How to Fill Out Form 1040-ES: Helpful Tips

Many taxpayers in our country still don’t know how to fill out form 1040-ES. This is why you may need simple guidance like this one. When you pay the income tax in quarterly installments, this form is your lifesaver. While it can’t be sent instead of Form 1040, you may specify numerous details using 1040-ES.

What Is Form 1040-ES?

The form 1040-ES is also known as the Estimated Income Tax form. You use the form to inform the government about the amount of money you are sending to them. Usually, this form comes along with the 1040 form. Meanwhile, unlike the latter that reports your yearly income tax, 1040-ES provides information about your quarterly installments. This way, the IRS is aware of how much you pay the government during the quarter. If you want to learn more on how to get form 1040-ES, you can read the detailed guide in another article on our blog.

The 1040-ES estimated tax form is used by LLC, sole proprietorship, partnership, and S corporation that pay at least $1000 or over income tax during the year. They pay the money divided into 4 parts or quarters, distributed evenly throughout the year. Any C Corporation has to use this scheme even while paying $500 yearly tax income. For your convenience, the form is separated into 4 blocks, for every period of payment.

Who Has to File a 1040-ES?

The form must be filed by everyone who does not have a setup income. Taxes, in this case, are deducted from the payment. Freelancers and independent contractors usually use this form. Income that is not taxed at the source includes dividends, rent, earnings from interest, taxable compensation for unemployment, benefits of retirement, and social security benefits.

The IRS 1040-ES form is filled by LLC, C, and S corporations, partnerships, sole proprietorships, self-employees, farmers, and fishermen. This form helps you to calculate the exact amount of taxes you pay during the year. If your gross income was over $150000, you need a substitute of 110 percent for 100 percent.

How to Fill Out Form 1040-ES?

You can download the official form either from the IRS or here, on PDFLiner, and while it consists of twelve pages, they are mostly 1040-ES instructions. After you complete this form at least once, you quickly realize that there is nothing complicated, and all you need to do is to follow the instructions made by the government.

To complete the form, you still need to provide your personal information and the quarterly payment. The form is available either on the IRS or PDFLiner websites. You may find that PDFLiner is more comfortable in use since it provides step-by-step guidance on how to fill the form:

  • Fill in your personal information, including the first and last name, SSN;
  • If this is a joint payment form, you have to add the data about your spouse, including the name and SSN;
  • Provide your address;
  • Provide the record of estimated tax payments: amount, date paid, credit or debit card number, the amount paid, overpayment, and the total amount of payments;
  • Complete the estimated tax worksheet with the gross income for the year, deductions, credits, self-employment tax if any, other taxes, annual payments that are required, and income tax withheld.
To fill the form, you need the data from the previous year. There is a guide for every section you have to fill in the worksheet. If you can use the services of a professional bookkeeper to calculate your last year’s data, it would be the best option.

Pay attention to the next lines:
  • The 2a line requires deductions. If you want to itemize deductions, you can base the estimate on the total amount of last year. But if it is not crucial, you may use the standard deduction;
  • The 4 line asks for the yearly estimated taxes. You have to use last year’s rate schedule. You will find it in the document.
  • The 9 line requires self-employment tax numbers. Usually, it is 15.3 percent of the gross income you have.

How to File 1040-ES?

You may already know where to send 1040-ES, noticing the IRS logo on every page of the document. If you are still doubtful, you may check the IRS address for your area. The Estimated tax payments must be registered 4 times a year. Taxpayers provide the information about the taxes on April 15, June 15, September 15, and January 15. If you have a fiscal year calendar, the four dates are spread around this year. You may file the form online as well. As for the payments, you may also provide them online. You can choose the most comfortable option for your case.

FAQ

If you still have questions left, you may find the answers here. Find out the information you need before you start filling the form.
Customer:
What is a Form 1040-ES payment voucher?
Support:
This voucher reveals the type of income your investments have revealed and other taxes that are deducted. You can receive vouchers if you are self-employed. You don’t have to make estimated tax payments if you don’t belong to a specific group of taxpayers, but if you do, you can pay with a check or money order using the voucher.
Customer:
How do I pay 1040-ES?
Support:
There are numerous ways to pay the tax. You will find detailed information on how to pay 1040-ES online to the IRS inside the form. You can pay with a check or transfer the money. You can even pay by cash. The IRS offers you to pay via mobile device. They have the IRS app available for both Android and iOS mobile platforms, and you can provide the payments without leaving the house. If you are wondering about “where do I send my 1040-ES payment”, you can search for the most suitable address on the IRS website or FED official payments website.
Customer:
What happens if you skip an estimated tax payment?
Support:
If you skip the quarterly tax payment, there will be penalties you have to pay. The penalties also depend on the delay you make. The amount of money you earn is also considered by the IRS. Usually, the government charges you 0.5 percent of the tax that you owe after the due date. However, each month you miss paying the tax, the percentage of the penalty increases. The limit for the penalty is 25 percent of the tax you have to pay.
Customer:
Can you pay estimated taxes anytime?
Support:
There is a fixated date that reveals when you have to pay your taxes. You have to select the tax calendar you use and the type of taxes you pay. Once you miss the deadline for payment, you have to pay the penalties for it.
Customer:
How do I pay my taxes if I file electronically?
Support:
You may pay taxes via specific electronic fund withdrawal from your bank account. You may also use the money order. You need to save checks and keep them as proof.

Printable blank Form 1040-ES (2021)

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