Department of the Treasury
Internal Revenue Service
Estimated Tax for Individuals
Purpose of This Package
Farmers and fishermen. If at least two-thirds of your
gross income for 2015 or 2016 is from farming or fishing,
Use Form 1040-ES to figure and pay your estimated tax
% for 90% in (2a) under General Rule.
Household employers. When estimating the tax on your
Estimated tax is the method used to pay tax on income
2016 tax return, include your household employment
that is not subject to withholding (for example, earnings
taxes if either of the following applies.
from self-employment, interest, dividends, rents, alimony,
You will have federal income tax withheld from wages,
etc.). In addition, if you do not elect voluntary withholding,
pensions, annuities, gambling winnings, or other income.
you should make estimated tax payments on other
You would be required to make estimated tax payments
taxable income, such as unemployment compensation
to avoid a penalty even if you did not include household
and the taxable part of your social security benefits.
employment taxes when figuring your estimated tax.
Change of address. If your address has changed, file
Higher income taxpayers. If your adjusted gross
Form 8822, Change of Address, to update your record.
income (AGI) for 2015 was more than $150,000 ($75,000
Future developments. For the latest information about
if your filing status for 2016 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 does not apply to farmers or fishermen.
published, go to
Increase Your Withholding
Who Must Make Estimated Tax
If you also receive salaries and wages, you may be able to
avoid having to make estimated tax payments on your
other income by asking your employer to take more tax
The estimated tax rules apply to:
out of your earnings. To do this, file a new Form W-4,
U.S. citizens and resident aliens;
Employee's Withholding Allowance Certificate, with your
Residents of Puerto Rico, the U.S. Virgin Islands,
Guam, the Commonwealth of the Northern Mariana
Islands, and American Samoa; and
Generally, if you receive a pension or annuity you can
Nonresident aliens (use Form 1040-ES (NR)).
use Form W-4P, Withholding Certificate for Pension or
Annuity Payments, to start or change your withholding
from these payments.
In most cases, you must pay estimated tax for 2016 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 2016,
see Form W-4V, Voluntary Withholding Request.
after subtracting your withholding and refundable credits.
Additional Information You May Need
2. You expect your withholding and refundable credits
to be less than the smaller of:
You can find most of the information you will need in Pub.
505, Tax Withholding and Estimated Tax.
a. 90% of the tax to be shown on your 2016 tax return,
Other available information:
b. 100% of the tax shown on your 2015 tax return.
Instructions for the 2015 Form 1040 or Form 1040A.
Your 2015 tax return must cover all 12 months.
Important Changes. Go to IRS.gov, click on Forms &
Pubs, and then on Changes to Current Forms and
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 2015 Instructions for Form 1040 or Form 1040A.
Exception. You do not have to pay estimated tax for
2016 if you were a U.S. citizen or resident alien for all of
2015 and you had no tax liability for the full 12-month
Use your 2015 tax return as a guide in figuring your 2016
2015 tax year. You had no tax liability for 2015 if your total
estimated tax, but be sure to consider the following.
tax was zero or you did not have to file an income tax
Standard deduction. If you do not itemize your
deductions, you can take the 2016 standard deduction
listed in the following chart for your filing status.
There are special rules for farmers, fishermen, certain
household employers, and certain higher income
Jan 19, 2016
Cat. No. 11340T