Quick question on paying Estimate Tax

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
itworks
Posts: 107
Joined: Sat Jan 15, 2011 3:20 pm

Quick question on paying Estimate Tax

Post by itworks » Sat Jan 13, 2018 3:51 pm

First time doing it, as I have been penalized a couple of times for under-payments, but never realized the quick remedy by paying it online.

I plan to pay 2017 estimate tax these several days (deadline seems to be Jan. 16th, 2018, given that 01/15/18 is a federal holiday). A quick question is whether I really need to file a form 1040-ES, or just go ahead to to pay1040.com and pick "Form 1040-ES" as the choice. I did a dry-run just now. It is easy and convenient, just like buying some merchandise online.

User avatar
FiveK
Posts: 5593
Joined: Sun Mar 16, 2014 2:43 pm

Re: Quick question on paying Estimate Tax

Post by FiveK » Sat Jan 13, 2018 4:29 pm

You do not need to file a separate form 1040-ES.

If you think you will be paying estimated tax in the future, consider registering for EFTPS online.

jebmke
Posts: 8365
Joined: Thu Apr 05, 2007 2:44 pm

Re: Quick question on paying Estimate Tax

Post by jebmke » Sat Jan 13, 2018 4:36 pm

Looks like Pay1040 is a commercial service and the credit card fees are significant. I'd also recommend EFTPS or direct pay (via the IRS.gov site) - there is no fee involved.
When you discover that you are riding a dead horse, the best strategy is to dismount.

itworks
Posts: 107
Joined: Sat Jan 15, 2011 3:20 pm

Re: Quick question on paying Estimate Tax

Post by itworks » Sat Jan 13, 2018 4:43 pm

Thanks folks. Regarding convenience fee, I am going to use a cashback card that could cover the fee.

Globalviewer58
Posts: 478
Joined: Fri Jul 18, 2008 3:26 pm

Re: Quick question on paying Estimate Tax

Post by Globalviewer58 » Sat Jan 13, 2018 5:04 pm

Payment can be mailed and considered timely with a Jan. 16 postmark. Include the 1040-ES with your check.

User avatar
grabiner
Advisory Board
Posts: 22692
Joined: Tue Feb 20, 2007 11:58 pm
Location: Columbia, MD

Re: Quick question on paying Estimate Tax

Post by grabiner » Sun Jan 14, 2018 2:35 pm

You don't file form 1040-ES at all; you fill it out yourself in order to estimate how much tax you owe. The IRS doesn't care what you wrote on the 1040-ES, only that you paid enough each quarter to avoid a penalty, and the 1040-ES helps you compute that number. For example, if you are planning to pay 100% (or 110% if you have high income) of last year's tax, you don't need a 1040-ES to compute that number; you can just pay 25% (or 27.5%) each quarter.

If you pay by mail, you should include the vouchers that came with the 1040-ES, so that the IRS can credit your payment to the right account.
Wiki David Grabiner

Post Reply