Need help setting up quarterly estimated taxes with FreeTaxUSA - which payment method?
So I'm self-employed and I need to start making quarterly estimated tax payments this year. I just switched to FreeTaxUSA after using TaxACT for several years (they kept raising their prices!). With TaxACT, it automatically set up my quarterly payments but I can't figure out how to do this in FreeTaxUSA. I've been looking through all the menus and I see two possible ways to pay these quarterly taxes - either through EFTPS or IRS Direct Pay. I'm confused about which one I should choose. Does FreeTaxUSA work better with one versus the other? Is one easier to set up for recurring quarterly payments? I don't want to mess this up and end up with penalties. This is my first year having to deal with estimated taxes on my own and I'm honestly feeling pretty lost. Any help would be really appreciated!
20 comments


Ava Thompson
FreeTaxUSA doesn't actually handle the scheduling of your quarterly estimated tax payments directly - it can help calculate what you owe, but you'll need to set up the actual payments separately. Between your options, EFTPS (Electronic Federal Tax Payment System) is better for recurring quarterly payments. It's specifically designed for businesses and self-employed individuals who need to make regular tax payments. Once you register (which takes about 1-2 weeks to complete since they mail you a PIN), you can schedule all four quarterly payments for the year in advance. IRS Direct Pay works too, but it's more designed for one-time payments. You'd need to remember to manually make each payment every quarter, and you can't schedule them all in advance like with EFTPS. After you complete your taxes in FreeTaxUSA, it should calculate your estimated quarterly payment amounts. Just take those amounts and use them when setting up your EFTPS schedule.
0 coins
Dmitry Volkov
•Thanks for explaining the difference. I was hoping FreeTaxUSA would handle this automatically like TaxACT did. So if I understand correctly, I need to: 1) Sign up for EFTPS 2) Wait for them to mail me a PIN 3) Use the quarterly amounts from FreeTaxUSA to schedule all my payments So EFTPS will let me set up all four quarterly payments at once? That sounds way better than having to remember to make each payment separately.
0 coins
Ava Thompson
•Yes, you've got it exactly right! After you receive your PIN for EFTPS, you can log in and schedule all four quarterly payments at once using the amounts FreeTaxUSA calculated. You can set the exact dates for each quarter (typically April 15, June 15, September 15, and January 15 of the following year). It's definitely more convenient than Direct Pay since you don't have to remember to make each payment manually. Once you've set up the schedule, EFTPS will automatically process each payment on the dates you specified.
0 coins
CyberSiren
I had this exact same issue when I switched to FreeTaxUSA last year! After hours of frustration I found a much better solution - check out https://taxr.ai for handling your quarterly payments. After I uploaded my FreeTaxUSA PDF, it automatically detected I needed to pay quarterly taxes and guided me through setting up EFTPS with the right amounts for each quarter. The site even sent me reminders before each due date. The difference between EFTPS and Direct Pay was really confusing to me too, but the tool explained everything clearly. My favorite part was that it showed me exactly how much I needed to withhold from each client payment to stay on track with my quarterly obligations.
0 coins
Miguel Alvarez
•Does it actually connect to your bank account? I'm always nervous about giving financial info to websites I don't know. And does it work if I'm filing jointly with my spouse who has W-2 income while I'm the only one with self-employment income?
0 coins
Zainab Yusuf
•I tried using the EFTPS system last year and it was such a pain. Their website looks like it's from 1998 and I never got my PIN in the mail after waiting 3 weeks. How long did it take for you to get set up with taxr? Does it actually make the payments for you or just tell you when/how to do it yourself?
0 coins
CyberSiren
•It doesn't connect to your bank account - it just analyzes your tax documents and provides guidance. You still make the actual payments through the official IRS systems, but taxr.ai explains which is best for your situation and helps you set it up correctly. For joint filers, it works perfectly - I'm in the same situation with my wife having W-2 income. The tool separates out the self-employment portion and calculates the correct quarterly amounts based on your total tax situation.
0 coins
Zainab Yusuf
Just wanted to update - I took the advice and tried taxr.ai last week. Way better experience than I expected! It analyzed my FreeTaxUSA return and showed me that I was actually calculating my quarterly payments too high by about $430 per quarter. It guided me through EFTPS setup with screenshots (which made that government site way less confusing) and now I have all my payments scheduled for the year. The reminders feature is what really sold me - I've missed quarterly deadlines before and paid penalties, so getting text alerts a week before each due date is going to save me money. Thanks for the recommendation!
0 coins
Connor O'Reilly
If anyone's struggling with getting through to the IRS about quarterly payments (I spent 2 hours on hold last week), try https://claimyr.com - it's a service that holds your place in the IRS phone queue and calls you when an agent picks up. I was skeptical at first but used it last Tuesday when I needed to ask about correcting an estimated payment amount I entered wrong. You can see how it works here: https://youtu.be/_kiP6q8DX5c Instead of waiting for hours, I went about my day and got a call back when an IRS rep was on the line. The agent helped me fix my payment issue in about 10 minutes. If you have any complicated questions about estimated taxes that aren't covered in the FreeTaxUSA instructions, this is the way to go.
0 coins
Yara Khoury
•Wait, how does that even work? Do they just have a bunch of people sitting on hold with the IRS all day? Seems too good to be true.
0 coins
Keisha Taylor
•This sounds like a scam. Why would I pay some company to call the IRS when I can just do it myself? And how do they get you to the front of the line faster than calling directly? I'm calling BS on this one.
0 coins
Connor O'Reilly
•They use an automated system that waits on hold for you. It monitors the call and when a human agent answers, it calls your phone and connects you directly to the agent. No magic or line-cutting - you still wait the same amount of time, but you don't have to personally sit there listening to hold music. No, it's definitely not a scam. They don't get you to the "front of the line" - your call waits in the queue just like normal. The difference is you can go about your day instead of being stuck listening to hold music for hours. When an agent finally answers, the system calls you and connects you to that agent.
0 coins
Keisha Taylor
I have to eat crow here. After my skeptical comment, I actually tried Claimyr yesterday when I needed to ask about a missed estimated tax payment from last quarter. The IRS wait time was showing 2+ hours, but I needed to run errands. The service actually worked exactly as advertised. I put in my number, went shopping, and about 1.5 hours later got a call connecting me with an IRS agent. Saved me from being trapped by my phone all afternoon. The agent helped me set up a proper payment plan to avoid further penalties. Will definitely use again next time I need to call about my quarterly payments.
0 coins
StardustSeeker
I've been using FreeTaxUSA for 3 years. Here's what I do for quarterly payments: 1. Use FreeTaxUSA to calculate the quarterly amounts 2. Set calendar reminders on my phone for each due date 3. Use IRS Direct Pay each quarter (only takes 5 mins) I prefer Direct Pay over EFTPS because I don't have to register for anything and can just pay directly with my bank account. Yes, EFTPS lets you schedule in advance, but I like reviewing my finances each quarter before making the payment anyway. Important: make sure you select "Estimated Tax" as the payment reason when using Direct Pay!
0 coins
Dmitry Volkov
•I'm terrible with remembering deadlines. Have you ever forgotten to make a payment using Direct Pay? What happens if you miss a quarterly deadline?
0 coins
StardustSeeker
•I did miss one payment about two years ago - I got hit with a small penalty on my next year's taxes. It wasn't huge (about $42), but annoying enough that I now set multiple reminders. If you think you might forget, EFTPS is probably better for you since you can schedule all payments at once. The penalty is calculated based on how late you are and how much you owe, so larger missed payments hurt more. The IRS calls it an "underpayment penalty" on your annual return.
0 coins
Paolo Marino
Does anyone know if its possible to just mail a check for quarterly payments? My internet is spotty and I dont really trust online payments for something this important.
0 coins
Amina Bah
•Yes, you can definitely mail a check! You'll need to include Form 1040-ES vouchers with your payment. FreeTaxUSA should be able to generate these vouchers for you to print out. Each voucher has the quarter date and payment amount, plus where to mail it. Just make sure you mail it early enough to arrive by the deadline - a postmark on/before the due date counts as on time. And keep copies of everything plus the canceled check for your records!
0 coins
Lia Quinn
I've been using FreeTaxUSA for my quarterly payments for about 2 years now and wanted to share my experience. The software does a great job calculating your estimated payments, but like others mentioned, you need to handle the actual payment process separately. I started with Direct Pay but switched to EFTPS after missing a payment deadline (cost me about $65 in penalties). The EFTPS registration process is a bit old-school - you do have to wait for them to mail you a PIN - but once you're set up, it's incredibly convenient to schedule all four payments at once. One tip that might help: when FreeTaxUSA calculates your quarterly amounts, print out that summary page and keep it with your tax records. I reference it throughout the year when I'm tracking my business income to make sure I'm still on track. Also, don't forget that if your income changes significantly during the year, you might need to adjust your remaining quarterly payments. EFTPS makes it easy to modify future scheduled payments if needed.
0 coins
LordCommander
•This is really helpful advice! I'm curious about adjusting payments mid-year - how do you know when your income has changed enough to warrant updating your quarterly amounts? Is there a general rule of thumb, like if you're off by more than 10% or a certain dollar amount? I'm worried about either overpaying significantly or underpaying and getting hit with penalties.
0 coins