How to Pay Federal Income Tax Online
Yes, the IRS has entered the digital age! They offer several ways to pay your tax online.
Direct Pay with Bank Account
There’s no service charge to have the money taken directly from your bank. To make a payment or look up a payment you already made, go to the Direct Pay page on the IRS website. You can use direct pay service to make payments for:
Installment Agreement
1040, 1040A, 1040EZ, health care Form 1040or civil penalty
Tax Return or Notice
1040, 1040A, 1040EZ, health care Form 1040, retirement plan 5329 or tax-favored account 5329
Extension 486
for 1040, 1040A, 1040EZ
Estimated Tax 1040ES
1040, 1040A, 1040EZ
Notices CP2000, CP2501 or CP3219A
1040, 1040A, 1040EZ or health care Form 1040
Proposed Tax Assessment
1040, 1040A, 1040EZ or health care Form 1040
Amended Return
1040X or health care Form 1040
Civil Penalty
Installment agreement, advance payment or other amounts due
Offshore Voluntary Disclosure
1040, 1040A, 1040EZ or civil penalty
Offshore Streamlined Filing Compliance
1040, 1040A, 1040EZ or civil penalty
Credit Card or Debit Card
You can use an approved payment processor (listed on the IRS website) to pay by internet, phone, or mobile device whether you e-file, paper file or are responding to a bill or notice. The processor will charge a fee, which does not go to the IRS and may be tax-deductible.Note that when you e-file with integrated e-payment, the processing fees may be different. Visit the Debit or Credit Card payment page on the IRS website for more information.
Electronic Federal Tax Payment System
This option is mainly for large businesses or those who need to make large payments. It can be used to make any type of tax payment, including income, employment, estimate and excise taxes. You get 24-hour convenience plus next-level security with 3-step authentication.However, you must enroll in the EFTPS, which can take up to five business days, so it’s not a good choice if you’re trying to make an 11th-hour payment. Learn more about it on the IRS’s EFTPS website page.
Electronic Funds Withdrawal
This can be part of the e-filing process using tax preparation software or a tax professional; it is not available otherwise. The payment will be debited directly from your designated bank account.Visit the IRS Electronic Funds Withdrawal page if you have any questions.
Same-Day Wire
This isn’t really paying online, but it is electronic and thus saves time over snail-mailing a paper check. Inquire at your financial institution if they can wire your tax payment to the U.S. Treasury, and be sure to find out about their service fees and cut-off times. This may be a great option if you’re living overseas or have left your payment to the absolute last minute.To make it happen, go to the IRS Same-Day Wire page, download the Same-Day Taxpayer Worksheet, fill it out and take it to your financial institution.Don’t forget, your Xendoo tax professional can answer any questions about paying, calculating, or filing your taxes. It’s all part of our service, which takes the work and worry out of tax season and lets you get back to running your business.
