IRS Form 1040-ES (also known as IRS estimated tax forms) is for individual taxpayers to report and make estimated tax payments throughout the year on income that has not been subject to tax withholding. Earnings from self-employment (people working in religious organizations, farmers, fishermen, nonresident aliens or Americans employed by foreign companies, freelancer) consulting and contract work, interest, dividends, rents, and alimony are examples of taxable income for which taxes are not withheld. Those who expect to have at least $1,000 of remaining tax liability on Dec. 31 need to make estimated tax payments to avoid paying interest and penalties. There are special rules for farmers, fishermen and other heads of household when it comes to paying estimated taxes.
To know the amount of your estimated tax, you need to use the following instruments:
- Taxable year’s estimated tax worksheet and its corresponding instructions
- Taxable year’s tax rate schedules
- Previous year’s income tax return and its corresponding instructions
If you are paying your quarterly estimated tax liability by money order, check or eftps (electronic federal tax payment system) the IRS Form 1040-ES (IRS quarterly tax payment form)is submitted to the IRS four times a year, those dates are: April 15, June 15, Sept. 15 and Jan. 15. This system is not just for the self-employed; anyone who expects to owe $1,000 or more on April 15 needs to make quarterly estimated tax payments in order to avoid paying penalties and interest to the IRS.
Download IRS Form 1040-ES, The IRS Estimated Tax Form 2012 Free