The 1040-ES form is used to estimate taxes due by an individual to the Internal Revenue Service. These forms are generally used quarterly and the person will send in an estimated tax payment to the IRS. These forms are used for taxpayers who have income that is not subjected to withholding allowances. This income can include rental income, self-employment and alimony. This income is classified as any income other than income that is already taxed.
There are four tax vouchers that are included in the form 1040-ES for the taxpayer to fill out. One form covers one quarter of the year, or 3 months. The lines go through untaxed income and the taxpayer gives a general estimate of the total amount. Going through the lines on the 1040-ES tax form, the tax rates for the income amounts are on the paper. Following the instructions for this sheet, the estimated tax amount due for each quarter can be deduced. This amount is written separately on the tax vouchers throughout the year and is sent in to the IRS for payment via check or money order. When tax return season comes around, then the amount overpaid by the individual will be returned to them. If the individual underpaid their taxes, the IRS will collect it from them then.Learn more about Taxes