as the figure is drawn, who sends the tax payment to the government? This is a topic that many people are looking for. cfiva.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, cfiva.org would like to introduce to you Estimated Tax Payments: How to Make Estimated Tax Payments Online or By Paper). Following along are instructions in the video below:
s up everybody mike the cpa here and chipper in todays short video. We were gonna show you three easy ways to make an estimated tax payment that right this is major life skill central this is very important for you guys to know and by the way i hate making freakin estimate payments. It basically means more money comes out of my pocket and i have less disposable income.
Even chipper doesnt like making estimated tax payments. Hey sorry folks he gets a little worked up lets start off by showing you guys how to make an estimate payment online. It starts off by us going to the irs gov website.
Up here. As you can see then right here. See where it says make a payment youre gonna click that make payment says pay your taxes now and youre gonna go to direct pay you can also pay with a debit or credit card versus a check but theres fees associated if you try to pay with a debit card or credit card.
So if you have a checkbook. I would highly recommend you pay with your check so go to the direct pay click there and you can read through this as we can see here. But if you want to skip straight to it were gonna go to make a payment and now it brings us to this lovely screen.
Now. This is the first part thats really important so it says youll notice here. The first selection in this drop down.
It says reason for payments well we want to select estimated tax because were making an estimated tax payment for the tax year. Were currently in it says apply payment to its gonna give you in this scenario. Its theres 1040 es for 1040 1040a or 1040ez.
So what as long as you file. One of those three forms each year 1040 1040 ez or 1040 a youre good so making sure that selected now to make sure the year is selected for your current tax year. So were in 2018 at the time of this video.
So im selecting 2018 and we hit continue it says you have chosen to make an estimated tax payment for your 1040 es for these forms is this correct. When we hit yes. Now that once our information.
So let me just kind of filled this out already for you guys so. What youre gonna do is youre gonna drop in your next year for verification. And its gonna have you verify some numbers in a previous tax year to make sure.
Its you so the purpose. The most recent year in this example. Because were in 2018 was 2017.
So weve already filed our 2017 taxes hopefully i hope you have and then were gonna select our filing status right here you can select single or married filing joint or one of these other statuses. So were married here chipper is the name of our cockatiel whos paying his estimated tax payment. So we have chipper last name is the cockatiel.
We have a social security number entered right there we have his date of birth as january of 85. He lives in the united states at 100 cockatiel away. I probably wouldnt recommend trying to look up that address because its totally fake.
But in a minute here im the enter my real information so we can get the next screen. However i cant share that lovely data with you find folks on youtube over the internet. Sorry.
But were gonna go to the next screen here in a second so once that inner information is all entered then we can go and proceed to the next screen now were on the direct pay screen and that this is where we enter our payment. Information so as you can see here chipper is ready to make a 10000 estimated tax payment he confirms the payment amount once again for 100 payment. Date is gonna be july 13th of 2018 because thats where were at today folks.
Were gonna put our routing number in here from our checking account. This is chipper checking account in his account. Number not a real account number and then of course that were gonna mark checking you can mark checking our savings and then it says i would like to receive an email.
Confirmation notifications and agree to the email terms of service and i always recommend selecting yes for that because you can always unsubscribe later from it. But its nice to have an e mailed receipt of your payments. And i highly highly encourage that you do so folks.
Because why do you want to spend money and not have proof of it later on alright so make sure that email box is checked. Youre gonna drop in your email address twice of course.
Because they dont trust. You the first time so were going to. Put chipper at.
Gmailcom and chipper at gmailcom. Once again once again fake. Email.
Address. Just because this is all for an example here folks and then were gonna click continue to go on to the next screen just about done now this little when you click continue from direct that drew last direct a screen. Youre going to get this little notice that pops up says disclose your authorization and basically you must agree to their terms just click.
I agree because if you dont you cant proceed forward. So you click agree and then youre gonna go down this list here and just verify this data make sure you have everything correct like is this for an estimated tax payment. Yes is it a 1040 yes.
That is applied to a 1040 1040. A 1040 ez yes tax payments for the right year 2018. Yes.
Dollar. Amount is correct yep payment. Date.
Is this weve got our bank account. Information. Checking account.
Number. Weve marked our email terms of service. Etc.
And then the right this last. Part right here is the electronic signature. So this is where were gonna put in our name first and last name so were gonna put it in chipper.
The cockatiel and then chipper is gonna put in a social security number right there were gonna click this little box that says i accept the debit authorization agreements so the last step of course was we hit would hit submit and then we would end up getting a confirmation. Saying that the payment has been scheduled and then your your payments should come out either that day or the following day. I think its the following day when the payment account.
If you look at your bank. Statement or your online banking account was where youll see the payment being with withdrawn by the irs and thats how you make a payment online folks luckily guys ive actually done this myself ive actually made a real payment this when you go to that final screen. Now i wouldnt have been able to show you without money coming out on my check checking account.
But ive actually made a payment and asked me the tax payment for 2018 earlier this year. This is what the receipt looks like after youve made the payment online. I think this comes to you in the form of an email.
But if it doesnt make sure you do the print at to pdf or save. As pdf screen or printed out to a physical copy keep it for your tax records. Its very important that you hold on to this document either in paper or electronically.
But thats what one of these receipts looks like and just keep it for your tax year. Because youre gonna need it when it comes time to file your taxes moving on now to how to pay your tax estimates via paper. So that were gonna go to google.
Were going were gonna search 1040 es. You can even do the year youre in so were in 2018 so im gonna type 2018 and it should be the first thing that comes up and it is right here. See.
Where it says. 2018 form 1040. Yes.
Thats. Our baby. Thats the one.
We want you can even. See that it says wwi rs gov right there to even prove it further so were gonna click this its gonna open up pdf and this is the its got some instructions in here for you it has some general rules which im not gonna cover in this video. This is all about just how to make a payment.
Im not gonna go in another video. Im gonna cover how at taxes i mean the payments work in a general sense. So you guys have a better feeling for it a better idea.
But if you scroll down here. There is a payment voucher. Lets keep scrolling keep scrolling right here here we go they start aha starts right here theres for payment vouchers.
Okay. Because as you guys can imagine its its quarterly estimated tax payments so if you guys make estimates then the thats why theres four vouchers because theyre usually quarterly estimates you dont have to make them quarterly. You can make you can pay one or two estimates.
If you want if youve upped the amount. But thats really something to for you to figure out when youre doing tax planning or working with an accountant yourself. So for the month of july through september is the third quarter of 2018 right well what youre gonna do is youre gonna come down here and fill out the amount of the estimate on paper and youre gonna be once youre all done with this youre gonna print it out whoops theres not one hundred cents youre gonna put your name your address right so chipper.
The cockatiel chippers social security. Number. If you have your spouse.
If your flat due married filing joint. Youre gonna put your spouses information right here. Im not going to fill all this out its pretty self explanatory right youre gonna put their last name your social security.
Number. And then your your address zip code. Etc.
And then see where it says tear off here. So once youve entered the dollar amount and all this basic information here. Youre gonna cut this part out youre gonna just take scissors cut it out and then youre gonna place an envelope.
Well how do you know where the heck to mel this thing off well youre gonna write a check if you go to the top guys if you go to the top of the documents first of all if you want to find out where to mel it see where it says where to file your estimated tax payment voucher. If pain by checked our money order well this is where you do it this is so im i live in california. So i need to send my check to where do i send my check to you guys do you see california on here ha.
Ha right here so i would send my check to this one po box 5100 or whatever that number is that goes to san francisco. So this is where i would do because thats where i live. But you just find the state you live in and then thats the address you would mail the estimated tax payment to and then you would on this kind of tells you how to write the check.
Were all right here in this part right here. So if you just read this it will tell you to on the memo line of the check youre gonna write 1040 yes youre gonna write your social security number make sure you read these instruction guys. Its pretty self explanatory.
But take time to read this so that you know youre mailing your check off to the right address have the right stuff on the memo line your social security number information. All that stuff is what it needs to be so the irs when they receive your payments they can match it up with the right social security number and all that good stuff you want to be very careful about that so just make sure youre paying attention to these instructions before you mail. It off thats how you make your estimate payment by paper.
Theres a third way that many people dont know or dont even have to think about but now im gonna show you how to make an estimate a tax payment using your current year tax return. What you can do that actually you can let me show you how ok so this is a third way to make an estimate payment. So its not online.
Its not via paper. Thats actually when youre preparing your return. So.
This is obviously a tax form 2017 the 2018 1040 forms have not been released yet for personal income taxes irs is doing a lot of work on those right now were going on page 2 of the 1040. Were going near the bottom.
This is for people who have a refund or who are overpaid on their current your taxes. Okay is if you owe money its not youre not gonna be able to make an estimate. But lets say chipper lets say chipper taciturn and he lets say hes overpaid by a thousand bucks okay so hes gonna have a thousand dollar refund coming to him so he can like i said he can choose chipper can get that refund for 2017 or he can have that refund instead of coming to him in the mail in the form of cash or cheque.
He can have his refund applied to his 2018 estimated taxes because chipper is a tax filer who has to pay estimates because his income fluctuates. Quite. Often hes owed large balances in the past.
So. Thats why chippers required to pay estimates in a general sense. So instead of getting refunded.
Now chipper can indicate on his tax return when hes preparing his taxes that he wants his refund to count to go towards 2018 taxes the way chipper would apply this thousand dollar refund. The next years estimates you see on line 76 a it says amount of line 75. Which is this refund amount you want refunded to you hes gonna put zero here or leave that blank either ways fine now on line 77.
See how it says amount of line 75. You want applied to your 2008 teen estimated taxes. This is the.
Line were looking for so were gonna put all 1000. Right there so whats chipper wants the entire amount of his overpayment or his refund applied to next years taxes. So thats a third way to make an estimated tax payment.
Though theres as you guys can see here guys theres multiple ways to do it you can do it online. You can do it on paper those are the two most common ways in some circumstances when youre filing your taxes you might have a refund and in that instance you can also instead of receiving that money in the in the bank. You can apply it to nick skiers estimates because typically when a person has to pay estimates.
They are gonna have to even if they get the money back in the form of a refund that you know if it comes to their checking. Account well chances are theyre gonna have to send it back to the irs anyways. So thats why you can apply it towards nicks years taxes especially for somebody whos gonna have to write the check anyways you might might as well just do it here on your tax return its much simpler than writing a check and going through the hassle okay guys i hope you found those three ways to make estimate payments helpful a lot of pee in the united states has to make estimated tax payments.
I just wanted to show you quickly how to do it its not that hard. But theres multiple ways of doing it as you guys can see from this video. Now.
I know i didnt cover how estimated tax payments work. Im working on a video on that at the time of filming this video. I do not have that other video ready.
But i will so make sure before you leave this video. If you want to learn how estimated tax payments works be checking for a link to another video on that subject look in the description section down below. And ill also put it in the comments section of this video once its ready okay so it might not be there yet.
But once its ready ill make sure you you guys can can have it ill link it up and also have it show up at the end of this video anyways i hope you found this information helpful guys if you have any questions. Im sure you might because i went through this information kind of quickly. Because i wanted to be straight to the point.
Let me know in the comment section down below. Id be happy to get back to you guys and try to answer any questions you may have to the best of my ability now that you know the three ways to make sms tax payments. Dont brag about it brag about your knowledge at the dinner table.
Tell them what you learned because you know yet you didnt just come here to learn how to make payments you came here to learn how to about to brag about your extensive tax knowledge. Which you have gained even more from like the cpa on money and life tv. If you have not already subscribed to our channel be sure to do so by hitting the red subscribe button down below the video.
Every single week on this channel. Were all about helping people like yourself become more fiscally fit because we teach finances investing in taxes on a regular basis so be sure to subscribe so you do not miss any of our future uploads. If you liked the video make sure to drop a like before you leave it really helps out the channel and be sure to share this information with a friend especially somebody you know whos having trouble with taxes or might need to make estimated tax payments.
Im sure they would find this information helpful to learn how to do it in any way that they feel most comfortable with and whats the best way to make your estimated tax payment real it really just comes down to you you choose the way that you feel the most comfortable with and i recommend doing it that way alright guys well until next time. Its been a pleasure as always hang out with you here on youtube. I will see you all in the next video be looking for that video on how estimated tax payments work coming up in the future until next time.
I love you guys thanks so much for hanging out with me here on youtube and chipper and i will see you in the next video take care and live your life on caged bye guys. .
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