It’s that time yet again! If you pay estimated taxes like I do, your Federal and State payments are due tomorrow, January 15th. I have been paying estimated taxes for many years now, and while I find it kind of a pain in the you-know-what, I truly enjoy working for myself on my own time. It’s definitely a trade-off to make sure I always put away enough money to pay the taxes every 3 months! I have a special “Taxes” account over at ING Direct that I put 30% of every dollar I make into, as I made the mistake 2 years ago of not setting enough aside – and boy did that hurt come April 15th. So I cannot recommend enough that you open an account just for your estimated taxes and fund it as well as possible.
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As for paying your estimated, you can either send a check to the IRS or use your credit card over at Official Payments, which is what the IRS uses for online payments. I pay mine by credit card for the reward points, but you have to make sure the fee to do so outweighs any reward you may be getting from your credit card company. For me, the miles I earn on my Amtrak card are worth more than the fee, so it’s a no-brainer. But be sure you do the math before deciding which way you are going to pay!