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In this tutorial, "Bond, James Bond" (also known as 007), a self-employed spy, explains how to fill out Form 1040 ES for estimated tax payments. He emphasizes that income tax operates as a pay-as-you-go system. While employees typically have federal withholding deducted from their paychecks, self-employed individuals must make quarterly estimated tax payments to cover their expected tax liability, including income and self-employment taxes. Bond warns that failing to make these payments can lead to underpayment penalties and encourages viewers to understand the importance of reporting these payments correctly on Form 1040 ES.
