Federal and State Income Tax Payment Options
If you are not sure how to pay the income taxes you owe, you can easily submit your tax payment information while you prepare and efile your tax return on efile.com. However, it is important to file or efile a tax return (or a tax extension) on time to avoid penalties for failing to file by Tax Day. Even if you can only pay a small amount, file or efile your return or extension and pay as much as you can.
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 (you are not required to use these options):
- Electronic Fund Withdrawal (Direct Debit from Bank Account): This option allows you to have your tax payment electronically withdrawn from your bank account only when you efile a tax return at the same time.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, and this information 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. Read our how to submit a direct debit payment on efile.com instructions for details.
- Check or Money Order: If you do not want to submit your bank information with your tax return, mail a check or money order to the IRS after you efile or file your tax return. Attach 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. See our how to send a check or money order tax payment instructions for more information.
Other Direct Tax Payment Options
If you did not use any of the above payment options during the efile.com preparation and efiling process, here are your other options (they are also available to you filed via another online tax site, mail, etc):
- IRS Direct Pay: The IRS Direct Pay website is a safe, easy, and free way to pay your taxes from your savings or checking account.
- Credit or Debit Card: Pay your taxes owed via credit or debit card after you efile or file your return. You can submit your payment via internet, phone or mobile device. There may be an additional processing fee based on your card provider and payment processor.
- Electronic Federal Tax Payment System (EFTPS): EFTPS is a free online service by the U.S. Treasury that allows you to submit or schedule large payments via the internet or phone.
- Same-Day Wire: You may submit a same-day wire tax payment from your financial institution. Contact the institution for availability, cost, and cut-off times.
- Cash Payment: You can submit a cash tax payment to the IRS via a participating 7-Eleven store. The payment is generally processed within 5-7 business days. There is a $3.99 fee per payment.
Options If You Don't Have the Funds to Pay Taxes
Here are alternative options if you cannot use any of the options above due to not having enough money to pay your taxes:
- Short-Term Extension to Pay: If you can pay all your taxes in 120 days or less, you may apply for a short-term payment extension with the IRS on their website or by calling 1-800-829-1040 (if you received a bill from the IRS, you can call the phone number listed on the bill). There is usually no set-up fee for a short-term extension. See short-term extension to pay details here.
- Installment Agreement: You can apply for an installment payment agreement with the IRS on their website if you need more time to pay and you owe $50,000 or less. If you cannot apply for the agreement online, you will need to complete and mail these forms to the IRS: 1) Form 9465, Installment Agreement Request; 2) Form 433-D, Installment Agreement; 3) Form 433-F, Collection Information Statement. See our installment payment agreements guide for details.
- Offer in Compromise (OIC): If you want to settle your tax debt for less than the full amount that you owe, apply for an offer in compromise with the IRS online or prepare and mail Form 656, Offer in Compromise Booklet to the IRS. You should only consider an OIC if you cannot pay your taxes in full or if making a full payment will cause a financial hardship. For more information, see our offer in compromise guide.
Visit this page for more detailed and procedural information on how these payment plans work and how to apply for them.
Taxes and Passport Note: You may not be able to receive or renew a passport if you owe over $51,000 to the IRS. In accordance to the Fixing America's Surface Transportation (FAST) Act, the IRS will send your information to the State Department, who is in charge of passport applications. The Department will use that information to deny your application for a new or renewing passport until you resolve your debt with the IRS. The Department may even revoke your current passport. However, this will not apply to you if you are a victim of identity theft, claiming innocent spouse relief, or you live in a federally declared disaster area.
How to Pay For State Income Taxes
Once you have prepared your taxes on efile.com, we will indicate if you either get a state tax refund or if you owe state taxes. Should you owe state taxes, the efile.com platform offers electronic payment options to pay for state income taxes in conjunction with you e-filing your IRS and state tax returns. We are working on gathering those states that provide this payment option. Find instructions on how to pay or submit your state taxes via individual state tax agency websites.
How to Manage Future Tax Payments Now
Update your paycheck tax withholding by completing a new Form W-4, Employee's Withholding Allowance Certificate and giving it to your employer. This allows more taxes to be withheld from your paycheck and minimizes any tax payments you submit with your next filed tax return. You may also need to make estimated tax payments by submitting Form 1040-ES, Estimated Tax for Individuals efile it if you have income that is not subject to tax withholding.