It is a tax form used by self-employed individuals or with income that is not subject to withholding tax. It is also known as the Estimated Tax for Individuals form. The purpose of Form 1040-ES is to calculate and pay estimated taxes on income that is not subject to withholding throughout the year. This includes income from self-employment, rental properties, investments, and other sources. By completing Form 1040-ES, taxpayers can estimate their tax liability and make quarterly payments to the Internal Revenue Service (IRS) to avoid penalties for underpaying taxes.
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