Paying taxes is a must, and the IRS offers various methods to make it easier. Paying taxes doesn’t have to be complicated. The IRS offers different tax payment methods to make it easier. You can use Direct Pay, a credit card, or a debit card. There’s also a handy app called IRS2Go.
Here’s a simple guide to these options to help you understand and choose the one that suits you best.
Direct Pay
Direct Pay is a free service that enables taxpayers to pay their federal taxes directly from their checking or savings accounts without requiring registration or incurring fees. Taxpayers can schedule payments up to a year in advance and receive prompt confirmation upon completing a payment.
You also have the flexibility to modify or cancel a payment up to two business days before the due date. You can access IRS Direct Pay on their website to make payments directly from your bank account and easily manage your payment schedule.
EFTPS (Electronic Federal Tax Payment System)
EFTPS, provided by the U.S. Department of Treasury, is a convenient online system for American taxpayers, especially entrepreneurs. It supports various federal tax payments (e.g., income, employment, estimated, and excise) and allows scheduling payments up to a year in advance.
You can make payments from home or the office 24/7, with features like modifying or canceling payments, email notifications, and 15 months of payment history. Customer service is available for assistance.
Debit Card
The IRS uses companies to help with debit card payments. It’s safe and secure. Just pick the payment option below that gives you the best fees for your card and how much you’re paying. If you’re using a debit card:
PayUSAtax charges $2.20.
Pay1040 charges $2.50 flat or 1.87% for personal debit cards (minimum fee $2.50).
ACI Payment, Inc. charges $2.20
Further, they accept various cards like Visa, Mastercard, Discover, American Express, and others. They also take certain digital wallets like Click to Pay and PayPal.
Credit Card
The IRS allows credit card as one of the tax payment methods, but there are processing fees. The fees vary based on your situation and cards. Consider if it’s worthwhile. Paying taxes by credit card incurs fees, such as:
PayUSAtax charges 1.85%, with a minimum of $2.69.
Pay1040 charges 1.87%, with a minimum of $2.50.
ACI Payment, Inc. charges 1.98%, with a minimum of $2.50.
Digital wallets (e.g Click to Pay, PayPal) and cash via Vanilla Direct are also options.
Online Payment Plan
If you qualify or have someone authorized to help you, you can request this plan online. You’ll get instant approval notification once you apply. The IRS typically approves online payment plans faster than those filed with e-tax returns. If you’ve just filed your return and expect to owe money, you can set up a plan online before getting a notice or bill.
You pay all the money you owe today, either from your bank account (Direct Pay), or by using a check, money order, or debit/credit card. But if you use a card, there will be extra fees.
IRS2Go APP
IRS2Go is the official mobile app of the IRS, available on iOS and Android devices. It offers features like checking your refund status, making payments, finding tax help, and getting tax tips. It is available in English & Spanish Language.
It’s user-friendly and allows you to make payments through Direct Pay for free. You can verify your refund status within 24 hours of us receiving your e-filed return or approximately four weeks after sending your paper return by mail.
While the app can generate security codes for online services, it has limitations as only Direct Pay, credit card, and debit card payments are supported on mobile devices, with card payments incurring processing fees.
FAQ
What payment methods are accepted by the IRS?
The IRS accepts different ways to pay your taxes. You can use direct bank transfers through IRS Direct Pay, or you can pay with a credit card or a debit card and above-mentioned methods also.
What if the IRS won’t accept my payment?
If your payment has issues due to your bank, such as insufficient funds or incorrect account information, the IRS will send you Letter 4870 to your address. This letter will explain the problem with your payment and offer alternative payment methods.
All these services are created to help taxpayers handle their taxes more easily. If you’re unsure about which one to pick, consulting a tax expert like Taxfully can be helpful. There are also tax relief programs available to lessen your tax burden. By selecting the right method for your situation, you can make paying taxes less complicated and more manageable.
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