Alabama Form 40ES – Calculate and Submit Estimated Taxes

What Is Alabama Form 40ES?

Form 40ES is the quarterly estimated tax document issued by the Alabama Department of Revenue. You must file if your expected Alabama income tax exceeds $500 after withholding. Here are the key facts:

• Who must file: Individuals and corporations with Alabama income tax liability over $500 after withholding and credits.
• Payment schedule: Four quarterly payments due in April, June, September, and January each year.
• How to calculate: Start with your estimated gross income. Subtract deductions and exemptions. Apply Alabama tax rates to get your estimated tax. Divide by four for each quarterly amount.
• Penalty rule: Pay at least 100% of last year's tax or 90% of this year's expected tax to avoid underpayment penalties.
• Payment voucher: The form includes a tear-off voucher. Mail it with your check to the Alabama Department of Revenue each quarter.
• No reminders sent: The Alabama Department of Revenue does not send payment notices. Keep your own records of each payment.
• Farmers and fishermen: If at least two-thirds of your income comes from farming or fishing, you may qualify for alternative due dates.