General Information for Forms NJ 1040-ES
Estimated tax means the amount which you estimate to be your income tax for the taxable year after subtracting withholdings and other credits.
If your estimated tax exceeds $400, you are required to make a declaration of estimated tax and quarterly estimated tax payments. Form NJ-1040-ES is available to make estimated tax payments to the State of New Jersey. To avoid having to make estimated tax payments, you may ask your employer to withhold an additional amount from your wages by completing Form NJ-W4. If you have pension income, file Form NJ-W-4P with the payer of the pension to have tax withheld. Failure to file a Declaration of Estimated Tax or to pay all or part of a required quarterly estimated tax payment will result in interest charges on the underpayment.
Who Must File
Resident and nonresident individuals as well as certain estates and trusts are required to file a declaration of estimated tax for every tax year in which total New Jersey estimated tax is more than $400.
Please consider the following when determining whether or not estimated tax payments are required.
Minimum Income Filing Threshold. A taxpayer is not required to file a New Jersey income tax return or pay tax if gross income for the entire year is $20,000 or less (filing status married/civil union couple, filing joint return or head of household or qualifying widow(er)/surviving civil union partner), or $10,000 or less (estates and trusts, or individuals with filing status single or married/civil union partner, filing separate return).
Retirement Income Exclusion. Individuals who qualify may be able to exclude from gross income up to $20,000 (filing status married/civil union couple, filing joint return), $15,000 (filing status single, head of household, or qualifying widow(er)/ surviving civil union partner), or $10,000 (filing status married/ civil union partner, filing separate return) of taxable pension and other income.
Note: Taxpayers whose gross income for the entire year exceeds $100,000 do not qualify for the exclusion.
When to File
Your declaration and first installment must be filed on or before April 15, 2009, for calendar year filers or by the date specified in these instructions for Farmers or Changes in Income. If you elect to pay your estimated tax in four equal installments, additional declarations and payments must be filed on or before June 15, 2009, September 15, 2009, and January 15, 2010. However, if any date falls on a Saturday, Sunday, or legal holiday, substitute the next regular workday.
Where to File
Mail your declaration vouchers along with your check or money order to:
State of New Jersey
Division of Taxation
Revenue Process ing Center
PO Box 222
Trenton NJ 08646-0222
Write your social security number on your check. Joint declarations must include the social security numbers of both spouses/ civil union partners on all documents submitted. Fiduciaries must include the Federal employer identification number of the estate or trust.
How to Calculate Your Estimated Tax
If you are a calendar year taxpayer, estimate tax for the period from January 1, 2009, to December 31, 2009. Determine your expected gross income, then subtract personal exemptions and deductions to arrive at 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 computing your estimated tax. Refer to the instructions for the NJ-1040, NJ-1040NR, and NJ-1041 income tax returns for information on what constitutes income, exemptions, expenses, deductions, and credits.
Exemptions
Each taxpayer may claim the following personal 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 years of age or more – an additional $1,000 each
- Taxpayer (and spouse/civil union partner if filing jointly) who is blind or disabled – an additional $1,000 each
- Each dependent who qualifies as your dependent for Federal income tax purposes – $1,500 per dependent
- Each dependent under 22 years of age who is attending an accredited institution of higher education full time – an additional $1,000 per dependent
Deductions
Individuals may deduct the following:
- Medical expenses in excess of 2% (.02) of gross income, qualified Archer medical savings account (MSA) contributions, 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)
Other Credits
Individuals who meet the eligibility requirements may claim the following credits when determining their estimated tax: property tax credit, New Jersey earned income tax credit, and sheltered workshop tax credit. Refer to the income tax return instructions for information on how to estimate the amount of your credit(s).
Fiscal Year Taxpayers
Fiscal year filers should estimate their tax based on the expected income for the period covering their fiscal year. If your tax return is filed on a fiscal year basis, change the calendar year dates on the vouchers to correspond with the 15th day of the fourth, sixth, and ninth month of your fiscal year, and the first month of your succeeding fiscal year.
Payment of Estimated Tax
You may pay your estimated tax in full by the due date of the first installment or in four equal installments. Estimated payments may be made by:
Check or Money Order, payable to State of New Jersey – TGI. Write your social security number (Federal employer identification number for estates or trusts) on the check or money order and enclose the completed declaration voucher for the period.
Electronic Check (e-check), available on the Division’s Web site (www.state.nj.us/treasury/taxation/). Those without Internet access can pay by e-check by contacting the Division’s Customer Service Center at 609-292-6400. Do not send in a declaration of estimated tax voucher when paying by e-check. When using e-check on the Web, individuals need their social security number and date of birth, and estates and trusts need their Federal employer identification number and either the date of the decedent’s death or the date the trust was created to make a payment. E-check payments of estimated tax can also be scheduled in advance.
Credit Card, by phone (1-800-2PAYTAX, toll-free) or online (www.state.nj.us/treasury/taxation/), using a Visa, American Express, MasterCard, or Discover card. You may be asked to enter a jurisdiction code to make your payment. The code for New Jersey personal income tax is 4000. There is a convenience fee of 2.49% paid directly to Official Payments Corporation based on the amount of your tax payment. Do not send in a declaration of estimated tax voucher when paying by credit card.
Changes in Income, Exemptions, etc.
Although you may not be required to file a Declaration of Estimated Tax on April 15, 2009, your situation can change and you may have to file a declaration later in the year. Calendar year filers must file by:
- June 15, 2009 – if changes occur after April 1 and before June 2
- September 15, 2009 – if changes occur after June 1 and before September 2
- January 15, 2010 – if changes occur after September 1
Pay the estimated tax in equal installments on the remaining payment dates.
You need not file a January 15, 2010, Declaration of Estimated Tax as long as you file your 2009 income tax return by February 15, 2010, and pay the entire balance due. This also applies to filing an amended declaration, or filing an original declaration which would first be due in the fourth quarter, or paying the last installment of your estimated tax.
Farmers
An individual may file a declaration of estimated tax at any time on or before January 15 of the succeeding year if at least two-thirds of his total estimated income for the taxable year is derived from farming (including oyster farming). Farmers filing declarations by January 15 must pay estimated taxes in full with the declaration.
Amended Declarations
If a declaration is amended, any remaining installments must be adjusted to reflect the change in estimated tax. If an amended declaration is made after September 15, 2009, any increase in estimated tax must be paid at the time the amended declaration is filed. Use the Amended Computation Schedule on page 4 to determine the amount of your remaining installments.
Failure to File a Declaration or to Pay Estimated Tax
If a declaration 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 any required declaration of estimated tax, underpayment of estimated tax occurs. Interest at the annual rate of 3% above the prime rate is added to the underpayment amount for that period. See Interest below. The estate of a taxpayer who dies during the taxable year may be required to start (or continue) filing estimated tax payments.
Form NJ-2210
If you fail to make all required estimated tax payments, complete Form NJ-2210, Underpayment of Estimated Tax by Individuals, Estates or Trusts, to determine if interest is due and if so, to calculate the amount. Instructions are included with the form.
Interest
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.
Completing the Declaration Voucher
- Complete the worksheet to figure your 2009 estimated tax.
- Enter your name, address, and social security number on the voucher (if not preprinted). If you are making a joint declaration, also enter your spouse’s/civil union partner’s social security number. Be sure to enter the name and social security number of each spouse/civil union partner in the same sequence used on your return. Estates and trusts enter the Federal employer identification number. Note: Please print your numbers like this:
- 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 space provided on the voucher. If you overpaid your 2008 income tax and elected to apply the overpayment to your 2009 estimated income tax, that overpayment will be automatically credited to the first quarterly installment, or it may be partially or fully applied to any installment. Subtract the amount of the 2008 overpayment from the amount of the installment due and enter only the amount actually being submitted with the voucher.
- Enclose your check or money order with the voucher. Remember to write your social security number on your check or money order. If filing jointly, include the social security numbers of both spouses/civil union partners. Estates and trusts enter the Federal employer identification number.
- Mail your check or money order along with your voucher to the address listed in Where to File on page 1.
Note: If payment is made by e-check or credit card, no declaration of estimated tax voucher need be filed. See Payment of Estimated Tax above.
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 forms and publications through our message system.
- Get information on 2008 refunds.
Call our Automated Homestead Rebate Inquiry System 1-877-658-2972 — (within NJ, NY, PA, DE, and MD) or 609-826-4288. Touch-tone phones only. Get information on 2008 homestead rebates 7 days a week. Available seasonally August through April.
Contact our Customer Service Center 609-292-6400 — Speak directly to a Division of Taxation representative for tax information and assistance, 8:30 a.m. to 4:30 p.m., Monday through Friday (except holidays).
Text Telephone Service (TTY/TDD) for Hard-of-Hearing Users 1-800-286-6613 — (toll-free within NJ, NY, PA, DE, and MD) or 609-984-7300. These numbers are accessible only from TTY devices.
- Submit a text message on any tax matter.
- Receive a reply through NJ Relay Services (711).
online
Visit the New Jersey Division of Taxation Home Page Many State tax forms and publications are available on our Web site.
Access the Division’s home page at: www.state.nj.us/treasury/taxation/
You may also reach us by e-mail at: nj.taxation@treas.state.nj.us
Subscribe to NJ Tax ENews, the Division of Taxation’s online information service, at: www.state.nj.us/treasury/taxation/listservice.htm
in person
Visit a New Jersey Division of Taxation Regional Office Regional offices provide individual assistance at various locations throughout the State. Call the Automated Tax Information System or visit our home page for the address of the regional office nearest you.
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