What Is Form 1040 ES? Paying Your Estimated Taxes
The gist:
Form 1040 ES is a worksheet to help self-employed individuals calculate their taxable income, required taxes, and refundable tax credits.
Form 1040 ES calculates estimated taxes for the current year, and Form 1040 reports actual income for the previous year.
Primarily, self-employed workers who expect to owe $1,000+ in taxes for the year and those with significant income from certain sources should use Form 1040 ES.
You should only submit paperwork with your quarterly tax payments if paying via check or money order. Online payments don't require Form 1040 ES submission.
In this article:
If you’re self-employed, you typically need to pay quarterly estimated tax payments four times a year instead of all at once on Tax Day in April. And Form 1040 ES helps you calculate and pay these estimated taxes.
To be more specific, if you’re self-employed and expect to owe $1,000 or more in taxes for the year (after deductions and credits), the IRS expects you to make quarterly tax payments. That’s because unlike a traditional W-2 employee, your taxes are not withheld from your pay throughout the year. As a result, you’ll need Form 1040 ES to figure out if (and how much) you owe in quarterly taxes.
Here’s everything you need to know about Form 1040 ES and what to do with it.
What is Form 1040 ES?
Form 1040 ES is essentially a worksheet that helps you calculate your taxable income and determine how much you owe in taxes so you can make accurate quarterly payments throughout the year.
Why do I need the Form 1040 ES to pay quarterly taxes?
Figuring out how much you owe is often the most challenging part of paying quarterly taxes.
That’s where Form 1040 ES comes in. It’s almost like a miniature tax return: It walks you through the process of calculating your expected income and deductions for the coming year, shows you which credits you'd be eligible for, and helps you estimate how much you owe in taxes.
How is the Form 1040 ES different from Form 1040?
The Form 1040 ES is used to calculate estimated taxes for the current year. It’s similar to how employers use W-4 forms to withhold taxes from paychecks for their employees.
Alternatively, the Form 1040 is used to report your actual income for the previous year. It’s used by all taxpayers, including self-employed workers and traditional W-2 employees.
Who uses the Form 1040 ES?
If you earn any income where tax isn’t automatically withheld, you probably have to submit Form 1040 ES on a quarterly basis. For example, if you’re self-employed and expect to owe $1,000+ in taxes for the year, you’ll need to complete it. If you earn income from other sources — like interest, dividends, rent, or alimony — you’ll also need to fill out Form 1040 ES.
You may also need to make estimated payments if you earn significant income from certain sources, like a business you own or a trust.
When are quarterly tax payments due?
Quarter 1 deadline: April 15, 2024
File estimated taxes for January 1 through March 31 earnings.
This payment is in addition to any additional taxes you owe from the year before.
Quarter 2 deadline: June 17, 2024
File estimated taxes for April 1 through May 31 earnings.
Quarter 3 deadline: September 16, 2024
File estimated taxes for June 1 through August 31 earnings.
Quarter 4 deadline: January 15, 2025
File estimated taxes for September 1 through December 31 earnings.
Where do I send my Form 1040 ES?
You’ll only need to mail in the form with your quarterly tax payments if you’re paying via check or money order. You can find the correct address on the IRS website.
If you’re paying your quarterly tax payments online, you can simply make a payment here without submitting Form 1040 ES.
Help! I still have questions.
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