IRS Form 1040-ES walkthrough (Estimated Tax Voucher)

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Please feel free to check out our article, where we've written step by step instructions to help you walk through this tax form! www.teachmepersonalfinance.co...
If you’re looking for tutorials for other IRS Forms that you can file directly through the IRS website, check out our free fillable forms page: www.teachmepersonalfinance.co...
Here are links to articles and videos we've created about other tax forms and schedules mentioned in this video or its accompanying article:
IRS Schedule A, Itemized Deductions
Article: www.teachmepersonalfinance.co...
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Playlist: • IRS Schedule A (Itemiz...
IRS Schedule SE, Self-Employment Tax
Article: www.teachmepersonalfinance.co...
Video: • Schedule SE walkthroug...
IRS Schedule 8812, Child Tax Credit or Credit for Other Dependents
Article: www.teachmepersonalfinance.co...
Video: • Schedule 8812 walkthro...
IRS Schedule 1, Additional Income and Adjustments to Income
Article: www.teachmepersonalfinance.co...
Video: • IRS Schedule 1 walkthr...
IRS Schedule 2, Additional Taxes
Article: www.teachmepersonalfinance.co...
Video: • IRS Schedule 2 walkthr...
IRS Form 8995, Qualified Business Income Deduction Simplified Computation
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 8995 walkthro...
IRS Form 8995-A, Qualified Business Income Deduction
Article: www.teachmepersonalfinance.co...
IRS Schedule 3, Additional Credits & Payments
Article: www.teachmepersonalfinance.co...
Video: • IRS Schedule 3 walkthr...
IRS Form W-2, Wage and Tax Statement
Article: www.teachmepersonalfinance.co...
Video: • IRS Form W-2 Walkthrou...
IRS Form W-4, Employee’s Withholding Certificate
Article: www.teachmepersonalfinance.co...
Video: • IRS Form W-4 walkthrou...
IRS Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollovers
Article: www.teachmepersonalfinance.co...
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IRS Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments
Article: www.teachmepersonalfinance.co...
Video: • IRS Form W-4P walkthro...
IRS Form W-4V, Voluntary Withholding Certificate
Article: www.teachmepersonalfinance.co...
Video: • IRS Form W-4V walkthro...
IRS Form 5405, Repayment of the First-Time Homebuyer Credit
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 5405 Walkthro...
IRS Schedule EIC, Earned Income Tax Credit
Article: www.teachmepersonalfinance.co...
Video: • Schedule EIC walkthrou...
IRS Form 8919, Uncollected Social Security and Medicare Tax on Wages
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 8919 walkthro...

[@MsOmniregenent]

This helped a ton! Thank you so much for taking the time to put this together. It seems so straightforward until I actually start doing it lol.

[@lisidigo]

Thank you so much!!! 🙏

[@gabirican4813]

Thanks!

[@TMacFPV]

Thank you for your service to our nation, this video and your articles! Quick question please: does "Line 13: Income Tax Withheld And Estimated To Be Withheld" only include FITW or are you supposed to also include with FITW the Social Security & Medicare taxes withheld showing on your W2? Thank you again!

[@teachmepersonalfinance2169]

Generally, no. If you are receiving a Form W-2, then your employer is responsible for withholding FICA taxes (Social Security & Medicare tax) from your wage income. FICA taxes for employees are calculated and paid separately. However, if you are self-employed, then you would use a worksheet located in the form instructions to calculate your FICA taxes and include them in your tax liability (Line 9, Self-Employment Tax). If you had been withholding those taxes separately, you would then include them in Line 13, since you're responsible for withholding and remitting self-employment taxes.

[@Ialreadyhaveaname2]

This video is really helpful, I think I understand everything now after much research. Maybe you could do a video on the QBI deduction and everyone who that might apply to? After looking it up I think it applies to me as a contractor making under $181,000. 20% is a lot and if you can add it on top of the standard deduction, it can save a lot of money in taxes.

[@teachmepersonalfinance2169]

Thank you very much! I'll add that idea to my calendar!

[@adamsanchez464]

If I didn't make any income yet, (created single member llc in late Feb '24), should I skip filing for Q1 and just focus on generating income to pay estimated taxes Q2? $0 income between Jan1-Mar31 with my recently created LLC. I know I need to file something for Q1 with my state (even with my $0 income)but unsure about IRS requiring such

[@teachmepersonalfinance2169]

For federal tax purposes, you don't need to file IRS Form 1040-ES if you have not produced any income. This simply is one way for taxpayers to estimate (and pay) taxes on income as it is reported throughout the year.

[@stasgran4140]

There are two worksheets on Form 1040-ES: one is on page 6 and the other is on page 8. How are they different, which one does what?

[@teachmepersonalfinance2169]

Actually, there are 3 worksheets: 1. 2024 Self-Employment Tax and Deduction Worksheet for Lines 1 and 9 of the Estimated Tax Worksheet. This is the one on Page 6. You do not need to use this worksheet unless you are self-employed. If so, you would use this to calculate your self-employment tax (and the associated tax deduction on Schedule 1), that you would also enter on the Estimated Tax Worksheet (see #3, below). IRS Schedule 1, Additional Income and Adjustments to Income Article: www.teachmepersonalfinance.com/irs-schedule-1-instructions/ Video: kzbin.info/www/bejne/ioawn5idotOceqs 2. 2024 Estimated Tax Worksheet for Filers of Form 1040-SS. This is the worksheet on Page 7. Unless you file IRS Form 1040-SS, you do not need to complete this worksheet. IRS Form 1040-SS is for residents of the U.S. Virgin Islands (USVI), Guam, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), and Puerto Rico who are not required to file a U.S. income tax return. 3. 2024 Estimated Tax Worksheet This is on Page 8. This is the main worksheet, and most likely the one that you would be completing to estimate your tax liability.

[@AshleighCummins]

Do you have instructions for if one spouse is self employed with low income and the other spouse is the main breadwinner?

[@teachmepersonalfinance2169]

I do not have a separate video for this situation. However, what you might consider is using IRS Form W-4 for the breadwinner (see below). You can make adjustments to the W-4 based upon expected income. For the self-employment income, you probably don't need to withhold anything if you think that you'll come close to break-even for the year. Every quarter (or each time there's more income than you expected), you can make estimated tax payments as needed, either by sending a check through the mail with the voucher, or online. IRS Form W-4, Employee’s Withholding Certificate Article: www.teachmepersonalfinance.com/irs-form-w-4-instructions/ Video: kzbin.info/www/bejne/l2jUqaZ9jrGnobc

[@gingergirl7121]

let say i was laid off and expecting none earned income the rest of this year received after done of filing and paying estimated tax for Federal and State in April and June 24, Do i have to keep filing and paying the rest of estimated tax in Sept and Jan. 2025? Need to tell IRS about not continuing filing and paying? Thank You.

[@teachmepersonalfinance2169]

I'm sorry that I missed this...sometimes my alerts don't catch comments for some reason. I would re-run the Form 1040-ES worksheet with your new (lower income) projections. Most likely, you've paid enough (or possibly even overpaid) for the tax year. If the new calculations show this, then you would not need to pay anything more. You don't need to do anything with the IRS until you actually file your tax return.

[@joselizardousmc]

Do you have a walkthrough video if one only income comes from self-employment?

[@teachmepersonalfinance2169]

I don't have one, but it's on my calendar. Is there a specific question that you have?

[@joselizardousmc]

Just trying to figure out 2024 Taxes and if my wife and I would need to do estimate payments. I just retire from the military on October 2023 and this year my wife is self employed.

[@tcshy1903]

I need instructions for that situation too. I have a full-time job that deducts tax, insurance, HSA, and 401k. I recently took a side job that is a 1099 job, so the taxes will be my responsibility.

[@alonamalynovska]

If I pay my estimated tax online, do I need to send the Estimated tax worksheet somewhere? If yes, how?

[@teachmepersonalfinance2169]

If you pay estimated taxes online, you do not need to send the estimated tax worksheet. Keep it for your records, and keep track of your online payments.

[@nicolephillip6178]

So if we pay online, we don't have to send in a 1040 ES form?

[@teachmepersonalfinance2169]

No. This is a voucher that accompanies a check or money order payment.

[@LA-qt3tr]

Im self employed (realtor) can i pay it once a year when i receive 1099 or i must pay it quarterly with estimated amount? I heard i will pay penalty if i pay it once a year and not quarterly. Can someone please let me know.

[@teachmepersonalfinance2169]

The IRS expects taxpayers to pay taxes on income as the income is earned. If you wait until the end of the year, you may pay a penalty if a significant amount of your income was earned earlier in the year, and you waited to pay. Or, if you earn most of your income at the end of the year, you may pay little to no penalty. You can use IRS Form 2210 and its accompanying schedule, Schedule AI, to determine what your penalty (if any) would look like in your situation if you wait until the end of the year. IRS Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts Article: www.teachmepersonalfinance.com/irs-form-2210-instructions/ Video: kzbin.info/www/bejne/b37QYnh_a6eGoKs Schedule AI Video: kzbin.info/www/bejne/g37FqIyjj6mAidk

[@dylanscott6614]

Really confused on how you calculated line 4?

[@teachmepersonalfinance2169]

I used the 2024 Tax Rate Schedule for married couple filing jointly. Here's the calculation: 65,800 - 23,200 = 42,600 42,600 * .12 = 5112 5112 + 2320 -$7432

[@Heskeytime8384782929]

@@teachmepersonalfinance2169 Why do you subtract 23,200? Is it that you always subtract the amount shown on the last column based on the schedule you are in?

[@teachmepersonalfinance2169]

@@Heskeytime8384782929 Yes. You would subtract $23,200 in that example because the taxable income is in the next bracket. If the income were $100,000, then you would subtract $94,300, then calculate 22% tax on the difference ($1,254). From there, you would add $10,852, and come up with a total of $12,106.

[@AvatarAang_]

I am trying to report estimated tips for just the first quarter of 2024, do I estimate my total anual income accounting for tips and my hourly wage or can I just estimate the tips? How do I report my tips using this form? I estimate 11000 on just tips for the year, I need to pay just for the first quarter of 2024 because moving forward, I set up with my employer to have them withhold taxes from my tips for the rest of 2024…

[@teachmepersonalfinance2169]

You can start by estimating your annual income (including your tips and hourly wage). I would also consider doing this after your employer begins withholding just to make sure that these withholdings are sufficient.

[@Meleeman011]

what if its negative number? on 11c?

[@teachmepersonalfinance2169]

According to the form instructions, a negative number on Line 11c would indicate that you're on track to have zero or a negative tax liability for the year. You would enter zero, which would mean that at this point, you don't need to send an estimated payment.

[@LA-qt3tr]

So how do i pay the breakdown to federal, social security and Medicare? Or this is will be done by IRS when i submit the payment?

[@teachmepersonalfinance2169]

If you work for an employer, your employer should do this automatically. If you own your own business, then you would need to calculate your additional tax liability yourself and include it with your federal income tax payments.

[@LA-qt3tr]

But there is no section for that breakdown when I pay it online. It's asking for one total.

[@teachmepersonalfinance2169]

@@LA-qt3tr Self-employed individuals calculate their self-employment tax (Social Security & Medicare) on Schedule SE when filing their tax return at the end of the year. Throughout the year, you would use 15.3% of your Social Security earnings (broken down into 6.2% for Social Security and 1.45% for Medicare on *both* sides, employer and employee), to calculate the taxes you pay. When filing at the end of the year, your Schedule SE (based on earnings reported on Schedule C) will help you calculate your remaining tax liability (after self-employment taxes are paid) IRS Schedule C, Profit or Loss from Business Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/ Video: kzbin.info/www/bejne/imSuinloacibf8k IRS Schedule SE, Self-Employment Tax Article: www.teachmepersonalfinance.com/schedule-se-instructions/ Video: kzbin.info/www/bejne/iZ61hayemZWFpKs

[@LA-qt3tr]

​@@teachmepersonalfinance2169Thank you so much for all the information. I am independent contractor, no tax on employer side. Filling the form you explained in this video show on federal tax withholding but not social security and medicare and both of the SS and medicare paid at the end of the year? And where and how to pay that?

[@teachmepersonalfinance2169]

@@LA-qt3tr You would need to complete Schedule C and Schedule SE to calculate your Social Security and Medicare taxes, which will be added on to your tax liability at the end of the year. If you calculated and paid these taxes throughout the year, you can add these payments as part of your taxes paid under Line 26 of your Form 1040. IRS Schedule C, Profit or Loss from Business Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/ Video: kzbin.info/www/bejne/imSuinloacibf8k IRS Schedule SE, Self-Employment Tax Article: www.teachmepersonalfinance.com/schedule-se-instructions/ Video: kzbin.info/www/bejne/iZ61hayemZWFpKs