For those who make quarterly estimated tax payments, September 17 is your deadline to make your tax payment for the quarter comprised of June, July and August. Your final quarterly estimated tax payment for September, October, November and December is due January 15, 2019.
For Federal taxes use form 1040-ES. Your state will have its own form. Whenever you send a check to any taxing agency you should always legally assign that payment. You can accomplish legal assignment by writing your SSN and what the payment is for in the memo section of your check. For this quarter write, “SSN: XXX-XX-XXXX, 2018 Form 1040-ES.” This action will assure that your payment goes where you want it and not to any other unpaid balances.
Whenever you owe Federal taxes for multiple years or periods and the IRS receives an unassigned payment, they will try to apply that payment to your oldest balance. If you fail to assign your payment, generally you will first receive a Notice asking you where you want your payment applied but IRS notices are, for some reason, often ignored until the time allowed to respond has passed. Assign your payments and you won’t have to worry about it.
You can also pay on-line. We recommend using the IRS’ Direct Pay because there are no fees. The other online method uses a credit/debit card service provider that charges a fee. Be sure to choose the correct form and year; that will assign your online payment.
There are other ways you can pay like by phone, or in person using cash, but these methods are out of the ordinary and not recommended. Many states now have online portals where you can manage your tax account and make payments. The IRS has also begun using similar account portals.
We have a pay-as-you-go tax system and if you wait until April 15 of every year you will be penalized for not paying as you earn. If you need help in projecting your taxes, proper planning, and paying for a consultation with your tax accountant generally costs less than the late payment penalties. And if you are in business, it’s an expense.