Use EFTPS to Pay Estimated Taxes

I enrolled in the Electronic Federal Tax Payment System (EFTPS) on January 25 in anticipation of some tax payment again this year. Over the weekend, the first package with personal information and instruction on how to use EFTPS arrived, followed by another envelop with a PIN that I have to use to obtain an internet password. Now all I need to do is call a 800 number to get that password, then I can pay some taxes before the April 15th deadline.

All the tax forms, W-2s, 1099s, and 1098, for 2006 tax year have arrived and I even started the tax filing process, such as entering data from our W-2 forms, several weeks ago, but stopped all the work after TurboTax said we already owed a couple of thousands of federal taxes. There’s no reason to hurry if we have to pay the money back. With EFTPS, I plane to make some payments before the deadline so I don’t have to sign a big check on April 15th.

Once I have discussed with my wife about why we still owed taxes even after we bought the house and claimed zero dependent on our W-4s. The conclusion we got was we didn’t have enough deduction in our mortgage because the townhouse we bought wasn’t big enough :(.

I have done our taxes myself for several years. Maybe it’s time to go for a pro.

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5 Responses to “Use EFTPS to Pay Estimated Taxes”

  1. dimes |  Feb 11, 2007 at 7:20 pm

    Possibly your income is too high. If you have a high income and no children, you’re likely to owe regardless of your withholdings unless you have a lot of deductions, and then you may still be subject to the Alternative Minimum Tax (but don’t ask me about it, it’s sort of a parallel universe kind of thing).

  2. Mary |  Feb 12, 2007 at 7:50 pm

    Isn’t mailing the IRS a check easier than enrolling in this EFTPS business?

  3. The Sun |  Feb 12, 2007 at 9:32 pm

    Mary: It’s true that it’s a little bit hassle setting up the account. However, this is an one-time job and once it”s completed I don’t have to do it again. Therefore, I think it’s much more convenient to use than sending a check. Besides, EFTPS can save me money on stamps as well.