How Do You Make Quarterly Tax Payments to the IRS?


Quick Answer

To make quarterly tax payments to the IRS online, use the Electronic Federal Tax Payment System, reports Forbes. Alternatively, pay by phone or by mail, states the IRS. Estimate the amount of your payments using Form 1040-ES. Refer to your previous year's tax return, and calculate payments based on the amount of tax owed that year, the U.S. Small Business Administration explains.

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How Do You Make Quarterly Tax Payments to the IRS?
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Full Answer

To pay the IRS by phone using a debit or credit card, contact one of the service providers listed on IRS.gov. Alternatively, pay the IRS using electronic funds transfer from your bank by calling 1-800-555-4477. For mail payments, send a check or money order with the payment voucher from Form 1040-ES to the IRS at the address shown on your return, states the IRS. Payments are due on or around the 15th of April, June, September and January.

To calculate quarterly tax payments, estimate your adjusted gross income, taxes, credits and deductions, says the U.S. Small Business Administration. If you are self-employed, use Form 1040-ES to calculate and pay estimated taxes; corporations use Form 1120-W. You may have to re-calculate estimated taxes each quarter if your income fluctuates. Those who underpay estimated taxes face penalties, warns the IRS.

Self-employed individuals, sole proprietors, partners and S corporation shareholders must make quarterly estimated tax payments if they owe $1,000 or more in taxes, while corporations must pay estimated taxes if they owe $500 or more as of 2015, according to the IRS.

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