Where do you pay quarterly taxes?

[birdec]

This is my first year being 100% paid as 1099. I'm trying to pay my estimated quarterly tax this month and signed up at EFTPS.com to pay but only see one box for "Payment Amount" (see this screenshot: https://imgur.com/a/9MhRQSl). Shouldn't it be broken down by Federal/SS/Medicare? Do I need to get an EIN or anything? I've just been using my SS # for all the sign up forms.

Thanks!

[HomeStretch]

I make estimated federal income tax payments via IRS Direct Pay at https://www.irs.gov/payments.

It allows me to select the tax quarter/year.

[sailaway]

The number does not get broken down on any site I have seen. You just send a lump sum and I guess they sort it out on the other end.

[dodecahedron]

This is my first year being 100% paid as 1099. I'm trying to pay my estimated quarterly tax this month and signed up at EFTPS.com to pay but only see one box for "Payment Amount" (see this screenshot: https://imgur.com/a/9MhRQSl). Shouldn't it be broken down by Federal/SS/Medicare? Do I need to get an EIN or anything? I've just been using my SS # for all the sign up forms.

Thanks!

Using your SSN is just right. You do not need an EIN to pay estimated taxes. You also do not need to break it down into income/SS/Medicare tax. Just estimate your total federal liability for all three taxes and pay that. To get an idea of what info the online system will ask you, just look at the paper 1040-ES, which you can find on the last few page of this PDF. Notice that it does not ask you for any detailed breakdown, just the total dollar amount you are paying for the quarter, your name, address, and SSN.

If you did need an EIN for some other purpose (e.g., if you had paid employees or subcontractors), you should still use your SSN for your estimated quarterly payments.

[RickBoglehead]

This is my first year being 100% paid as 1099. I'm trying to pay my estimated quarterly tax this month and signed up at EFTPS.com to pay but only see one box for "Payment Amount" (see this screenshot: https://imgur.com/a/9MhRQSl). Shouldn't it be broken down by Federal/SS/Medicare? Do I need to get an EIN or anything? I've just been using my SS # for all the sign up forms.

Thanks!

Edit - dates corrected due to weekends and year of final payment. Dates are 15th of each month (April, June, September, and January, except when that date is on a weekend or holiday, then the date is the next business day.

Estimated Federal Tax is due on 4/15, 6/17, 9/16, and 1/15/20. If that's what you're trying to pay, there is nothing due this month.

EFTPS is for paying estimated FEDERAL tax. You do not pay estimated Social Security or Medicare tax. It's all one number. I assume you are self-employed, which is why you're asking about Medicare and SS.

You can make all 4 payments by scrolling down and adding the other 3.

[dodecahedron]

The number does not get broken down on any site I have seen. You just send a lump sum and I guess they sort it out on the other end.

The IRS does not ¨sort it out on the other end¨ with your quarterly payments! You as the taxpayer reconcile everything when you file your 1040, including Sched C and Sched SE. At that point, you will total up all your tax liability for the year, including self-employment taxes and other misc taxes, report the total amount of estimated taxes and the total withheld taxes paid, subtract and figure your refund or balance due.

[sailaway]

The number does not get broken down on any site I have seen. You just send a lump sum and I guess they sort it out on the other end.

The IRS does not ¨sort it out on the other end¨ with your quarterly payments! You as the taxpayer reconcile everything when you file your 1040, including Sched C and Sched SE. At that point, you will total up all your tax liability for the year, including self-employment taxes and other misc taxes, report the total amount of estimated taxes and the total withheld taxes paid, subtract and figure your refund or balance due.

Ok, yes, that happens, but it is still just half of employment taxes here, the other half there, the remainder of estimated taxes paid is the income tax portion; not broken down as it is on a W-2.

[whodidntante]

I pay estimated taxes with a rewards credit card. This gives a little float and a little profit beyond the fee if you use the right card.

[Gill]

Estimated Federal Tax is due on 4/15, 6/15, 9/15, and 1/15/19. If that's what you're trying to pay, there is nothing due this month.

That should be 1/15/20, of course.
Gill

[Gill]

I pay estimated taxes with a rewards credit card. This gives a little float and a little profit beyond the fee if you use the right card.

How do you do that? Isn't there a charge for using a credit card?
Gill

[Mike Scott]

A 2% or 2X card covers the fee and a 10% or so sign up bonus on a new card covers the fee and more.

[birdec]

Thanks everyone for the information!

I pay estimated taxes with a rewards credit card. This gives a little float and a little profit beyond the fee if you use the right card.

How do you do that? Isn't there a charge for using a credit card?
Gill

There's a "Debit or Credit" button on https://www.irs.gov/payments

[CascadiaSoonish]

Estimated tax payments by credit card all cost close to 2% in fees according to the IRS.

https://www.irs.gov/payments/pay-taxes- ... debit-card

Maybe there's a way around the fees, though. I've always just sent in a check a few days before each quarterly due date. Our CPAs have always provided the $ amount, schedule, vouchers, and envelopes so it takes all of two minutes.

[birdog]

I pay estimated taxes with a rewards credit card. This gives a little float and a little profit beyond the fee if you use the right card.

How do you do that? Isn't there a charge for using a credit card?
Gill

I use a USAA 2.5% cash back visa card to pay both my federal and state estimated taxes online every quarter. Even with the cc fee of close to 2%, this nets me over a thousand dollars profit each year by paying with the credit card instead of mailing in checks like I used to. I just started doing this about 2 years back. I wish I'd figured this out years ago.

[whodidntante]

There are a few cards that make the fee worthwhile.

BoA Travel Rewards or BoA Premium Rewards with Platinum Honors (2.625% cash back on general spend)
Chase Freedom or other 5% rotating card with Paypal bonus category (5%)
Fidelity (Elan) card with a targeted spending bonus (2.8%, but varies depending on the offer)
New account that you are working on a spending bonus for (varies but usually 10%+)

[RickBoglehead]

Estimated Federal Tax is due on 4/15, 6/15, 9/15, and 1/15/19. If that's what you're trying to pay, there is nothing due this month.

That should be 1/15/20, of course.
Gill

Right. And in fact the date for June is the 17th, and the date for September is the 16th. Post corrected. Thanks Gill!

[GeraniumLover]

There are a few cards that make the fee worthwhile.

BoA Travel Rewards or BoA Premium Rewards with Platinum Honors (2.625% cash back on general spend)
Chase Freedom or other 5% rotating card with Paypal bonus category (5%)
Fidelity (Elan) card with a targeted spending bonus (2.8%, but varies depending on the offer)
New account that you are working on a spending bonus for (varies but usually 10%+)

I have a Fidelity (Elan) card that has 2% cash back, but have never seen targeted spending bonuses. How can you access them?
Also, some of these higher cash-back cards (e.g., Chase Freedom) cap the amount you can get at the higher rate.

[brianH]

I have a Fidelity (Elan) card that has 2% cash back, but have never seen targeted spending bonuses. How can you access them?

How often do you use the card? It is my primary card (average monthly balance $2000 - paid on time, of course), and I seem to get at least 2-3 of those offers every year. It's interesting, because the offers are typically for an amount that is just a bit more than I typically spend on the card, so I don't always hit it. The offers come via email, rarely postal mail.

Paying estimated on the card is something that never occurred to me. I assumed without checking that the fee was closer to 3%. Thanks for that idea.

[whodidntante]

There are a few cards that make the fee worthwhile.

BoA Travel Rewards or BoA Premium Rewards with Platinum Honors (2.625% cash back on general spend)
Chase Freedom or other 5% rotating card with Paypal bonus category (5%)
Fidelity (Elan) card with a targeted spending bonus (2.8%, but varies depending on the offer)
New account that you are working on a spending bonus for (varies but usually 10%+)

I have a Fidelity (Elan) card that has 2% cash back, but have never seen targeted spending bonuses. How can you access them?
Also, some of these higher cash-back cards (e.g., Chase Freedom) cap the amount you can get at the higher rate.

They come as an email and I get them pretty often. The email is titled "Earn up to an Additional 2,000 Bonus Points"

[GeraniumLover]

I have a Fidelity (Elan) card that has 2% cash back, but have never seen targeted spending bonuses. How can you access them?

How often do you use the card? It is my primary card (average monthly balance $2000 - paid on time, of course), and I seem to get at least 2-3 of those offers every year. It's interesting, because the offers are typically for an amount that is just a bit more than I typically spend on the card, so I don't always hit it. The offers come via email, rarely postal mail.

Odd. We use this as our standard go-to credit card and charge thousands a month to it. I checked our email and can't find any offer. Perhaps we somehow muted those emails. I will have to investigate!

[bertilak]

I have used https://www.eftps.gov/eftps/index.jsp to pay quarterly estimated taxes.

[50/50]

I also use EFTPS for federal. It's user friendly after set up and you can schedule all four payments at one time. Never had a problem. My state payment is electronic too, but I can not set up all four payments at once so a little more work for that one.

[Broken Man 1999]

I just have taxes taken out from our TIRA distributions. I run tax estimates and just tweak the rates in the last couple of months of the year.

Broken Man 1999

[CurlyDave]

...The IRS does not ¨sort it out on the other end¨ with your quarterly payments! You as the taxpayer reconcile everything when you file your 1040, including Sched C and Sched SE. At that point, you will total up all your tax liability for the year, including self-employment taxes and other misc taxes, report the total amount of estimated taxes and the total withheld taxes paid, subtract and figure your refund or balance due.

BTW, if the refund due is large, you have been giving the government an interest-free loan.

[GeraniumLover]

Has anyone used the Alliant 3% cash back card to pay quarterly taxes? They claim they pay on all "purchases" but list some exceptions and I cannot tell whether the tax payment would fit into any of the exceptions and obviously don't want to risk that it would.

[Carini]

I used the Alliant 3% for both Federal and VA estimated payments for all of 2018 and received the 3% for payments prior to my anniversary date. After the anniversary date I received 2.5%. It was treated the same as any other purchase as far as I could tell.

[Clumsum]

Another IRS Direct user.

[Voltron]

I used the Alliant 3% for both Federal and VA estimated payments for all of 2018 and received the 3% for payments prior to my anniversary date. After the anniversary date I received 2.5%. It was treated the same as any other purchase as far as I could tell.

Same. No issues past two years.

[StevieG72]

I pay estimated taxes with a rewards credit card. This gives a little float and a little profit beyond the fee if you use the right card.

Is there a fee for doing this? I don't recall seeing CC as an option on EFTPS website.

[whodidntante]

I pay estimated taxes with a rewards credit card. This gives a little float and a little profit beyond the fee if you use the right card.

Is there a fee for doing this? I don't recall seeing CC as an option on EFTPS website.

https://www.irs.gov/payments/pay-taxes- ... debit-card

[GeraniumLover]

Does anyone know if you can make 2 separate estimated quarterly payments to the IRS for the same quarter using 2 different credit cards?

[PrettyCoolWorkshop]

If you use the citi double cash credit card, you can pay your quarterly taxes with a 1.88% fee and earn 2% cash back.

Other credit cards that have signup bonuses can also be used if you are into churning.

[kaneohe]

Does anyone know if you can make 2 separate estimated quarterly payments to the IRS for the same quarter using 2 different credit cards?

not sure exactly what you're asking but pretty sure you can make a total of 2 est. tax payments/qtr and you can use
whatever card you wish. There are 3 authorized credit card processors.........if you are asking if you could make
2 payments/qtr w/each processor for a total of 6.........not sure but would guess no.

https://www.irs.gov/payments/frequency- ... ax-payment

Form 1040-ES Estimated Tax
(2018/Q4 & 2019/Q1-3) 2 per quarter Limit

[Greenman72]

The number does not get broken down on any site I have seen. You just send a lump sum and I guess they sort it out on the other end.

The IRS does not ¨sort it out on the other end¨ with your quarterly payments! You as the taxpayer reconcile everything when you file your 1040, including Sched C and Sched SE. At that point, you will total up all your tax liability for the year, including self-employment taxes and other misc taxes, report the total amount of estimated taxes and the total withheld taxes paid, subtract and figure your refund or balance due.

+1

Your 1040 shows the sum of all taxes--income, AMT, self-employent, 10% IRA penalty, net investment income tax, etc. Your payment goes towards that amount.

[centrifuge41]

not sure exactly what you're asking but pretty sure you can make a total of 2 est. tax payments/qtr and you can use
whatever card you wish. There are 3 authorized credit card processors.........if you are asking if you could make
2 payments/qtr w/each processor for a total of 6.........not sure but would guess no.

https://www.irs.gov/payments/frequency- ... ax-payment

Form 1040-ES Estimated Tax
(2018/Q4 & 2019/Q1-3) 2 per quarter Limit

With a credit/debit card, yes you can make 2 payments per each of the 3 processors per quarter. So yes, you can make 2 with pay1040, 2 with payusatax, 2 with officialpayments.

Estimated tax payments by credit card all cost close to 2% in fees according to the IRS.

https://www.irs.gov/payments/pay-taxes- ... debit-card

Maybe there's a way around the fees, though. I've always just sent in a check a few days before each quarterly due date. Our CPAs have always provided the $ amount, schedule, vouchers, and envelopes so it takes all of two minutes.

No way around the fees when paying with card instead of bank draft. But Pay1040 is a really good deal. At 1.87% to pay with a credit card, you come out ahead with a Fidelity 2% card or Citi Double Cash. You come out even further if you have an Alliant card, Bank of America Travel Rewards with preferred status (2.625% travel credit), Blue Business Plus, first year Discover/Chase Freedom Unlimited 3% bonus, etc. Also, Discover debit card is another thought, as it gets 1% cashback up to $30 cash back per month.

[CascadiaSoonish]

Estimated tax payments by credit card all cost close to 2% in fees according to the IRS.

https://www.irs.gov/payments/pay-taxes- ... debit-card

Maybe there's a way around the fees, though. I've always just sent in a check a few days before each quarterly due date. Our CPAs have always provided the $ amount, schedule, vouchers, and envelopes so it takes all of two minutes.

No way around the fees when paying with card instead of bank draft. But Pay1040 is a really good deal. At 1.87% to pay with a credit card, you come out ahead with a Fidelity 2% card or Citi Double Cash. You come out even further if you have an Alliant card, Bank of America Travel Rewards with preferred status (2.625% travel credit), Blue Business Plus, first year Discover/Chase Freedom Unlimited 3% bonus, etc. Also, Discover debit card is another thought, as it gets 1% cashback up to $30 cash back per month.

Guess so but to me it doesn't seem worth the added complexity. My tax bill next week is around $35K. at 2% - 1.87% I'd be clearing less than $50 and would then be reliant on a third party to pay my taxes on time. I'll forgo the $50 in favor of having a nice clean documented payment (cleared check with a deposit record) in my checking account. It may be worth it for others, however. And there's an argument to be made here when someone is trying to do manufactured spend or hit a bonus threshold as you've noted.

[kaneohe]

Estimated tax payments by credit card all cost close to 2% in fees according to the IRS.

https://www.irs.gov/payments/pay-taxes- ... debit-card

Maybe there's a way around the fees, though. I've always just sent in a check a few days before each quarterly due date. Our CPAs have always provided the $ amount, schedule, vouchers, and envelopes so it takes all of two minutes.

No way around the fees when paying with card instead of bank draft. But Pay1040 is a really good deal. At 1.87% to pay with a credit card, you come out ahead with a Fidelity 2% card or Citi Double Cash. You come out even further if you have an Alliant card, Bank of America Travel Rewards with preferred status (2.625% travel credit), Blue Business Plus, first year Discover/Chase Freedom Unlimited 3% bonus, etc. Also, Discover debit card is another thought, as it gets 1% cashback up to $30 cash back per month.

Guess so but to me it doesn't seem worth the added complexity. My tax bill next week is around $35K. at 2% - 1.87% I'd be clearing less than $50 and would then be reliant on a third party to pay my taxes on time. I'll forgo the $50 in favor of having a nice clean documented payment (cleared check with a deposit record) in my checking account. It may be worth it for others, however. And there's an argument to be made here when someone is trying to do manufactured spend or hit a bonus threshold as you've noted.

You also get nearly an extra month in your bank account when you pay by credit card and the payment won't get lost in the mail.