Specifically, I do not owe more to the IRS right now. So, the only reason for making another direct payment is to buy paper i bonds. But I must either make the payment as a request for an extension to file or as an estimate. Should it be as an extension or does it matter?
Just buy them directly from the Treasury. You don't have to buy from a refund.
https://treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm
Hi,
Thanks for your reply, but I am aware of that option for purchasing electronic I bonds but need to specifically understand how to pay the IRS directly to enable the purchase of paper I bonds as part of filing my federal income taxes.
You would have to have a refund to purchase I bonds as part of your tax return and you would purchase them using your refund. You could make a payment towards your 2021 federal income tax to create a refund by using this link:
Then, enter the payment as an estimated tax in TurboTax by going to Deductions and Credits section, then Estimates and Other Taxes Paid, then Estimates. This will create a refund you can use to purchase your I bonds.
When I just tried that, the IRS Direct Pay tool no longer will accept an estimated tax payment for 2021. The only choice it presented me for the reason "Estimated Tax" is for tax year 2022.
@hanunian If you use the IRS Direct Pay tool, be sure you don't choose the estimates option and mistakenly pay for the wrong tax year.
It will, however, allow one to make a reason "extension" payment there for 2021. Be aware that would be reported in a different place in TurboTax as a "Payment with extension" so that it flows to the correct line, which is a different line than estimates paid. If you decide to go that route, we can tell you how to report an extension payment in your TurboTax program.