Iowa Individual Estimated Income Tax Instructions

Individual Estimated Income Tax Instructions
IA 1040ES Instructions, 45-009
2023 IA 1040ES

Iowa Individual Estimated Income Tax Instructions
tax.iowa.gov
Pay electronically using eFile & Pay.
See the Department’s website for additional information regarding 2023 taxes: tax.iowa.gov
Who needs to file and pay estimates: Every individual or
married couple filing a joint Iowa return that expects to have
a tax liability of $200 or more from income not subject to
withholding.
Each individual required to make estimated payments must
file an estimated payment under his/her name and Social
Security Number.
Due dates: If a due date ends on a weekend or holiday as
defined in Iowa Code section 421.9A, substitute the next
regular business day for the due date.
For fiscal year filers, the dates for paying the estimated tax
are the last day of the fourth, sixth, and ninth months of the
fiscal year, and the last day of the first month of the next
fiscal year.
How to compute estimated taxes: Compute estimated tax
by using one of the following methods:
• Pay 5% of the anticipated Iowa gross income; or
• Pay 100% of the prior year’s Iowa tax liability from IA
1040, line 53, less applicable credits; or
• Pay 110% of the prior year’s Iowa tax liability from IA
1040, line 53, less applicable credits, if prior year’s federal
adjusted gross income plus any bonus depreciation
adjustment/section 179 from IA 1040, line 14 and all other
Iowa net income decoupling, exceeded $150,000; or
• Complete the traditional worksheet provided on page 2.
Overpayment credit: If you had a refund on your 2022 Iowa
income tax return and elected to apply it as a credit to your
estimated tax, the amount is automatically posted as an
estimated credit for 2023. Use the Estimated Tax Payment
Schedule to record and apply the credit. If the credit equals
or exceeds the first estimated payment, do not send an
estimated voucher until a payment is due.
Amending estimated tax: If your income changes during
the year, adjust the estimated tax for the remaining quarters
accordingly.
Underpayment of estimated tax: A penalty for
underpayment of estimated tax may apply if sufficient
estimated payments are not submitted, regardless of the
computation method used in calculating the estimated tax
liability. Please see form IA 2210 for penalty exceptions.
EXCEPTIONS
Nonresidents:
Income from pass-through entities: If a nonresident
partner, shareholder, or beneficiary (“member”) is included
on a pass-through entity’s (partnership, S corporation,
estate, or trust) composite return under Iowa Code section
422.16B, the nonresident member is not required to pay
estimated tax on their distributive share of income from that

pass-through entity. If a nonresident member is exempt from
inclusion on the composite return or is excluded from the
composite return pursuant to a 2023 Nonresident Member
Composite Agreement (41-175) signed by the member and
the entity, the nonresident member must include their
distributive share of pass-through income in the calculation
of their estimated tax. To obtain the 2023 Nonresident
Member Composite Agreement form, visit the Department’s
website.
Other non-wage income: For Iowa-source income other
than income from wages or a pass-through entity, Iowa law
provides that nonresidents have the option of having Iowa
income tax withheld or paying estimated income tax. If
paying estimated tax is preferred, a release from withholding
must be obtained prior to receipt of income. Complete the
Nonresident Request for Release from Withholding form (44017). To obtain this form, see the Department’s website.
Submit the form with the tax payment and installment
voucher to the Department at the address on the voucher. A
release may then be furnished to the payer from the
Department, based on the information provided.
Farmers and Fishers: If 2/3 or more of estimated gross
income is from farming or commercial fishing, two additional
options are available:
• Pay the estimated tax in one payment on or before
January 15, 2024 and file the Iowa income tax return by
April 30, 2024; or
• File the Iowa income tax return and pay the tax due in full
on or before March 1, 2024.
Those qualifying to make fewer than four estimated
payments should use the installment voucher for the quarter
from which the Iowa-source income was generated.
Low income exemption from tax:
Taxpayers 65 years of age or older: You are exempt if: (1)
You are single and your net income is $24,000 or less, or (2)
Your filing status is other than single and your combined net
income is $32,000 or less. Only one spouse must be 65 or
older to qualify for the exemption.
Taxpayers under 65 years of age: You are exempt if: (1)
Your net income is less than $5,000 and you are claimed as
a dependent on another person’s Iowa return, or (2) You are
single and your net income is $9,000 or less and you are not
claimed as a dependent on another person’s Iowa return, or
(3) Your filing status is other than single and your combined
net income is $13,500 or less.
Note: The amount of any reportable Social Security benefits
and lump-sum tax distributions of taxable income must be
added back to net income for purposes of determining the
low income exemption regardless of age.

45-009a (11/01/2022)

2023 Iowa Individual Estimated Income Tax, page 2

If opting to use one of the methods other than the traditional worksheet, proceed to number 21 of the traditional worksheet under
“Quarterly Estimated Tax Computation.”

Traditional Worksheet - for taxpayer records ONLY
1. Federal taxable income. Report income for both spouses if filing a joint Iowa return ..............................1. ________________
2. Iowa modifications to federal taxable income ...........................................................................................2. ________________
3. Iowa taxable income. Add lines 1 and 2. If less than zero, you do not owe estimated
income tax .................................................................................................................................................3. ________________
4. Compute income tax using 2023 Tax Rate Schedule below ....................................................................4. ________________
5. Iowa lump-sum tax ....................................................................................................................................5. ________________
6. Total estimated tax liability. Add lines 4 and 5 ..........................................................................................6. ________________
7. Total credits. Personal and dependent exemptions, tuition and textbook credit,
firefighter/EMS/reserve peace officer credit ..............................................................................................7. ________________
8. Balance. Subtract line 7 from line 6. If you are a resident, skip line 9 ......................................................8. ________________
9. Nonresidents. Enter amount of Iowa-source net income ..........................................................................9. ________________
10. Percentage of Iowa income vs. total income. Nonresidents divide line 9 by line 1,
round to the nearest ten-thousandth of a percent. Iowa residents enter 100% ........................................10. _____________ %
11. Estimated Iowa tax. Multiply line 8 by line 10 ...........................................................................................11. _______________
12. Out-of-state tax credit and any other nonrefundable Iowa credits ............................................................12. _______________
13. Balance. Subtract line 12 from line 11 ......................................................................................................13. _______________
14. Iowa residents’ school district or emergency medical services surtax......................................................14. _______________
15. Balance. Add lines 13 and 14 ...................................................................................................................15. _______________
16. Total Iowa credits: fuel tax, child and dependent care or early childhood development,
Iowa earned income tax credit, other refundable Iowa credits, composite, and withholding ....................16. _______________
17. Estimated tax. Subtract line 16 from line 15, rounded to the nearest dollar.
Do not file estimated taxes if line 17 is less than $200.
If line 17 exceeds $200, continue to line 18 directly below .......................................................................17. _______________
Quarterly Estimated Tax Computation
18. If the estimated tax exceeds $200, enter 100% (110% if high income taxpayer) of the prior year’s
tax liability, or 5% of this year’s anticipated Iowa gross income, or the amount from
line 17 on the above worksheet ................................................................................................................18. _______________
19. Multiply line 18 by 0.25. This is your quarterly estimated payment amount. Enter this amount
into column A, lines 1 through 4, on the Estimated Tax Payment Schedule below..................................19. _______________
2023 Tax Rate Schedule
Taxable income:
Single, Head of Household, Married Filing Separately, or
Married Filing Jointly:
Qualifying widower with dependent child
Over
But not
Of excess Over
But not
Of excess
over
over
over
over
0
6,000
$0
plus
4.4%
0
0
12,000
$0
plus
4.4%
0
6,000 30,000 $264
plus
4.82% 6,000
12,000
60,000
$528
plus
4.82% 12,000
30,000 75,000 $1,420.80 plus
5.7%
30,000
60,000
150,000 $2841.60 plus
5.7%
60,000
75,000
$3,985.80 plus
6%
75,000
150,000
$7,971.60 plus
6%
150,000

Estimated Tax Payment Schedule

Date
Installment 1
05/01/2023
Installment 2
06/30/2023
Installment 3
10/02/2023
Installment 4
01/31/2024

A
Computed
Installment

B
Refund
Carryforward/
Prior Period
Overpayment

C
Amount to be
Paid (column A
less column B)

Example on how to compute estimated tax:
The taxable income of a single taxpayer is
$24,000.
The calculation = $867.60 + [4.82% x ($24,000 $6,000)].
The result = $867.60 + $264.00 = $1131.60.
Round to the nearest dollar = $1132.00

45-009b (11/01/2022)