8 Ways to Pay Federal Taxes

8 Ways to Pay Federal Taxes

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The April 18 deadline for individuals to file and pay their federal income tax is less than a month away. If you owe taxes, here are eight ways you can pay them.

Sole proprietors, partners, and S corporation shareholders who expect to owe $1,000 or more when they file must make quarterly estimated tax payments throughout the year. If you participate in the gig economy, you might also have to make estimated payments. Taxpayers can pay all of their 2022 estimated taxes by  April 18, 2022, or in four quarterly installments due April 18, 2022, June 15, 2022, September 15, 2022, and January 17, 2023.

Here are eight ways to pay your taxes.

  • Online Account: You can use the online account to make a same-day payment for your 2021 balance, an extension to file, or estimated taxes, which are all due by the April deadline for most taxpayers. You can also see your payment history, any scheduled or pending payments, and other account details, including your AGI, Economic Impact Payment amounts and Child Tax Credit payment amounts. You will need the two payment amounts for your 2021 return.
  • Electronic Funds Withdrawal: Pay when you e-file using your bank account (no charge) using electronic funds withdrawal.
  • Direct Pay: Use IRS Direct Pay to pay electronically directly from your checking or savings account. You can also schedule a payment up to 365 days in advance.
  • Card or Digital Wallet: Pay online using a credit card, debit card or digital wallet.
  • Cash: Make a cash payment in person at participating retail locations like Walgreens, Dollar General or 7-Eleven. There are a few things you’ll need to do beforehand for this option, so visit this page for instructions.
  • Electronic Federal Tax Payment System: The EFTPS is a free service. It is a safe and convenient way to pay individual and business taxes by phone or online. To enroll and for more information, taxpayers can call 800-555-4477, or visit eftps.gov.
  • Online payment plan: Pay over time by applying for an online payment Once the IRS accepts an agreement, you can make your payment in monthly installments. These plans are processed quicker than requests submitted with electronically-filed tax returns.
  • Check or money order: Payments made by check or money order should be made payable to the “United States Treasury.” To help ensure that the payment gets credited promptly, enclose a Form 1040-V payment voucher and print on the front of the check or money order: “2021 Form 1040”; name; address; daytime phone number; and Social Security number.

Be sure to check your withholdings using the Tax Withholding Estimator online. This will help make sure you have the right amount of tax withheld from your paycheck so you don’t have an unexpected tax bill or penalty later on.

If you have any questions about your taxes or how to pay them, please contact us.