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Paying your federal estimated quarterly taxes

When you’re self-employed, the IRS requires that you make four quarterly estimated payments throughout the year. You can learn more about quarterly estimated taxes in a blog post that we published here.

In this article, you'll learn how to pay your federal estimated quarterly taxes from your Painless1099 account.

Things to know about federal quarterly estimated payments:

  • Painless1099 does not automatically send money to the IRS, however you can use this guide to remit your payments.
  • Any payments made after the due date are subject to fines from the IRS.

There are 3 general steps to getting your quarterly taxes taken care of throughout the year:

  1. Saving money throughout the year to pay your taxes
  2. Calculating your quarterly obligations
  3. Making your payments to the IRS

Step 1: Saving

It's best practice to put aside a portion of each check to ensure that you have enough money saved for when it's time to make a quarterly payment. Painless1099 automates this process by estimating how much you'll owe from each paycheck and automatically separating these funds aside from what's safe to spend.  

Step 2: Calculating

You’ll have to calculate how much you should be paying each quarter to keep yourself out of trouble with the IRS.

Use the IRS 1040-ES form to calculate the amount you’ll need to pay for each quarterly payment. This form considers your earnings from the previous year and helps you estimate what your yearly obligation is going to be. You'll then divide your yearly obligation by 4 to know how much you're going to owe each quarter.

Step 3: Paying

There are two federal payment systems you can use to pay your estimated taxes from your Painless1099 account.

  1. Electronic Federal Tax Payment System
  2. IRS Direct Pay

Using the Electronic Federal Tax Payment System to make a payment:

Electronic Federal Tax Payment System (EFTPS) requires you to sign into an account that you’ve previously created or create one. Use your Painless1099 account and routing number to make your payment directly from your Painless1099 account.

Note: If you haven't used the system before, you’ll have to create an account and it takes 10-days after registering to be able to make your payment.

Using IRS Direct Pay to make a payment:

IRS Direct Pay does not require you to create an account. However, you must provide information from one of your 1040 Tax Returns, from the last 6 years to validate your identity before making a payment. Use your Painless1099 account and routing number to make your payment directly from your Painless1099 account.

Once you've covered your federal quarterly tax obligation, be sure to check out our guide on State Estimated Quarterly Payments.





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