The 2026 IRS instructions confirm that Form 1040-ES (NR) has its own estimated-tax worksheet and payment rules for nonresident aliens. The general threshold is based on whether you expect to owe at least $1,000 after withholding and refundable credits, along with whether your payments meet the IRS’s required percentage of your tax liability.

The article below is written for AIM Financial’s website and uses the IRS’s 2026 guidance. Individual tax situations, treaty benefits, and filing obligations can differ.

This AIM Financial tax-form blog, IRS Form 1040-ES (NR), which helps certain nonresident aliens estimate and pay federal income taxes when withholding may not cover their tax liability. This is a specialized topic that can help AIM Financial reach readers with international income and U.S. tax-filing questions.

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What Is IRS Form 1040-ES (NR)?

Understanding U.S. tax obligations can be challenging for individuals who are not U.S. citizens or residents for federal tax purposes. If you are considered a nonresident alien and earn certain types of income from U.S. sources, you may need to pay federal income taxes throughout the year instead of waiting until you file your annual tax return.

IRS Form 1040-ES (NR), U.S. Estimated Tax for Nonresident Alien Individuals, helps eligible taxpayers calculate and pay estimated federal income taxes. The form is designed specifically for nonresident aliens and is different from Form 1040-ES, which is generally used by U.S. citizens and resident aliens.

AIM Financial helps taxpayers understand complicated tax forms, organize income information, and prepare for tax filing. Whether you live in West Michigan, have U.S. investments, or receive qualifying income connected to U.S. activities, understanding estimated taxes can help you avoid unexpected tax bills and potential penalties.

Who May Need to File Form 1040-ES (NR)?

Estimated tax payments may be necessary when federal income tax is not withheld from your income or when withholding is insufficient to cover your expected tax liability.

Examples of income that may require attention include:

  • Self-employment or business income: Income from a business or qualifying independent work may create a need for estimated payments.
  • Rental income: Income from U.S. rental property may create federal tax obligations.
  • Investment income: Certain interest, dividends, and capital gains may be subject to U.S. tax, depending on the income type and applicable rules.
  • Other taxable income: Additional income not adequately covered by withholding may need to be included in your estimated-tax calculation.

Not every nonresident alien with U.S. income must make estimated payments. The tax treatment depends on the nature of the income, applicable withholding rules, tax treaties, deductions, and the individual’s circumstances.

What Are the General Estimated-Tax Requirements?

For the 2026 tax year, the IRS generally requires estimated tax payments when both of these conditions apply:

  1. You expect to owe at least $1,000 in federal income tax after subtracting withholding and refundable credits.
  2. You expect your withholding and refundable credits to be less than the smaller of 90% of the tax you expect to owe on your 2026 return or 100% of the tax shown on your 2025 return, assuming that return covered a full 12 months.

Special rules can apply to higher-income taxpayers and certain other situations. For example, taxpayers above the applicable adjusted gross income threshold may need to use 110% of the prior year’s tax rather than 100% when applying the prior-year test.

These calculations can be confusing, especially if your income changes during the year or you have multiple sources of income. Reviewing your prior-year return is a useful starting point, but it is important to adjust your estimate for current-year income, deductions, credits, and tax law changes.

How to Complete Form 1040-ES (NR)

The 2026 Form 1040-ES (NR) package includes a worksheet to help you estimate your tax liability. Here is a simplified overview of the process.

Step 1: Estimate Your Annual Income

Calculate the income you expect to receive during the tax year. Gather information about wages, business earnings, rental income, investment income, and other relevant sources.

For nonresident aliens, determining which income is taxable in the United States is particularly important. Income connected with a U.S. trade or business may be treated differently from certain other U.S.-source income.

Step 2: Estimate Eligible Deductions and Credits

Review deductions and credits that may apply to your situation. Nonresident aliens generally cannot claim the standard deduction, although limited exceptions and special rules may apply. Certain itemized deductions, treaty provisions, or other tax-law benefits may be available depending on the circumstances.

Do not assume that deductions available to U.S. resident taxpayers automatically apply to nonresident aliens.

Step 3: Calculate Your Expected Tax

Use the official 2026 estimated-tax worksheet and tax-rate schedules to estimate your federal tax liability. Include applicable adjustments, withholding, and refundable credits when determining whether estimated payments are required.

If you are uncertain about how a tax treaty or the classification of your income affects the calculation, professional guidance can help prevent errors.

Step 4: Determine Your Payment Amount

The worksheet helps you calculate the amount to pay and whether you should make payments in installments. Your payment schedule can depend on the type of withholding that applies to your wages and when your estimated-tax obligation begins.

Keep a copy of your calculations and payment confirmations for your records.

Step 5: Make Payments on Time

Estimated tax is generally paid in installments during the year. For 2026, the standard installment dates are April 15, June 15, and September 15, 2026, followed by January 15, 2027, subject to the applicable rules and any weekend or holiday adjustments.

For nonresident aliens, the first payment schedule may differ depending on whether you have wages subject to the same withholding rules that apply to U.S. citizens. Consult the current Form 1040-ES (NR) instructions to determine the correct schedule for your circumstances.

You may be able to pay electronically or use the payment vouchers included in the IRS package when applicable. Always verify payment instructions on the official IRS website.

What Happens If You Do Not Pay Enough Estimated Tax?

Failing to pay enough federal income tax during the year can result in an underpayment penalty. A penalty may apply even if you eventually pay the full amount owed when you file your annual return.

Common problems include:

  • Underestimating income from investments, rentals, or business activities.
  • Assuming all income is automatically covered by withholding.
  • Using the wrong estimated-tax form.
  • Missing an installment deadline.
  • Overlooking changes in income, deductions, or tax rules.

If your income changes substantially during the year, revisit your estimated-tax calculation. Updating the worksheet can help you adjust later payments rather than relying on an outdated estimate.

Why Nonresident Aliens Should Review Their Tax Situation Carefully

Nonresident alien tax rules are not identical to the rules that apply to U.S. citizens and resident aliens. Residency status, income classification, withholding, tax treaty eligibility, and filing requirements can all affect the amount of federal tax due.

Some individuals may also have dual-status tax years or special circumstances involving a spouse, U.S. business, or foreign financial arrangements. These situations may require additional forms or a different approach to tax planning.

The 2026 version of Form 1040-ES (NR) includes updates reflecting recent federal tax-law changes. Using an outdated worksheet can lead to inaccurate estimates, so always start with the current form and instructions.

Get Help Understanding Your Tax Obligations from AIM Financial

Tax forms do not have to be overwhelming. AIM Financial can help you organize your tax information, understand applicable filing requirements, and prepare for federal tax season. If you are unsure whether you need estimated payments, how to calculate them, or which forms apply to your circumstances, getting assistance before a deadline may help you avoid unnecessary surprises.

For individuals and businesses in Grand Rapids, Kentwood, Wyoming, and throughout West Michigan, AIM Financial offers tax preparation assistance tailored to your situation.

Contact AIM Financial to discuss your tax preparation needs and get help understanding the forms and information required for your federal income tax return.

Official IRS Resources

This article provides general educational information and is not individualized tax or legal advice. Filing obligations and estimated-tax requirements depend on each taxpayer’s circumstances and applicable law.

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