect to exclude or deduct foreign earned income or housing, see Worksheets 2-5 and 2-6 in Pub. 505 to figure the tax . . . . . . .

5 Alternative minimum tax from Form 6251 . . . . . . . . . . . . . . . . . . . .

6Add lines 4 and 5. Add to this amount any other taxes you expect to include in the total on Form 1040

or 1040-SR, line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

bEarned income credit, additional child tax credit, fuel tax credit, net premium tax credit, refundable

cRequired annual payment to avoid a penalty. Enter the smaller of line 12a or 12b . . . . . .

Caution: Generally, if you do not prepay (through income tax withholding and estimated tax payments) at least the amount on line 12c, you may owe a penalty for not paying enough estimated tax. To avoid a penalty, make sure your estimate on line 11c is as accurate as possible. Even if you pay the required annual payment, you may still owe tax when you file your return. If you prefer, you can pay the amount shown on line 11c. For details, see chapter 2 of Pub. 505.

13Income tax withheld and estimated to be withheld during 2023 (including income tax withholding on

Yes. Stop here. You are not required to make estimated tax payments.

No. Go to line 15 to figure your required payment.

15If the first payment you are required to make is due April 18, 2023, enter ¼ of line 14a (minus any 2022 overpayment that you are applying to this installment) here, and on your estimated tax payment

voucher(s) if you are paying by check or money order . . . . . . . . . . . . . . . .

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2a

2b

2c

3

4

5

6

7

8

9

10

11a

11b

11c

12c

13

15

Record of Estimated Tax Payments (Farmers, fishermen, and fiscal year taxpayers, see Payment Due Dates.)

Keep for Your Records

Privacy Act and Paperwork Reduction Act Notice. We ask for this information to carry out the tax laws of the United States. We need it to figure and collect the right amount of tax. Our legal right to ask for this information is Internal Revenue Code section 6654, which requires that you pay your taxes in a specified manner to avoid being penalized. Additionally, sections 6001, 6011, and 6012(a) and their regulations require you to file a return or statement for any tax for which you are liable; section 6109 requires you to provide your identifying number. Failure to provide this information, or providing false or fraudulent information, may subject you to penalties.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as stated in Code section 6103.

We may disclose the information to the Department of Justice for civil and criminal litigation and to other federal agencies, as provided by law.

We may disclose it to cities, states, the District of Columbia, and U.S. commonwealths or possessions to carry out their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.

If you do not file a return, do not give the information asked for, or give fraudulent information, you may be charged penalties and be subject to criminal prosecution.

Please keep this notice with your records. It may help you if we ask you for other information. If you have any questions about the rules for filing and giving information, please call or visit any Internal Revenue Service office.

The average time and expenses required to complete and file this form will vary depending on individual circumstances. For the estimated averages, see the instructions for your income tax return.

If you have suggestions for making this package simpler, we would be happy to hear from you. See the instructions for your income tax return.

Pay online at www.irs.gov/ etpay

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Fast.

Secure.