Form 1040-ES (2020)

What Is Form 1040 ES 2020?

Form 1040-ES is used by individuals to estimate their taxes for the year and make payments on a quarterly basis. This form includes a worksheet similar to the one used to determine annual tax in the Form 1040. It's especially relevant for taxpayers who do not automatically have their taxes withheld, such as self-employed individuals, investors, or those with income from rental properties, prizes, and dividends.

Who needs to file form 1040-ES?

Filing the 1040 ES 2020 form isn't necessary for everyone. You'd need to file if you expect to owe at least $1,000 in federal tax for the year after subtracting your withholding and refundable credits, and you expect your withholding and refundable credits to be less than the smaller of 90% of the tax to be shown on your 2020 tax return or 100% of the tax shown on your 2019 tax return.

Why is filing 1040 ES 2020 form important?

Failing to pay taxes on a quarterly basis can result in penalties and interest. By using federal tax form 1040 ES 2020, you can avoid a large tax bill when you file your annual tax return. This method of paying taxes helps manage cash flow and ensures compliance with the IRS, which can prevent any unpleasant surprises when tax season arrives.

How to Fill Out Form 1040-ES

If you're unsure about completing this 1040 form, here are some simplified steps to guide you:

1. Fill in your name and address in the top section of the form, including your Social Security Number (SSN).
2. If joint payment, also provide the name and SSN of your spouse.
3. Proceed to the first voucher, labeled "Estimated Tax Payment Voucher 1," and enter the amount of estimated tax you are paying.
4. Include your SSN again on the voucher, as well as your spouse’s if filing jointly.
5. Write down your address, including city, state, and ZIP code.
6. Enter the day's date and the amount of the payment.
7. Move on to the "Estimated Tax Worksheet" to calculate your estimated taxes for the year. Enter your expected adjusted gross income, taxable income, taxes, deductions, and credits for the 2020 tax year.
8. Fill out the “Record of Estimated Tax Payments” if you have made previous payments for the year.
9. Review all the information you've entered to make sure it's accurate.
10. Once you are satisfied that all the information is correct and complete, use PDFliner’s tools to sign the form digitally if necessary.
11. Save the completed form on PDFliner, print, or download it to your computer.