Estimated Tax Payments: How to Make Estimated Tax Payments Online or By Paper)

Estimated Tax Payments: How to Make Estimated Tax Payments Online or By Paper)


what’s up everybody Mike the CPA here
and chipper in today’s short video we’re gonna show you three
easy ways to make an estimated tax payment that’s right
this is major life skill central! This is very important for you guys to know and
by the way I hate making freakin estimate payments
it basically means more money comes out of my pocket and I have less disposable
income even chipper doesn’t like making estimated tax payments hey sorry folks
he gets a little worked up let’s start off by showing you guys how to make an
estimate payment online it starts off by us going to the IRS gov website up here
as you can see then right here see where it says make a payment you’re gonna
click that make payment says pay your taxes now and you’re gonna go to direct
pay you can also pay with a debit or credit card versus a check but there’s
fees associated if you try to pay with a debit card or credit card so if you have
a checkbook I would highly recommend you pay with your check so go to the direct
pay click there and you can read through this as we can see here but if you want
to skip straight to it we’re gonna go to make a payment and now it brings us to
this lovely screen now this is the first part that’s really important so it says
you’ll notice here the first selection in this drop-down it says reason for
payments well we want to select estimated tax because we’re making an
estimated tax payment for the tax year we’re currently in it says apply payment
to it’s gonna give you in this scenario it’s there’s 1040 es for 1040 1040a or
1040ez so what as long as you file one of those three forms each year 1040 1040
EZ or 1040 a you’re good so making sure that selected now to make sure the year
is selected for your current tax year so we’re in 2018 at the time of this video
so I’m selecting 2018 and we hit continue it says you have chosen to make
an estimated tax payment for your 1040 es for these forms is this correct when
we hit yes now that once our information so let me just kind of filled this out
already for you guys so what you’re gonna do is you’re gonna drop in your
next year for verification and it’s gonna have you verify some numbers in a
previous tax year to make sure it’s you so the purpose the most recent year in
this example because we’re in 2018 was 2017 so we’ve already filed our 2017
taxes hopefully I hope you have and then we’re gonna select our filing status
right here you can select single or married filing joint or one of these
other statuses so we’re married here chipper is the name of our cockatiel
who’s paying his estimated tax payment so we have chipper last name is the
cockatiel we have a social security number entered right there we have his
date of birth as January of 85 he lives in the United States at 100 cockatiel
away I probably wouldn’t recommend trying to look up that address because
it’s totally fake but in a minute here I’m the enter my real information so we
can get the next screen however I can’t share that lovely data with you find
folks on YouTube over the Internet sorry but we’re gonna go to the next screen
here in a second so once that inner information is all entered then we can
go and proceed to the next screen now we’re on the direct pay screen and that
this is where we enter our payment information so as you can see here
chipper is ready to make a $100.00 estimated tax payment he confirms the
payment amount once again for $100 payment date is gonna be July 13th of
2018 because that’s where we’re at today folks we’re gonna put our routing number
in here from our checking account this is chipper checking account in his
account number not a real account number and then of
course that we’re gonna mark checking you can mark checking our savings and
then it says I would like to receive an email confirmation notifications and
agree to the email Terms of Service and I always recommend selecting YES for
that because you can always unsubscribe later from it but it’s nice to have an
e-mailed receipt of your payments and I highly highly encourage that you do so
folks because why do you want to spend money and not have proof of it later on
alright so make sure that email box is checked you’re gonna drop in your email
address twice of course because they don’t trust you the first time so we’re
going to put chipper at gmail.com and chipper at gmail.com once again once
again fake email address just because this is all for an example here folks
and then we’re gonna click continue to go on to the next screen just about done
now this little when you click continue from direct that drew last direct a
screen you’re going to get this little notice that pops up says
disclose your authorization and basically you must agree to their terms
just click I agree because if you don’t you can’t proceed forward so you click
agree and then you’re gonna go down this list here and just verify this data make
sure you have everything correct like is this for an estimated tax payment yes
is it a 1040 yes that is applied to a 1040 1040 a 1040 EZ yes
tax payments for the right year 2018 yes dollar amount is correct yep
payment date is this we’ve got our bank account information checking account
number we’ve marked our email Terms of Service etc and then the right this last
part right here is the electronic signature so this is where we’re gonna
put in our name first and last name so we’re gonna put it in chipper the
cockatiel and then chipper is gonna put in a social security number right there
we’re gonna click this little box that says I accept the debit authorization
agreements so the last step of course was we hit would hit submit and then we
would end up getting a confirmation saying that the payment has been
scheduled and then your your payments should come out either that day or the
following day I think it’s the following day when the payment account if you look
at your bank statement or your online banking account was where you’ll see the
payment being with withdrawn by the IRS and that’s how you make a payment online
folks luckily guys I’ve actually done this myself I’ve actually made a real
payment this when you go to that final screen now I wouldn’t have been able to
show you without money coming out on my check checking account but I’ve actually
made a payment and asked me the tax payment for 2018 earlier this year this
is what the receipt looks like after you’ve made the payment online I think
this comes to you in the form of an email but if it doesn’t make sure you do
the print at to PDF or save as PDF screen or printed out to a physical copy
keep it for your tax records it’s very important that you hold on to this
document either in paper or electronically but that’s what one of
these receipts looks like and just keep it for your tax year because you’re
gonna need it when it comes time to file your taxes moving on now to how to pay
your tax estimates via paper so that we’re gonna go to Google we’re going
we’re gonna search 1040 es you can even do the year you’re in so we’re in 2018
so I’m gonna type 2018 and it should be the first thing that comes up and it is
right here see where it says 2018 form 1040 yes – IRS gov thats our baby that’s
the one we want you can even see that it says WWI RS gov right there to even
prove it further so we’re gonna click this it’s gonna open up PDF and this is
the it’s got some instructions in here for you it has some general rules which
I’m not gonna cover in this video this is all about just how to make a payment
I’m not gonna go in another video I’m gonna cover how at taxes I mean the
payments work in a general sense so you guys have a better feeling for it a
better idea but if you scroll down here there is a payment voucher
let’s keep scrolling keep scrolling right here here we go they start AHA
starts right here there’s for payment vouchers okay because as you guys can
imagine its its quarterly estimated tax payments so if you guys make estimates
then the that’s why there’s four vouchers because they’re usually
quarterly estimates you don’t have to make them quarterly you can make you can
pay one or two estimates if you want if you’ve upped the amount but that’s
really something to for you to figure out when you’re doing tax planning or
working with an accountant yourself so for the month of July through September
is the third quarter of 2018 right well what you’re gonna do is you’re gonna
come down here and fill out the amount of the estimate on paper and you’re
gonna be once you’re all done with this you’re gonna print it out whoops there’s
not one hundred cents you’re gonna put your name your address right so chipper
the cockatiel chippers social security number if you have your spouse if your
flat due married filing joint you’re gonna put your spouse’s information
right here I’m not going to fill all this out it’s pretty self-explanatory
right you’re gonna put their last name your social security number and then
your your address zip code etc and then see where it says tear off here so once
you’ve entered the dollar amount and all this basic information here you’re gonna
cut this part out you’re gonna just take scissors cut it
out and then you’re gonna place an envelope well how do you know where the
heck to Mel this thing off well you’re gonna write a check if you go to the top
guys if you go to the top of the documents first of all if you want to
find out where to Mel it see where it says where to file your estimated tax
payment voucher if pain by checked our money order well this is where you do it
this is so I’m I live in California so I need to send my check to where do I send
my check to you guys do you see California on here ha ha right here so I
would send my check to this one p.o box 5100 or whatever that number is that
goes to San Francisco so this is where I would do because that’s where I live but
you just find the state you live in and then that’s the address you would mail
the estimated tax payment to and then you would on this kind of tells you how
to write the check we’re all right here in this part right here so if you just
read this it will tell you to on the memo line of the check you’re gonna
write 1040 – yes you’re gonna write your social security number make sure you
read these instruction guys it’s pretty self-explanatory but take time to read
this so that you know you’re mailing your check off to the right address
have the right stuff on the memo line your social security number information
all that stuff is what it needs to be so the IRS when they receive your payments
they can match it up with the right social security number and all that good
stuff you want to be very careful about that so just make sure you’re paying
attention to these instructions before you mail it off that’s how you make your
estimate payment by paper there’s a third way that many people don’t know or
don’t even have to think about but now I’m gonna show you how to make an
estimate a tax payment using your current year tax return what you can do
that actually you can let me show you how ok so this is a third way to make an
estimate payment so it’s not online it’s not via paper that’s actually when
you’re preparing your return so this is obviously a tax form 2017 the 2018 1040
forms have not been released yet for personal income taxes IRS is doing a lot
of work on those right now we’re going on page 2 of the 1040 we’re going near
the bottom this is for people who have a refund or who are overpaid on their
current your taxes okay is if you owe money it’s not you’re not gonna be able
to make an estimate but let’s say chipper let’s say
chipper taciturn and he let’s say he’s overpaid by a thousand bucks okay so
he’s gonna have a thousand-dollar refund coming to him so he can like I said he
can choose chipper can get that refund for 2017 or he can have that refund
instead of coming to him in the mail in the form of cash or cheque he can have
his refund applied to his 2018 estimated taxes because chipper is a tax filer who
has to pay estimates because his income fluctuates quite often he’s owed large
balances in the past so that’s why chippers required to pay estimates in a
general sense so instead of getting refunded now chipper can indicate on his
tax return when he’s preparing his taxes that he wants his refund to count to go
towards 2018 taxes the way chipper would apply this thousand dollar refund the
next year’s estimates you see on line 76 a it says amount of line 75 which is
this refund amount you want refunded to you he’s gonna put zero here or leave
that blank either ways fine now on line 77 see how it says amount of
line 75 you want applied to your 2008 teen estimated taxes this is the line
we’re looking for so we’re gonna put all $1,000 right there
so what’s chipper wants the entire amount of his overpayment or his refund
applied to next year’s taxes so that’s a third way to make an estimated tax
payment though there’s as you guys can see here guys there’s multiple ways to
do it you can do it online you can do it on paper those are the two most common
ways in some circumstances when you’re filing your taxes you might have a
refund and in that instance you can also instead of receiving that money in the
in the bank you can apply it to Nick skiers estimates because typically when
a person has to pay estimates they are gonna have to even if they get the money
back in the form of a refund that you know if it comes to their checking
account well chances are they’re gonna have to send it back to the IRS anyways
so that’s why you can apply it towards Nick’s year’s taxes especially for
somebody who’s gonna have to write the check anyways you might might as well
just do it here on your tax return it’s much simpler than writing a check and
going through the hassle okay guys I hope you found those three ways to make
estimate payments helpful a lot of pee in the United States has to make
estimated tax payments I just wanted to show you quickly how to do it it’s not
that hard but there’s multiple ways of doing it as you guys can see from this
video now I know I didn’t cover how estimated tax payments work I’m working
on a video on that at the time of filming this video I do not have that
other video ready but I will so make sure before you leave this video if you
want to learn how estimated tax payments works be checking for a link to another
video on that subject look in the description section down below and I’ll
also put it in the comments section of this video
once it’s ready okay so it might not be there yet but once it’s ready I’ll make
sure you you guys can can have it I’ll link it up and also have it show up at
the end of this video anyways I hope you found this information helpful guys if
you have any questions I’m sure you might because I went through this
information kind of quickly because I wanted to be straight to the point let
me know in the comment section down below I’d be happy to get back to you
guys and try to answer any questions you may have to the best of my ability
now that you know the three ways to make SMS tax payments don’t brag about it
brag about your knowledge at the dinner table tell them what you learned because
you know yet you didn’t just come here to learn how to make payments you came
here to learn how to about to brag about your extensive tax knowledge which you
have gained even more from like the CPA on money and life TV if you have not
already subscribed to our channel be sure to do so by hitting the red
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so be sure to subscribe so you do not miss any of our future uploads if you
liked the video make sure to drop a like before you leave it really helps out the
channel and be sure to share this information with a friend especially
somebody you know who’s having trouble with taxes or might need to make
estimated tax payments I’m sure they would find this information helpful to
learn how to do it in any way that they feel most comfortable with and what’s
the best way to make your estimated tax payment real it really just comes down
to you you choose the way that you feel the most comfortable with and I
recommend doing it that way alright guys well until next time it’s been a
pleasure as always hang out with you here on YouTube I will see you all in
the next video be looking for that video on how estimated tax payments work
coming up in the future until next time I love you guys thanks so much for
hanging out with me here on YouTube and chipper and I will
see you in the next video take care and live your life on caged bye guys

20 Replies to “Estimated Tax Payments: How to Make Estimated Tax Payments Online or By Paper)”

  1. There are multiple ways to pay your estimated tax payments. I suggest paying your estimates in the way that feels the most comfortable to you.

    How to make estimate payment online – 0:36

    How make estimate payments by paper – 6:33

    How to make estimate payment by applying current your tax refund: 10:29

    In a future video I will share how tax estimates work and things to know about before making estimate payments.

  2. Making estimate payments is an important life skill. Most people do not know what tax estimate pays are or how to make the payment so I hope viewers will find this helpful. Estimated tax payments are important to make when one makes their living through their own business or has an irregular income. Also, estimated tax payments provide an easy way to catch up on ones income taxes if they are not withholding enough on their W-4.

  3. Good video. It's unfortunate that even to this day, there isn't an option to just schedule the quarterly payments for the entire year.

  4. This was great. Thank you for the comprehensive video. Would you also make a video that covers annualized estimated payments? That would be so helpful for those of us with varied income!

  5. What do I do if I have never filed taxes before, and want to file a quarterly tax for my small business?

  6. no video yet on the other / main part about Estimated taxes and why/who needs to do them? any plans/schedule? thanks

  7. I've never filed taxes before for my business and the direct pay will not allow me to verify my 1040 because I've never done one.

  8. Well I’m a dork. I’ve built up this scary monster in my head on how this is to be done. But man that’s easy.

  9. Mike, as always, excellent video. But I still trying to wrap my head around here regarding the tax strategy of making an estimated tax payment to the IRS in advance. Does that mean you’ll have filed your W4 form and have your employer withheld ZERO federal income tax throughout the year? How many allowances would you have had claimed on the W4 or you would have had written “EXEMPT” on box 7 of the W4 form? And why you made the payment on July 13, 2018, or May 01, 2018, so far into the year? Why not may the estimated payment on January 1, 2018? I guess the tax strategy behind all this is to have more cash flow throughout the year, isn’t it?

    Form 1040-ES has the forms to make the quarterly estimated tax payments, are these forms for business owners, self-employed, or regular W2 employees?

    Do you have a video on how to calculate estimated tax payment? Please share, Thank you!

    P.S. I am falling in love with Chipper 😊

  10. Mike, THANK YOU SO MUCH FOR THESE VIDEOS!!! the IRS is absolutely worthless when it comes to getting any assistance on paying them, which I find very difficult to deal with, more diffcult morally than logistically. How they can demand tax payment but refuse to help you learn how to do it is beyond unethical. I appreciate all your efforts to educate us little people.

  11. This is great thank you! Question — when filing annual taxes, how do you enter the payments you already made in order to not have to pay twice? Basically, how does the IRS know that you payed estimated taxes? Do you get some sort of form back after paying estimated taxes that you refer to when filing taxes at the end of the year?

  12. I understand that for estimated taxes for self-employed, you can pay 100% of your prior years taxes owed or 90% of the taxes you estimate you will owe for the current year.

    My 2019 taxes owed are about $25,000 USD, however they are almost zero because I am a non-resident and claim FTC's (Foreign Tax Credits) as I am a resident of Canada. After the FTC's my tax owed is only a few hundred dollars.

    Fast forward to 2020 I am now a resident of USA. I expect to owe $25k USD again in tax (with no FTC's).

    For my 2020 taxes, am I able to pay the 100% of my prior years taxes (few hundred $$$ in 2019) for my estimated taxes? Or are there rules again this?

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