How do I make estimated tax payments? (2024)

FAQs

How do I make an estimated IRS tax payment? ›

You may send estimated tax payments with Form 1040-ES by mail, or you can pay online, by phone or from your mobile device using the IRS2Go app. You can also make your estimated tax payments through your online account, where you can see your payment history and other tax records. Go to IRS.gov/account.

To calculate your estimated taxes, you will add up your total tax liability for the current year—including self-employment tax, individual income tax, and any other taxes—and divide that number by four.

You must pay your estimated tax based on 90% of your tax for the current tax year.

The failure to pay penalty is 0.5% of the unpaid taxes for each month or part of a month you don't pay, up to 25% of your unpaid taxes. Even worse, the IRS charges interest on penalties, which increases how much you owe. These interest rates are set quarterly.

Answer: Generally, if you determine you need to make estimated tax payments for estimated income tax and estimated self-employment tax, you can make quarterly estimated tax payments or pay all of the amount due on the first quarterly payment due date.

If it's been at least two weeks since you sent the payment to the IRS and your financial institution verifies that the check hasn't cleared your account, call the IRS at 800-829-1040 to ask if the payment has been credited to your tax account.

Having enough tax withheld or making quarterly estimated tax payments during the year can help you avoid problems at tax time. Taxes are pay-as-you-go. This means that you need to pay most of your tax during the year, as you receive income, rather than paying at the end of the year.

Generally, you must make estimated tax payments for the current tax year if both of the following apply: You expect to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits.

To determine whether you need to make quarterly estimates, answer these questions: Will you owe less than $1,000 in taxes for the tax year after subtracting your federal income tax withholding from the total amount of tax you expect to owe this year? If so, you're safe—you don't need to make estimated tax payments.

A general rule of thumb is to set aside 30-35% of your income for your taxes. In this article, we'll talk about all the taxes you'll need to pay and why you should save this percentage amount from the money you make.

How far in advance can you pay estimated taxes? ›

Estimated tax payments are typically due on April 15, June 15, and September 15 of the current year and then January 15 of the following year. You can skip the final (January 15) estimated tax payment if you will file your return and pay all the tax due by February 1.

If you overpay your taxes, the IRS will simply return the excess to you as a refund. Generally, it takes about three weeks for the IRS to process and issue refunds. Prefer not to receive a refund? You can choose to get ahead on the following year's payments and apply the overpayment to next year's taxes.

Estimated quarterly taxes can be calculated in 2 ways. You can base your quarterly payments on what you owed the prior year, or you can annualize based on what you've already earned for the current year. For this approach, you'd take the amount that you owed the previous year and divide that number by 4.

Taxpayers can pay online, by phone or by mail. The Electronic Federal Tax Payment System and IRS Direct Pay are two easy ways to pay. Alternatively, taxpayers can schedule electronic funds withdrawal for up to four estimated tax payments at the time that they electronically file their Form 1040.

People who aren't having enough withheld. The IRS says you need to pay estimated quarterly taxes if you expect: You'll owe $1,000 or more in federal income taxes this year, even after accounting for your withholding and refundable credits.

Estimated tax payments are typically due on April 15, June 15, and September 15 of the current year and then January 15 of the following year. You can skip the final (January 15) estimated tax payment if you will file your return and pay all the tax due by February 1.

You can pay online, by phone or with your mobile device. Visit IRS.gov/payments for payment options, telephone numbers, and easy ways to pay your taxes. If you receive an IRS bill, you need to take immediate action. The longer you wait, the more interest and penalties you will need to pay.

California: Internal Revenue Service, PO Box 802501, Cincinnati, OH 45280-2501.

Underpayment of estimated tax by corporations applies when you don't pay estimated tax accurately or on time for a corporation. Underpayment of estimated tax by individuals applies when you don't pay estimated tax accurately or on time as an individual.