Form 1040-ES: Estimated Tax for Individuals (2024)
What Form 1040-ES Is For
Form 1040-ES helps you calculate and pay taxes on income that doesn't have taxes automatically withheld throughout the year. Unlike regular employees who have taxes taken out of each paycheck, people with self-employment income, freelance earnings, investment income (interest, dividends), rental income, alimony, unemployment compensation, or the taxable portion of social security benefits need to pay taxes directly to the IRS using this form.
The form includes worksheets to estimate your annual tax liability and payment vouchers to submit quarterly payments. Essentially, Form 1040-ES allows you to “pay as you go” rather than facing a large tax bill when you file your annual return.
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When You’d Use It (Including Late or Amended Payments)
You must make estimated tax payments for 2024 if:
- You expect to owe at least $1,000 in tax after subtracting withholding and refundable credits, and
- Your withholding and credits will be less than
- 90% of your 2024 tax, or
- 100% of your 2023 tax (110% for high-income taxpayers).
Key Due Dates for 2024 Estimated Payments
- April 15, 2024
- June 17, 2024
- September 16, 2024
- January 15, 2025
Late or Amended Payments
If your income changes during the year, you can:
- Recalculate your estimated tax using the worksheet.
- Adjust remaining payments.
- Increase future payments to compensate for underpayments.
Underpayments may result in IRS penalties—even if you're due a refund at filing.
Special Rules
- Farmers and fishermen:
Can pay all estimated tax by Jan 15, 2025, or file by Mar 3, 2025 with full payment. - Mid-year changes:
Increase your next payment to catch up if you realize you underpaid earlier.
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Key Rules or Details for 2024
Income Thresholds
- High-income taxpayers (AGI > $150,000 or $75,000 MFS) must pay 110% of prior-year tax for safe harbor protection.
Exemptions From Estimated Payments
You do not need to make estimated payments if:
- You had zero tax liability for the full 12-month 2023 tax year,
- You were a U.S. citizen or resident all year, and
- Your return covered all 12 months.
Standard Deduction for 2024
- Single: $14,600
- Married Filing Jointly: $29,200
- Head of Household: $21,900
Self-Employment Tax
- Social security tax applies up to $168,600 of earnings in 2024.
Withholding Alternative
Instead of estimated tax payments, you may:
- Increase wage withholding (Form W-4),
- Increase pension/annuity withholding (Form W-4P).
Household Employers
Household employment taxes need to be included in estimated payments only if you:
- Already have withholding, or
- Are required to make estimated payments anyway.
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Step-by-Step (High Level)
Step 1: Review Last Year and Estimate This Year
Use your 2023 tax return as a baseline and adjust for changes expected in 2024.
Step 2: Complete the Estimated Tax Worksheet
Estimate:
- 2024 adjusted gross income,
- Deductions (standard or itemized),
- Credits,
- Self-employment tax (92.35% of net earnings),
- Additional taxes owed.
Compare:
- 90% of 2024 tax vs.
- 100% or 110% of 2023 tax,
and use the smaller amount.
Step 3: Determine Quarterly Payments
Divide your estimated tax by four, or use the annualized income installment method if your income is irregular.
Step 4: Make Payments
You can pay via:
- IRS Direct Pay
- Your IRS online account
- Debit/credit card
- EFTPS
- Check or money order with payment vouchers
When mailing:
- Use the correct voucher,
- Write “United States Treasury,”
- Send to the address listed for your state.
Step 5: Keep Records
Track all payments for reference when filing your annual return.
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Common Mistakes and How to Avoid Them
Underestimating Income
Review income quarterly and adjust future payments if earnings increase.
Forgetting Income Sources
Taxpayers often overlook:
- Investment income,
- State tax refunds,
- Retirement distributions.
Missing the Self-Employment Adjustment
Deduct half your self-employment tax when calculating AGI.
Incorrect Filing Status on Vouchers
Match voucher filing to your expected tax return filing status.
Not Adjusting Employer Withholding
If you have W-2 income and self-employment income, you can simplify by increasing your wage withholding instead of making quarterly payments.
Mailing to the Wrong Address
Always use the Form 1040-ES instructions, not Form 1040 addresses.
Voucher Mistakes
Use vouchers in the correct order for correct periods.
Overthinking Penalties
As long as you meet safe-harbor rules (90% current year or 100%/110% prior year), you generally avoid penalties.
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What Happens After You File Your Payments
Your estimated payments are credited to your IRS account under your Social Security number.
When Filing Your 2024 Return
Your estimated tax payments will:
- Reduce your balance due or
- Increase your refund.
Overpayments
You may:
- Receive a refund or
- Apply the overpayment to 2025 estimated tax.
Checking Your Payments
View payment history using your IRS Online Account.
Penalties
You may owe underpayment penalties calculated from:
- Each payment’s due date,
- Until payment is made or your tax return is filed.
Penalty rates change quarterly based on federal short-term interest rates.
Waivers Are Available For:
- Disaster or casualty losses,
- Unusual circumstances,
- Retirement after age 62,
- Disability causing underpayment.
Use Form 2210 to calculate or request a waiver.
Update Address Changes
Use Form 8822 to avoid processing delays.
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FAQs
Can I pay all my estimated tax at once instead of quarterly?
Yes. You can pay your entire 2024 estimated tax by April 15, 2024. The IRS allows flexible payment schedules as long as you meet required thresholds by each deadline.
What if I receive income unevenly throughout the year?
Use the annualized income installment method (Form 2210 Schedule AI). This method bases payments on when income is earned.
Do I need estimated payments if I already have wage withholding?
Only if your withholding will not cover your total 2024 tax liability. You can increase withholding instead of making quarterly payments.
What happens if I miss a quarterly deadline?
You may owe a penalty based on how much you underpaid and how long it remained unpaid. Pay the missed amount immediately to reduce penalties.
How do I know if I'm paying enough?
Follow safe harbor:
- 90% of 2024 tax, or
- 100% of 2023 tax (110% for high earners).
Can I get a refund if I overpay?
Yes. Overpayments are refunded or can be applied to next year’s estimated tax.
Is there a way to avoid making estimated payments entirely?
Yes—have your employer or payer withhold additional tax using Form W-4 or W-4P.
