Most people pay their estimated taxes with a certified return receipt and faithfully visit their local post office several times a year. However, it is now possible to enroll in the federal online payment system, go to the correct website, and set up all four payments at once. State revenue departments and the U.S. Department of the Treasury have online services that enable you to manage your estimated tax payments. The system is known as the Electronic Federal Tax Payment System (EFTPS), and there are 12 million taxpayers currently enrolled in it.
If you expect to owe $1,000 or more when you file your federal return as a self-employed individual, you need to pay estimated taxes. There are also some taxpayers who were hit with the 0.9 percent Medicare surtax in 2013 and owed estimated taxes for the very first time. If you have investment income or didn’t have taxes withheld from your pay, you may also owe estimated tax.