How to Pay Estimated Taxes Online
Effective immediately, the IRS is no longer accepting paper checks for estimated income tax payments. All estimated tax payments must be submitted electronically. This applies to small business owners, sole proprietors, and any business owner responsible for making quarterly payments on their tax liability.
Here is what you need to know:
Using IRS Direct Pay
IRS Direct Pay is the fastest, most secure way to make federal tax deposits or estimated payments directly from your bank account at no cost. It connects directly to your tax account and allows you to apply payments toward your tax balance due for the current year. Access it at
https://www.irs.gov/payments/direct-pay-with-bank-account
Follow these steps:
- Step 1 Go to pay.irs.gov and select ‘Make a Payment.’
- Step 2 Choose your reason for payment (e.g., Estimated Tax), which applies to income tax return obligations and quarterly payments based on your taxable income.
- Step 3 Verify your identity using information from a prior year federal tax return.
- Step 4 Enter your bank account routing and account number (or use a debit card option where available), along with your payment amount.
- Step 5 Review all details and submit. You will receive a confirmation number immediately upon completion.
These payments help reduce your tax liability and avoid an estimated tax penalty or underpayment issues later in the year.
IMPORTANT: IRS Direct Pay payments must be scheduled at least one business day in advance of the due date. Do not wait until midnight on the deadline day.
Other Electronic Payment Options
In addition to IRS Direct Pay, estimated tax payments can also be made through EFTPS (Electronic Federal Tax Payment System) at eftps.gov, which is popular for S-corp and business tax deposits. You may also pay via debit card or credit card through an IRS-approved payment processor, though service fees apply. These options are commonly used by small business owners, including sole proprietors filing a Schedule C, to stay current on federal tax deposits and avoid accumulating a tax balance.
USPS & Certified Mail Requirements
If you must mail anything to the IRS — such as a tax return, amended return, or written correspondence — always use USPS Certified Mail with Return Receipt Requested. This provides legal proof of timely filing. Keep your tracking number and postal receipt as part of your permanent records. Standard first-class mail does not provide this protection. FedEx and UPS may also be used, but only to IRS-designated addresses. This is especially important when submitting documentation related to your income tax return, amended filings, or resolving a tax balance due.
Depending on your situation, estimated payments may also be influenced by gross income, dividends, capital gains, available deductions, and existing withholding from a paycheck or other income sources.
If you want clarity around your estimated payments and overall tax strategy, connect with our team for guidance tailored specifically to dental practice owners.
