How to Pay My Taxes: 8 Ways to Make a Tax Payment in 2024

Summary: When it comes to settling your tax obligations, the IRS offers taxpayers various avenues for making payments. One option is find a free dedicated tax professional for help to facilitate direct tax payments. In the event that you submit your tax return without settling your tax liability, penalties for late payment and interest charges will commence accumulating on the outstanding amount following the tax submission due date. The IRS provides various payment options that offer extensions or allow for the gradual repayment of your tax obligation.

Exploring various options for settling your federal taxes beyond online payment ensures a smooth and efficient process. Although paying taxes online offers convenience, there are additional avenues to make IRS payments. In the event that you overlooked the April 15 tax payment deadline, numerous payment solutions are accessible throughout the year. To steer clear of accruing penalties and interest, the IRS advises remitting your dues promptly and in the maximum amount possible.

Individuals utilizing tax preparation software with guidance or the IRS Free File service are likely acquainted with electronic funds withdrawal (EFW). This feature is included in the majority of programs and enables users to conveniently make a payment directly from their bank account while submitting their tax returns. Consider starting by exploring alternative methods for managing your federal tax responsibilities as advised by the IRS. The agency recommends utilizing online platforms like Direct Pay or credit/debit card transactions for efficient tax payment processing, before considering traditional mail options. Beyond these suggestions, additional payment alternatives such as same-day wire transfers and cash transactions are also viable choices worth exploring.

Tax Payment Methods of Free of Cost 

1. IRS Direct Tax Pay

When it comes to settling your tax bill, utilizing IRS Direct Pay is a straightforward and cost-effective solution. By visiting the IRS Direct Pay platform, you can easily make payments directly from your checking or savings bank account at no additional cost. Additionally, you have the flexibility to adjust or cancel a payment as long as it’s done at least two business days before the scheduled processing date.

Prior to making a payment, it is essential to confirm your identity. Providing the address, Social Security number, date of birth, and filing status you previously used on a tax return will be necessary on the Direct Pay website to authenticate your identity.

2. EFTPS (The Electronic Federal Tax Payment System)

The IRS has introduced a different digital payment option known as EFTPS. In contrast to Direct Pay, this service requires a registration process that may span up to five business days, as per the IRS guidelines. To get started, navigate to the IRS EFTPS platform, furnish the necessary identity and banking details, and anticipate the arrival of a PIN via mail. Upon receipt, return to the website to establish a password and approve an ACH debit from your bank account.

Explore the extensive capabilities of EFTPS, where you can view a full 15 months of your payment records, adjust or plan upcoming payments, and submit payments at your convenience—this around-the-clock voice and online payment portal operates non-stop, 24/7. Additionally, you have the opportunity to connect with knowledgeable customer service agents who are ready to assist you with any inquiries regarding your payments.

3. EFW (Electronic funds withdrawal)

When utilizing IRS Free File or similar tax preparation software to submit your federal tax return, the electronic payment option is commonly available within the e-filing system. To proceed with making a payment, you typically input your bank details to grant permission for a direct debit withdrawal. Alternatively, if a tax professional is assisting you with e-filing, they can also facilitate the payment submission through EFW on your behalf.

In the event that you choose to use EFW for a payment post-tax deadline, it’s essential to settle your bill on the day you submit your tax return. Please note that there is no provision for scheduling payments beyond the tax deadline.

Tax Payment Methods Requiring Fees and Costs

4. Pay My Tax With Debit Card

Exploring different payment options for settling your tax dues, using a debit card or digital wallet can be facilitated through one of the IRS’ three authorized payment processors – payUSAtax, Pay1040, or ACI Payments. Upon selecting a processor, payments can be made either over the phone or online, albeit with a slight processing fee of around $2. To initiate a payment transaction, access the processor’s website and input the necessary details, including the payment amount, card information, and additional data. Subsequently, the processor transfers the funds to the IRS for processing.

5. Pay My Tax With Credit Card

Paying taxes using a credit card involves a similar procedure to using a debit card. The difference lies in the fee structure – instead of a fixed processing fee, credit card payments are charged based on a percentage of the total amount owed.

When you have outstanding debts, the fees you incur will be directly proportional to the amount owed. According to the IRS, details regarding the various fees based on payment types can be found in the payment processor fee comparison table. To proceed with a credit card payment, navigate to the portal of any of the IRS’ three designated payment processors. Once there, input the payment amount, share your card details, and submit any additional required information. Subsequently, the processor will transfer the funds to the IRS.

6. Pay My Tax with Check, Money Order, or Cashier’s Check

Sending payments through the mail is generally not recommended by the IRS. However, if you choose to pay your bill using a check, money order, or cashier’s check, make it payable to the U.S. Treasury and send it to the IRS.

When submitting a tax payment, remember to provide essential information such as your name, address, contact number, Social Security number or employer identification number, the relevant tax year, and the associated tax form or notice number. The destination for sending your payment could vary based on whether you have already submitted your federal income tax return. Additional details and instructions can be found on the organization’s official website. In-person money order tax payments may also be accepted at certain local IRS branches.

7. Pay My Tax with Cash

Surprisingly enough, it is possible to cover your tax dues by making a cash payment. Begin by visiting the Pay with Cash at a Retail Partner platform offered by the IRS and proceed with the payment steps outlined there. A confirmation email will be sent to you, verifying your details with the IRS. Following this, you will receive a second email containing a payment barcode and further instructions to complete the process.

When you visit the retail establishment mentioned in the email, simply present your code to the clerk for scanning, followed by payment in cash. Upon completion, you will receive a receipt and confirmation of your transaction. Noteworthy retailers that are part of this network include Family Dollar, Dollar General, CVS Pharmacy, 7-Eleven, Walgreens, GoMart, Speedway, Kum & Go, Kwik Trip, and various other independent locations. It’s also worth mentioning that some local IRS offices may accommodate in-person cash tax payments, subject to scheduling an appointment 30 to 60 days in advance.

8. IRS Tax Payment Long Term Plan or Tax Installment Agreement

Should you find yourself unable to settle your tax obligation in its entirety by the due date, rest assured that the IRS offers the option of entering into a payment arrangement. This arrangement comes in two forms: a short-term plan ideal for those capable of clearing their debt within 180 days, and a long-term plan suited for individuals requiring additional time to settle their dues.

This entry was posted on Thursday, October 10th, 2024 at 8:00 am and is filed under Tax Deadlines, Tax Deductions and Credits, Tax Tips and Tricks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.