Every person who earns income has to pay taxes on that income. While regular employees usually have their taxes withheld and submitted to the IRS annually, self-employed individuals and business owners must estimate their taxes and pay them accordingly. If you have taxable income, you must make estimated tax payments each year. These payments are usually made over four equal installments.
When Are Quarterly Estimated Tax Payments Due?
It’s essential to understand the dates for quarterly estimated tax payments. These payments are made in four equal installments based on the IRS’s annual schedule. You’ll need to make them at least six months before you actually owe the tax. The first payment is three and a half months into the year, the second five months, and the third eight months. Your last payment is due 13 months from the start of the year.
Your estimated tax payments are due on April 15, June 15, September 15, and January 15. If you file by the 15th, you can skip the mid-January payment and make it on January 31. However, these dates are based on the calendar year, so your estimated payment schedule will be different if you operate under another fiscal period.
The IRS considers your payment as on time if it is postmarked on or before the due date. You can also make your payment by credit card or debit card by the same day of the due date.
Electronic Federal Tax Payment System (EFTPS)
The Electronic Federal Tax Payment System (EFTPS) is an online system used to pay federal taxes in the United States. It is operated by the Bureau of the Fiscal Service, which is part of the Internal Revenue Service of the United States Department of the Treasury. This system allows taxpayers to make their payments online, regardless of location.
The EFTPS process is safe, secure, and convenient. It uses three-step authentication to ensure that your payments are secure. You can verify your identity by providing a government-issued PIN, 18-digit enrollment number, or self-created password. The EFTPS website is protected against phishing attacks and is hosted on a secure server. Federal agencies and other businesses can also have their own accounts on the EFTPS website. EFTPS also allows taxpayers to schedule payments to avoid penalties and pay on time.
EFTPS is free to use and has been used by millions since 1996. Individuals, businesses, and payroll services can all pay their federal taxes using this system. It is safe, secure, and available twenty-four hours a day.