Where to enter a tax payment that's neither an estimated tax payment nor extension payment?

Forum|Forum|9 months ago
September 21, 2025
3 replies
22 views

Client had taxes withheld of $6,000 and estimated tax payments of $8,000 for a total of $14,000 during 2024. Client made an additional $5,000 payment in July 2025 using IRS direct pay "balance due" option. Question is where to enter the $5,000 payment since it's neither an estimated/withholding/extension payment? Do I leave the payment out and let the IRS system reconcile? FYI an extension was filed giving the client until October 15th. The only option available on IRS direct pay was "balance due"
since making an estimated payment for 2024 was no longer available.

Option 1) put $5,000 under estimated payments (does not match IRS system of $8,000)

Option 2) Leave $5,000 out. Return shows a balance owed but IRS system will adjust to reflect payment already made

ProSeries Professional

Just-Lisa-Now-

Intuit Community Champion

I'd probably add it as an extension payment, but I'll be honest, Im not sure if it matters.

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Skylane

Intuit Community Champion

Putting it as extension payment certainly works, but if you enter it on the estimated payment form with the date of payment, you will help PS calculate any underpayment of estimated tax penalty.

I'm not real thrilled with your option 2

If at first you don’t succeed…..find a workaround

H

HN49_2Author

Level 3

Thank you. I will put it under estimated payments, looks the best option.

ljr

Level 9

putting it under estimated payments using a july 2025 date makes me nervous that they might mistakenly apply it to 2025 estimated payments. Make sure you have client let you know if they get a letter looking for payment that is off by the $5K. The payment is after both the estimated and extension dates and I've seen it happen where it was applied to current year.

BobKamman

Level 15

I would leave it out and file the return showing a balance due of $5,000. Just as most of the return is a snapshot of the taxpayer's liability at December 31, the return is a snapshot of the taxpayer's account with IRS at April 15. If the July online payment was made correctly, it has already been applied to the taxpayer's 2024 account and IRS will credit it for computation of interest and penalties, which will be shown in a notice even if there is nothing owed.

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