Form 1040-ES (NR): U.S. Estimated Tax for Nonresident Alien Individuals

What Form 1040-ES (NR) Is For

Form 1040-ES (NR) is used by nonresident aliens to calculate and pay estimated taxes on income they earn in the United States throughout the year. Unlike U.S. citizens and residents who may have taxes withheld from their paychecks, many nonresident aliens earn income that isn't subject to withholding—such as income from self-employment, business activities, or certain investment returns. This form helps you figure out how much tax you owe on this income and provides payment vouchers to submit quarterly installments to the IRS.

As a nonresident alien, you're generally taxed only on income that's ""effectively connected"" with a U.S. trade or business (ECI). This includes wages from a U.S. employer, profits from operating a business in the United States, income from providing services within the U.S., gains from selling U.S. real property, and certain partnership income. If you operate a business selling services or merchandise in the United States, or if you're performing substantial, continuous, and regular personal services here, you're likely engaged in a U.S. trade or business. The form's worksheets walk you through estimating this income, calculating allowable deductions, and determining the tax you'll owe at graduated rates—the same rates that apply to U.S. citizens and residents.

The package includes not just calculation worksheets but also payment vouchers (Form 1040-ES (NR) vouchers) that you'll use when mailing checks or money orders to the IRS. These vouchers ensure your payment is properly credited to your account. The form also helps you track your payments throughout the year so you can reference them when filing your annual Form 1040-NR tax return.

When You'd Use Form 1040-ES (NR) (Including Late and Amended Situations)

You must use Form 1040-ES (NR) for the 2025 tax year if you meet two conditions: first, you expect to owe at least $1,000 in tax after subtracting any withholding and refundable credits; and second, your withholding and credits will be less than the smaller of either 90% of your 2025 tax liability or 100% of the tax shown on your 2024 return (your 2024 return must cover all 12 months). Higher-income taxpayers—those with adjusted gross income above $150,000 ($75,000 if married filing separately)—must substitute 110% for the 100% figure in the second test.

There's an important exception: you don't need to pay estimated tax if you had no tax liability for all of 2024 and you were a U.S. citizen or resident alien for that entire year. Special rules also apply to farmers and fishers, who can use a 66⅔% threshold instead of 90%.

Typically, you'll make estimated tax payments quarterly throughout the year. If you have wages subject to U.S. income tax withholding, you can either pay your entire estimated tax by April 15, 2025, or make four equal payments by April 15, June 16, September 15, 2025, and January 15, 2026. Note that you can skip the January payment if you file your 2025 Form 1040-NR by February 2, 2026, and pay the full balance due with that return.

If you don't have wages subject to withholding, the schedule differs slightly: you can pay everything by June 16, 2025, or make three installments—half by June 16, a quarter by September 15, and the final quarter by January 15, 2026.

If you underestimate your income and realize mid-year that you'll owe more tax than anticipated, you can and should recalculate your estimated tax using a new worksheet and increase your subsequent quarterly payments. Conversely, if you overestimated your earnings, complete a new worksheet and adjust future payments downward. Making timely adjustments helps you avoid underpayment penalties.

There's no formal ""amended"" Form 1040-ES (NR)—instead, you simply file corrected estimates for upcoming quarters. If you've already missed a payment deadline or underpaid, the IRS will calculate any penalty when you file your annual return. You can't retroactively change past quarterly payments, but you can compensate by paying more in later quarters to minimize penalties.

Key Rules to Remember

The $1,000 threshold is critical. If you expect to owe less than $1,000 after withholding and credits, you're generally not required to make estimated payments—even if you have some U.S.-sourced income. However, this doesn't mean you won't owe tax; it simply means penalties for underpayment likely won't apply.

Estimated tax applies only to your effectively connected income—not to income subject to flat 30% withholding (FDAP income, such as certain dividends, interest, or royalties that aren't connected with a U.S. business). Your FDAP income is reported separately on Schedule NEC when you file Form 1040-NR, and tax is usually withheld at the source. Form 1040-ES (NR) addresses the income that's taxed at graduated rates after deductions.

If you're present in the United States temporarily on an F, J, M, or Q visa as a student, teacher, or trainee, you're automatically considered engaged in a U.S. trade or business. Any scholarship, fellowship, or wages you receive is treated as effectively connected income, meaning you may need to make estimated tax payments if those amounts aren't fully covered by withholding.

Joint payments are not allowed if you or your spouse is a nonresident alien. Each spouse must file separately. However, if you're a dual-status alien (both nonresident and resident during the same year) married to a U.S. citizen or resident, you may be able to elect to be treated as a U.S. resident for the full year and file jointly—but this requires specific circumstances and a formal election.

You must have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) to file. If your ITIN hasn't been used on a tax return in the last three consecutive years, you'll need to renew it before making estimated payments. The IRS won't process payments without a valid taxpayer identification number.

Payments can be made online through IRS Direct Pay, by debit or credit card (fees apply), via Electronic Federal Tax Payment System (EFTPS), through the IRS2Go mobile app, or by mailing a check or money order with the appropriate payment voucher. Never send cash. Always keep records of your payment dates, amounts, and confirmation numbers.

Step-by-Step (High Level)

Begin by gathering your prior year's Form 1040-NR and related schedules, as well as information about your expected 2025 income. You'll use last year's return as a baseline, then adjust for any anticipated changes—such as increased business income, additional wages, or new sources of U.S. income.

Next, complete the Estimated Tax Worksheet included in the Form 1040-ES (NR) package. Start by estimating your expected adjusted gross income, which includes wages, business profits, capital gains, and other effectively connected income. Subtract your expected deductions—either the standard deduction or itemized deductions—to arrive at your estimated taxable income. Apply the appropriate tax rate schedule for your filing status (single, married filing separately, or estate/trust) to calculate your estimated tax liability.

From this tax amount, subtract any credits you expect to claim, such as foreign tax credits or child tax credits if eligible. Then subtract the total amount of tax you expect to have withheld from wages or other payments during the year. The result is your estimated tax due—the amount you need to pay through quarterly installments.

Divide this estimated tax into the required number of payments based on your situation (four equal payments if you have withholding from wages, or three installments with the specific fractions if you don't). Fill out the payment vouchers included in the form package with your name, address, SSN or ITIN, and the payment amount for each quarter.

Make your first payment by the applicable due date (April 15 or June 16, depending on whether you have withholding), using your preferred payment method. Record the payment date, amount, and confirmation number in the Record of Estimated Tax Payments table provided in the form instructions. Repeat this process for each subsequent quarter, adjusting amounts if your income changes significantly during the year.

When you file your annual Form 1040-NR in 2026, you'll report all your estimated tax payments. The IRS will compare what you paid to what you actually owed. If you paid too much, you'll receive a refund or can apply the overpayment to the next year's estimated tax. If you paid too little, you'll owe the balance plus any applicable penalty for underpayment.

Common Mistakes and How to Avoid Them

One frequent error is confusing which income requires estimated tax payments. Remember, you only pay estimated tax on effectively connected income—income tied to a U.S. trade or business. Income like portfolio interest, certain dividends, or royalties that aren't connected to your business activities are usually subject to 30% withholding at the source and shouldn't be included in your estimated tax calculations. If you're unsure whether your income is effectively connected, review Publication 519 or consult a tax professional.

Many nonresident aliens mistakenly believe that if they have some tax withheld from wages, they don't need to make estimated payments. Withholding alone may not cover your entire tax liability if you also have substantial self-employment income, rental income, or business profits. Always complete the worksheet to determine whether your withholding will satisfy at least 90% of your current year's tax or 100% (110% for higher earners) of last year's tax. If not, estimated payments are required.

Missing payment deadlines is another common pitfall. Unlike regular income tax returns, which have a single deadline, estimated tax has four separate deadlines throughout the year. Mark these dates on your calendar and set reminders. If you miss a deadline, don't simply skip that quarter—make the payment as soon as possible to minimize the underpayment penalty, which accrues daily on unpaid amounts.

Some people fail to adjust their estimates when their income changes mid-year. If you receive an unexpected bonus, start a new business, or sell property at a gain, recalculate your estimated tax immediately and increase your remaining quarterly payments. The annualized income installment method can help if your income fluctuates seasonally or arrives in a lump sum late in the year, potentially reducing or eliminating penalties. This method is more complex but can be worthwhile if your income isn't evenly distributed.

Forgetting to include ITIN renewal is a critical mistake for those who haven't filed recently. If your ITIN has expired or needs renewal, address this before the first payment deadline. An expired ITIN will cause payment processing delays and potential penalties. Check your ITIN status early in the year and renew if necessary using Form W-7.

Finally, nonresident aliens sometimes use the wrong form. Make sure you're using Form 1040-ES (NR)—not Form 1040-ES, which is for U.S. citizens and residents. The calculation methods and rules differ significantly between these forms. Using the wrong one will result in incorrect estimated tax amounts and potential penalties.

What Happens After You File

Once you submit each quarterly payment—whether online or by mail—the IRS processes it and credits your tax account. If you pay electronically, you'll receive immediate confirmation. Mailed payments take several weeks to process. You can verify that payments were received and properly credited by creating an online account at IRS.gov or by calling the IRS.

Throughout the year, the IRS doesn't send you statements or reminders about upcoming estimated tax payments. It's entirely your responsibility to remember deadlines and make timely payments. Keep careful records of all payment confirmations, dates, and amounts, as you'll need this information when filing your annual return.

When you file Form 1040-NR for 2025 (due April 15, 2026, if you had wages subject to withholding, or June 15, 2026, if you didn't), you'll report all estimated tax payments you made during the year. The IRS will calculate your actual tax liability based on your real income, deductions, and credits, then compare it to the total of your estimated payments plus any withholding. If you paid too much, you'll receive a refund—typically within 21 days if you e-file and choose direct deposit. You can also elect to apply the overpayment toward your 2026 estimated tax.

If you underpaid, you'll owe the balance due plus potential penalties and interest. The underpayment penalty is calculated using Form 2210 (which the IRS usually computes for you). This penalty applies separately to each payment period where you didn't pay enough, even if you overpaid in other quarters or are due a refund overall. The penalty rate is based on the federal short-term rate plus 3 percentage points and compounds daily.

However, penalties can be waived in certain situations: if your underpayment was due to a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty; if you retired (after age 62) or became disabled during the tax year or the preceding year and the underpayment was due to reasonable cause; or if the underpayment resulted from a change in tax law. You'll need to provide documentation and explanation when requesting a waiver.

After you file your annual return, the IRS may send correspondence if there are discrepancies, missing information, or if they've calculated a different penalty amount than you reported. Respond promptly to any IRS notices, as ignoring them can result in additional penalties and interest.

If you're planning to leave the United States permanently or for an extended period, you may need to obtain a ""sailing permit"" (officially called a certificate of compliance) by filing Form 1040-C or Form 2063 before departure. This doesn't replace your annual Form 1040-NR filing—you'll still need to file that return even after leaving the country.

FAQs

Can I make all my estimated tax payments at once instead of quarterly?

Yes, you're allowed to pay your entire estimated tax in a single payment by the first deadline (April 15 or June 16, depending on whether you have wages subject to withholding). This can simplify recordkeeping and ensure you don't miss later deadlines. However, if you significantly overestimate and pay too much early in the year, you won't receive that money back until you file your annual return and get a refund. Quarterly payments give you more flexibility to adjust as your actual income becomes clearer throughout the year.

What if I don't have enough money to make an estimated tax payment by the deadline?

Pay as much as you can by the deadline, even if it's not the full amount. Partial payment reduces the underpayment and thus the penalty that will accrue. Then pay the remaining balance as soon as possible. The penalty is calculated based on how much you underpaid and for how many days, so every dollar you pay earlier reduces your total penalty. If you're experiencing genuine financial hardship, you may qualify for penalty abatement, but you'll need to explain your circumstances when you file your annual return.

Do I need to make estimated payments if I just arrived in the United States partway through the year?

It depends on how much income you expect to earn during your period of U.S. presence and whether you'll have sufficient withholding. Complete the estimated tax worksheet based only on the income you'll earn while you're a nonresident alien engaged in U.S. activities. If your expected tax (minus withholding) is less than $1,000, you probably don't need to make estimated payments. However, if you're on an F, J, M, or Q visa, you're automatically considered engaged in a trade or business, and any U.S.-source income you receive may require estimated payments if not adequately withheld.

I have both a U.S. employer withholding taxes and self-employment income. How do I handle estimated taxes?

First, determine whether your employer withholding will cover at least 90% of your total tax (including the self-employment income) or 100%/110% of last year's tax. If your withholding alone satisfies these thresholds, you don't need to make estimated payments. If it doesn't, calculate the shortfall using the worksheet and make quarterly estimated payments for that difference. You might also ask your employer to increase your withholding by submitting a new Form W-4, which could eliminate the need for separate estimated payments.

What's the difference between effectively connected income and FDAP income, and why does it matter?

Effectively connected income (ECI) is income tied to your U.S. trade or business—like wages, business profits, or income from providing services in the United States. It's taxed at graduated rates (10% to 37%, depending on your income level) after allowable deductions, just like for U.S. citizens. FDAP income—fixed, determinable, annual, or periodical income—includes things like portfolio interest, dividends, and royalties that aren't connected to a U.S. business. FDAP income is taxed at a flat 30% (or lower treaty rate) with no deductions allowed, and tax is usually withheld at the source. You only pay estimated tax on ECI, not FDAP income. Understanding this distinction prevents you from overpaying estimated tax on income that's already fully taxed through withholding.

Can I get an extension to file my estimated tax payments?

No, there's no extension available for estimated tax payments. The quarterly deadlines are firm, and penalties will accrue on any underpayment from those dates forward. Extensions using Form 4868 apply only to your annual Form 1040-NR filing deadline, not to estimated payment deadlines. However, if you file your annual return and pay all tax due by the original deadline (without requesting an extension), you can avoid the penalty for not making the fourth-quarter estimated payment, as long as your prior payments covered the required amounts for those earlier periods.

If I leave the U.S. permanently during the year, do I still need to make estimated tax payments?

Yes, you're still responsible for estimated tax on income earned while you were engaged in a U.S. trade or business, up until your departure date. You may need to obtain a sailing permit before leaving by filing Form 1040-C or Form 2063, which addresses tax on income earned up to your departure. However, this doesn't replace your annual Form 1040-NR—you'll still file that for the full year (showing income only for the period you were a nonresident alien). Your estimated tax obligations continue until your final return is filed, so make sure all payments are current before leaving and maintain a way to complete your tax obligations from abroad.

Sources:

• Form 1040-ES (NR) for 2025
• About Form 1040-ES (NR), U.S. Estimated Tax for Nonresident Alien Individuals
• Taxation of Nonresident Aliens
• Effectively Connected Income
• Estimated Taxes

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