What is the IRS Form 1040-ES, and who is required to file it?

[clevlen]

We have a few contractors asking about estimated tax payments and whether they need to submit a 1040-ES. Form 1040-ES is used to calculate and pay estimated federal income taxes quarterly — typically required if you expect to owe at least $1,000 in taxes for the year. This usually applies to freelancers, self-employed workers, and anyone with income not subject to withholding. Does your team share any guidance with contractors about this at onboarding?

 

[Henry]

IRS Form 1040-ES is used to calculate and pay estimated quarterly taxes. It’s required for self-employed individuals, freelancers, or anyone expecting significant untaxed income during the year.

 

[Watson]

IRS Form 1040-ES is used in the U.S. to calculate and pay estimated taxes on income that isn’t subject to automatic withholding.
It’s typically required for:

• Self-employed individuals/freelancers
• People earning interest, dividends, rent, or capital gains
• Anyone who expects to owe at least $1,000 in tax after credits and withholding

 

[William]

We usually inform our contractors about the necessity of filing Form 1040-ES during the onboarding process, especially if they're new to freelancing or self-employment. We make sure they understand that if they expect to owe at least $1,000 in taxes for the year, they'll need to make quarterly estimated tax payments using this form. It's crucial for them to stay on top of their tax obligations to avoid any penalties, so we provide them with resources and guidance on how to calculate and pay their estimated taxes accurately. This way, they can plan ahead and make timely payments.