A 1040-ES form is used for tax filing purposes. The form will allow filers to calculate the estimated amount of tax liability they owe for the year. Freelancers and independent contractors may need to file form 1040-ES, as they do not have taxes withheld automatically.
If you do not set up voluntary withholding, this form will be needed to ensure you pay the correct amount of taxes. This will include fees for federal taxes, state taxes, and social security. Estimated tax payments may not always be enough, so it is possible that you may owe more taxes after filing for the year. It is also possible for you to get a refund.
In order to estimate the amount of taxes you owe, you will need to know the gross amount of all your taxable income. If you are unsure about your yearly income, you can use last year's tax return as a basis if the work was similar.
A Form 1040-ES is used to estimate your taxes for the current fiscal year. You use this form to pay income tax, self-employment tax, and any other tax you may be liable for.
This form is used to pay estimated tax on income where tax is not deducted at the source. This form is commonly used by independent contractors and freelancers and to calculate taxes from interest, dividends and rent, taxable unemployment compensation, retirement benefits, and the taxable part of your Social Security benefits.
The estimated tax rules apply to U.S. citizens and resident aliens, residents of Puerto Rico, the U.S. Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa, and nonresident alien.
The 1040 ES form contains the following sections:
Read the instructions
Fill out Self-Employment Tax and Deduction Worksheet
For each payment, record:
If you are making a payment of estimated tax by check or money order, complete and mail the tax voucher with your check or money order payable to “United States Treasury.” Write your social security number and “[Current Year] Form 1040-ES” on your check or money order. Do not send cash. Enclose, but do not staple or attach, your payment with this voucher.
You can pay by credit card if you go directly to IRS.gov/Payments
To use EFTPS, you must be enrolled online or have an enrollment form mailed to you. For more information about EFTPS, go to IRS.gov/Payments or www.EFTPS.gov