Where do you pay quarterly taxes?

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birdec
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Where do you pay quarterly taxes?

Post by birdec » Mon Mar 11, 2019 11:44 am

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
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Re: Where do you pay quarterly taxes?

Post by HomeStretch » Mon Mar 11, 2019 12:02 pm

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
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Re: Where do you pay quarterly taxes?

Post by sailaway » Mon Mar 11, 2019 12:05 pm

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.

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dodecahedron
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Re: Where do you pay quarterly taxes?

Post by dodecahedron » Mon Mar 11, 2019 12:11 pm

birdec wrote:
Mon Mar 11, 2019 11:44 am
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.

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RickBoglehead
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Re: Where do you pay quarterly taxes?

Post by RickBoglehead » Mon Mar 11, 2019 12:14 pm

birdec wrote:
Mon Mar 11, 2019 11:44 am
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.
Last edited by RickBoglehead on Wed Mar 13, 2019 7:01 am, edited 2 times in total.
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dodecahedron
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Re: Where do you pay quarterly taxes?

Post by dodecahedron » Mon Mar 11, 2019 12:14 pm

sailaway wrote:
Mon Mar 11, 2019 12:05 pm
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
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Re: Where do you pay quarterly taxes?

Post by sailaway » Mon Mar 11, 2019 12:24 pm

dodecahedron wrote:
Mon Mar 11, 2019 12:14 pm
sailaway wrote:
Mon Mar 11, 2019 12:05 pm
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.

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whodidntante
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Re: Where do you pay quarterly taxes?

Post by whodidntante » Mon Mar 11, 2019 12:27 pm

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
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Re: Where do you pay quarterly taxes?

Post by Gill » Mon Mar 11, 2019 4:25 pm

RickBoglehead wrote:
Mon Mar 11, 2019 12:14 pm


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
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Gill
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Re: Where do you pay quarterly taxes?

Post by Gill » Mon Mar 11, 2019 4:26 pm

whodidntante wrote:
Mon Mar 11, 2019 12:27 pm
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
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

Mike Scott
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Re: Where do you pay quarterly taxes?

Post by Mike Scott » Mon Mar 11, 2019 4:31 pm

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.

Topic Author
birdec
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Re: Where do you pay quarterly taxes?

Post by birdec » Mon Mar 11, 2019 4:33 pm

Thanks everyone for the information!
Gill wrote:
Mon Mar 11, 2019 4:26 pm
whodidntante wrote:
Mon Mar 11, 2019 12:27 pm
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
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Re: Where do you pay quarterly taxes?

Post by CascadiaSoonish » Mon Mar 11, 2019 5:25 pm

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.

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birdog
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Re: Where do you pay quarterly taxes?

Post by birdog » Mon Mar 11, 2019 5:33 pm

Gill wrote:
Mon Mar 11, 2019 4:26 pm
whodidntante wrote:
Mon Mar 11, 2019 12:27 pm
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.

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whodidntante
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Re: Where do you pay quarterly taxes?

Post by whodidntante » Mon Mar 11, 2019 5:35 pm

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%+)

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RickBoglehead
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Re: Where do you pay quarterly taxes?

Post by RickBoglehead » Wed Mar 13, 2019 7:02 am

Gill wrote:
Mon Mar 11, 2019 4:25 pm
RickBoglehead wrote:
Mon Mar 11, 2019 12:14 pm


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!
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GeraniumLover
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Re: Where do you pay quarterly taxes?

Post by GeraniumLover » Wed Mar 13, 2019 7:48 am

whodidntante wrote:
Mon Mar 11, 2019 5:35 pm
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
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Re: Where do you pay quarterly taxes?

Post by brianH » Wed Mar 13, 2019 8:21 am

GeraniumLover wrote:
Wed Mar 13, 2019 7:48 am
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.

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whodidntante
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Re: Where do you pay quarterly taxes?

Post by whodidntante » Wed Mar 13, 2019 8:47 am

GeraniumLover wrote:
Wed Mar 13, 2019 7:48 am
whodidntante wrote:
Mon Mar 11, 2019 5:35 pm
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
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Re: Where do you pay quarterly taxes?

Post by GeraniumLover » Wed Mar 13, 2019 9:09 am

brianH wrote:
Wed Mar 13, 2019 8:21 am
GeraniumLover wrote:
Wed Mar 13, 2019 7:48 am
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!

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bertilak
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Re: Where do you pay quarterly taxes?

Post by bertilak » Wed Mar 13, 2019 12:21 pm

I have used https://www.eftps.gov/eftps/index.jsp to pay quarterly estimated taxes.
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50/50
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Re: Where do you pay quarterly taxes?

Post by 50/50 » Wed Mar 13, 2019 12:48 pm

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
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Re: Where do you pay quarterly taxes?

Post by Broken Man 1999 » Thu Mar 14, 2019 11:54 am

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
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CurlyDave
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Re: Where do you pay quarterly taxes?

Post by CurlyDave » Thu Mar 14, 2019 8:30 pm

dodecahedron wrote:
Mon Mar 11, 2019 12:14 pm

...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
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Re: Where do you pay quarterly taxes?

Post by GeraniumLover » Tue Mar 19, 2019 7:22 am

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.

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Carini
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Re: Where do you pay quarterly taxes?

Post by Carini » Tue Mar 19, 2019 8:26 am

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
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Re: Where do you pay quarterly taxes?

Post by Clumsum » Tue Mar 19, 2019 8:57 am

Another IRS Direct user.

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Voltron
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Re: Where do you pay quarterly taxes?

Post by Voltron » Wed Mar 20, 2019 1:01 am

Carini wrote:
Tue Mar 19, 2019 8:26 am
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.

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StevieG72
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Re: Where do you pay quarterly taxes?

Post by StevieG72 » Wed Mar 20, 2019 9:07 pm

whodidntante wrote:
Mon Mar 11, 2019 12:27 pm
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.
Fools think their own way is right, but the wise listen to others.

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whodidntante
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Re: Where do you pay quarterly taxes?

Post by whodidntante » Wed Mar 20, 2019 9:09 pm

StevieG72 wrote:
Wed Mar 20, 2019 9:07 pm
whodidntante wrote:
Mon Mar 11, 2019 12:27 pm
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
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Re: Where do you pay quarterly taxes?

Post by GeraniumLover » Fri Apr 05, 2019 2:29 pm

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

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PrettyCoolWorkshop
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Re: Where do you pay quarterly taxes?

Post by PrettyCoolWorkshop » Fri Apr 05, 2019 2:38 pm

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.
Be greedy and fearful. All the time.

kaneohe
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Re: Where do you pay quarterly taxes?

Post by kaneohe » Sat Apr 06, 2019 9:20 am

GeraniumLover wrote:
Fri Apr 05, 2019 2:29 pm
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
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Re: Where do you pay quarterly taxes?

Post by Greenman72 » Sat Apr 06, 2019 9:22 am

dodecahedron wrote:
Mon Mar 11, 2019 12:14 pm
sailaway wrote:
Mon Mar 11, 2019 12:05 pm
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
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Re: Where do you pay quarterly taxes?

Post by centrifuge41 » Sat Apr 06, 2019 10:17 am

kaneohe wrote:
Sat Apr 06, 2019 9:20 am
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.
CascadiaSoonish wrote:
Mon Mar 11, 2019 5:25 pm
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
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Re: Where do you pay quarterly taxes?

Post by CascadiaSoonish » Mon Apr 08, 2019 2:05 pm

centrifuge41 wrote:
Sat Apr 06, 2019 10:17 am
CascadiaSoonish wrote:
Mon Mar 11, 2019 5:25 pm
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
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Re: Where do you pay quarterly taxes?

Post by kaneohe » Mon Apr 08, 2019 4:04 pm

CascadiaSoonish wrote:
Mon Apr 08, 2019 2:05 pm
centrifuge41 wrote:
Sat Apr 06, 2019 10:17 am
CascadiaSoonish wrote:
Mon Mar 11, 2019 5:25 pm
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.

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