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In this video tutorial, James Bond (a self-employed spy) shares instructions on filling out Form 1040-ES for estimated tax payments. He explains that while employees have federal withholding taken from their paychecks, self-employed individuals must make quarterly estimated tax payments to avoid underpayment penalties. He emphasizes the importance of filing this form to report both income and self-employment taxes, as it reflects the pay-as-you-go income tax system. The tutorial provides step-by-step guidance on completing Form 1040-ES to ensure accurate tax payments.
