IRS Account estimated tax payment and TurboTax estimated tax payment

[kamull01]

Will the IRS be able to recognize an estimated tax payment in my IRS account and match it up with the estimated tax payment noted in my electronically filed 2023 Turbo Tax return?

Here is background information for the question asked above.

I knew mid-year that the withholding on my RMD distributions would not be enough to cover my 2023 federal tax due.  So, I created an IRS account in October 2023 and made an estimated tax payment. The payment more than covered the balance due on my 2023 federal tax due, after withholding on my RMD distributions is factored in. 

I received from the IRS an e-mail confirmation with tax payment information (type of payment=estimated tax, EFT#, amount of the payment, confirmation number, and date of submission).  This is the only record that I have that the estimated tax payment was made. I have just checked my IRS account and there is still a record of that October estimated tax payment.

In 2023 Turbo Tax Deluxe, At Your 2023 Deductions & Credits -- Estimates and Other Taxes Paid -- Estimates -- Estimated Tax Payments -- Visit All --Did you make any of these estimated tax payments --How much did you pay in federal estimated taxes?, I filled in the line for the 3rd quarter with the amount of the IRS Oct estimated tax payment that is recorded in my IRS account.  Turbo Tax has produced a 2023 Tax Payment Worksheet for my records, which matches the estimated tax record on file with the IRS in my IRS account.  

The On-Demand Tax Guidance in the 2023 Turbo Tax program says that I need paperwork for this  estimated payment in the form of a Form 1040ES.  But, I did not use a 1040ES voucher to make the payment so I have no 1040ES voucher records.

Is my not having any 1040ES records going to be a problem with the IRS?  Or will the IRS be able to match up the Oct estimated tax payment noted in my Turbo-Tax-electronically-filed 2023 Turbo Tax tax return with the record of estimated tax payment in my IRS account and recognize that my 2023 federal tax obligation has been met?

And since the 2023 estimated tax payment in my IRS account more than covers the 2023 federal tax due and since 2023 Turbo Tax says that a refund is in order, will the IRS be able to match up the overpayment in my IRS account with the overpayment noted in the 2023 Turbo Tax return?  And make a direct deposit refund as I have indicated on the electronically filed return?

[dmertz · Accepted solution]

You are overthinking this.  There is no requirement that you keep an actual copy of any Form 1040-ES that you filed.  In fact, no such form is even needed if you make your estimated tax payment online.  All you need to do is keep track of your estimated tax payments so that you can enter them into TurboTax, as you have done.  Given that the IRS has a record of your payment, they are not going to ask you to prove that you made the payment as long as what you report on your tax return for estimated tax payments agrees with the records in your tax account.  Even if there is disagreement, a Form 1040-ES is not proof of payment.  Anyone can manufacture a Form 1040-ES at any time.

https://www.irs.gov/pub/irs-prior/f1040es--2023.pdf

[kamull01]

My 2023 1040 has been accepted by the IRS and I received the calculated refund about 4 days ago in a direct deposit.  In TT Deluxe and on the return that the IRS received, I had indicated an Oct estimated tax payment, which with my RMD withholding, was more than the tax owed – thus, the refund.

I expected that my IRS account would be updated to show that the refund had been made and that the rest of it had been applied to my federal tax due, leaving a zero balance in my account.  But, only the Oct estimated tax payment is showing up and there is no other payment activity.

Within my IRS account, there is a 2023 tax record on file, which when viewed, shows all of the particulars of my 2023 tax filing.  So, the IRS DOES have a record of everything that was filed in the 2023 federal return.

So, why isn’t my IRS account showing a zero balance?

[ThomasM125 · Accepted solution]

I'm not sure if the account you reference would show a tax refund, it may be just to reflect estimated tax payments. In any case, since you received your refund it is obvious that all is as it should be as far as your balance with the IRS is concerned.