What Form to Pay IRS Taxes After Selling Investments

[Mo Money]

From the Tax Moron Department:

I rebalanced in late December 2018, in hopes of lowering CG income for 2019 for ACA purposes. I know I owe $X in taxes, but I'm uncertain how to send a check to the IRS. I have made all my 2018 estimated tax payments and have therefore used up the quarterly forms, and I'm not sure they are the right form anyway.

How do I pay the IRS? What form, if any?

Also, if there IS a certain IRS form, do I mail it to the same IRS address to which I mailed my estimated tax payments?

Feeling Stupid, Even After Some Googling,

Mo

 

[RunningBum]

Easiest way is to do it online with EFTPS. https://www.eftps.gov/eftps/

You might not even have to do this. Look into the safe harbor rules. You may have paid enough in taxes compared to last year, and will be ok with an underpayment.

 

[bingybear]

go to irs.gov

select PAY
then select direct pay

from there you can pay with an electronic check (ACH withdraw from a bank account.

 

[Souschef]

Easiest way is to do it online with EFTPS. https://www.eftps.gov/eftps/

You might not even have to do this. Look into the safe harbor rules. You may have paid enough in taxes compared to last year, and will be ok with an underpayment.

+1
I have my estimated ta payments scheduled using EFTPS, as we
ll as the equivalent California FTB site. If I owe more taxes, I just add another payment to my list.


Estimated tax safe harbor rule. If your 2017 adjusted gross income (AGI) was more than $150,000 ($75,000 if you are married filing a separate return), you must pay the smaller of 90% of your expected tax for 2018 or 110%* of the tax shown on your 2017 return to avoid an estimated tax penalty


It turns out my 2017 AGI was a couple hundred short of $150K-dodged a bullet

 

[audreyh1]

From the Tax Moron Department:

I rebalanced in late December 2018, in hopes of lowering CG income for 2019 for ACA purposes. I know I owe $X in taxes, but I'm uncertain how to send a check to the IRS. I have made all my 2018 estimated tax payments and have therefore used up the quarterly forms, and I'm not sure they are the right form anyway.

How do I pay the IRS? What form, if any?

Also, if there IS a certain IRS form, do I mail it to the same IRS address to which I mailed my estimated tax payments?

Feeling Stupid, Even After Some Googling,

Mo

Did you reach safe harbor based on last year’s taxes? If so you don’t need to send more.

Did you already pay the estimated taxes due on 1/15? If not, just add to that payment.

Otherwise you can find a form online to fill out for 1040 estimated payments and send it in to the same address. No problem making an extra estimated payment and if you mail it by 1/15 you’ll even beat the deadline.

 

[scrabbler1]

You need to view the instructions to Form 1040-ES and complete the worksheet contained with the instructions. If you are already in a "safe harbor," then just wait until April to pay whatever else you owe. Otherwise, you pay some (more) estimated taxes for the 4th quarter. You might also want to check out Form 2210 and its instructions.

 

[LOL!]

The two online methods mentioned have a big difference. EFTPS requires registration and response which you probably won't be able to do during the current shutdown.

DirectPay is easiest and is just an ACH transfer with no registration nor account needed.

As for investment taxes, it is all explained in IRS Publication 550 which I think nobody ever reads even though [-]reading[/-] understanding it might save you a lot of taxes.

 

[COcheesehead]

The two online methods mentioned have a big difference. EFTPS requires registration and response which you probably won't be able to do during the current shutdown.

DirectPay is easiest and is just an ACH transfer with no registration nor account needed.

As for investment taxes, it is all explained in IRS Publication 550 which I think nobody ever reads even though [-]reading[/-] understanding it might save you a lot of taxes.

+1 DirectPay is waaaaaay easier. The other requires a mailed PIN which takes time. DirectPay can be done in one session.

 

[RunningBum]

OK, agreed that EFTPS won't work for the Jan 15 deadline. Long term, I like it because I can see my history of payments. No idea if you can do that with DirectPay? I also like it because I'm sure it's going to my account. Can I make a typo with my SSN on DirectPay?

 

[COcheesehead]

OK, agreed that EFTPS won't work for the Jan 15 deadline. Long term, I like it because I can see my history of payments. No idea if you can do that with DirectPay? I also like it because I'm sure it's going to my account. Can I make a typo with my SSN on DirectPay?

You can see your history and confirm it went to your account.

 

[Mo Money]

I used Direct Pay. Thanks to everyone for their input.

 

[socca]

OK, agreed that EFTPS won't work for the Jan 15 deadline. Long term, I like it because I can see my history of payments. No idea if you can do that with DirectPay? I also like it because I'm sure it's going to my account.

After years of mailing in personal estimated taxes and estimated taxes for the two irrevocable trusts for which I am the tax matters trustee, I just registered all three entities with EFTPS. No more mailing estimated tax checks will be nice. Thanks for the tip.