Estimated Tax

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cliff
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Estimated Tax

Post by cliff » Fri Feb 14, 2014 10:51 am

Paid estimated tax in January for 2013. Will i receive a form from the IRS indicating payment?

Thanks

Sidney
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Re: Estimated Tax

Post by Sidney » Fri Feb 14, 2014 10:52 am

No you won't.

If you did it with EFTPS you will have an acknowledgement.

If you paid with a check, you will have a canceled check (but this doesn't guarantee that they credited YOUR account).
I always wanted to be a procrastinator.

sscritic
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Re: Estimated Tax

Post by sscritic » Fri Feb 14, 2014 10:56 am

And if you paid estimated tax in April or June or September or any other month you won't get a form from the IRS for those payments either.

cliff
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Re: Estimated Tax

Post by cliff » Fri Feb 14, 2014 11:07 am

Thanks for the faster than fast replies..

jebmke
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Re: Estimated Tax

Post by jebmke » Fri Feb 14, 2014 11:15 am

In fact, after April 15, they won't even answer the phone.

If you e-file your tax return you will get an ACK that they received it and it passed some basic quality checks. But until they determine you are delinquent, you won't hear from them at all. They do have a machine that cranks out letters if they think there is a problem on your return or if they think you stiffed them.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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Jay69
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Re: Estimated Tax

Post by Jay69 » Fri Feb 14, 2014 12:18 pm

I help out my MIL with quarterly tax payment, she is old school and likes paper checks. In the past 3-4 years all the state checks were fine and two fed checks went MIA. Only way you know is if the check does not clear. If paying with paper checks be sure to pay enough a head of the deadline to get a second check out if needed!

I think this is one case paying electric style make the most sense, at least you have some kind of trail.
"Out of clutter, find simplicity” Albert Einstein

jebmke
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Re: Estimated Tax

Post by jebmke » Fri Feb 14, 2014 12:22 pm

The EFTPS system seems quite good. I have been using it (and my state equivalent) for a few years now.

It is remarkable that we still send little pieces of paper around in the mail to transfer money around. Even more ridiculous is that we take pictures of these little pieces of paper and upload them to our bank to make deposits and use electronic banking to instruct the bank to send little pieces of paper to others.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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cheese_breath
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Re: Estimated Tax

Post by cheese_breath » Fri Feb 14, 2014 1:12 pm

+1 for EFTPS. Not only do you get an acknowledgement when you submit your payment. You can also go online a few days later to verify it cleared. And at year end you can print a page listing all your payments for the year.
The surest way to know the future is when it becomes the past.

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PaddyMac
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Re: Estimated Tax

Post by PaddyMac » Fri Feb 14, 2014 1:44 pm

+1 more for EFTPS. Very easy to schedule payments in advance too, so that you don't forget.

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StevieG72
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Re: Estimated Tax

Post by StevieG72 » Fri Feb 14, 2014 9:25 pm

+ 1 Again EFTPS it sucks making those payments so I set them up for the year to withdraw at the appropriate time and don't think about again. I only recommend setting up the whole year in advance if you are certain funds will clear and have a back up plan ( overdraft protection without fees) . Paying the taxman is worse than child support! At least I can hug my kid!
Fools think their own way is right, but the wise listen to others.

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joe8d
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Re: Estimated Tax

Post by joe8d » Fri Feb 14, 2014 9:29 pm

PaddyMac wrote:+1 more for EFTPS. Very easy to schedule payments in advance too, so that you don't forget.


:thumbsup .
All the Best, | Joe

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BolderBoy
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Re: Estimated Tax

Post by BolderBoy » Fri Feb 14, 2014 10:32 pm

cheese_breath wrote:+1 for EFTPS. Not only do you get an acknowledgement when you submit your payment. You can also go online a few days later to verify it cleared. And at year end you can print a page listing all your payments for the year.

++1
Best thing I ever did tax-wise was signing up for EFTPS (and the state equivalent.) Signed my mother up for it, too.

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villars
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Re: Estimated Tax

Post by villars » Sat Feb 15, 2014 10:35 pm

How often do you send payments on eftps?
i just signed up for it 2 months ago and plan on sending monthly payments. Curious if there is a down side to that.

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cheese_breath
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Re: Estimated Tax

Post by cheese_breath » Sat Feb 15, 2014 11:03 pm

I submit my estimated taxes quarterly, 1-2 weeks before their due date. I don't see any sense sending them any earlier and giving the government a free short term loan.
The surest way to know the future is when it becomes the past.

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JonnyDVM
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Re: Estimated Tax

Post by JonnyDVM » Sun Feb 16, 2014 10:28 am

They definitely cashed the check, and pretty quickly too, that's the only indication I got that they received it. We don't have an EFT option in our state but next time I'll save a stamp and pay the federal that way. It's sad seeing all that money disappear from the account. You get attached to it. :(
Sometimes the questions are complicated and the answers are simple. -Dr. Seuss

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BolderBoy
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Re: Estimated Tax

Post by BolderBoy » Mon Feb 24, 2014 12:46 pm

cheese_breath wrote:I submit my estimated taxes quarterly, 1-2 weeks before their due date. I don't see any sense sending them any earlier and giving the government a free short term loan.

... and I tell them to use the due date for estimated tax. The exception to that is the 4th quarter payment - I make that on Dec 31.

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cheese_breath
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Re: Estimated Tax

Post by cheese_breath » Mon Feb 24, 2014 1:07 pm

BolderBoy wrote:
cheese_breath wrote:I submit my estimated taxes quarterly, 1-2 weeks before their due date. I don't see any sense sending them any earlier and giving the government a free short term loan.

... and I tell them to use the due date for estimated tax. The exception to that is the 4th quarter payment - I make that on Dec 31.

Why Dec 31? Why not wait until the due date in Jan? Either way they count for the 4th quarter.
The surest way to know the future is when it becomes the past.

Calm Man
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Re: Estimated Tax

Post by Calm Man » Mon Feb 24, 2014 1:15 pm

villars wrote:How often do you send payments on eftps?
i just signed up for it 2 months ago and plan on sending monthly payments. Curious if there is a down side to that.


I think it depends on your cash flow and how often you like to do it. For me, the fewer transactions one can make, the better. There is less to confirm and less to keep records of and less than can go wrong with fewer transactions (my opinion, I respect disagreements). So I have looked at 2014. After I file for 2013, I will know exactly what my safe harbor will be for federal and state. I could divide it I suppose into one, two or 4 payments (4 would be quarterly), daily payments or one per hour. But I see that I have enough cash now sitting in my Vanguard money market yielding 0.01% that I will do it in 1 fell swoop after the 2013 tax returns are accepted after my TurboTax filings plus a week or two. I suspect I am a rare bird this way but I have a sheet of paper with key tax activities and this is easy for me to follow if there is only one estimated tax payment.

gkaplan
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Re: Estimated Tax

Post by gkaplan » Mon Feb 24, 2014 8:45 pm

cheese_breath wrote:
BolderBoy wrote:
cheese_breath wrote:I submit my estimated taxes quarterly, 1-2 weeks before their due date. I don't see any sense sending them any earlier and giving the government a free short term loan.

... and I tell them to use the due date for estimated tax. The exception to that is the 4th quarter payment - I make that on Dec 31.

Why Dec 31? Why not wait until the due date in Jan? Either way they count for the 4th quarter.


If you pay your state taxes December 31 and you itemize, you can deduct your state taxes in that year.
Gordon

sscritic
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Re: Estimated Tax

Post by sscritic » Mon Feb 24, 2014 10:23 pm

There is another reason to make your estimated state tax payment before the end of the year.

If you make an estimated state payment in January 2014, you can't deduct it on your federal return for 2013 (as Gordon says), but if you then get a state refund in 2014 from your 2013 return, you get to play the recovery game. Ordinarily, you would just put your state refund on the 2014 federal tax return as income, but the problem is that part of that refund came from 2014 and wasn't deducted on your 2013 return, so isn't income in 2014. Now you might think that all your refund should come from that last payment of state tax in January since it was the source of the overpayment/refund, but it ain't so. There are formulas: you have to apportion your refund between years. And then some carries forward to the next year.

I made that mistake once, and it was a mess; I think I still have my spreadsheet. (And I think I am pretty good at formulas and following instructions).

Never again.

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cheese_breath
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Re: Estimated Tax

Post by cheese_breath » Tue Feb 25, 2014 12:22 am

gkaplan wrote:
cheese_breath wrote:
BolderBoy wrote:
cheese_breath wrote:I submit my estimated taxes quarterly, 1-2 weeks before their due date. I don't see any sense sending them any earlier and giving the government a free short term loan.

... and I tell them to use the due date for estimated tax. The exception to that is the 4th quarter payment - I make that on Dec 31.

Why Dec 31? Why not wait until the due date in Jan? Either way they count for the 4th quarter.


If you pay your state taxes December 31 and you itemize, you can deduct your state taxes in that year.

OK. I don't pay any state taxes so I was only thinking in terms of estimated federal taxes.
The surest way to know the future is when it becomes the past.

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