Can I Electronically Pay My Estimated Taxes?

Nashua Residents Looks to Simplify the Process

Estimated tax payments are required for those self-employed individuals, with quarterly payments sent in to cover taxes on income earned for that period. While you can mail a check to cover these payments, you can also pay these online to ensure that they are received on time by the IRS. This will keep you from incurring a penalty for a missed or late estimated tax payment. This can easily be done through the IRS’ website or using the mobile app IRS2Go. The IRS will retain records of the payments and you can account for this in your end of the year tax filing.

A Nashua resident was concerned about the instability of the mail delivery when sending in her estimated tax payment. Looking for alternatives, she contacted the team at Merrimack Tax Associates for suggestions.

Use Direct Pay for Estimated Taxes for Form 1040 Series

The IRS allows estimated taxes, as submitted using Form 1040, to be paid directly through a savings or checking account. There are no fees incurred for this type of payment and it can easily be tracked with email notifications. When submitting an online payment to the IRS, be sure to access this only via the IRS’ website at IRS.gov/account or the mobile app IRS2Go. There are many scammers trying to impersonate the IRS and access your critical information.

The first time you login, you will need to verify your identify and to create an account. The site will also take you through the process of linking a checking or savings account to your login for payment. Be sure to keep your login information in a secure place, as it does contain highly sensitive information.

Limitations of IRS Direct Pay

Direct Pay does have very brief daily outages, which are noted before you begin the process of sending money to cover estimated taxes. You are also only able to submit one payment every 24 hours. Each payment must be less than $10 million. Larger electronic payments need to be sent via same-day wire.

The Nashua resident was pleased to find out about this alternative method for paying her estimated taxes each quarter. She has already set up an account and login for the next payment deadline.