How to Make an Estimated Tax Payment to the IRS

Taxpayers must make estimated tax payments when their income is not subject to federal withholding. Independent contractors and self-employed taxpayers are expected to make four quarterly estimated tax payments during the tax year. Payments are due on the 15th of January, June, April and September. Fortunately, the IRS has several convenient methods for making estimated tax payments.

Instructions

1. Log on to the Electronic Federal Tax Payment System (EFTPS.gov). Click on the "enrollment" tab and follow the prompts to enter your personal information. Once you have successfully enrolled, allow about a week to receive your PIN in the mail, after which time you should call 800-982-3526 to request a password. When you have received both your PIN and your password, you can log on to EFTPS.gov and click on "Make a Payment" to make your estimated tax payment online. This service is free of charge and available seven days a week, 24 hours a day. You can also use EFTPS to schedule payments for a specific day.

2. Mail a check or money order to the IRS service center responsible for accepting estimated tax payments in your area. Make the check or money order payable to the "Department of Treasury" and write on the check your filing series (1040 for individuals), date of birth and Social Security number.

   Also, in the "notes" section, indicate that you are making an estimated tax payment. If you prefer, you can attach an IRS payment voucher (Form 1040-V) to your payment and transcribe the pertinent information on the voucher instead of the face of the check or money order.

3. Make your estimated tax payment online using EFTPS (eftps.gov/eftps). You may also use Official Payments Corporation (officialpayments.com) or Link2Gov Corporation (PAY1040.com). Unlike EFTPS, both companies are privately owned and charge a convenience fee. Payments made before 8 p.m. post to your IRS account as same-day payments.

Tips & Warnings

• If you are unsure of the amount of your estimated tax payments, you can use the IRS withholding calculator or Form 1040-ES to figure your withholding amount.

• Taxpayers who expect a tax liability must make estimated tax payments unless they expect their withholding or tax credits to be the less than 90% of the tax shown on their return or 100% of the tax shown on the previous year's return. If estimated tax payments are not made, then you are subject to an IRS penalty. You can use form 2210 to calculate your estimated tax penalty.

Resources

• Internal Revenue Service: Form 1040-V
• Internal Revenue Service: Form 1040-ES
• Internal Revenue Service: Withholding Calculator
• EFTPS