Options for Paying Taxes Online3 min read
Consumers feel comfortable to pay bills online. So following are the ways you can pay your taxes online.
Credit Card Payments
Credit cards can be used to pay the taxes online. The taxpayer should keep in mind that this payment method will be costly and they will have to pay more than just their tax bill. There is a different fee schedule for every company. Some have credit card fees ranging from 1.87% to 2.25% of the tax bill. Moreover if full payment of the credit card is not paid then the interest amount will start piling up.
You can check your card statement to see your tax payment and the convenience fee.
With this Direct Pay option by IRS, you need not to worry about pre-registration and credit card or bank fees. You can check the online Pay Your Tax Bill section to find this option. It is available 24 hours a day. You can schedule payments, plus estimated tax amounts.
You need a tax return handy of the previous year, one filed within the last 6 years so that the IRS can identify you.
The selected tax year need not to match the year you applied the payment as the information is only to verify identity.
You will have to enter the amount of payment, the type of payment and the year of payment. Give your bank information to IRS.
After the completion of these steps, review what you entered, sign the transaction electronically and then hit send. You’ll receive an online confirmation to print or otherwise save for the filing records.
Electronic Funds Withdrawal
It is the reverse of the direct deposit and is for those individuals who file through computer. IRS recommended for getting the refund. With this method the taxpayer can instruct the Government to debit his account for his tax payment when he wants to file his return.
With the help of electronic funds withdrawal, the filing paperwork gets out of the way early and you can hold on your cash until the last minute.
Electronic Federal Tax Payment System
This option can help you avoid credit card and possible bank fees. This has been a very popular option for the businesses for years as it helps to transfer various taxes to the IRS directly.
EFTPS is available year round and is also a free service. The taxpayers can pay taxes with more than 2 dozen tax forms. But before using this service, you have to enroll and get a personal identification number and password. The U.S. Postal Service sends the confirmation but check with your bank if there is any transfer fee.
The users can make payments all the year round and also schedule their payments in advance.
This is a new method in which the taxpayers can pay their tax in cash. The IRS partnered with Official Payments and Pay Near Me now allows taxpayers to pay their taxes through cash payments at participating 7-Eleven stores.
The process is not simple. You need some type of planning before making the payment.