Making Your Estimated Tax Payments Online

//Making Your Estimated Tax Payments Online

With tomorrow being June 15th, we wanted to update this post from last year as a reminder to pay your quarterly tax estimates.  Below are the links to simplify things and make these payments online.

For many of us who have income that is not subject to tax withholding (for example: earnings from self-employment, interest, dividends, rents, alimony, etc.) April 15th, June 15th, September 15th and January 15th represent a day of writing checks to the IRS. These are known as estimated tax payments.  If you’ve ever found yourself scrambling to find your vouchers, or, the address to mail them to on the due date there is a simpler way.

Did you know you could make these payments to the IRS using their “Direct Pay” service?

For Federal payment, use this link for the IRS site:

http://www.irs.gov/Payments/Direct-Pay

If you are in MA, you can also make your estimated state tax payments through the MA site:

https://mtc.dor.state.ma.us/mtc/_/

Remember to pay your estimated taxes to avoid any underpayment penalties from the IRS come tax filing time.  The rules for avoiding underpayment penalties are:

1) You’ve already paid (through estimated tax payments or withholding) the lesser of the amount you paid in taxes last year or 90% of what you owe this year. The one exception is that you must pay 110% of last year’s tax liability if your gross income was at least $150,000.

2) Your tax liability is $1,000 or less for the entire year.

3) You had no tax liability last year.

4) Your total withholding for the year (estimated payments you made) is within $1,000 of your total tax liability on the deadline.

By | 2018-03-16T03:34:08+00:00 June 14th, 2017|Categories: Single Point of View|Tags: , , |0 Comments

About the Author:

Shaun Erickson
Our clients utilize us as a partner to help them feel confident in the decisions they make in life. An ideal client for us is someone who is looking for advice beyond the allocation and management of their liquid investment portfolio. Single Point was founded as a firm that was focused on the agenda of our clients. The name of our company was born from the idea of being a "single point of contact" for our clients. We recognize that we do not have all of the answers, therefore, we have built our business around a great network of experts and resources for our clients. We place an important focus on researching, vetting, and collaborating with various professionals and services for our clients. When we don't have the answer, we pride ourselves on knowing the right questions to ask, and who to ask them of. As an active member of Financial Planning Associations of MA, I am involved with their pro-bono programs with Dana Farber Cancer Institute. I also serve on the Bord of Directors for the MA Chapter of the FPA as the Director of Advocacy. Our clients are spread across the country, but I live in Boston with my wife Alicia and our three children.

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