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Level 6
December 21, 2020
Question

How to make estimated tax payments

  • December 21, 2020
  • 2 replies
  • 22 views

Hello, I did an estimate of taxes owed for 2020 and think that the taxes owed may be more than the taxes that I have withheld through salaries and pension.  I have not used the quarterly estimated payment method during the year since the taxes so far are withheld through salaries and pension distributions.  My questions are:

1.  Can I send an estimated payment and indicate it as the 4th quarter estimated tax payment to cover the difference?  Or do I just send it as an estimated payment and do not need to indicate which quarter (since I have not used the estimated payment method during the year)?

 

2.  What is the best way to send in the payment?  I read the 1040 estimated payment instructions, which contains four quarterly coupons, so I can use the coupon for the 4th quarter to make the payment?  Or I can log into the IRS web site to make a direct payment from my bank account?

 

3.  If I send a check with the 4th quarter coupon, would I get some kind of receipt to show the amount that I pay as estimated tax, which I can add to my taxes withheld from salaries and pension?

 

4.  If I make an estimated payment online, what would the IRS website payment screen show?  Would it show I am making a payment as the fourth quarter payment, or just a payment?  Also, would I get some kind of receipt from the web site payment screen as record/evidence to show that I made a payment and the amount to add to my other tax withheld?

 

5.  Also I think the 1040 or 1040SR has a separate line that I can write in the estimated payment, and this line is added to the tax withheld line to derive the total taxes paid.  Is it correct?

 

5.  How secure is the online payment method?

 

Thank you for your help in advance.

2 replies

VolvoGirl
Level 15
December 21, 2020

Yes you can send in the 4th quarter 1040ES payment.  Just write in the amount you want.  No you don't get a receipt.  Your cancelled check is your proof.  Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2020 Estimate

 

Then when you fill out your tax return you enter any payments you made to get credit for it.  Go to

Federal on left or at top.  Personal (Home & Business)

Deductions and Credits at top

Then scroll way down to Estimates and Other Taxes Paid

Estimated Taxes - click the start button

 

VolvoGirl
Level 15
December 21, 2020

If you pay online here's a screen shot of what to,pick

 

VolvoGirl
Level 15
December 21, 2020

And yes it will show up on your 1040 or 1040SR on a separate line.  I don't know what line for 2020 it might change from 2019.

 

For 2019 Federal Estimated payments should be on schedule 3 line 8.  And go to 1040 line 18d.

syoung123Author
Level 6
December 21, 2020

Thank you.