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
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.