Form 1040-ES is an IRS form used by individuals - especially self-employed workers, freelancers, or taxpayers without regular income withholding - to calculate and pay estimated quarterly taxes throughout the year. It helps taxpayers stay current on income tax, self-employment tax, and certain other taxes, so they don't owe a large amount at tax time or incur penalties.
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Key Facts
- Who Uses It: Self-employed individuals, freelancers, independent contractors, gig workers, people with investment income, rental income, or alimony, and anyone who doesn’t have enough tax withheld from wages or pensions.
- Covers Multiple Taxes:
- Income tax
- Self-employment tax (Social Security + Medicare)
- Alternative minimum tax (if applicable)
- Certain taxes on investments (for example, capital gains)
- Quarterly Due Dates (2025):
- April 15 - 1st quarter
- June 16 - 2nd quarter
- September 15 - 3rd quarter
- January 15 (2026) - 4th quarter
- Includes Vouchers: Form 1040-ES includes four payment vouchers you can mail with checks if not paying online via IRS Direct Pay or EFTPS.
- Can Be Paid Electronically: Taxpayers can submit estimated payments online using IRS Direct Pay or EFTPS.
- Avoiding Penalties: You must pay at least 90% of your current year’s tax or 100% of the previous year’s tax liability (110% if you’re high-income) to avoid penalties.
- Separate From Annual Return: Form 1040-ES is not filed with your annual tax return (Form 1040) but is used throughout the year to prepay taxes.
1. What is Form 1040-ES used for?
It’s used to calculate and pay estimated taxes quarterly if you don’t have enough taxes withheld from other income sources.
2. Who needs to file Form 1040-ES?
If you expect to owe $1,000 or more in tax after subtracting withholding and credits, you likely need to pay quarterly estimates using this form.
3. How do I calculate estimated tax payments?
Use Worksheet 2 in Form 1040-ES instructions to estimate your total income, deductions, and credits, then divide by four for quarterly payments.
4. What happens if I don’t make estimated payments?
You could face an underpayment penalty, plus interest, even if you pay the full amount at tax time.
5. Can I pay estimated taxes online?
Yes! You can pay directly through the IRS Direct Pay, EFTPS, or with the IRS2Go mobile app.
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