Paying Your Taxes Online
Whether you’re paying off your taxes, making an installment payment, or paying your quarterly estimated taxes, you have options to pay any taxes online. The IRS – like most businesses and agencies – is moving away from paper payments. Paying online is secure, efficient, and quick. You don’t have to worry about finding envelopes, stamps or the correct paperwork. It’s no surprise that online payment is the IRS’ preferred method passing your tax payments on to them.
Important: No matter how you decide to pay, make sure you’re paying by the deadline so you can avoid penalties and interest.
Online Payment Options
There are several methods to paying your taxes online. Some are for one-time payments, while others help those with installment plans.
Direct pay: Without a doubt, this is the IRS’ preferred method of payment from taxpayers. This service is a direct debit from your checking or savings account to pay any taxes owed. There’s no fee, no check to write. Simply provide your personal information and the routing and account numbers from your checking or savings account and the payment will be withdrawn from your bank.
Direct pay is available through 1040.com site when you file your return. This payment option does not save your banking information.
Paying with debit or credit cards: If you’re paying taxes owed with a debit or credit card, you’ll have to pay through a third-party website. Sites like www.1040PayTax.com can help you make your credit card or debit card payment quickly and efficiently. Some states also allow their tax payments through these sites. In general, service fees run between $2 and $4 per payment. You’ll need to know any forms and the year or quarter you’re paying for. You can also set up payments for installment plans through the third-party websites.
This option is also available when you finish your return on 1040.com. If you want to pay your balance due by credit card, you can do that by selecting the credit card option on our Balance Options screen. After you e-file your return, you'll be provided a link that will take you the IRS site where you can enter your credit card information to pay your balance due to the IRS.
EFTPS: The Electronic Federal Tax Payment System (EFTPS) lets you use your bank account to pay taxes online. Unlike direct pay, EFTPS allows you to save your banking information for future payments. But don’t expect to immediately use EFTPS. It takes at least seven days to get an account established. After you’re signed in, you can set up future payments – up to a year in advance – so you won’t have to worry about missing a payment deadline.
Same-Day Wire Transfers: Depending on your bank or credit union, you may be able to make a same-day wire transfer to pay any taxes you owe. You must fill out the Same-Day Taxpayer Worksheet from the EFTPS website. You’ll take the form to your bank or credit union – if they’re able to do the transfer. You’ll also need separate forms for each payment. There are fees associated with this payment method. If you have a foreign bank account, you can use this method for paying any taxes.
Paying Quarterly Estimated Taxes Online
If you’re required to make quarterly tax payments, you can use any of the preceding payment options. But there’s a benefit to using EFTPS or a debit or credit card to pay: with both EFTPS and debit or credit cards, the systems have the ability to safely and securely hold your information for future payments. With EFTPS, you can even set up future automatic payments.