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April 4, 2014 – TaxTalk Blog
There are a few options available when making an estimated tax payment.
Online – You can make an electronic payment online by using ePay, DOR’s electronic tax payment service. Just click on the Estimated Tax link and instructions will be made available for you to pay by using a check ($1 processing fee) or credit card (variable processing fee).
Form ES-40 – Download Form ES-40 by clicking this link. After we have processed your payment, we will send preprinted vouchers for any remaining installment payment periods. For example, if your first installment payment is for the second period, vouchers for the third and fourth periods will be mailed to you.
Installment carryover – You may carry over any amount of the overpayment (refund) from your current-year tax return to the next year’s estimated tax account. Do this by completing the back of Form IT-40 or Form IT-40PNR. Once we have processed this carryover, we will send you preprinted vouchers for the three remaining installment payment periods.
Important. Your estimated tax payment will be credited to the period in which it is paid. For instance, a payment made on May 1 will be considered a second-period installment payment as it was made between April 16 and June 15.
For more information about the penalty for the underpayment of estimated tax, get Form IT-2210 (or Form IT-2210A if your income is received unevenly during the year, such as a lottery win payout received in December of the year).
Finally, making estimated tax payments throughout the year acts to reduce (or eliminate) the balance due when you file your tax return. It sure beats having to come up with the entire amount due when you file.
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