2023 BALANCE MADE WITH 1040ES VOUCHER ACCIDENTALLY

[rebekahlpz]

I ACCIDENTALLY PAID MY 2023 BALANCE (PARTIAL) USING A 1040ES VOUCER. THIS IS THE 1ST TIME IVE EVER HAD A 1099 AND QUITE HONESTLY I WILL NOT DO THIS EVER AGAIN. WILL IRS BE ABLE TO TRANSFER MY ESTIMATED PAYMENT TO THE BALANCE I OWE FOR 2023. IM SO SCARED BECAUSE I HAVE NO MONEY. I HAVENT EATEN IN DAYS JUST THINKING OF THIS. 

[fanfare]

did you double check that the amount payable was the "amount you owe" on Form 1040?

Evidently not.

Or did you think the vouchers let you split your 2023 tax still owed into installments.?

DId you write "For 2023 Form 1040" on your check, as per the Instructions?

If so, this might save you.

@rebekahlpz 

[rebekahlpz]

When I printed my tx return from Turbo Tax 4 vouchers printed equaling to the amount I owed for 2024. Then, 1 printed for the full amount. I thought it was a choice of whether I use the 4 vouchers for the pmnt plan or pay in full. 
I’ve never owed money b4z. This is the 1st time filing with 1099 and having to owe. Frankly now it’ll be my last. Yes I’m very scared and mentally not feeling good about this. 

[fanfare]

If IRS has a policy for this, I don't know what it is.

You can call them.

Meanwhile if you sent in 1 /4 of amount you owe,

in best case, that still leaves at least 3/4 due now.

Write"For 2023 Form 1040" on your check or pay at the IRS payment page.

@rebekahlpz 

[fanfare]

If you went 1099 as your source of income in 2023, you should have known that Estimated tax payments by you were due over the course of 2023. That's how it works.

Now you know.

@rebekahlpz 

[xmasbaby0 · Accepted solution]

To  call the IRS:IRS:  800-829-1040  hours 7 AM - 7 PM local time Mon-Fri

Listen to each menu before making the selection.

First choose your language. Press 1 for English.

Then do NOT choose the first choice re: "Refund", or it will send you to an automated phone line.

Instead, press 2 for "personal income tax".

Then press 1 for "form, tax history, or payment".  

Then press 3 "for all other questions."

Then press 2 "for all other questions."  It should then transfer you to an agent.

[xmasbaby0]

Those 1040ES vouchers were for paying estimated quarterly payments for tax you would likely owe for tax year 2024.  They were not for making "installment" payments for the 2023 tax due that you owed for your 2023 tax return.   The amount that was on line 37 of your 2023 Form 1040 was supposed to be paid in full by the deadline on April 15, 2024.  You could have sent a check or money order with the 1040V voucher, or you could have paid online using the IRS site.   Or if you could not afford to pay in full, you could apply for a payment plan with the IRS to pay your 2023 tax due.   But....those 1040ES vouchers were not a "payment plan" for your 2023 tax due.   

So...if you only sent in the amount that was on ONE of those vouchers, you paid less than you owed for 2023 and the IRS will subject you to paying interest on the amount of 2023 tax due that you have not paid so far.   

Look again at your 2023 Form 1040.  Line 37 shows what you were supposed to pay by April 15.

You are far from being the first person to be confused by those 1040ES vouchers; many people have been confused by them.  Call the IRS to see what their advice is as to how to sort this out, and pay as much of what you can toward the 2023 tax due asap.

https://www.irs.gov/payments

https://ttlc.intuit.com/community/tax-payments/help/how-can-i-pay-my-federal-taxes/00/26212

https://ttlc.intuit.com/community/tax-payments/help/how-do-i-pay-my-irs-tax-due-with-a-check-or-mone... 

To apply for a payment plan with the IRS

Apply Online for a Payment Plan

And .......more information about being self-employed and receiving a 1099NEC.

You have self-employment income for which you will pay self-employment tax for Social Security and Medicare.   You will need to use online Premium software or any version of the CD/download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_U...

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

calculator-2021-2022-50907/

https://ttlc.intuit.com/questions/1901110-do-i-need-to-make-estimated-tax-payments-to-the-irs

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

[TomD8]

@rebekahlpz --

The good news is that the 1040-ES payment that you made by mistake will be credited towards your 2024 tax bill.  

The quickest and simplest solution for you is to pay your 2023 balance ASAP through the IRS online pay site here:

https://www.irs.gov/payment

If you can't afford to pay the entire amount, then you can apply for a payment plan, which you can do online here:

https://www.irs.gov/payments/online-payment-agreement-application

Then, when you do your 2024 tax return next year, you'll apply that mistaken estimated payment to next year's balance due.

[fanfare]

IRS has changed its customer call in processes, so the old keypad sequence does not work anymore.

@xmasbaby0 

[DoninGA]

@fanfare This sequence works - https://ttlc.intuit.com/community/after-you-file/discussion/re-cp14-letter-even-though-i-paid-onturb...

[xmasbaby0]

@DoninGA @fanfare Thank you!   I have changed my link!

[rebekahlpz]

I won’t have a balance due next year. That 1099 was just a one time deal. I work a regular job with w-2. My husband no longer works due to heart issues since last Nov. So, I can’t afford to lose the tax I just paid. This was obviously my stupid mistake thinking I was making a pmnt plan using those vouchers. I can’t worry about 2024 when I have paid 2023. This just makes no sense to me as to why they wld print out those vouchers like that and dumb person like me wldnt know I was sending it to the wrong place 

[xmasbaby0]

You will not "lose" the amount you paid.   If the IRS cannot apply it toward the amount owed for 2023, then it will simply be credited to your 2024 tax return, either as a credit toward your tax liability for 2024 or maybe even as as a bigger refund for 2024.   Post back here after you talk to the IRS.   We can help you with your 2024 tax return if the amount you paid cannot be used for 2023.

As for why they printed out----those vouchers print out pretty routinely especially when you owe tax due on the current return ---which you did.   Those 1040ES vouchers are optional for use for people who are likely to owe tax due for the upcoming tax year.  They help to avoid a big tax bill at tax time and to avoid an underpayment penalty next year.   The software has no way to know that your self-employment income was only a "one-time" event.  

[rebekahlpz]

So to update everyone, I just got off the phone with the IRS. The guy I spoke with was very nice and helpful. He transferred my 2024 payment to my 2023 balance. I FEEL SO RELIEVED!!! 

[rebekahlpz]

It did for me