Ways to Pay Taxes
Important: If you have prepared your taxes and are ready to pay IRS taxes due, you can do this online, thus there is no need to mail in a check with the payment voucher form.
Taxes and death are still thought to be as the two most certainties in this life. Did you know that the IRS penalties for not paying taxes on time are generally less than the penalties for not filing a tax return? Filing a return or at least an extension on time should not be an excuse, even if you can't pay the taxes at that time. When you prepare and eFile your tax return from on eFile tax app, you can use the direct bank transfer, check, or money order methods as listed below. Or, you can use any other method outlined here.
Pay IRS Taxes Online
You may be wondering:
- What to do when one does not have the funds to pay for taxes on time?
- How to pay taxes via eFile.com or other methods?
- How to estimate potential IRS Late Tax Payment Penalties.
This page details answers to the above questions and more. Find information related to your IRS return or state return as well as different tax calculators and tools which can give you answers to tax-related questions within minutes.
Note: If you filed your 2020 return and included payment information with a specified date, it is possible that there may be a delay in processing your payment. The IRS is heavily backlogged issuing tax refunds and taking tax payments this year. As such, you may not see your payment withdrawn from your bank account right on the date.
As long as the return or extension was e-filed before the April 15 - May 17, 2021 deadline and your payment date was scheduled before then, you should not face any late payment penalties. Monitor the account you provided when you filed your return; if the funds are not taken, double check the account provided on your return and consider contacting the IRS.
Tax Payment Estimates
Of course, the most accurate way to find out taxes owed or due is a tax return. However, there are many other scenarios that require to plan and/or estimate taxes prior to filing a return or paying taxes.
If you have not filed yet and would like to estimate potential tax payments, use one of these tools to find out.
As stated above, late filing penalties are generally higher than late payment penalties - find out for yourself by utilizing the PENALTYucator. Currently, we only have a tool to estimate IRS penalties and not state penalties.
Need more tax help on ways to estimate or your taxes? Contact one of our Taxperts.
Immediate IRS Tax Payment Options
When it comes to paying IRS and/or State Taxes, there are essentially three scenarios:
1. Ready to pay now. A taxpayer has the funds required or is okay with paying taxes by direct bank account or debit/credit card now. Details on estimated tax payments for Tax Year 2020.
2. Not ready to pay now but over time: A taxpayer does not have the funds now to pay taxes on time, but does want to pay over time via tax payment plans.
3. Did not pay, can't or doesn't want to pay taxes now or later: A taxpayer who did not pay in the past or currently can't due to lack of funds or does not want to pay taxes now nor over time. Details on wage garnishment or property tax levy.
Important: Double, triple, and quadruple-check your bank information entered when you submit your return to the IRS. Your bank information cannot be changed once the IRS has accepted your return. This means you cannot file a tax amendment or re-file your return to update or change your bank account with the IRS. The IRS is going to use your most recently filed and accepted return to issue future tax credits, such as recovery rebate credits or stimulus checks (Economic Impact Payments). If an inaccurate bank account is entered, the IRS will mail your future stimulus payments to the address on your return.
The best option for paying owed taxes is paying as soon as possible. Ways to pay taxes are listed below, outlined through the type of payment, a detailed description, and a recommendation based on certain tax situations.
Recommended to most taxpayers who have the funds in their bank account and want to process one-time income tax payments online or do not need or want to set up re-occurring payments.
Create or access your IRS account and monitor your tax payments and other updates, such as the amount you owe, updates for the current calendar day, payment history, any scheduled or pending payments, details about your payment plan if you have one, and information from your most recent tax return.
Recommended: This account will show your payment status and history, plus you can access tax transcripts of income statements and tax returns. For example, if you need your Adjusted Gross Income, etc.
EFTPS or the Electronic Federal Tax Payment System® lets you enroll so you can pay any tax due to the IRS via scheduled payments for free. Schedule payments online or over the phone up 365 days in advance.
Recommended to taxpayers who would like to manage their scheduled or re-occurring payments via the U.S. Treasury provided platform through a registered account. Payments over $10 million are enabled and there are no processing fees.
Select from three payment processors and use one of the following electronic payment options: Visa, Master Card, Discover, American Express, STAR, Pulse, NYCE, Accel, Visa Checkout, MasterPass, Amex Express Checkout, PayPal. The debit card fees range from $2.55 to $3.95 depending on tax amount to be paid. The credit card convenience fee ranges between 1.87% and 1.99%. There are limits on how many payments can be made by debit or credit card. For tax payment amounts over $100,000, certain restrictions apply and they are all listed on the payment processor page. The fees are higher if you use this method integrated via a commercial online tax preparation platform or through a professional tax preparer.
Credit card payment is recommended to taxpayers who would like to pay their taxes on time, but do not have the funds in the bank and don't want to face late payment penalties. Using a debit card is only recommended if you can borrow money cheaper than paying the credit card borrowing fee rate. If you have the funds in the bank, we don't recommend using the debit card due to the fees associated with it, but rather use the above direct payment option as it's fee free.
More Pay by Credit or Debit Card Options
Make sure you check the fees provided by each vendor via the links. They also provide pay via phone options. See below in the pay by phone section.
Recommended to taxpayers who can't complete a direct payment or an enrolled payment via EFTPS or have to transfer very large tax payment amounts as there is no limit with wired transfers. The fixed processing fees will vary.
Tax payments by cash can be accepted by participating retailers listed on the link on the left. Tax payments are limited to $1,000 per day and there are limits on payment frequencies. The fee for the cash transaction is $3.99.
Recommended to taxpayers who might not have a bank account or a credit/debit card, and/or have low amount of income taxes due. For convenience and fee reasons and if you can use the direct deposit method listed above, we recommend that over the cash payment.
Make the check or money order payable to: U.S. Treasury. The following information should be included: Name and Address, Social Security Number (the SSN shown first if it's a joint return), related tax form numbers, tax year, and/or IRS notice number. Do not include cash in the mail. Make sure you select the correct IRS mailing address from the link.
Recommended to taxpayers who may not have a bank account or a credit/debit card, and/or have low amount of income taxes due. Generally, the postal stamp counts as the date of payment. If you purchase a mail tracking number, the fee might be similar to a cash payment or wire transfer. For convenience, we recommend the direct deposit method over check or money order in the mail.
Payment by Phone
The IRS will not accept payments over the phone through their 1-800-829-1040 number. Here is a list of vendors that accept credit card or debit card payments via the phone. These vendors are also listed above in the pay by credit card section.EFTPS - Electronic Federal Payment System
: Phone: 1-800-555-4477 or TTY/TDD equipment can call 1-800-733-4829. Click for Fees
: Phone: 1-888-872-9829. This site allows state tax payments as well. Use their fee calculator for a fee estimate
based on payment type.Link2Gov Corporation
: Phone: 1-888-729-1040. Fees as of November 24, 2020: Credit Card 1.87% (minimum of $2.59), Debit Card $2.58.WorldPay US, Inc.
: Phone: 1-844-PAY-TAX8. Fees as of November 24, 2020: Credit Card Fee: 1.96%, Debit Card Fee: $2.55.
Call or visit the sites as listed above for current fee updates. Recommended for taxpayers who do not have Internet access or prefer paying over the phone.
General Payment Recommendations
With any of the above "pay now" payment methods, in order for the payment to arrive on time and avoid IRS late payment penalties and interest fees, we highly recommend to give yourself plenty of time for the payment to arrive on time at the IRS. With most electronic payment methods, you can best track the payment status, process, and flow.
Find out if you should make estimated tax payments on 2020 income as well as when and how to make those payments.
Start Your 2020 IRS Tax Return Now
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Tax Payment Options on eFile.com
When you prepare and eFile your tax return on eFile.com, the following payment options are available to you from within the tax app. You do not have to use any of these available options. The payment options outlined above are available to any taxpayer, regardless of online platform.
Allows you to have your tax payment electronically withdrawn from your bank account only when you eFile a tax return at the same time. During the eFiling process, you will go to a screen to enter your bank account information, which will be submitted to the U.S. Treasury once you eFile your return. You may also go to a separate screen for state tax payment submission, but we will let you know if your state does not offer direct debit before you submit your state return.
Mail a check or money order to the IRS after you eFile or file your tax return. Include payment voucher Form 1040-V
(included with your tax return) to your mailed check or money order. Then, mail the payment and voucher to the IRS address based on your state residence (find IRS mailing addresses based on state residence
here). If you owe state tax, there is a payment voucher in your state tax return
that contains instructions on how to submit your state tax payment.
Follow these detailed payment instructions when you prepare and eFile your tax return on eFile.com.
Can I Cancel my Tax Payment?
If you owed tax and scheduled a tax payment when you filed your return, the IRS does not allow altercation of this scheduled payment. Once your return is accepted, the account, date, and amount cannot be changed. The only way to make any changes to this is by canceling the scheduled payment and rescheduling it with new or fixed information. To cancel, the IRS has a phone number, but requests that taxpayers wait at least 7 days from acceptance before calling. The request must be made at least two business days prior to the scheduled payment date. Contact the IRS via the e-File Payment Services number to inquire about cancelling the payment.
Should an issue arise with the payment - incorrect bank information, insufficient funds - the payment may be returned to the financial institution and the IRS will mail you Letter 4870 with information on how to proceed. Should this happen, late payment tax penalties may be applied.
See additional information as well as the IRS e-file Payment Services contact number:
IRS Electronic Funds Withdrawal
If an overpayment was made, the IRS will correct this after withdrawing the funds and issuing a refund.
Optimize your tax withholding to owe the least amount of taxes at the end of each tax year. Enroll in a tax payment plan or pay your tax liability on time in order to reduce or eliminate any penalties and interest. Begin tax preparing your 2020 Return now by collecting documents, forms, and statements. Tax Day is April 15, 2021.
See how to log into your IRS Account using a provided IP-PIN.
Additional questions on paying your taxes? Contact one of our Taxperts.
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