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In this YouTube tutorial, the speaker, who identifies as a self-employed spy earning $100,000 last year, provides a step-by-step guide on filling out Form 1040-ES for estimated tax payments. He emphasizes that the income tax system operates on a pay-as-you-go basis. Unlike employees who have federal taxes withheld from their paychecks, self-employed individuals must make quarterly estimated tax payments to cover expected tax liabilities to the IRS. Failing to do so could lead to an underpayment penalty. The payments should account for both income and self-employment taxes, which are reported on Form 1040-ES.
