How and when to make estimated tax payments.
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Making estimated tax payments is easy. You can pay online, or fill out a very simple form and mail it to the IRS with your check.
When to make payments
For nearly all taxpayers, the due date for the first estimated tax payment of each year is April 15 — the same day the return is due for the previous year. Subsequent payments are due June 15, September 15, and January 15 of the following year. You’ll want to note the following points:
- If you owe money with your tax return, and have to make an estimated tax payment, you have two payments to make on April 15. Be prepared!
- Although the payments are “quarterly,” they aren’t three months apart. The second payment is due just two months after the first one.
- If the regular payment date falls on a weekend or legal holiday you get an extra day or two, until the first day that isn’t a weekend day or holiday.
- Like your tax return, the estimated tax payments are considered “on time” if you mail them by the due date. It’s faster and more reliable to pay online, though.
- Most states require estimated tax payments on the same schedule as the federal payments.
Tax tip: If you itemize deductions, it may be to your advantage to make your fourth quarter state estimated tax payment in December, not January, so you can deduct it a year earlier.
- A small minority of individual taxpayers use a fiscal tax year that ends with a month other than December. Their payment schedule is different (but equivalent): the 15th day of the fourth, sixth and ninth months of their fiscal year, and the 15th day of the first month of the following fiscal year.
The quickest, easiest way to may estimated tax payments is on the IRS Make a Payment page. There’s a processing fee if you use a digital wallet (such as PayPal) or a credit or debit card, but no fee at all if you make payment directly from your bank account. Just tell them what the payment is for and the amount. You can even schedule a payment to happen later (for example, have quarterly estimate payments come out of your bank account on the due dates).
Paying by mail
When you make estimated tax payments by mail you need to enclose Form 1040-ES, Estimated Tax Voucher. This form is about as simple as they get. It asks for your name, address and social security number — and just one other item: the amount you’re paying.
- The IRS produces Form 1040-ES as part of a package that includes lengthy instructions and detailed worksheets. But you don’t have to fill out the worksheets unless you think they’ll be helpful. See How Much to Pay. And you should never send these worksheets to the IRS.
- Estimated tax payments don’t go to the same address as your return! Don’t enclose an estimated tax payment with your Form 1040. Check the Form 1040-ES instructions for the proper address.
- Enclose your check. Write your social security number on the check and a notation of what it’s for, like this: 2023 2nd Q Form 1040-ES. And if you’re doing this before your first cup of coffee in the morning, double check to see that you signed the check.
You don’t have to justify your estimated tax payments. In fact, there’s no place for a signature on the form. When you send it in, you’re not promising that this is the correct amount. All you’re saying is “here’s a payment on account.”
That means you can choose to combine payments if you find that’s convenient for you. For example, if you owe a smallish amount and don’t want to be bothered making four payments, you can send the full amount in April. You won’t get any special credit for making an early payment of the amounts due later in the year. But the IRS won’t bug you for June and September payments just because you made an April payment and then stopped.
Be sure to keep an accurate record of your estimated tax payments so you can claim credit for them when you file your return. The IRS is pretty good about giving credit for these payments even when the taxpayer forgets, but it’s best to give them the correct number when you file your return.
If you’re married, you can make joint estimated tax payments with your spouse except:
- You can’t make joint estimated tax payments if you’re considered single for tax purposes (there’s a final decree of divorce or separate maintenance).
- You can’t make joint estimated tax payments if either spouse is a nonresident alien.
- You can’t make joint estimated tax payments if you and your spouse have different tax years (a rare circumstance).
Paying joint estimated payments does not mean you have to file a joint return. But if you end up filing separately, you’ll have to sort out who gets credit for what amount.