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How to Pay Estimated Tax

You can make estimated tax payments by:

  • crediting an overpayment on your last year's tax return to the current year's estimated tax or by
  • sending in your payment with a Form 1040ES estimated tax payment voucher
  • paying electronically using the Electronic Federal Tax Payment System (EFTPS) or by
  • using credit card on a pay by phone system or
  • paying over the internet

When you file your Form 1040 or Form 1040A electronically, you can pay the amount due with the return by electronic funds withdrawal (direct debit).

Crediting an overpayment

When you file your Form 1040 and have an overpayment or tax (your payments being more than your tax liability), you can apply part or all of the overpayment to your estimated tax for the current tax year rather than having it refunded.

For example, if line 73 of your 2007 tax Form 1040 shows an overpayment of $400, you can have $200 refunded to you and credit $200 to your 2008 estimated tax.

How to credit overpayment of tax to use for estimated tax payment?

To credit the overpayment, write the amount you want credited on line 75 of Form 1040. You must take this amount into account when figuring your estimated payments for the current tax year. You can use the amount credited as your first payment or spread it out in any way you choose among your installments. Once you make the choice to credit the overpayment to your estimated tax, you cannot have it refunded to you or use it in any other way after the first due date of April 15.

Credit card payments of estimated tax

You can pay part of all of your estimated tax by credit card. To do this, call Official Payments Corporation at 1-800-272-9829 or Link2Gov Corporation at 1-888-729-1040. You will be charged a convenience fee by the credit card processor based on the amount of your payment. This fee does not go to the IRS. Do not include the convenience fee as part of the estimated tax payment. You will be given a confirmation number at the end of your call. Keep this number with your records.


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