Make Tax Payments Online
Taxpayers have the ability to pay taxes online. Regardless of the kind of tax you want to pay, the tax payments can be made online using almost all forms of payments. You can pay taxes using your bank account, credit card, and debit card.
In this article, we will explain how you can pay all types of taxes owed with an emphasis on federal income taxes.
Pay taxes online using bank account – IRS Direct Pay
Taxpayers can pay taxes using their bank account by making a transfer to the Internal Revenue Service. This is a preferred method for those who don’t pay taxes every year and are making large payments. The tax payments made through IRS Direct Pay aren’t subject to fees. This makes it such an appealing place to pay taxes online as you won’t be paying fees based on the amount you need to pay.
Go to IRS Direct Pay to pay taxes using your bank account. All you need to do is provide the IRS with certain details to verify your identity and payment information. Upon successfully making your payment, you will receive a confirmation number which you can use later to track the status of the payment.
Pay taxes online with a credit card or debit card
Paying taxes online with a credit card can an easy deal and the same also goes for debit cards. However, the same cannot be said for the fees you will pay for making tax payments. The processing fees paid for paying taxes with credit cards is significantly more than debit cards.
The processing fees for credit cards is a fixed percentage of the payment made while the fee is a fixed dollar amount for payments made with debit cards. The fees are slightly under 2 percent of the payment for credit cards whereas it’s up to $4. So the fee is considerably less for debit cards, even for larger payments as it’s also fixed.
To pay taxes online using a credit card or debit card, you must choose a payment processor. The processing fees are different from one payment processor to another. The fees are subject to change so make sure to pick the payment processor that offers the lowest fee.
Pay taxes online through EFTPS
The Electronic Federal Tax Payment System, abbreviated as EFTPS is also another option similar to Direct Pay. However, this is more for businesses to pay their taxes.
For example, if you’re self-employed and want to pay quarterly federal estimated tax payments, the EFTPS is such a great place you can see prior payments for the previous quarters. This will enable you to figure out whether or not to pay more or less than what you’ve estimated using 1040-ES.
These are how you can pay taxes online. Regardless of the type of tax you pay whether it be federal income taxes, business taxes, or other kinds of taxes, you make online payments to the IRS through the methods mentioned above.