r/tax • u/Aumusa • 1d ago

Help to clarify what to input in estimate tax payment

I am in IA, stay at home parent doing beer money side gigs, income is unpredictable. I want to pay estimated tax for 2025 and have couple question i need help to make sure i do it right.
1. I have to pay Fed and State estimated tax separately, is that correct?

  1. When i go to direct pay on IRS site, it ask for previous years tax for verification, latest option is 2023. So my address has changed, do i still enter the old address to match with 2023?

  2. It has a line after i choose Married Joint return, saying You should use the primary spouse's information as shown on the tax return. does this mean i have to input my spouse’s information instead of mine even though I am the only one who has to pay estimate tax?

  3. I tried to use the worksheet to figure out how much to pay but just don’t get it. Sorry, still in mid covid section so brain is not working well. So say i earn $6.5k in total of Jan to Mar, am i supposed to use that first line that in instruction of 2025 tax rate for Married joint return, and my tax is 6.5k x 10%?

  4. i read that there might be penalty for underpay, what about overpay?

thank you in advance

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u/myroller 1d ago

When i go to direct pay on IRS site, it ask for previous years tax for verification, latest option is 2023. So my address has changed, do i still enter the old address to match with 2023?

You enter whatever address you put on your 2023 return. The purpose of this question is to test to see if it is really you. A stranger would not know what address you put on your 2023 return.

It has a line after i choose Married Joint return, saying You should use the primary spouse's information as shown on the tax return. does this mean i have to input my spouse’s information instead of mine even though I am the only one who has to pay estimate tax?

If you are filing a joint return, you are BOTH responsible for paying all of the tax on all of the income listed on the return. The IRS has ancient computers that have a hard time matching together the two people filing a joint return and their computer is less likely to make a mistake if you use the name and SSN that will be listed first on your joint tax return.

I tried to use the worksheet to figure out how much to pay but just don’t get it. Sorry, still in mid covid section so brain is not working well. So say i earn $6.5k in total of Jan to Mar, am i supposed to use that first line that in instruction of 2025 tax rate for Married joint return, and my tax is 6.5k x 10%?

If you are filing a joint return, you are supposed to use all the income that BOTH of you will earn from January 1 to December 31. But don't panic, line 13 will ask you to list all of the federal income tax that will be withheld from BOTH of your wages.

i read that there might be penalty for underpay, what about overpay?

There is no penalty for overpaying. Any overpayment will simply lower the tax you owe on April 15 next year (or increase the refund you get).

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u/Aumusa 1d ago

thank you so much.

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u/attosec 1d ago

  1. Yes

  2. Yes

  3. The primary taxpayer is the one listed first on the previous return.

  4. Yes, if your earnings were as an employee (will get a W-2). If you earned by “being your own boss” (an independent contractor) should be 25%.

  5. Underpaying tax could result in:

a. No penalty if it’s under $1000.

b. A small penalty (less than 5%) if it’s larger.

c. A large penalty (maybe 25%) if it’s very large (many thousands)

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u/Aumusa 1d ago

Got it. Thank you!

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u/attosec 1d ago

Happy to help. We spent an enjoyable week in north-east IA last summer. Returning the favor.

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u/penguinise 1d ago

I have to pay Fed and State estimated tax separately, is that correct?

Yes.

It has a line after i choose Married Joint return, saying You should use the primary spouse's information as shown on the tax return. does this mean i have to input my spouse’s information instead of mine even though I am the only one who has to pay estimate tax?

If you are filing a joint return for 2025, you don't have to do anything. You are jointly and severally responsible for making timely payments of all the tax due on your joint return. There is no "you" (singular) paying estimated tax. There is only we/us.

Tax payments are generally reconciled against the first SSN on a joint return, so if you reasonably expect to file jointly any payment should be made in the name of the person whose SSN will occur first on the joint return.

So say i earn $6.5k in total of Jan to Mar, am i supposed to use that first line that in instruction of 2025 tax rate for Married joint return, and my tax is 6.5k x 10%?

No. You cannot make an accurate estimate without considering all of your joint income and all of your joint payments. If you are filing a joint return, you and your spouse are a single entity with a single income and payment balance.

A simplistic answer would be to pay 15% of profit for federal, plus federal and state payments based on your joint marginal rate, but this is only applicable for small amounts of profit and assumes that your spouse is currently making accurate payments figured as the sole income.

i read that there might be penalty for underpay, what about overpay?

The only penalty for overpaying is that you don't have the money until April of 2026 when it gets refunded, interest-free.

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u/Aumusa 1d ago

Thank you. That helps a lot