Nj 1040 Es – Fill Out and Use This PDF

What is Estimated Tax

Estimated tax refers to paying tax on your income as it is earned throughout the year if you do not already pay tax through with- holdings, or if not enough tax is withheld. If you expect to owe more than $400 when you file your New Jersey Income Tax return, you may need to make estimated tax payments. For more information, see GIT-8, Estimating Income Taxes.

Estimated tax payments are not payments for prior year tax debts. Do not use Form NJ-1040-ES to pay outstanding bal- ances for prior years. For information on starting a payment plan, visit nj.gov/treasury/taxation/questions/deferred1.shtml.

How to Avoid Estimated Tax

If you do not have enough tax withheld from your wages, ask your employer to withhold more tax. To do this, complete Form NJ-W4 and give it to your employer.

If you have pension income, ask the payer of the pension to withhold tax or increase the tax withheld. To do this, complete Form NJ-W-4P and give it to the payer of the pension.

Check or Money Order payable to State of New Jersey – TGI. Write your Social Security number on your check or money order. If you are filing a joint return, include both Social Security numbers in the same order the names are listed on the NJ-1040-ES. Fiduciaries must include the federal employer identification number of the estate or trust. Mail your payment with the completed voucher (NJ-1040-ES) to: State of New Jersey, Division of Taxation, Revenue Processing Center, PO Box 222, Trenton NJ 08646-0222.

Electronic Check (e-check). You can have your payment directly withdrawn from your bank account using our online e-check service. This option is available on our website at nj.gov/taxation or by contacting our Customer Service Center or visiting a Regional Information Center (see page 4 for phone number or addresses.) Do not send in a voucher when paying by e-check. You need the Social Security number and date of birth of the first person listed on your New Jersey Income Tax return to make a payment. Estates and trusts need their federal employer identification number and either the date of the dece- dent’s death or the date the trust was created. E-check payments of estimated tax can be scheduled in advance.

Who Must File

Whether you are a resident or a nonresident, you are required to make estimated tax payments if you estimate that you will owe more than $400. This also is true for certain estates and trusts. If you made an estimated payment(s) for the prior year but do not expect to have a New Jersey Income Tax liability for 2022, you do not need to make estimated payments.

Minimum Income Filing Threshold. If your gross income for the entire year is at or below the filing threshold, you are not required to file a New Jersey Income Tax return and do not need to make estimated payments. Filing thresholds: $20,000 or less (filing status married/CU couple, filing joint return or head of household or qualifying widow(er)/surviving CU partner), or $10,000 or less (estates and trusts, or individuals­ with filing sta- tus single or married/CU partner, filing separate return).

When to File

You can pay in full on or before April 18, 2022, or in four equal installments. If you are paying your estimated tax in four equal installments, additional payments must be made on or before June 15, 2022, September 15, 2022, and January 17, 2023.

If you have changes in income, exemptions, or deductions, you may be required to make an estimated tax payment even if payments were not previously required. See “Changes in Income, Exemptions, etc.”

If you are a fiscal year taxpayer or a farmer, see the appropriate section on page 2 for payment dates.

How to Pay

You can pay your estimated tax in full by the due date of the first installment or in four equal installments. Estimated pay­ ments can be made by:

Credit Card (Processing Fees Apply). You can use an American Express, Discover, MasterCard, or Visa credit card to make your payment. This option is available on our website at nj.gov/taxation, by phone at 1 (888) 673-7694, or by contacting the Division’s Customer Service Center or visiting a Regional Information Center (see page 4 for phone number or addresses.) Do not send in a voucher when paying by credit card.

Completing the NJ-1040-ES Voucher

Complete the voucher only if paying by check or money order. Do not complete the voucher if you are paying by e-check or credit card.

•• Enter your name, address, and Social Security number on the voucher (if not preprinted). If you are filing jointly, include the name and Social Security numbers for both of you in the same order the names are listed on your New Jersey Income Tax return. Estates and trusts enter the federal employer identification number.

Note: Print your numbers as follows:

•• Check the appropriate box to indicate the return for which payment is being made: Resident (Form NJ‑1040), Nonresident (Form NJ‑1040NR or NJ‑1080C), or Fiduciary (Form NJ‑1041).

•• Enter the actual amount of the payment being submitted in the spaces on the voucher. If you had an overpayment on your 2021 Income Tax return and elected to apply the overpayment to your 2022 return, that overpayment will be automatically credited to the first quarterly installment, or it can be partially or fully applied to any installment. Subtract the amount of the 2021 overpayment from the amount of the installment due, and enter only the amount actually being submitted with the voucher.

How to Calculate Your Estimated Tax

Determine your expected income, then subtract your exemp- tions and deductions to arrive at your expected taxable income. Apply the appropriate­ tax rate to your expected taxable income. Subtract total anticipated credits and withholdings to arrive

at your estimated tax. Use the estimated tax worksheet on page 3 as a guide for this calculation. See the instructions for the NJ‑1040, NJ‑1040NR, or NJ‑1041 for more details on in- come, exemptions, deductions, and credits.

Retirement Income Exclusions. If you are 62 or older, you may be able to exclude pension and other retirement income. These exclusions only apply for taxpayers with income up to $150,000.

Exemptions

You may be able to claim the following exemptions:

•• Taxpayer (and either spouse/civil union partner, if filing jointly, or domestic partner) – $1,000 each;

•• Taxpayer (and spouse/civil union partner if filing jointly) who is 65 or older – an additional $1,000 each;

•• Taxpayer (and spouse/civil union partner if filing jointly) who is blind or disabled – an additional $1,000 each;

•• Taxpayer (and spouse/civil union partner if filing jointly) who is a veteran honorably discharged or released from active duty in the U.S. Armed Forces – an additional $6,000 each;

•• Each dependent who qualifies as your dependent for federal income tax purposes – $1,500 per dependent;

•• Each dependent under age 22 who is attending an accredited institution of higher education full time – an additional $1,000 per dependent.

Deductions

You can deduct the following:

•• Medical expenses in excess of 2% (0.02) of gross income, qualified Archer medical savings account (MSA) contribu­ tions, and health insurance costs of the self-employed;

•• Alimony and separate maintenance payments, subject to certain limitations;

•• Qualified conservation contributions;

•• Health Enterprise Zone deduction;

•• Property Tax Deduction or Credit (claim only one);

•• Alternative business calculation adjustment;

•• Organ/Bone Marrow Donation Deduction.

Other Credits

If you meet the eligibility requirements, you can claim:

•• Property Tax Credit or Deduction (claim only one);

•• New Jersey Earned Income Tax Credit;

•• Child and Dependent Care Credit;

•• Wounded Warrior Caregivers Credit;

•• Gold Star Family Counseling Credit;

•• Sheltered Workshop Tax Credit;

•• Credit for Employer of Organ/Bone Marrow Donor;

•• Pass-Through Business Alternative Income Tax Credit.

See the instruction booklet for the Income Tax return that you file for information on how to estimate the amount of your credit(s).

Fiscal Year Taxpayers

Fiscal year filers must estimate their tax for the period covered by their fiscal year, and change the payment due dates to corre- spond with the 15th day of the fourth, sixth, and ninth month of their fiscal year, and the first month after the end of their fiscal year. When any date falls on a Saturday, Sunday, or legal holi­ day, substitute the next regular workday.

Farmers

If at least two-thirds of your total estimated income for the tax year is from farming (including oyster farming), you can submit your estimated tax payments at any time on or before Janu- ary 17, 2023. In this case, the estimated tax must be paid in full. If you operate on a fiscal year basis, file by the 15th day of the first month after the end of your fiscal year.

Changes in Income, Exemptions, etc.

If a change occurs, you may be required to make an estimated payment even if you did not need to make payments earlier in the year. Calendar year filers must file by:

•• June 15, 2022 – if changes occur after April 1 and before June 2;

•• September 15, 2022 – if changes occur after June 1 and before September 2;

•• January 17, 2023 – if changes occur after September 1.

Pay the estimated tax in equal installments on the remaining payment dates.

You do not need to submit a January 17, 2023, estimated pay- ment as long as you file your 2022 Income Tax return by Febru- ary 15, 2023, and pay the entire balance due.

Amended Estimated Payments

If the amount of your estimated tax changes, any remaining installments must be adjusted to reflect the change. Use the Amended Calculation Schedule on page 4 to determine the amount of your remaining installments.

Failure to Pay Estimated Tax

If an installment is filed after the due date, it does not affect the due date of the remaining installments. If you fail to pay all or any part of your required estimated tax, underpayment of esti- mated tax occurs. Interest is added to the underpayment amount for that period. See “Interest (Forms NJ-2210 and NJ-2210NR)” on page 3. The estate of a taxpayer who dies during the tax year may be required to start (or continue) filing estimated tax payments.

Interest (Forms NJ-2210 and NJ-2210NR)

If you fail to make all required estimated tax payments, complete Form NJ-2210, Underpayment of Estimated Tax by Individuals, Estates or Trusts, or NJ-2210NR, Underpayment of Estimated Tax by Nonresidents, to determine if interest is due and if so, to cal­ culate the amount.

Interest will be assessed at the prime rate plus 3%, compounded annually. At the end of each calendar year, any tax and interest that are still unpaid will become part of the balance on which interest is charged.

Table A

Filing Status:

Single

Married/Civil Union Partner, Filing Separate Return

Estates and Trusts

Table B

Filing Status:

Married/Civil Union Couple, Filing Joint Return

Head of Household

Qualifying Widow(er)/Surviving Civil Union Partner

When You Need Information…

by phone…

Call our Automated Tax Information System

1 (800) 323-4400 — (within NJ, NY, PA, DE, and MD) or

(609)826-4400. Touch-tone phones only.

♦Listen to recorded tax information on many topics.

♦Order certain forms and publications through our message system.

Contact our Customer Service Center

(609)292-6400 — Speak directly to a Division of Taxation representative for tax information and assistance.

Deaf, Hard of Hearing, Deaf-Blind, Speech Disability

Visit njrelay.com or call 711.

online…

Visit the New Jersey Division of Taxation Website

Many State tax forms and publications are available on our web- site: nj.gov/taxation

Also, you can reach us by email with general State tax questions at: nj.taxation@treas.nj.gov

Do not include confidential information such as Social Security or federal tax identification numbers, liability or pay- ment amounts, dates of birth, or bank account numbers in your email.

Subscribe to NJ Tax E-News, the Division of Taxation’s­ online

information­service, at:

nj.gov/treasury/taxation/listservice.shtml

in person…

Visit a Regional Information Center

Regional Information Centers provide individual assistance at various locations throughout the State. Call the Automated Tax Information System or visit our website for the address of the

center nearest you.