What is Form 1040-ES?
IRS Form 1040-ES is a tax form for calculating and paying estimated taxes.
It’s relevant to freelancers and self-employed people, who are required to pay estimated taxes on a quarterly basis.
Do I need to complete Form 1040-ES?
If you meet these three conditions, then yes, you’re expected to complete this form:
- You’re a freelancer or self-employed
- You expect to owe at least $1,000 in taxes for the year
- Your tax liability for the previous year was more than zero
Estimated taxes are generally due quarterly on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year.
What is in Form 1040-ES?
Form 1040-ES consists of three worksheets that can be used to calculate your estimated tax liability for the year. The first worksheet is used to determine expected adjusted gross income, taxable income, taxes, and deductions for the year.
The second worksheet is used to calculate estimated tax liability based on expected income and deductions. And the third worksheet is used to determine the amount of estimated tax that should be paid each quarter.
What is the Form 1040-ES voucher?
Form 1040-ES also includes a voucher that can be used to pay the estimated tax liability. You can pay the estimated tax in a few ways:
- You can mail the voucher and a check or money order to the address listed on the form.
- You can also pay electronically using the Electronic Federal Tax Payment System (EFTPS).
- Catch also provides a generated Form 1040-ES voucher when we make tax payments on your behalf.
It is important to carefully review Form 1040-ES and ensure that your estimated tax liability is calculated accurately. If your income or deductions change during the year, you may need to adjust your estimated tax payments to avoid overpaying or penalties from underpayment.