There are five ways to pay estimated tax.
- Credit an overpayment on your 2008 return to your 2009 estimated tax.
- Send in your payment (check or money order) with a payment voucher from Form 1040-ES.
- Pay electronically using the Electronic Federal Tax Payment System (EFTPS).
- Pay by electronic funds withdrawal if you are filing Form 1040 or Form 1040A electronically.
- Pay by credit card using a pay-by-phone system or the Internet.
If you show an overpayment of tax after completing your Form 1040 or Form 1040A for 2008, you can apply part or all of it to your estimated tax for 2009. On line 74 of Form 1040, or line 46 of Form 1040A, enter the amount you want credited to your estimated tax rather than refunded. Take the amount you have credited into account when figuring your estimated tax payments. If you timely file your 2008 return, treat the credit as a payment made on April 15, 2009.
If you are a beneficiary of an estate or trust, and the trustee elects to credit 2009 trust payments of estimated tax to you, you can treat the amount credited as paid by you on January 15, 2010.
If you choose to have an overpayment of tax credited to your estimated tax, you cannot have any of that amount refunded to you until you file your tax return for the following year. You also cannot use that overpayment in any other way. taxmap/pubs/p505-015.htm#en_us_publink10007431
When Kathleen finished filling out her 2008 tax return, she saw that she had overpaid her taxes by $750. Kathleen knew she would owe additional tax in 2009. She credited $600 of the overpayment to her 2009 estimated tax and had the remaining $150 refunded to her.
In September, she amended her 2008 return by filing Form 1040X, Amended U.S. Individual Income Tax Return. It turned out that she owed $250 more in tax than she had thought. This reduced her 2008 overpayment from $750 to $500. Because the $750 had already been applied to her 2009 estimated tax or refunded to her, the IRS billed her for the additional $250 she owed, plus penalties and interest. Kathleen could not use any of the $600 she had credited to her 2009 estimated tax to pay this bill.taxmap/pubs/p505-015.htm#en_us_publink10007432
Each payment of estimated tax by check or money order must be accompanied by a payment voucher from Form 1040-ES. If you made estimated tax payments last year, you should receive a copy of the 2009 Form 1040-ES in the mail unless you used a paid tax preparer. It will have payment vouchers preprinted with your name, address, and social security number. Using the preprinted vouchers will speed processing, reduce the chance of error, and help save processing costs.
If you did not pay estimated tax last year, you will have to get a copy of Form 1040-ES from the IRS (see chapter 5). Follow the instructions in the package to make sure you use the vouchers correctly.
Use the window envelopes that came with your Form 1040-ES package. If you use your own envelopes, make sure you mail your payment vouchers to the address shown in the Form 1040-ES instructions for the place where you live.
Do not use the address shown in the Form 1040 or Form 1040A instructions.
If you file a joint return and are making joint estimated tax payments, enter the names and social security numbers on the payment voucher in the same order as they will appear on the joint return.taxmap/pubs/p505-015.htm#en_us_publink10007434
You must notify the IRS if you are making estimated tax payments and you changed your address during the year. Send a clear and concise written statement to the Internal Revenue Service Center where you filed your last return and provide all of the following information.
- Your full name (and your spouse's full name).
- Your signature (and spouse's signature).
- Your old address (and spouse's old address if different).
- Your new address.
- Your social security number (and spouse's social security number).
You can use Form 8822, Change of Address, for this purpose.
EFTPS is a free tax payment system where you input your tax payment information electronically, online or by phone. Through EFTPS, you can schedule one-time or recurring payments for withdrawal from your checking or savings account up to 365 days in advance. You also can modify or cancel payments up to 2 business days before the scheduled withdrawal date. To use EFTPS, you must enroll. Enroll online at www.eftps.gov
or call 1-800-555-4477 (for business accounts) or 1-800-316-6541 (for individual accounts) to receive an enrollment form and instructions by mail. TTY/TDD help is available by calling 1-800-733-4829. Call 1-800-244-4829 for Spanish.
If you electronically file your 2008 tax return, you can use EFW to make up to four (4) 2009 estimated tax payments. This is a free option. The payments can be withdrawn from either a checking or savings account. At the same time you file your return, you can schedule estimated tax payments for any or all of the following dates: April 15, 2009, June 15, 2009, September 15, 2009, and January 15, 2010.
Check with your tax return preparer or tax preparation software for details. Your scheduled payments will be acknowledged when you file your tax return.
Payments scheduled through EFW can be cancelled up to 8 p.m. Eastern time, 2 business days before the scheduled payment date, by contacting the U.S. Treasury Financial Agent at 1-888-353-4537.taxmap/pubs/p505-015.htm#en_us_publink10007438
You can use your American Express® Card, Discover® Card, MasterCard® card, or Visa® card to make estimated tax payments. Call toll-free or visit the website of either service provider listed below and follow the instructions. A convenience fee will be charged by the service provider based on the amount you are paying. Fees may vary between providers. You will be told what the fee is during the transaction and you will have the option to either continue or cancel the transaction. You also can find out what the fee will be by calling the provider's toll-free automated customer service number or visiting the provider's website shown below. Official Payments Corporation
1-877-754-4413 (Customer Service)
1-888-658-5465 (Customer Service)