If you’re operating a business and expected to pay more than $1,000 when filing your tax return, you must estimate and make estimated tax payments. Whether you’re an individual, sole proprietor, S corporation shareholder, etc. you must estimate taxes using Form 1040-ES.
Same as the Form 941, you must file Form 1040-ES by the end of every quarter. Form 1040-ES is used for estimating tax payments. It is similar to the federal income tax return, hence Form 1040-ES. Once you know how much you owe to the IRS, you need to make estimated tax payments. You can pay estimated taxes online with your credit or debit card or using your bank account.
If you choose to pay with a credit card or debit card, you will pay a small processing fee. This fee is usually about $2 to $3 or 2% of the payment. The processing fees depend on the payment processor. On the other hand, there is no fee for paying with your bank account. Either way works fine.
To pay taxes online, you must head over to the IRS Direct Pay. Click here to open Direct Pay.
Note: If you want to look up a payment, click on Look Up Payment and enter the confirmation number you’ve been given.
Pay Estimated Taxes Online with Direct Pay
- Click on Make a Payment
- Select reason for payment as Estimated Tax
- Tax Period for Payment will be selected automatically as 2020
- Fill out the identity verification form
- Review your information and continue
- Make your payment using your bank account and get the confirmation number. You will later use this number to track your payment.
By tracking your payment, you can see whether your payment has been received by the IRS or not. You can also check with your bank to see whether your payment has been sent or not.