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In today's video tutorial, we will go over IRS Form 1040ES line by line instructions for estimated taxes. It is important to understand that income tax is a pay-as-you-go system. Employees pay federal withholding from every paycheck, but self-employed individuals may need to make quarterly estimated tax payments to avoid underpayment penalties. These payments should cover both income and self-employment taxes. Stay tuned for more detailed guidance on how to fill out the form correctly.
