What Is Form 1040-ES? Estimated Tax Explained
Form 1040-ES, officially titled Estimated Tax for Individuals, is a U.S. tax form used by individuals to calculate and pay estimated quarterly taxes on income that is not subject to withholding.
This form is commonly used by self-employed individuals, freelancers, independent contractors, and others with non-wage income.
What Is Form 1040-ES?
Form 1040-ES helps taxpayers estimate how much federal income tax they owe for the year and make payments in advance, usually on a quarterly basis.
Paying estimated taxes helps avoid underpayment penalties at the end of the year.
Who Needs to File or Use Form 1040-ES?
You may need to use Form 1040-ES if you are:
- Self-employed or a freelancer
- An independent contractor or gig worker
- Earning income without tax withholding
- Receiving interest, dividends, rental income, or capital gains
If you expect to owe $1,000 or more in taxes for the year, estimated tax payments are usually required.
When Are 1040-ES Payments Due?
Estimated taxes are generally paid in four installments:
- April 15
- June 15
- September 15
- January 15 of the following year
Missing these deadlines may result in penalties and interest.
How to Calculate Estimated Tax
- Estimate your expected income for the year.
- Subtract allowable deductions and credits.
- Calculate income tax and self-employment tax.
- Divide the total tax by four for quarterly payments.
How to Pay Estimated Taxes
- Online payment through IRS Direct Pay or EFTPS
- Payment by check or money order
- Electronic payment services
Sample Form 1040-ES (For Reference Only)
Form 1040-ES - Estimated Tax for Individuals
Tax Year: __________
Estimated Adjusted Gross Income: $____________
Estimated Taxable Income: $_________________
Total Estimated Tax: $______________________
Quarterly Payment Amount: $_________________
This sample is for reference only and is not an official government form.
Important Notes
- Estimated taxes apply to both income tax and self-employment tax.
- You may adjust payments if income changes.
- Keeping accurate records is essential.
Disclaimer: This article and sample form are provided for informational and reference purposes only and do not constitute tax or legal advice.