Adulting 101: How to Virtually Toss Cash at Uncle Sam (Without Actually Throwing Cash)
Let's face it, taxes are about as exciting as watching paint dry. But hey, at least with the magic of the internet, paying them doesn't have to be a soul-crushing chore! This handy guide will walk you through the wonderful world of making your quarterly tax payments online.
First Things First: Are You Even in this Tax Boat?
This guide is for the self-employed adventurers, the freelance firefighters, the side-hustle superheroes out there. If you get a regular paycheck with taxes already withheld, high five! You can probably skip this tax tango. But for those whose income comes from a place other than a predictable paycheck, keep on reading, tax traveler!
Step into the Arena: Choosing Your Online Weapon
The IRS, in its infinite wisdom (and possibly a hint of sadism), offers a few different ways to virtually send them your hard-earned money. Here are the two main contenders:
- The Electronic Federal Tax Payment System (EFTPS): This bad boy boasts a super cool name (say it five times fast!) and allows you to schedule payments, view history, and generally be a tax-paying ninja. Bonus: It even works for businesses that owe taxes, so you can be the envy of all your entrepreneur friends.
- IRS Individual Online Account: This option is a bit more personal. You can create an account to view your tax history, payment history, and even make same-day payments. Think of it as your own personalized tax portal!
Whichever method you choose, you'll need to gather some intel:
- Your Social Security number (Don't worry, they already know it, but gotta play the game!)
- Your bank account information (Where the money goes poof!)
- Estimated tax amounts (This is where the adulting really kicks in. You gotta figure out how much you owe)
Don the Virtual Armor: Making the Payment
Once you've chosen your weapon and gathered your intel, it's time to make the digital deposit. Here's the gist:
- Log in to your chosen platform (EFTPS or IRS Individual Online Account)
- Follow the on-screen prompts (They're usually pretty user-friendly, but hey, no guarantees)
- Enter your payment details (Bank account info and that all-important tax amount)
- Schedule your payment (For EFTPS) or make a same-day payment (For both options)
- High five yourself! You're officially a tax-paying champion (at least for now)
Remember: There may be fees associated with online payments, so be sure to check the fine print before you hit submit.
FAQ: Your Taxing Questions Answered (with lightning speed!)
How to figure out how much I owe in estimated taxes?
The IRS website has a handy dandy tool to help you estimate your quarterly payments https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes.
How often do I need to make these payments?
Quarterly! Four times a year, on specific due dates set by the IRS https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2
What happens if I miss a payment?
There may be penalties and interest, so best to avoid that tax tango!
Can I make payments over the phone?
Yes, you can make payments by phone using the IRS2Go app.
Is there a way to mail in my payment (the old-fashioned way)?
Yes, you can still mail in a paper form with a check, but why not join the 21st century, right?
