How to Pay Your Taxes Online

How to Pay Your Taxes Online

The IRS offers multiple ways to pay your tax bills online. The option you choose may depend on what type of tax bill you’re paying and which payment method you prefer.

Electronic Funds Withdrawal

Pay your tax bill when you e-file your tax return using electronic funds withdrawal (EWF). The EWF payment option is integrated into e-file software when you use IRS Free File or other tax preparation software, or work with a tax professional to file your federal tax return. You provide bank account information and authorize a charge; the IRS requests a direct debit from your account when your return is processed. EWF is only available when you e-file your return.

Direct Pay

Pay your tax bill directly from your checking or savings account for free using IRS Direct Pay. You can use Direct Pay to pay balances due, quarterly estimated tax payments, extension payments and installment payments, to name a few examples. Direct Pay allows you to schedule payments up to 365 days in advance and change or cancel scheduled payments up to two days before the scheduled payment date. You’ll receive an instant confirmation when your payment is submitted.

Credit or Debit Card

If you’d rather pay using a debit or credit card, submit your payment through the IRS’ approved third-party payment processors. IRS payment processors can accept payment information online, by phone or via mobile device. Although the IRS doesn’t charge a fee for online card payments, their third-party processors do. For reference, convenience fees start at $2.14 for debit payments and 1.86% (minimum $2.69) for credit card payments at the time of this writing.

Digital Wallet

You can also use an IRS third-party payment processor to pay with a digital wallet, such as Venmo, PayPal or Click to Pay. Convenience fees may apply.

IRS2Go App

Use the official IRS2Go app to make a payment using your mobile device. IRS2Go lets you submit a payment using Direct Pay, a payment card or a digital wallet. You can also use the app to find free tax preparation assistance and check your refund status. IRS2Go is available in both English and Spanish from Google Play, the Apple App Store and the Amazon App Store.

Electronic Federal Tax Payment System

Like Direct Pay, the Electronic Federal Tax Payment System (EFTPS) allows you to make online payments to the IRS directly from your bank account. Additional features like being able to authorize payments by phone, make large payments (up to $50 million) and schedule up to four payments at once make EFTPS a preferred option for many business taxpayers. The IRS mails you a PIN when you enroll in EFTPS, so allow extra time to get set up and pay if you choose this option.

Is it Safe to Pay Taxes Online?

Online payments to the IRS made through EFW, Direct Pay, EFTPS, the IRS2Go app and IRS-approved third-party payment processors are safe, according to the IRS. Although all online payments carry some measure of risk, the IRS uses encryption to keep information on its site secure. Payment information is not shared except for the purpose of processing payments. The IRS also uses multifactor authentication and identity verification to help keep unauthorized users away from your account and information.

You can also do your part to keep the payments you make online with the IRS safe. Use security features like multifactor authentication and biometric recognition when entering personal and payment information on tax-preparation apps. Use an encrypted connection (and definitely not public Wi-Fi) when submitting payment information online, and password protect tax-related documents when storing them on a home computer or network.

Avoid IRS Payment Scams

For safety’s sake, make sure your online IRS payments are indeed going to the IRS. Use the IRS website or IRS2Go app to submit payments; don’t use text or email links sent to you by someone who may be posing as the IRS. As a matter of policy, the IRS doesn’t send emails or text messages requesting payment.

Be Careful Paying by Check

Making a secure payment to the IRS online may be safer than mailing a check. Not only can checks get delayed or lost in the mail, but they’re also susceptible to common types of check fraud. Thieves may alter stolen checks and attempt to cash them, or use check information and your signature from stolen checks to create counterfeits.

If you decide to pay the IRS by check, follow up with your bank to make sure your check has been successfully deposited.

How Long Do You Have to Pay Taxes?

The deadline for individuals to pay federal income tax is April 15. Although the IRS’ April tax filing deadline may be postponed a day or two if April 15 falls on a weekend or holiday, your tax payment is due on the official filing deadline. Even if you request an automatic extension to file your taxes, you must pay the tax you owe on April 15 (or whichever day the tax filing deadline falls on that year).

Failing to pay your taxes on tax day in April may result in penalties and interest. Here’s a quick rundown of potential charges.

• Failure-to-pay penalty: The IRS charges a penalty of 0.5% per month for each month or partial month that your tax bill remains unpaid, starting from the due date of the return. The maximum penalty is 25%. The failure-to-pay penalty doubles to 1% monthly for any tax that remains unpaid 10 days after the IRS issues a notice of intent to levy property.
• Interest charges: Interest accrues on an unpaid balance starting on the due date of your tax return until the balance is paid in full. The interest rate is determined quarterly based on the federal short-term rate plus 3%. Interest compounds daily.
• Failure-to-file penalty: An additional penalty is due if you fail to file a tax return. The failure-to-file penalty is 5% of the tax owed for each month or partial month your return is late, up to a maximum of 25%. If your return is more than 60 days late, the minimum penalty for late filing is 100% of the tax owed or $485 (in 2024), whichever is less.

If you filed and paid your taxes but the IRS finds you still owe money, you may receive an IRS notice in the mail. In general, tax bills from the IRS are due immediately. Delaying payment could result in additional penalties and interest.

What to Do if You Can’t Afford Your Tax Bill

If you can’t pay your whole tax bill, pay what you can now and pay off the remaining balance with an IRS payment plan or your own financing. Here are the basic steps to follow:

1. Pay What You Can Now

Pay as much of your outstanding balance as you can by the due date. You’ll minimize penalties and interest—and keep your IRS balance as low as possible. If your tax return is due, file it even if you can’t pay everything you owe yet: At least you’ll avoid paying a failure-to-file penalty.

2. Apply for a Payment Plan

An IRS payment plan may give you up to six years to pay off your tax bill. You can apply online for the following IRS payment plans.

Setting up an IRS installment plan cuts your monthly late-payment penalty in half (0.25% from 0.5%), but you’ll continue to pay interest until your balance is paid. User fees also apply to long-term installment and business installment plans. However, requesting an installment plan generally suspends collection efforts and prohibits the IRS from levying, offering you a bit of relief.

If you want help structuring an IRS payment plan, consider meeting with a tax advisor or tax attorney to review your options. Learn about additional IRS payment plans and filing IRS Form 9465 to request an installment agreement on the IRS site.

3. Consider Financing

If you would rather avoid owing money to the IRS, you can use a personal loan, home equity loan or credit card to pay your tax bill instead of setting up installments. To fully understand the cost of each option, add up the penalties, interest and fees you would owe if you set up an IRS payment plan and compare results with interest costs and fees on a personal loan, home equity loan, credit card cash advance or credit card payment to the IRS.

Taxpayers experiencing financial hardship can ask the IRS to consider temporarily delaying collections, accepting an offer in compromise (to settle for less than the amount owed), and waiving or reducing user fees. Learn more about tax payment options for low-income taxpayers in IRS Topic 202.

The Bottom Line

Though online payments are undeniably fast and convenient, giving yourself a little extra time to make your payment may prove helpful. Some services, like EFTPS, require registration steps that can take days to complete. Both EFTPS and Direct Pay services are not available daily from 11:45 p.m. to midnight, so if you’re really trying to squeak by at 11:57 on tax day, you may be out of luck.

Take a moment now to check out your online payment options and make a plan for tax time and for any additional payments you need to make throughout the year. You’ll be ready to go when the time arrives.