TaxAct and Estimated Taxes

[DayDreaming]

I did my 2009 taxes online with TaxAct and in the section on 2010 estimated taxes, I could swear that there was a question asking if I'd like TaxAct to submit my quarterly payments for me, and it then asked for bank account information to make the withdrawals from.

But now I can't find anything on that and I'm not sure if TaxAct is going to do this or if I do it myself through the EFTPS website. I asked TaxAct support about this but they did not give me a good answer. (All they said was "You will want to review your return").

Does anyone know if TaxAct even has such a feature, or was I just too groggy from the ordeal of doing my taxes? In the forms I printed out from TaxAct, it has the 4 1040-ES payment vouchers but no mention of anything about TaxAct submitting them automagically for me.

[ERD50]

I know you can pay the EOY tax due through a bank withdraw directly through TaxAct. When I've done quarterly estimated payments, I used the EFTPS method. So I can't say for certain that you cannot do Quarterly estimates through TaxAct, but I would have chosen that way of I could.

So maybe I missed it, but I'm leaning towards the idea that it must be done through EFTPS.

-ERD50

[DayDreaming]

I guess I should try TaxAct support again and press for a better answer.

If the EFTPS website didn't say that 3rd parties could act on one's behalf and schedule payment the payments / transfers from your bank account for you, then I'd have thought I imagined the whole thing.

[mickeyd]

I was actually looking into this today. I use TT to do my taxes, but I was thinking that I could just send the IRS an ACH from my checking account directly to the Charlotte NC address on the Form 1040-ES and that would get the money to them and I would not have to write out a check and mail it with the IRS "coupon" (Fm 1040-ES.) I figure that if I put enough data on the ACH "check" that they would know where to apply it using my SS#.

Does anyone know if this "simple" attempt to pay my QY taxes will work, as well as saving me the cost of a stamp?

[Rustward]

Quote:

Originally Posted by mickeyd I was actually looking into this today. I use TT to do my taxes, but I was thinking that I could just send the IRS an ACH from my checking account directly to the Charlotte NC address on the Form 1040-ES and that would get the money to them and I would not have to write out a check and mail it with the IRS "coupon" (Fm 1040-ES.) I figure that if I put enough data on the ACH "check" that they would know where to apply it using my SS#. Does anyone know if this "simple" attempt to pay my QY taxes will work, as well as saving me the cost of a stamp?

Good idea, but I would want to hear the answer from the IRS themselves before following through on this. I use EFTPS.

[Gotadimple]

Quote:

Originally Posted by mickeyd I was actually looking into this today. I use TT to do my taxes, but I was thinking that I could just send the IRS an ACH from my checking account directly to the Charlotte NC address on the Form 1040-ES and that would get the money to them and I would not have to write out a check and mail it with the IRS "coupon" (Fm 1040-ES.) I figure that if I put enough data on the ACH "check" that they would know where to apply it using my SS#. Does anyone know if this "simple" attempt to pay my QY taxes will work, as well as saving me the cost of a stamp?

You can achieve all of that using EFTPS. You initiate the payment in the EFTPS site and they take the money from your bank on the date you specify.

No writing a check.
No stamp on an envelope.
Instead of pushing $ out of your account, you ask the US Treasury to pull from your account. You can set up one payment, or quarterly payments.

As you suggest, no fuss, no muss!

-- Rita

[samclem]

I've used EFTPS for years, and it works well. The only hassle is setting things up. Unless they've improved it, it involved having to wait for something in the mail, etc. Very "high security." And for what? Is the Treasury afraid someone is going to hack into the system so they can pay people's taxes?

[mickeyd]

You guys have convinced me. EFTPS it is. Just signed up for it. Thanks.

[DayDreaming]

Well, it's April 16 and I have the answer to my question: I see that the IRS made two deductions from my bank account: one for the payment I entered in EFTPS, and I assume the other was done automatically via TaxAct. So the answer is: Yes, it is possible to have TaxAct automatically schedule your quarterly estimated tax payments.

I won't do any more payments myself through EFTPS this year, and I assume the IRS won't mind the double payment for Q1.

In the future, I don't think I'll tell TaxAct to handle this for me. I don't like the fact that I can't see / can't modify the quarterly payements from TaxAct (unless I just can't find where that is). I'd rather schedule them myself in EFTPS - that's simple enough to do and I can change the quarterly payment amounts if I need to.

I just wanted to post this in case it helps anyone else.

[audreyh1]

Yes - that is why I do all my payments through EFTPS: because I have a printable history, and I can modify right up to the day before the payment is scheduled.

Oh - and you can schedule ALL quarterly estimated tax payments at once. If you are paying same each quarter (and know your bank account will cover it), just schedule all of them.

NOTE: In EFTPS - you must assign the tax payment to a given year. Prior year for the final 1040 payment that goes with the tax filing, and current year for estimated payments. This is important! I screwed up one year, but was able to call EFTPS who was able to reassign one payment to a different year - I think they actually transferred me to someone in the IRS to do that.

Now refunds? I'll let the tax program take the date for my refund. EFTPS doesn't handle refunds. LOL!

Audrey