New Jersey Form NJ-1040-ES Instructions

Form NJ-1040-ES Instructions
2023 Form NJ-1040-ES Instructions
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2023 Form NJ-1040-ES
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 withholdings, 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 balances 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.

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 2023, 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 status single
or married/CU partner, filing separate return).

When to File

You can pay in full on or before April 18, 2023, 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, 2023, September 15,
2023, and January 16, 2024. 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.

1

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 pay­­ments can be made by:
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 5 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 decedent’s
death or the date the trust was created. E-check payments of estimated tax can be scheduled in advance.
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) 6737694, or by contacting the Division’s Customer Service
Center or visiting a Regional Information Center (see
page 5 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.
•• 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 or
NJ-1041SB).
•• Enter the actual amount of the payment being
submitted in the spaces on the voucher. If you had
an overpayment on your 2022 Income Tax return and
elected to apply the overpayment to your 2023 return,

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2023 Form NJ-1040-ES
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
2022 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
exemptions 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 4 as a guide
for this calculation. See the instructions for the NJ‑1040,
NJ‑1040NR, or NJ‑1041 for more details on income, 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) 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);
•• Alternative business calculation adjustment;
•• Organ/Bone Marrow Donation Deduction;
•• New Jersey College Affordability Deductions.

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;
•• New Jersey Child Tax 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 correspond 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 holi­day, 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 January 16, 2024. 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, 2023 – if changes occur after April 1 and
before June 2;
•• September 15, 2023 – if changes occur after June 1
and before September 2;

•• January 16, 2024 – 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 16, 2024, estimated
payment as long as you file your 2023 Income Tax return
by February 15, 2024, and pay the entire balance due.

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2023 Form NJ-1040-ES
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 below 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 estimated tax occurs. Interest is added to the
underpayment amount for that period. See “Interest (Forms
NJ-2210 and NJ-2210NR)” below. 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 cal­­culate 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 B

Table A

Filing Status:
Married/Civil Union Couple, Filing Joint Return
Head of Household
Qualifying Widow(er)/Surviving Civil Union Partner

Filing Status:
Single
Married/Civil Union Partner, Filing Separate Return
	 Estates and Trusts
If line 15 is:
But Not
Over
Over

3

If line 15 is:
Multiply
line 15 by:

Subtract

$	
0	$	 20,000	 	.014	 $	
0	
	 20,000		35,000	 	.0175		 70.00	
	 35,000		40,000	 	.035		 682.50	
	 40,000		75,000	 	.05525		1,492.50	
	 75,000		500,000	 	.0637		2,126.25	
	 500,000		1,000,000	 	 .0897		15,126.25	
	 1,000,000		and over	 	 .1075		32,926.25	

Over

Your Tax
_________
_________ 		
_________
_________
_________
_________
_________

But Not
Over

$	
0	 $		 20,000	
	 20,000			 50,000	
	 50,000			 70,000	
	 70,000			 80,000	
	 80,000			150,000	
	 150,000			500,000	
	 500,000		1,000,000	
	1,000,000		 and over	

Multiply
line 15 by:

Subtract

Your Tax

	.014	 $	
0	__________
	.0175		
70.00	__________ 		
	.0245		 420.00	__________
	.035		1,154.50	__________
	 .05525		2,775.00	__________
	.0637		4,042.50	__________
	 .0897		17,042.50	 __________
	 .1075		34,842.50	 __________

Note:	 If your estimated tax should change during the year, you can use the amended calculation below to determine the amended amounts
to enter on your voucher.

Amended Calculation Schedule (Use if your estimated tax changes substantially after you file your first voucher.)
1.	 Amended estimated tax............................................................................................................................
2.	 Less	 (a)	 Amount of last year’s overpayment elected for credit to 2023.....................
		

(b)	 Any estimated payments already made for 2023......................................... 	

		

(c)	 Total of lines 2(a) and 2(b).....................................................................................................

3.	 Unpaid balance (Subtract line 2(c) from line 1).........................................................................................
4.	 Amount to be paid (line 3 divided by the number of remaining installments)............................................	

Record of Estimated Tax Payments
Voucher
Number
1
2
3
4

Total

(a)
Date

(b)
Amount

(c)
2022 Overpayment Credit
Applied to Installment

(d)
Total Amount Paid and Credited From
Jan 1 Through Installment Date Shown
Add (b) and (c)

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2023 Form NJ-1040-ES
2023 Estimated Tax Worksheet For Individuals

(Keep for your records) – DO NOT FILE

(Estates and trusts should use a 2022 Fiduciary Return, Form NJ-1041, to calculate estimated tax for 2023)
	

1.	

Total Income Expected In Tax Year (before exclusions)....................................................	1.___________________

	2.	Total Pension and Other Retirement Income Exclusion.................................................	2.___________________
	3.	New Jersey Gross Income (Subtract line 2 from line 1).....................................................	3.___________________
4.	

a.	 Number of Exemptions_______  $1,000....................................	4a.______________

		

b.	 Number of Exemptions_______  $1,500....................................	4b.______________

		
		

c.	 Number of Exemptions_______  $6,000....................................	4c.______________
To determine number of exemptions on lines 4a, 4b, and 4c, see instructions.

	
5.	
		
		

Medical Expenses in excess of 2% (.02) of gross income (line 3),
qualified Archer MSA contributions, and health insurance costs
of the self-employed..........................................................................	5.______________

	

6.	

Alimony and separate maintenance payments..................................	6.______________

	

7.	

Qualified Conservation Contribution..................................................	7.______________ 	

	

8.	

Health Enterprise Zone Deduction..................................................... 8.______________ 	

	

9.	

Alternative Business Calculation Adjustment ....................................	9.______________

	 10.	

Organ/Bone Marrow Donation Deduction .........................................	10.______________

	

New Jersey College Affordability Deductions ...................................	11.______________

	

11.	

	 12.	

Total exemptions and deductions (Add lines 4a through 11)................................................	12.__________________

	 13.	

Taxable Income (Subtract line 12 from line 3)......................................................................	13.__________________

	 14.	

Property Tax Deduction (See instructions NJ-1040).............................................................	14.__________________

	15.	 New Jersey Taxable Income (Subtract line 14 from line 13)..............................................	15.__________________
	16.	 Tax (See Tax Rate Tables on page 3)...................................................................................	16.__________________
	 17.	

Credit for income taxes paid to other jurisdictions (See instructions NJ-1040)....................	17.__________________

	18.	 Balance of Tax (Subtract line 17 from line 16).....................................................................	18.__________________
	 19.	

New Jersey Income Tax to be withheld for the year..........................	19.______________

	 20.	

Other Credits (See instructions)........................................................ 20.______________

	 21.	

Total Payments/Credits (Add lines 19 and 20)......................................................................	21.__________________

	22.	 Estimated Tax (Subtract line 21 from line 18)......................................................................	22.__________________
	

If the amount on line 22 is more than $400, estimated tax payments are required.

	 23.	
		

Calculation of installments:
If your first installment is due to be filed on:

	

April 18, 2023..................	enter 1/4 of line 22 here
June 15, 2023.................	enter 1/3 of line 22 here 	

	

September 15, 2023.......	enter 1/2 of line 22 here, or

	

January 16, 2024............	enter full amount of line 22 here

	

	

and in the spaces on your voucher.........................................	23.__________________
If you are applying an overpayment from 2022 to your 2023 estimated tax, see instructions.

-ES
2023 Form NJ-1040-ES

When You Need Information…
by phone…

Call our Automated Tax Information System
1 (800) 323-4400 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.

5

online…

Visit the New Jersey Division of Taxation Website
Many State tax forms and publications are available on our
website: nj.gov/taxation
Also, you can reach us by email with general State tax
questions at: [email protected]
Do not include confidential information such as Social
Security or federal tax identification numbers, liability or
payment amounts, dates of birth, or bank account numbers
in your email.
Subscribe to NJ Tax E-News, the Division of Taxa­tion’s
online ­information service, 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.