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The Easiest Way to Make Estimated Tax Payments

For self-employed individuals, retirees with investment income, or anyone whose tax withholdings are not sufficient throughout the year, making quarterly estimated tax payments is essential to avoid penalties and interest. Fortunately, the IRS provides a convenient and secure method to schedule, view, and adjust these payments through its online portal at IRS.gov.

Step-by-Step: Setting Up a Full Year of Estimated Payments on IRS.gov

Step 1: Create or Log in to Your IRS Online Account
  1. Visit www.irs.gov.
  2. Click “Sign in to Your Account” at the top right of the page.
  3. If you already have an account, log in using ID.me or your IRS credentials.
  4. If you don’t yet have an account, select “Create an account with ID.me” and follow the secure identity verification process. This process may involve submitting a government-issued ID and taking a selfie for authentication.
Step 2: Access the Payment Portal

Once logged in:

  1. On your account dashboard, locate and click “Make a Payment”.
  2. You will be directed to the IRS payment system. Choose the appropriate payment type:
    1. Reason for Payment: Select “Estimated Tax”
    2. Apply Payment To: Select the tax year (e.g., “1040ES 2025” for tax year 2025)
    3. Tax Period for Payment: Select the quarter you wish to pay (e.g., Q1, Q2, etc.)
Step 3: Schedule Each Quarterly Payment

To schedule the full year in advance, you will need to repeat the scheduling process four times—once for each due date:

QuarterDue Date
Q1April 15
Q2June 15
Q3September 15
Q4January 15 (of the following year)

For each quarter:

  1. Enter the payment amount you wish to submit.
  2. Choose “Pay by Bank Account (Direct Pay)” or “Pay by Card” (fees apply for card payments).
  3. Specify the payment date. You may schedule payments for future dates, allowing you to set up all four payments in one sitting.
  4. Confirm the payment and save the confirmation page for your records.

 

How to View, Modify, or Cancel Scheduled Payments

If your income, deductions, or overall tax situation changes during the year, it is important to adjust your estimated payments to avoid underpayment or overpayment. The IRS allows you to modify scheduled payments as follows:

  1. Log back into your IRS online account.
  2. On the dashboard, click “View Your Payments”.
  3. Scroll down to view “Scheduled Payments”.
  4. You will see all upcoming payments, including dates, amounts, and the method of payment.

From here, you can:

  • Cancel an upcoming payment: This option is available until two business days before the scheduled payment date.
  • Change bank account information: You must cancel the existing payment and schedule a new one with updated account details.
  • Adjust payment amount: Similar to bank changes, you must cancel and create a new payment with the revised amount.

Best Practices for Managing Estimated Payments

  • Monitor income regularly: Particularly for business owners or investors, adjusting payments quarterly can help reflect actual income trends.
  • Use the IRS Tax Withholding Estimator: This tool can help you more accurately calculate estimated taxes based on your current income and deductions.
  • Consult your tax advisor: Especially if your financial situation is complex or changes midyear (e.g., receiving a bonus, selling property, or retiring), professional guidance can ensure accuracy.
  • Track payments for tax filing: Keep detailed records of all payment confirmations to report them accurately on your annual Form 1040.
Steven Gilbert

Steven Gilbert CFP® is the owner and founder of Gilbert Wealth LLC, a financial planning firm located in Fort Wayne, Indiana serving clients locally and nationally. A fixed fee financial planning firm, Gilbert Wealth helps clients optimize their financial strategies to achieve their most important goals through comprehensive advice and unbiased structure.