Mailed Tax Voucher #4 | What’s next to file my tax return?

January, 31 2025 by Jean Lee Scherkey, EA

Federal estimated tax voucher #4 list in mail. What actions should I take in filing my tax return?

-Randy, Virginia



Dear Randy,

Thank you for reaching out to us with your question. We are delighted to respond! Based on the information provided, you recently mailed your federal fourth quarter 2024 Estimated Tax Voucher (and we assume payment) and want to know what actions you should take when filing your tax return. This is an excellent question, and one that others are probably asking. After all, it’s that time of year when visions of Forms W-2 and 1099 start dancing into our thoughts by day and dreams at night. And, if you are anticipating a refund, you may be musing about what you would like to do with your impending windfall.

Before we get into the brass tacks of your tax inquiry, let’s go over some basic but important information. To start, the IRS began accepting 2024 income tax returns on Monday, January 27, 2025. Tax software providers, such as TurboTax, may have allowed users to prepare and submit their 2024 returns for e-filing before this date. However, these providers could not transmit these returns to the IRS until the Service started to receive them. Now, a word of caution for those who file their 2024 individual income tax return before February 15, 2025, and claim the Earned Income Tax Credit or Additional Tax Credit. In an effort to curb lost revenue from identity theft and refund fraud, the IRS usually does not issue refunds for returns that contain these tax credits until February 15, 2025. This rule was implemented during the 2017 filing season.

Now that we’ve established when the IRS will begin accepting returns, it’s time to go over some best practices to ensure you successfully file your 2024 federal income tax return. You mentioned that you recently filed your fourth quarter federal estimated tax payment. Generally, for an individual taxpayer, their fourth quarter estimated tax payment is due on January 15 of the following year. Even though the tax payment is made in the following year, the payment is applied to the tax year the payment is earmarked, which is your 2024 return. You will want to make certain to include the amount of your fourth quarter estimated tax payment on line 26 of your 2024 Form 1040, U.S. Individual Income Tax Return.

If you made any other 2024 quarterly estimated tax payments, you would include the total of all your payments on line 26 as well. If you applied any of your 2023 refund towards your 2024 return, that amount will be accounted for on line 26 as well. Here is an example.
 

• Ron is a single taxpayer who works two jobs – he works at the IT helpdesk for Widgets R’ Us by day and is a bartender on the weekends. Because his bartending skills rival that of a skilled acrobat, Ron’s tips are substantial, so he pays quarterly estimated taxes to avoid incurring a balance due and an underpayment tax penalty when he files his taxes. During 2024, Ron made the following estimated tax payments:
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  • First quarter estimated tax payment made April 15, 2024: $250
  • Second quarter estimated tax payment due June 15, 2024: Ron didn’t make a second quarter payment on account he broke his hand and couldn’t bartend.
  • Third quarter estimated tax payment due September 16, 2024: $360 (Since September 15, 2024, fell on a Sunday, 2024 federal third quarter estimated tax payments were due Monday, September 16, 20204.)
  • Fourth quarter estimated tax payment due January 15, 2025: $790
     
• In addition to the estimated tax payments above, Ron applied $200 from his 2023 refund to his 2024 taxes. Ron will enter total payments of $1,600 ($250 + $360 + $790 + $200 = $1,600) on line 26 of his 2024 Form 1040.

According to the IRS website, taxpayers should wait at least two weeks after they send a payment to the IRS before verifying whether their check cleared their bank account. If you sent your fourth quarter estimated tax payment on January 15, 2025, and want to file your 2024 income tax return right away, you may want to hold off a day or two to ensure the IRS received your check and the payment was credited to your 2024 tax year account. Waiting a day or two may save you from a longer delay if the IRS has not applied your payments and can prevent a mismatch from occurring. In addition to monitoring your bank or online credit card account to confirm your fourth quarter estimated tax payment cleared, you can view your payment history on the IRS website. But first, you will need to set up an online account and be ready to verify your identity. With an IRS online account, you can not only view your payment history, you can make secure payments and request payment plans. Sometimes payments can get inadvertently applied to the wrong tax year. With online access to your account, you can view up to five years of payment history. For more information on IRS’s online account feature, please click here.

Before I say farewell, I want to impart a couple more tips to help you have a successful tax filing. The biggest bit of advice I can give is don’t be in a rush. It’s surprising the number of returns that are rejected for e-filing or cannot be processed because their Social Security number was transposed, a number was missing from their street address, or the word “Ave.” instead of “Dr.” is listed on the address. Another tip I would like to mention is regarding the Digital Assets question on page one of Form 1040. Since 2020, the IRS has asked taxpayers whether they received, sold, or otherwise disposed of a digital asset during the year. Keep in mind that this “yes or no” question is not optional. There is a lot of misinformation online about how digital asset transactions are taxed and whether these types of transactions are even taxable. Failing to answer this question can cause processing delays and stall any refunds. For more information on how digital asset transactions are taxed, please visit the IRS’s Digital Assets webpage.

Many tax software providers have an import feature where customers can import their Forms W-2 and other tax documents into their return. While this is a time-saver, technology is still known to hiccup occasionally. Do not make the mistake of assuming everything is fine and skip checking the imported information against a copy of your tax form. Just like you check your Social Security number, you should also check your routing and account number entries, if you choose to have your refund direct deposited. Finally, if your balance due or refund amount sounds too good to be true, it very well might be. Even if you checked your W-2 income entries and everything seems okay, there may be a stray number somewhere in your return or a decimal point out of place. For example, your wage information might be correct, but when you entered your withholding, a stray “0” entered the fray. There is a significant difference between $4,900 and $4,090, especially when finances are tight. Having to pay back several hundred dollars, including interest, can be a terrible strain on many taxpayers.

I hope these tips help you file your 2024 individual income tax return successfully.

Many Happy Returns,
Jean Lee Scherkey, EA