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1040-ES Worksheet: Calculate Estimated Tax Step by Step

Checked October 17, 2026 · Educational summary

General information, not tax, legal or financial advice. We are not the IRS. Check IRS.gov or a qualified tax professional. Sources read on October 17, 2026. Dates and amounts after 2026 are expected. Examples use made-up numbers. This page contains no affiliate links.

Pub. 505's Worksheet 2-1 (2026 Estimated Tax Worksheet), the same worksheet as in Form 1040-ES, works in this order: expected income, deductions, tax, other taxes, credits, then a required annual payment (the smaller of 90% of 2026 tax or the prior-year-based amount), minus expected withholding. You're not required to pay if the result is zero or less, or if tax after withholding is under $1,000.

The lines (summary)

1. Expected adjusted gross income.
2. Deductions: itemized, or standard deduction (plus up to $1,000, $2,000 joint, for cash charitable gifts), qualified business income deduction, and any additional Schedule 1-A deduction.
3. Taxable income = line 1 - deductions.

4. Tax from the 2026 Tax Rate Schedules (use Worksheets 2-7 and 2-8 for qualified dividends, net capital gain or foreign earned income). 5-6. Add alternative minimum tax and other taxes. 7-8. Subtract credits (not withholding). 9-11. Add self-employment tax, Additional Medicare Tax and NIIT; subtract certain refundable credits to get total 2026 estimated tax (11c).

5. 90% of line 11c (66 2/3% for farming and fishing), compared with the required annual payment based on the prior year's tax; the smaller is line 12c.

6. Subtract expected withholding. 14a-14b: stop if line 14a is zero or less, or if line 11c minus withholding is under $1,000.
7. If your first payment is due April 15, 2026, each payment is one-quarter of line 14a (less any overpayment applied).

Made-up example

Total estimated tax (11c) $12,000; prior-year-based amount $11,000; withholding $2,000. 90% = $10,800; smaller of $10,800 and $11,000 = $10,800 (12c). 14a = $10,800 - $2,000 = $8,800. Quarterly payment $2,200.

Notes

• Use the quarterly split only if income is roughly even through the year; otherwise see annualized method.
• Safe harbor details: 90/100/110%. Self-employment tax: 15.3%. Credit last year's overpayment: credit rules.

For 2027

The 2027 worksheet isn't published; the same structure is expected, with updated amounts.

FAQ

Where do the instructions for each line live?

Pub. 505 says in the 2026 Form 1040-ES.

Do I include withholding on line 7?

No; credits exclude withholding.

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