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Form 1040-ES: Purpose of This Package
Form 1040-ES: Purpose of This Package
Form 1040-ES
Estimated Tax for Individuals
Estimated tax is the method used to pay tax on income Household employers. When estimating the tax on your
that isn’t subject to withholding (for example, earnings 2020 tax return, include your household employment
from self-employment, interest, dividends, rents, alimony, taxes if either of the following applies.
etc.). In addition, if you don’t elect voluntary withholding, • You will have federal income tax withheld from wages,
you should make estimated tax payments on other pensions, annuities, gambling winnings, or other income.
taxable income, such as unemployment compensation • You would be required to make estimated tax payments
and the taxable part of your social security benefits. to avoid a penalty even if you didn’t include household
employment taxes when figuring your estimated tax.
Change of address. If your address has changed, file
Form 8822, to update your record. Higher income taxpayers. If your adjusted gross
income (AGI) for 2019 was more than $150,000 ($75,000
Future developments. For the latest information about if your filing status for 2020 is married filing separately),
developments related to Form 1040-ES and its substitute 110% for 100% in (2b) under General Rule,
instructions, such as legislation enacted after they were earlier. This rule doesn’t apply to farmers or fishermen.
published, go to IRS.gov/Form1040ES.
Increase Your Withholding
Who Must Make Estimated Tax If you also receive salaries and wages, you may be able to
Payments avoid having to make estimated tax payments on your
The estimated tax rules apply to: other income by asking your employer to take more tax
• U.S. citizens and resident aliens; out of your earnings. To do this, file a new Form W-4,
• Residents of Puerto Rico, the U.S. Virgin Islands, Employee's Withholding Certificate, with your employer.
Guam, the Commonwealth of the Northern Mariana
Generally, if you receive a pension or annuity you can
Islands, and American Samoa; and
use Form W-4P, Withholding Certificate for Pension or
• Nonresident aliens (use Form 1040-ES (NR)). Annuity Payments, to start or change your withholding
General Rule from these payments.
In most cases, you must pay estimated tax for 2020 if both You also can choose to have federal income tax
of the following apply. withheld from certain government payments. For details,
1. You expect to owe at least $1,000 in tax for 2020, see Form W-4V, Voluntary Withholding Request.
after subtracting your withholding and refundable credits. You can use the Tax Withholding Estimator at
2. You expect your withholding and refundable credits TIP IRS.gov/W4App to determine whether you need
to be less than the smaller of: to have your withholding increased or decreased.
a. 90% of the tax to be shown on your 2020 tax return,
or Additional Information You May Need
b. 100% of the tax shown on your 2019 tax return. You can find most of the information you will need in Pub.
Your 2019 tax return must cover all 12 months. 505, Tax Withholding and Estimated Tax, and in the
instructions for the 2019 Form 1040 and 1040-SR.
Note. These percentages may be different if you are a
farmer, fisherman, or higher income taxpayer. See For details on how to get forms and publications, see
Special Rules, later. the 2019 Instructions for Form 1040 and 1040-SR.
Exception. You don’t have to pay estimated tax for 2020 What's New
if you were a U.S. citizen or resident alien for all of 2019 In figuring your 2020 estimated tax, be sure to consider
and you had no tax liability for the full 12-month 2019 tax the following.
year. You had no tax liability for 2019 if your total tax was
zero or you didn’t have to file an income tax return. Extended tax provisions. Recent legislation extended
certain tax benefits that had expired at the end of 2017
Special Rules through 2020. These tax benefits include the following.
There are special rules for farmers, fishermen, certain • Tuition and fees deduction.
household employers, and certain higher income • Deduction for mortgage insurance premiums.
taxpayers. • Nonbusiness energy property credit.
• Alternative fuel vehicle refueling credit.
Feb 06, 2020 Cat. No. 11340T
• Indian employment credit. renew it. For more information, see the Instructions for
Form W-7.
Standard deduction amount increased. For 2020, the
standard deduction amount has been increased for all Advance payments of the premium tax credit. If you
filers. If you don't itemize your deductions, you can take buy health care insurance through the Health Insurance
the 2020 standard deduction listed in the following chart Marketplace, you may be eligible for advance payments
for your filing status. of the premium tax credit to help pay for your insurance
coverage. Receiving too little or too much in advance will
THEN your standard
affect your refund or balance due. Promptly report
IF your 2020 filing status is... deduction is... changes in your income or family size to your
Marketplace. See Form 8962 and its Instructions for more
Married filing jointly or
$24,800 information.
Qualifying widow(er)
Head of household $18,650 How To Figure Your Estimated Tax
Single or Married filing separately $12,400 You will need:
• The 2020 Estimated Tax Worksheet,
• The Instructions for the 2020 Estimated Tax Worksheet,
However, if you can be claimed as a dependent on • The 2020 Tax Rate Schedules, and
another person's 2020 return, your standard deduction is • Your 2019 tax return and instructions to use as a guide
the greater of: to figuring your income, deductions, and credits (but be
• $1,100, or sure to consider the items listed under What's New,
• Your earned income plus $350 (up to the standard earlier).
deduction amount).
Matching estimated tax payments to income. If you
Your standard deduction is increased by the following receive your income unevenly throughout the year (for
amount if, at the end of 2020, you are: example, because you operate your business on a
• An unmarried individual (single or head of household) seasonal basis or you have a large capital gain late in the
and are: year), you may be able to lower or eliminate the amount of
your required estimated tax payment for one or more
65 or older or blind . . . . . . . . . . . . . . . . . . . . . . . . $1,650
periods by using the annualized income installment
65 or older and blind . . . . . . . . . . . . . . . . . . . . . . . $3,300
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
• A married individual (filing jointly or separately) or a Payments, later.
qualifying widow(er) and are:
You can’t make joint estimated tax payments if
65 or older or blind . . . . . . . . . . . . . . . . . . . . . . . . $1,300 you or your spouse is a nonresident alien, you are
65 or older and blind . . . . . . . . . . . . . . . . . . . . . . . $2,600
!
CAUTION separated under a decree of divorce or separate
Both spouses 65 or older . . . . . . . . . . . . . . . . . . . . $2,600* maintenance, or you and your spouse have different tax
Both spouses 65 or older and blind . . . . . . . . . . . . . . $5,200* years.
*Only if married filing jointly. If married filing separately, these
amounts do not apply.
Additionally, individuals who are in registered domestic
partnerships, civil unions, or other similar formal
relationships that aren’t marriages under state law cannot
Your standard deduction is zero if (a) your spouse make joint estimated tax payments. These individuals can
! itemizes on a separate return, or (b) you were a take credit only for the estimated tax payments that he or
CAUTION dual-status alien and you do not elect to be taxed
she made.
as a resident alien for 2020.
Payment Due Dates
Social security tax. For 2020, the maximum amount of You can pay all of your estimated tax by April 15, 2020, or
earned income (wages and net earnings from in four equal amounts by the dates shown below.
self-employment) subject to the social security tax is
$137,700. 1st payment . . . . . . . . . . . . . . . . . April 15, 2020
2nd payment . . . . . . . . . . . . . . . . June 15, 2020
Adoption credit or exclusion. For 2020, the maximum
3rd payment . . . . . . . . . . . . . . . . . Sept. 15, 2020
adoption credit or exclusion for employer-provided
4th payment . . . . Jan. 15, 2021*
adoption benefits has increased to $14,300 In order to . . . . . . . . . . . . .
claim either the credit or exclusion, your modified adjusted * You don’t have to make the payment due January 15,
gross income must be less than $254,520. 2021, if you file your 2020 tax return by February 1, 2021,
and pay the entire balance due with your return.
Reminders
Individual taxpayer identification number (ITIN) re-
newal. If you were assigned an ITIN before January 1, If you mail your payment and it is postmarked by the
2013, or if you have an ITIN that you haven’t included on a due date, the date of the U.S. postmark is considered the
tax return in the last 3 consecutive years, you may need to date of payment. If your payments are late or you didn’t
pay enough, you may be charged a penalty for
Instructions for the 2020 Estimated Line 10. Other taxes. Use the instructions for the 2019
Form 1040 and 1040-SR to determine if you expect to
Tax Worksheet owe, for 2020, any of the taxes that would have been
Line 1. Adjusted gross income. When figuring the entered on your 2019 Schedule 2 (Form 1040 or
adjusted gross income you expect in 2020, be sure to 1040-SR), line 6, 7a, 7b, and 8 (including, if applicable,
consider the items listed under What’s New, earlier. For Additional Medicare Tax and/or Net Investment Income
more details on figuring your AGI, see Expected Tax). On line 10, enter the total of those taxes, subject to
AGI—Line 1 in chapter 2 of Pub. 505. the following two exceptions.
If you are self-employed, be sure to take into account Exception 1. Include household employment taxes
the deduction for self-employment tax. Use the 2020 from Schedule 2 (Form 1040 or 1040-SR), line 7a, on this
Self-Employment Tax and Deduction Worksheet for Lines line only if:
1 and 9 of the Estimated Tax Worksheet to figure the • You will have federal income tax withheld from wages,
amount to subtract when figuring your expected AGI. This pensions, annuities, gambling winnings, or other income,
worksheet also will give you the amount to enter on line 9 or
of your estimated tax worksheet. • You would be required to make estimated tax payments
(to avoid a penalty) even if you didn’t include household
Line 7. Credits. See the 2019 Form 1040 or 1040-SR, employment taxes when figuring your estimated tax.
line 13a and Schedule 3 (Form 1040 or 1040-SR), lines 1 If you meet either of the above, include the total of your
through 6, and the related instructions for the types of household employment taxes on line 10.
credits allowed.
Exception 2. Of the amounts for other taxes that may
Line 9. Self-employment tax. If you and your spouse be entered on Schedule 2 (Form 1040 or 1040-SR), line 8,
make joint estimated tax payments and both of you have don’t include on line 10: recapture of a federal mortgage
self-employment income, figure the self-employment tax subsidy, uncollected social security and Medicare tax or
for each of you separately. Enter the total on line 9. When RRTA tax on tips or group-term life insurance, excise tax
estimating your 2020 net earnings from self-employment, on excess golden parachute payments, look-back interest
be sure to use only 92.35% (0.9235) of your total net profit due under section 167(g) or 460(b), or excise tax on
from self-employment. insider stock compensation from an expatriated
corporation. These taxes aren’t required to be paid until
* Your net profit from self-employment is found on Schedule C (Form 1040 or 1040-SR), line 31; Schedule F (Form 1040 or 1040-SR), line 34; and Schedule K-1
(Form 1065), box 14, code A.
the due date of your income tax return (not including multiply the tax on the joint return by a fraction the
extensions). numerator being the tax you would have paid had you
Additional Medicare Tax. For information about the filed a separate return over the total tax you and your
Additional Medicare Tax, see the Instructions for Form spouse would have paid had you filed separate returns.
8959. Enter this amount on line 12b.
Net Investment Income Tax (NIIT). For information • If you didn’t file a return for 2019 or your 2019 tax year
about the Net Investment Income Tax, see the was less than 12 full months, don’t complete line 12b.
Instructions for Form 8960. Instead, enter the amount from line 12a on line 12c.
Repayment of first-time homebuyer credit. You Figuring your 2019 tax. Use the following instructions
must repay the first-time homebuyer credit if you bought to figure your 2019 tax.
the home in 2008. The tax shown on your 2019 Form 1040 or 1040-SR is
For details about repaying the first-time homebuyer the amount on Form 1040 or 1040-SR, line 16 reduced
credit, see the Instructions for Form 5405. by:
Line 12b. Prior year's tax. Enter the 2019 tax you figure 1. Unreported social security and Medicare tax or
according to the instructions in Figuring your 2019 tax RRTA tax from Schedule 2 (Form 1040 or 1040-SR),
unless you meet one of the following exceptions. line 5;
• If the AGI shown on your 2019 return is more than 2. Any tax included on Schedule 2 (Form 1040 or
$150,000 ($75,000 if married filing separately for 2020), 1040-SR), line 6, on excess contributions to an IRA,
enter 110% of your 2019 tax as figured next. Archer MSA, Coverdell education savings account, health
Note. This doesn’t apply to farmers or fishermen. savings account, ABLE account, or on excess
• If you will file a joint return for 2020 but you didn’t file a accumulations in qualified retirement plans;
joint return for 2019, add the tax shown on your 2019 3. Amounts on Schedule 2 (Form 1040 or 1040-SR),
return to the tax shown on your spouse's 2019 return and line 8, as listed under Exception 2, earlier; and
enter the total on line 12b. 4. Any refundable credit amounts on Form 1040 or
• If you filed a joint return for 2019 but you will not file a 1040-SR, line 18a, b, or c, and Schedule 3 (Form 1040 or
joint return for 2020, first figure the tax both you and your 1040-SR), line 9 and 12, and credit from Form 8885
spouse would have paid had you filed separate returns for included on line 13.
2019 using the same filing status as for 2020. Then
12a Multiply line 11c by 90% (662/3% for farmers and fishermen) . . . . . . 12a
b Required annual payment based on prior year’s tax (see instructions) . . . 12b
c Required annual payment to avoid a penalty. Enter the smaller of line 12a or 12b . . . . . ▶ 12c
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.
13 Income tax withheld and estimated to be withheld during 2020 (including income tax withholding on
pensions, annuities, certain deferred income, etc.) . . . . . . . . . . . . . . . . . 13
(c) Check or
Payment
1 4/15/2020
2 6/15/2020
3 9/15/2020
4 1/15/2021**
Total . . . . . . . . . . . . . . . . . . . . . . . ▶
** You do not have to make this payment if you file your 2020 tax return by February 1, 2021, and pay the entire balance due with your return.
Privacy Act and Paperwork Reduction Act Notice. We ask for this We may disclose it to cities, states, the District of Columbia, and U.S.
information to carry out the tax laws of the United States. We need it to commonwealths or possessions to carry out their tax laws. We may also
figure and collect the right amount of tax. Our legal right to ask for this disclose this information to other countries under a tax treaty, to federal
information is Internal Revenue Code section 6654, which requires that and state agencies to enforce federal nontax criminal laws, or to federal
you pay your taxes in a specified manner to avoid being penalized. law enforcement and intelligence agencies to combat terrorism.
Additionally, sections 6001, 6011, and 6012(a) and their regulations If you do not file a return, do not give the information asked for, or
require you to file a return or statement for any tax for which you are give fraudulent information, you may be charged penalties and be
liable; section 6109 requires you to provide your identifying number. subject to criminal prosecution.
Failure to provide this information, or providing false or fraudulent
information, may subject you to penalties. Please keep this notice with your records. It may help you if we ask
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material in the administration of any Internal Revenue law. Generally, tax form will vary depending on individual circumstances. For the estimated
returns and return information are confidential, as stated in Code section averages, see the instructions for your income tax return.
6103. If you have suggestions for making this package simpler, we would be
We may disclose the information to the Department of Justice for civil happy to hear from you. See the instructions for your income tax return.
and criminal litigation and to other federal agencies, as provided by law.
1040-ES
2020 Estimated Tax Payment
4
Form
Your first name and middle initial Your last name Your social security number
etpay
For Privacy Act and Paperwork Reduction Act Notice, see instructions. Form 1040-ES (2020)
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1040-ES
2020 Estimated Tax Payment
3
Form
Department of the Treasury
Internal Revenue Service Voucher OMB No. 1545-0074
Calendar year—Due Sept. 15, 2020
File only if you are making a payment of estimated tax by check or money order. Mail this
voucher with your check or money order payable to “United States Treasury.” Write your Amount of estimated tax you are paying
social security number and “2020 Form 1040-ES” on your check or money order. Do not send by check or Dollars Cents
cash. Enclose, but do not staple or attach, your payment with this voucher. money order.
Your first name and middle initial Your last name Your social security number
etpay
For Privacy Act and Paperwork Reduction Act Notice, see instructions.
1040-ES
2020 Estimated Tax Payment
2
Form
Your first name and middle initial Your last name Your social security number
etpay
For Privacy Act and Paperwork Reduction Act Notice, see instructions.
1040-ES
2020 Estimated Tax
Payment
1
Form
Your first name and middle initial Your last name Your social security number
etpay
For Privacy Act and Paperwork Reduction Act Notice, see instructions. Form 1040-ES (2020)
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