I am a US citizen working within the US as an independent contractor for an international organization. It is my understanding that I have to make estimated quarterly payments. Do I use for 1040-ES? Also, is there a way to file that form through Turbotax. And I would also like to know if I use the Online payment option at IRS website, do I still need to file a form 1040-ES or I can just pay there without filing any forms? I will based my estimated payments on last year’s tax.
Yes, it is fine to increase withholding rather than making quarterly estimated payments. I would suggest that you make a note on your calendar to check to see where you are with the withholding around mid-year so that you can make any additional adjustments, if necessary. A great place to do this is our W-4 Calculator.
You should fill out your information either in the TurboTax program (the easiest way), and it will calculate your estimated tax payments (as well as print your quarterly vouchers) or you can go online to the IRS website and fill out, calculate;, print and then mail your 1040-ES form.
If you want to add Form 1040-ES vouchers to your return yourself, follow these instructions.
Mail your payment along with the corresponding 1040-ES voucher to the IRS address listed on the voucher. Quarterly payment due dates are printed on each voucher.
Additional estimated tax payment options, including direct debit, credit card, cash, and wire transfer, are available at the IRS Payment website.
You also have the option when you file your return to apply some or all of your refund to your estimated tax payments for the coming tax year.
TurboTax FAQ: How do I make estimated tax payments?
Thank you for your reply!
I have an additional question regarding estimated quarterly payments. In case my spouse's employer is withholding more taxes from their income, would that mean that I do not have to make estimated quarterly payments as we will file jointly and their withholding would offset any amounts I owe at the end of the year? Is it an option to increase my spouse's withholding instead of making estimated quarterly payments for federal, state and self-employment taxes?
Yes, it is fine to increase withholding rather than making quarterly estimated payments. I would suggest that you make a note on your calendar to check to see where you are with the withholding around mid-year so that you can make any additional adjustments, if necessary. A great place to do this is our W-4 Calculator.