Paying taxes is a civic duty, but it can be a financial burden if you don’t plan ahead. The good news is that the IRS offers several convenient and secure payment options to fit different budgets and needs. With some forethought, you can minimize interest and penalties when tax day comes around
Online Payment Methods
Paying your taxes online is the fastest and most efficient option in most cases, The IRS offers several electronic payment methods to choose from
Direct Pay
The IRS Direct Pay system allows individual taxpayers to pay their income tax bills directly from a checking or savings account free of charge. You’ll need to provide personal information like your Social Security number and date of birth to authenticate your identity before making a payment.
The benefits of Direct Pay include:
- Free service
- Can schedule payments up to 365 days in advance
- Can modify or cancel payments until 2 days before the scheduled date
- Available 24/7 except for brief daily maintenance
Credit/Debit Card
You can pay your taxes with a credit or debit card through an authorized IRS payment processor There is a processing fee based on the amount paid For debit cards, it’s a flat fee around $3. For credit cards, it’s a percentage ranging from 1.87% to 1.99%.
processors include PayUSATax, Pay1040, and ACI Payments, Inc. Their websites allow you to make IRS tax payments by phone or online 24/7. You’ll need to provide payment information and follow prompts.
Electronic Funds Withdrawal
When e-filing your tax return through IRS Free File or tax prep software, you can opt to pay any amount due by authorizing an electronic funds withdrawal from your bank account. There’s no fee, and you can use a different account for each payment.
To schedule a withdrawal after the filing deadline, you must call the IRS within 7-10 days of e-file acceptance.
EFTPS
The Electronic Federal Tax Payment System (EFTPS) lets you pay all your federal taxes online or by phone after enrolling. You’ll receive a PIN in the mail to access your account. EFTPS allows 24/7 payments with same-day processing if scheduled before 8pm ET. You can manage payments up to 365 days in advance.
Mobile Payments
If you prefer to pay taxes on the go, the IRS2Go mobile app offers a few options:
- Direct Pay: Schedule free payments from your bank account via mobile device
- Debit/Credit Card: Make card payments through an authorized processor for a fee
The app also provides features like tax help and tips, IRS account info, and updates on refund status.
Mail-In Payments
If you prefer not to pay electronically or can’t, the IRS still accepts physical checks and money orders by mail. Here are some tips for mail-in payments:
- Make checks or money orders payable to “United States Treasury”
- Include payment voucher or write tax form, tax year, and Social Security number on the check
- Mail to appropriate IRS address based on state
- Allow 2-3 weeks for processing time to avoid late fees
Same-Day Wire Transfers
For taxpayers facing an urgent tax bill, same-day federal tax payments can be made through your financial institution. You’ll need to provide the IRS routing number, account number, and follow wire transfer procedures.
Though more costly than other options, wires submitted by 8pm will be credited that day. Wires are available for both businesses and individuals.
Pay Near Deadline With Cash
If it’s nearing the tax deadline and you have cash in hand, the IRS allows last-minute payments at authorized retail partners. Bring your payment voucher or tax information and pay with exact change.
Partners include 7-Eleven, Ace Cash Express, Casey’s General Stores, Kwik Trip, and more. Fees may apply. This should only be used as a last resort option.
Installment Agreement
If you can’t afford to pay your full tax bill at once, consider setting up an installment agreement to pay over time. You can apply using the Online Payment Agreement tool at IRS.gov or file Form 9465 with your return.
Monthly payment amounts are based on how much you owe. The setup fee is $225 for a standard agreement or $43 for a direct debit agreement.
Delay With Extension
Filing for an extension gives you an extra 6 months (until October 15) to file your return and pay any tax due. You still need to estimate your tax liability and pay by April 15 to avoid late fees. IRS Direct Pay is the best option for making an extension payment.
This route is best for those waiting on paperwork or other information needed to file. It does not grant an extension of time to pay.
Offer in Compromise
If you have significant tax debt you can’t pay in full, you may qualify for an offer in compromise settlement. This program allows you to settle tax debts for less than the full amount in certain circumstances. Strict eligibility rules apply.
You’ll need to submit detailed financial information and meet requirements to be approved. Offers can take several months to process.
Payment Plans for Tax Debt
If you have existing tax debt, the IRS may allow you to pay it down over time through a monthly installment agreement. You’ll need to fill out an application and propose a payment timeline and amounts.
Interest and penalties continue to accrue until the debt is paid off. Having part of your wages or income garnished is also possible if you default on an agreement.
Paying taxes doesn’t have to be painful with some planning and research into your options. The IRS offers online tools, payment choices and assistance programs to help taxpayers through the process. Approach tax day prepared and organized to minimize stress.
Credit card
You can pay your taxes with a credit card. It follows the same process as paying with a debit card; however, instead of paying a flat processing fee, your credit card payment will be subject to a fee in the form of a percentage. This means the more you owe, the higher your fee will be. The IRS breaks down what kind of fees you might expect across each payment type in its payment processor fee comparison tableInternal Revenue Service . Pay Your Taxes by Debit or Credit Card or Digital Wallet. Accessed Sep 17, 2024.View all sources.
To make a credit card payment, go to the website of one of the IRS’ three independent payment processors, then provide the payment amount, your card information and other data. The processor sends the money to the IRS.
Cost: From 1.82% to 1.98% of your payment; minimum fee ranges from $2.50 to $2.69 (the fee goes to the processor, not the IRS).
- Can be done online or over the phone.
- Works with Visa, Mastercard, Discover, American Express, STAR, Pulse, NYCE, Cirrus, Accel, AFFN, Interlink, Shazam, Maestro, Jeanie and other cards. You can also use certain digital wallets (such as Venmo, PayPal and Click to Pay).
- Fees usually cancel out the value of miles or other rewards earned for using your credit card.
- High interest rate may apply if you carry the balance on your credit card.
- Putting a large amount on your credit card could affect your credit score.
- You have to contact the card processor to cancel a payment.
- Your information goes through a third party.
Electronic funds withdrawal (EFW)
If you use IRS Free File or another tax-prep software to file your federal taxes, this e-pay feature is usually offered directly through the e-filing program. To make a payment, youll enter your banking information to authorize a direct debit withdrawal. You can also ask a human tax preparer to submit your payment through EFW if the preparer e-files on your behalf.
If youre making a payment through EFW after the tax deadline, youll need to pay your bill the same day you file your taxes. Theres no option to schedule a payment for a later date after the tax deadline has passed.
Cost: Free. Check with your bank for associated fees, though.
- Can be done online via tax-prep software or through your tax preparer.
- Also works for estimated quarterly taxes and certain business paymentsInternal Revenue Service . Electronic Funds Withdrawal for Businesses. Accessed Sep 17, 2024.View all sources.
- Individual payments and select business payments can be scheduled until your return due date.
- You can use a different bank account for each payment you submit.
- If the wrong amount was withdrawn, you may need to wait for the Treasury Department to return the money.
- If you need to cancel a payment, you must wait seven to 10 days after your return is accepted before calling the IRS e-file payment services hotlineInternal Revenue Service . Pay Taxes by Electronic Funds Withdrawal. Accessed Sep 17, 2024.View all sources.
- Once the IRS accepts your return, you arent able to modify the payment amount or account information. Instead, youll have to cancel the payment and select another method.
How to make a tax payment online to the IRS
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