Form 1040-ES: Estimated Tax for Individuals (2022)

What Form 1040-ES Is For

Form 1040-ES is the worksheet and payment voucher package that helps individual taxpayers calculate and pay estimated taxes throughout the year on income that isn't subject to withholding. The United States operates on a "pay-as-you-go" tax system, which means you're required to pay income taxes as you earn or receive income during the year, rather than paying everything when you file your annual return. While most employees automatically have taxes withheld from their paychecks by employers, millions of Americans earn income without automatic withholding—and that's where Form 1040-ES comes in.

This form serves anyone who receives self-employment income, freelance or gig economy earnings, business profits, rental property income, investment income such as interest and dividends, alimony, gambling or lottery winnings, prizes and awards, unemployment compensation, or the taxable portion of Social Security benefits. Even retirees who don't have enough tax withheld from pension distributions use this form to make up the difference.

The 2022 Form 1040-ES package contains several components: detailed calculation worksheets to estimate your tax liability for the year, the 2022 tax rate schedules, instructions for special situations, and four payment vouchers (one for each quarter). The worksheets guide you through estimating your adjusted gross income, calculating your deductions and credits, applying current-year tax rates, factoring in self-employment tax if applicable, and dividing the result into quarterly payments. The form also includes a specialized Self-Employment Tax and Deduction Worksheet because self-employed individuals must pay both sides of Social Security and Medicare taxes (the employer and employee portions), totaling 15.3% on net earnings.

For 2022 specifically, the form reflects that year's tax provisions including a standard deduction of $25,900 for married couples filing jointly, $12,950 for single filers, and $19,400 for heads of household. The Social Security tax wage base increased to $147,000, and various other inflation-adjusted amounts changed from 2021. Understanding these year-specific numbers is crucial because using outdated figures will result in incorrect estimated tax calculations.
IRS Form 1040-ES

When You’d Use It (Including Late/Amended Situations)

You must use Form 1040-ES and make estimated tax payments if you meet both of the following conditions:
(1) You expect to owe at least $1,000 in tax for 2022 after subtracting your withholding and refundable credits from your total tax liability.
(2) You expect your withholding and refundable credits to be less than the smaller of (a) 90% of the tax shown on your 2022 tax return, or (b) 100% of the tax shown on your 2021 tax return.

Higher-Income Taxpayer Rule

If your adjusted gross income for 2021 exceeded $150,000 ($75,000 if married filing separately), the 100% figure becomes 110%.

Exemption From Payments

You don't need to make estimated payments if all the following are true:

• You had no tax liability for all of 2021,
• You were a U.S. citizen or resident for all of 2021, and
• Your 2021 total tax was zero or you weren’t required to file.

You can also avoid quarterly payments by increasing withholding using Form W-4 or W-4P.

2022 Estimated Tax Due Dates

• 1st Quarter — April 18, 2022
• 2nd Quarter — June 15, 2022
• 3rd Quarter — September 15, 2022
• 4th Quarter — January 17, 2023 (not needed if you file & pay in full by Jan 31)

Farmers and Fishermen Rules

If ≥ two-thirds of income is from farming/fishing, you may:

• Pay one estimated payment by January 17, 2023, or
• File and pay your full 2022 tax by March 1, 2023

These taxpayers use 66⅔% instead of 90%.

Late Payments

Late payments are accepted; penalties accrue daily until paid.

Adjusting or Amending Estimated Payments

You cannot “amend” a past quarterly payment, but you can:

• Recalculate your annual estimate
• Adjust the remaining quarterly payments (up or down)

Irregular or Seasonal Income

Those with variable income should use the annualized income installment method (Form 2210 Schedule AI) to avoid penalties.

Key Rules

Safe Harbor Rules (90% / 100% / 110%)

To avoid penalties, your total of withholding + estimated payments must meet:

• 90% of your 2022 tax, or
• 100% of your 2021 tax,
• 110% of your 2021 tax if AGI > $150,000 ($75,000 MFS)

Definition of “Tax Shown on Your Return”

This excludes:

• Certain Medicare/Social Security taxes
• IRA/retirement excess penalties
• Mortgage subsidy recapture
• Golden parachute excise tax
• All refundable credits

Self-Employment Tax Rules

Self-employed taxpayers must pay:

• 12.4% Social Security tax (up to $147,000 of net earnings), and
• 2.9% Medicare tax on all net earnings
• • 0.9% Additional Medicare tax on high earners

Only 92.35% of net profit is subject to the calculation.

Payment Vouchers

If paying by check:

• Write “2022 Form 1040-ES” + SSN on check
• Do not staple the check
• Send to the correct address for your state

Electronic Payment Options

• IRS Direct Pay
• IRS Online Account
• EFTPS
• Debit/credit card
• IRS2Go app
• Retail partners (cash payments)

Recordkeeping

Keep:

• Worksheets
• Vouchers
• Payment confirmations
• Statements for name changes

Joint vs. Separate Payments

Joint estimated payments allowed only if:

• Legally married
• Same tax year
• Both U.S. citizens/residents

Domestic partners/civil unions cannot file jointly.

Step-by-Step (High Level)

Step 1: Determine Whether You're Required to Pay

Check:

• Whether you’ll owe ≥ $1,000
• Whether withholding covers 90% of 2022 tax or 100%/110% of 2021 tax
• Whether you qualify for an exception

Step 2: Gather Documents

Include:

• 2021 return
• Income records
• 1099s and rental statements
• Business expense records
• Prior payments
• “What’s New” section for 2022 rules

Step 3: Complete the 2022 Estimated Tax Worksheet

Calculate:

1. AGI
2. Deductions (standard or itemized + QBI deduction)
3. Taxable income
4. Tax using rate schedules
5. Self-employment tax
6. Credits
7. Estimated total tax

Step 4: Calculate Required Payments

Compare:

• 90% of 2022 tax
• 100%/110% of 2021 tax

Subtract:

• Withholding
• Applied overpayments

Divide the required total by 4 (or use annualized method).

Step 5: Make Quarterly Payments

Pay by:

• EFTPS
• IRS Direct Pay
• Card payments
• Mailed vouchers

Step 6: Monitor & Adjust

Recalculate if:

• Income drops
• Income spikes
• Life circumstances change
• Business results vary

Step 7: Report Payments on Your 2022 Return

On Form 1040:

• Report all estimated payments
• Report applied overpayment
• Request refund or apply to 2023
• Pay any balance + penalty/interest

Common Mistakes and How to Avoid Them

Mistake 1: Using the wrong year’s tax numbers

Always use the 2022 version of Form 1040-ES.

Mistake 2: Forgetting self-employment tax

Self-employment tax often exceeds income tax.

Mistake 3: Applying payments to the wrong year

Always double-check the year when paying online.

Mistake 4: Ignoring the 110% safe harbor

High earners must use 110% of prior-year tax.

Mistake 5: Joint payments when ineligible

Nonresident spouses, domestic partners, and separate-year spouses cannot file jointly.

Mistake 6: Equal quarterly payments for uneven income

Use the annualized income method to avoid penalties.

Mistake 7: Misunderstanding safe harbor protection

Safe harbor avoids penalties—not tax.

Mistake 8: Not adjusting after life changes

Recalculate after major events.

Mistake 9: Poor recordkeeping

Keep every receipt, voucher, and confirmation.

What Happens After You File

Payment Posting

• Electronic: 1–2 business days
• Paper checks: 2–3 weeks
• Postmark date controls timeliness

No Automatic Confirmation

Check IRS Online Account to verify posting.

Quarterly Penalty Tracking

Penalties apply per period, not per year.

Filing Your 2022 Return

Report:

• All estimated payments
• Applied overpayments
• Any additional tax due

Overpayments

Choose:

• Refund
• Apply to next year (irrevocable)

Underpayment Penalties

Calculated based on:

• Amount
• Duration
• IRS interest rate per quarter

Penalty Waivers

Waivers available for:

• Disaster
• Disability
• Retirement after age 62
• Uneven income (annualized method)

Planning Ahead

Adjust 2023 payments based on 2022 results.

Payment Plans

Apply online for an IRS Installment Agreement if unable to pay in full.

FAQs

What happens if I miss a quarterly payment?

Pay as soon as possible. Penalties accrue daily but stop once paid.

Can I make payments more often than quarterly?

Yes—weekly, monthly, or at any interval.

How do I adjust mid-year after a major income change?

Recalculate using a new worksheet and adjust remaining payments.

Do I need paper vouchers if I pay electronically?

No—keep only your worksheet and confirmations.

What does “tax shown on your return” mean for safe harbor?

It’s line 24 minus specific excluded items and minus all refundable credits.

I’m newly self-employed. What should I know?

Expect self-employment tax, track expenses, pay quarterly, and consider professional help.

Can married couples split estimated payments?

Only if filing jointly. Separate filers must make separate payments.

What is the annualized income installment method?

A method for uneven income that prevents early-quarter penalties using Form 2210 Schedule AI.

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