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In this video, self-employed spy "Bond, James Bond" explains how to fill out Form 1040-ES for estimated tax payments. He emphasizes that income tax operates on a pay-as-you-go basis. While traditional employees have federal taxes withheld from their paychecks, self-employed individuals must make quarterly estimated tax payments to avoid underpayment penalties. These payments should cover both income and self-employment taxes and are reported through Form 1040-ES. The tutorial provides step-by-step instructions for filing this form correctly.