How to Make Estimated Tax Payments

This guide covers making estimated taxes for individuals.

In order to make IRS estimated tax payments, you can pay online or pay by mail by check. It is strongly recommended that you pay online and pay estimated tax payments on a monthly basis while you are in an Offer In Compromise, so the IRS does not accidentally apply the payment to back due tax debts.

The reason to pay monthly during an Offer in Compromise is that it keeps your average bank account balance at a lower figure, its easier to keep up with the payments, and it looks good to the IRS Offer In Compromise examining officer that you are well caught up when they review your case. If you do not pay monthly, then you should at least pay estimated tax payments on a quarterly basis.

Here is how the payments can be made:

Make Estimated Tax Payments Online

To make estimated tax payments online:

  1. Go to the IRS Direct Pay website
  2. Click Make a Payment
  3. Select 1040 ES and the form will auto complete with “Estimated Tax” and the current tax year
  4. Click Continue, verify your identity, and make a payment

Make Estimated Tax Payments by Check

To make estimated tax payments by check:

  1. Fill out a 1040ES Estimated Payment Form for the current tax year or use the ones that are on your last year’s tax return. Make sure they reflect the current year that you are making the estimated tax payment for.
  2. Add to the check memo line your SSN and “1040 EST Payment”
  3. Mail to the IRS payment address listed on the 1040ES Estimated Payment form listed above.

It is strongly recommended to make payments online. The IRS has lost checks for people many times, even ones that were sent certified mail.

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