You can send estimated federal tax payments from your Tax Withholding plan in Catch directly to the IRS.
What is an estimated tax payment?
Everyone is required to pay the federal government on income earned during the year.
If your income is not subject to tax withholding (ie, taxes aren't taken out of the money you're paid, because you earn on a 1099 vs a W2), then you need to make estimated tax payments directly to the IRS.
Estimated taxes generally need to be paid on a quarterly basis.
How to make payments
To make an estimated payment to the IRS directly through Catch, you must first have funds available in your Tax balance.
When you are ready to make a payment, click here or navigate to the Tax page, click "Transfer," and select make a tax payment. Catch will walk you through the process to complete the payment.
If you want to automate these quarterly tax payments, you can toggle on Auto Tax Payments, which will ensure you never miss a tax due date, as automated payments get sent to the IRS before the deadline. A few other notes:
You have the option to make a payment that is equal to or less than the current settled balance in your Tax goal.
You'll need to let us know the payment amount. You are responsible for calculating the exact amount you owe the IRS. See more about how to calculate how much you owe here.
To add funds to your Tax goal, select Transfer on the tax page, then enter the amount you wish to deposit. ACH processing times may vary depending on your institution, but typically you can expect your funds to settle in 1-3 business days.
How long does it take?
If you are processing your payment through Catch, we recommend submitting it at least 24 hours before the IRS deadline.
Catch will process your payment within 1-2 business days. The date that Catch processes the payment is when the IRS will consider the payment received.
It may take an additional 5-7 days for the IRS to post the payment to your account.
Will I get a confirmation it was received?
When you initiate a tax payment, you will see a pending status for the transaction. Once Catch has processed the payment, the status will change to completed.
Catch also provides a generated Form 1040-ES voucher when we make tax payments on your behalf.
How is the payment made?
Catch uses an IRS authorized payment intermediary and the Electronic Federal Tax Payment System (EFTPS) to process your tax payment.
What is EFTPS?
EFTPS, or Electronic Federal Tax Payment System, is the name of the system used by the IRS to collect estimated tax payments.
You'll get a letter from EFTPS around 2 weeks after you set up Taxes in Catch. While you can see all of your payment information in Catch, the letter will include your EFTPS enrollment information should you want to log in and see confirmations.
If you are already enrolled in EFTPS, you can ignore this letter. Your Catch payments will show up in your existing account.
What else do I need to keep in mind?
Making a tax payment through Catch does not mean you have filed your taxes. You must still file your taxes separately for the year. Even if you make estimated tax payments, you may still owe taxes when filing your return at the end of the year.
Make sure you pay the full amount. If the payment you sent through Catch is less than the total amount you owe, you are responsible for making a separate payment for the remainder.