Why it matters
A taxpayer with self-employment, investment or other income without withholding uses the form to plan the quarterly payments. The worksheet is also a useful check on whether the withholding is enough.
Example
A client expects self-employment income and no withholding. The preparer uses the Form 1040-ES worksheet to estimate the quarterly payment, and the client pays each installment by the due date.
Related terms
Questions about Form 1040-ES
Is Form 1040-ES a tax return?
No. It is a payment voucher and worksheet. The annual income tax return is Form 1040.
Can the client pay electronically instead of using the voucher?
Yes. The taxpayer can pay through IRS Direct Pay, EFTPS or another accepted method. The voucher is for a check payment and for the worksheet.