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In this video tutorial, Bond James Bond, a self-employed spy, shares how to fill out Form 1040-ES for estimated tax payments. He explains that income tax operates as a pay-as-you-go system, requiring employees to have federal withholding deducted from their paychecks. However, self-employed individuals must make quarterly estimated tax payments based on their anticipated tax liability to avoid underpayment penalties. These payments should cover both income and self-employment taxes and are reported using Form 1040-ES. The tutorial provides step-by-step instructions to ensure accurate filing.
