How To Pay Your Federal Taxes
This information is in regards to personal taxes.
When it comes to paying taxes, most want to pull the band-aid off and be done with it. However, it’s important to realize that you have options. You can pay your taxes online or mail in a check. You can pay via your bank account or a credit card. You can even set up an account to see more information about your taxes. We will be going through the steps of how to accurately pay your taxes and the method that may be best for you.
Your Options
Pay Online with Your Bank Account
This is a great option to pay accurately, timely, and without fees. We recommend using this option when you do not need to make regular payments and have the funds available. You can process a payment by following these steps:
Visit https://www.irs.gov/payments/direct-pay or download the IRS2GO mobile app.
Select the Make a Payment option.
Select the reason for the payment. The most common options would be Balance Due for an amount owed on a tax return and Estimated Tax for your regular estimated tax payments toward next year’s tax return.
Ensure the apply payment option is set to 1040 Income Tax.
Set the tax period to the correct tax year. For balances due, this would be the tax year you most recently filed. For estimated payments, this will be the upcoming tax return.
Fill in the contact information the form requests.
Fill in your payment amount and bank information. Ensure you include an email for your receipt as this is important for your tax records.
Provide your electronic signature and submit your payment.
Save your receipt with your tax information and provide it along with your other documents when having your tax return prepared.
Pay Online with Your Debit or Credit Card
This is the best option to pay your taxes on time when you do not have the funds available. We recommend using your bank account information instead of a debit card to avoid the processing fees.
Visit https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card or download the IRS2GO mobile app.
Select the processor with the lowest fee for your transaction.
Note: Each processor has a different layout.
Find the 1040 personal payments option and select the reason for the payment.
Find the 1040 Personal Payment option and select the reason for the payment. The most common options would be Balance Due for an amount owed on a tax return and Estimated Tax for your regular estimated tax payments toward next year’s tax return.
Ensure the apply payment option is set to 1040 Income Tax.
Set the tax period to the correct tax year. For balances due, this would be the tax year you most recently filed. For estimated payments, this will be the upcoming tax return.
Fill in the contact information the form requests.
Fill in your payment amount and credit card information. Ensure you include an email for your receipt as this is important for your tax records.
Provide your electronic signature and submit your payment.
Save your receipt with your tax information and provide it along with your other documents when having your tax return prepared.
Pay via Check
This option is best to use when the online system will mark your payment late because of a deadline. You can choose to mail your payment certified with proof you mailed it on time instead. Payments must include the appropriate voucher so the IRS knows what you are paying for. You can process a payment by following these steps:
For balances due, print the 1040-V form from your return or obtain a blank copy at https://www.irs.gov/forms-pubs/about-form-1040-v. For estimated payments, print every 1040-ES form from your return or obtain a blank copy at https://www.irs.gov/forms-pubs/about-form-1040-es.
Fill in the form if you printed a blank copy.
Prepare the envelope with the address listed with the vouchers or letter. The location is based on where you reside and payment must go to the correct processing center.
Prepare the envelope for certified mail. Without sending your payment certified, the IRS can claim it was not submitted on time. The fee for certified mail is usually smaller than the IRS penalty for late payment.
Mail your certified letter with payment and voucher.
Save your certified receipt and copy of the check with your tax information and provide them along with your other documents when having your tax return prepared.
Create an Account with IRS.gov
This option is great for those making multiple payments or who have receive a letter from the IRS. It allows you to make payments and review your balances along with certain letters you may have received. You can for an account by following these steps:
Before you begin, ensure you have the following information available: your name, email, birthdate, social security number or ITIN, your tax filing status, your current address, and your phone number. You will also need one of the following: Visa/Mastercard/Discover credit card, student loan, mortgage, home equity loan, or vehicle loan information.
Select the Create or View Account option.
Select the Create Account option.
Follow the prompts to create your account.
Create an Account with EFTPS.gov
This option is great for those with a business, especially if you have employees, or if you have uncommon tax types to pay. The EFTPS website is designed for making multiple payments and scheduling future payments. The downside is part of the registration requires the IRS mail you a letter as a verification process. You can for an account by following these steps:
Before you begin, ensure you have the following information available: your entity name, address, phone number, EIN or SSN, email, and bank information.
Visit https://www.eftps.gov/eftps/.
Select the Enroll option.
Select the appropriate entity type for you.
Follow the prompts to create your account.
You will be mailed a letter with an enrollment number and another letter with a PIN.
Return to the website at https://www.eftps.gov/eftps/login/loginInitial.
Select the Need a Password option.
Fill in the details based on the letters you received.
Additional Options
While the IRS may let you make a payment over the phone or schedule an appointment for an in-person payment, we do not recommend these options due to the lack of receipt and the general hassle required.
We would love to help your business by providing our expert services in accounting, payroll, and tax. Contact us today to set up a free consultation.
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Level Books assumes no liability for actions taken in reliance upon the information contained herein.
