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 2016 or 2017 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
2017 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 2016 was more than $150,000 ($75,000
if your filing status for 2017 is married filing separately),
Future developments. For the latest information about
substitute 110% for 100% in (2b) under General Rule,
developments related to Form 1040-ES and its
earlier. This rule does not apply to farmers or fishermen.
instructions, such as legislation enacted after they were
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 2017 if both
of the following apply.
You also can choose to have federal income tax
withheld from certain government payments. For details,
1. You expect to owe at least $1,000 in tax for 2017,
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.
a. 90% of the tax to be shown on your 2017 tax return,
505, Tax Withholding and Estimated Tax, and in the
instructions for the 2016 Form 1040 or Form 1040A.
b. 100% of the tax shown on your 2016 tax return.
For details on how to get forms and publications, see
Your 2016 tax return must cover all 12 months.
the 2016 Instructions for Form 1040 or Form 1040A.
Note. These percentages may be different if you are a
farmer, fisherman, or higher income taxpayer. See
Use your 2016 tax return as a guide in figuring your 2017
Special Rules, later.
estimated tax, but be sure to consider the following.
Exception. You do not have to pay estimated tax for
Individual taxpayer identification number (ITIN) re-
2017 if you were a U.S. citizen or resident alien for all of
newal. If you were assigned an ITIN before January 1,
2016 and you had no tax liability for the full 12-month
2013, or if you have an ITIN that you haven’t included on a
2016 tax year. You had no tax liability for 2016 if your total
tax return in the last three consecutive years, you may
tax was zero or you did not have to file an income tax
need to renew it. For more information, see the
instructions for Form W-7.
Standard deduction. If you do not itemize your
There are special rules for farmers, fishermen, certain
deductions, you can take the 2017 standard deduction
household employers, and certain higher income
listed in the following chart for your filing status.
Jan 06, 2017
Cat. No. 11340T