Form 1040-ES for Expats Explained: Quarterly Estimated Tax Payments From Abroad

Form 1040-ES is the IRS form that self-employed expats, freelancers, and Americans earning income without U.S. withholding use to calculate and submit quarterly estimated tax payments. If you expect to owe $1,000 or more in tax for the year after subtracting withholding and credits, you are generally required to make quarterly payments using this form. For a full overview of who needs to make estimated payments and how the rules apply to expats, see our estimated tax payments guide.

The form itself consists of two parts: a worksheet to calculate your estimated annual tax liability, and four payment vouchers (one per quarter) if you pay by mail. According to the IRS, most taxpayers can also pay electronically through EFTPS or IRS Direct Pay, eliminating the need for paper vouchers.

For expat freelancers and self-employed workers, the most common reason you need Form 1040-ES is self-employment tax (15.3%). The Foreign Earned Income Exclusion eliminates federal income tax on up to $130,000 (2025) of earned income, but it does NOT eliminate SE tax. This means many expats who owe $0 in income tax still owe quarterly SE tax payments.

Need to Make Estimated Tax Payments From Abroad?

Greenback helps you calculate your quarterly payments accurately and avoid IRS penalties.

Here’s how to complete the 1040-ES worksheet, when each payment is due, and how to pay from abroad.

How Do I Complete the Form 1040-ES Worksheet?

The 1040-ES worksheet walks you through estimating your total tax for the year. For expats, it involves several moving parts that interact with one another.

Step-by-Step Worksheet Process

Step	What You Do	Expat Consideration
1. Estimate AGI	Project your total worldwide income for the year (self-employment, wages, investments, rental)	Include all foreign-source income, even if you plan to exclude it with the FEIE
2. Subtract deductions	Standard deduction ($15,750 single / $31,500 MFJ for 2025) or itemized deductions	OBBB senior deduction ($6,000) available for 65+ if MAGI qualifies
3. Apply FEIE	Subtract income excluded under the FEIE (up to $130,000 for 2025)	Only earned income qualifies; investment/rental income is not excludable
4. Calculate income tax	Apply the tax brackets to your remaining taxable income	Many expats reach $0 at this step
5. Add SE tax	15.3% on 92.35% of net self-employment earnings (up to the Social Security wage base)	FEIE does NOT reduce SE tax; this is where most expat payments come from
6. Subtract credits	Apply Foreign Tax Credit, Child Tax Credit, and other applicable credits	FTC only offsets income tax, not SE tax
7. Subtract withholding	Subtract any U.S. tax already withheld (W-2, 1099, backup withholding)	Most expats working for foreign employers have $0 withholding
8. Result	If you owe $1,000 or more, you need quarterly payments	Divide by 4 for equal quarterly installments

Example: Self-Employed Expat in Portugal

Marco is a freelance software developer living in Lisbon. His projected 2025 numbers:

Net self-employment income: $95,000
FEIE exclusion: $95,000 (income fully excluded)
Federal income tax after FEIE: $0
SE tax: $95,000 x 92.35% x 15.3% = $13,420
Credits/withholding: $0
Estimated tax owed: $13,420
Quarterly payment: $3,355 (4 equal installments)

Even though Marco owes $0 in income tax, he owes $13,420 in SE tax and must make quarterly payments to avoid underpayment penalties.

Exception: If Marco lives in a country with a totalization agreement (Portugal has one with the U.S.) and is paying into Portugal’s social security system, he may be exempt from U.S. SE tax entirely, reducing his estimated payments to $0.

When Are the Quarterly Payments Due?

Quarter	Income Period	Due Date (2025 Tax Year)	Due Date (2026 Tax Year)
Q1	January – March	April 15, 2025	April 15, 2026
Q2	April – May	June 16, 2025	June 15, 2026
Q3	June – August	September 15, 2025	September 15, 2026
Q4	September – December	January 15, 2026	January 15, 2027

Q4 exception: You can skip the January 15 payment if you file your annual return and pay the full balance by January 31.

Expat timing note: The automatic June 15 extension for filing your annual return does NOT extend your estimated payment deadlines. Quarterly payments are always due on the standard dates regardless of where you live.

How Do I Pay From Abroad?

Method	How It Works	Best For
EFTPS (Electronic Federal Tax Payment System)	Register at eftps.gov, pay by bank transfer. Requires a U.S. bank account.	Expats with a U.S. bank account (most reliable, instant confirmation)
IRS Direct Pay	Pay at irs.gov/payments using a U.S. bank account. No registration needed.	Quick one-time payments
Credit/debit card	Pay through IRS-approved processors. Processing fees apply (1.85-1.98% for credit cards).	Expats without a U.S. bank account
IRS2Go app	Mobile version of Direct Pay. Requires U.S. bank account.	Convenience
Mail with voucher	Print the 1040-ES voucher, mail with a check payable to “United States Treasury.” Write your SSN and “2025 Form 1040-ES” on the check.	Last resort (slow, no confirmation)

Practical tip for expats: EFTPS is the most reliable option because it provides a confirmation number, allows you to schedule payments in advance, and creates an accessible payment history for your annual return. If you don’t have a U.S. bank account, credit card payment through an IRS-approved processor is the next best option.

How Do the FEIE and FTC Affect My Estimated Payments?

Your choice of tax strategy directly affects how much you owe in quarterly payments:

Strategy	Income Tax Effect	SE Tax Effect	Estimated Payments Needed?
FEIE (income under $130,000)	$0 income tax	Full SE tax still owed (15.3%)	Yes, for SE tax
FEIE (income over $130,000)	Income tax on amount above $130,000	Full SE tax still owed	Yes, for both
FTC (high-tax country)	Usually $0 after credits	SE tax still owed (unless totalization agreement applies)	Depends on SE tax
FTC + totalization agreement	Usually $0 after credits	$0 SE tax	Likely no

The most common scenario for expat freelancers: you use the FEIE to eliminate income tax, but still owe SE tax. Your quarterly payments cover only the SE tax portion. If your country has a totalization agreement and you’re paying into that country’s social security, you may owe nothing at all.

What Is the Safe Harbor Rule?

You can avoid underpayment penalties entirely by meeting one of these safe harbor thresholds:

Pay at least 90% of your current year’s total tax through quarterly payments, OR
Pay at least 100% of last year’s total tax (110% if your prior-year AGI exceeded $150,000)

The 100% of last year’s tax method is the simplest for expats: take your total tax from last year’s return, divide by 4, and pay that amount each quarter. Even if your actual liability changes, you won’t face penalties.

What Happens If I Underpay?

If you don’t pay enough through quarterly estimates, the IRS assesses an underpayment penalty calculated at the federal short-term rate plus 3 percentage points (approximately 7% annually as of early 2026), compounded daily. The penalty applies separately to each quarter based on when the payment was due and when it was actually paid.

Use Form 2210 to calculate the penalty yourself, request a waiver for reasonable cause, or use the annualized income installment method if your income is uneven throughout the year (common for seasonal freelancers or expats who start/stop working mid-year).

Do I Need Form 1040-ES or the Main Estimated Payments Guide?

Question	Where to Go
“Do I need to make estimated payments?”	Estimated tax payments guide
“How do I fill out the 1040-ES worksheet?”	This article
“What are the quarterly deadlines?”	Both articles cover this
“How do I calculate SE tax?”	Self-employment tax guide
“What payment methods work from abroad?”	This article
“What if I missed a quarterly payment?”	Estimated tax payments guide

At Greenback, we calculate your quarterly estimated payments as part of your annual tax preparation, factoring in the FEIE or FTC strategy, totalization agreements, and projected income changes. We’ll tell you exactly how much to pay each quarter so you avoid penalties without overpaying.

If you’re ready to be matched with a Greenback accountant, click the get started button below. For general questions about estimated payments or working with Greenback, contact our Customer Champions.

Stay on Track With Your Estimated Taxes

Greenback’s CPAs and Enrolled Agents help expats calculate, plan, and manage quarterly tax payments accurately.

This article is for informational purposes only and should not be considered tax advice. Estimated tax calculations depend on your individual income, deductions, credits, and filing strategy. For the latest IRS guidance, see the Form 1040-ES instructions. Always consult with a qualified tax professional regarding your specific situation.