Owe the IRS? Six Ways to Pay Your Taxes This Year
There is a chance that you’re unaware of the date whereupon your taxes need to be filed — it’s April 18, by the way — but do you know all the choices you now have in terms of making your payment?
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Technology and online security protocols are continually advancing, and the IRS is adapting this year by providing several options where you can pay immediately or arrange to pay in installments. The latest payment option update from the IRS outlines a variety of choices available to taxpayers, from online account withdrawals to paying cash at a retail outlet.
Here are the six options available to you this tax season:
1. Electronic funds withdrawal (EFW): If you are e-filing your federal taxes, you can submit a payment request for direct debit from your bank using an EFW. This e-file/e-pay option is free, but check with your bank to see if they charge any of their own transaction fees.
2. IRS Online Account: You can make debit or credit payments via this portal.
3. IRS Direct Pay: This secure service offers a scheduled electronic withdrawal, and you can sign-up for a withdrawal from your bank account at no cost. Email notifications of forthcoming and pending payments — and the option of changing payment dates — make this payment choice appealing.
4. Credit, debit or digital wallet: Third-party processing fees may apply, but debit and credit cards are the most popular option to pay for anything, including taxes. You can choose to pay online or over the phone and have a choice of comparing processor rates. If you prefer paying through a digital wallet like PayPal or Click to Pay, you can do that, too.
5. Pay with cash: Cash is still king — or the only option, for many. Paying at retail partners such as Walgreens, CVS Pharmacy, 7-Eleven and Family Dollar is convenient in terms of location of outlets (all 50 states and Puerto Rico) and sheer number (over 60,000 participating stores). Payment limits exist and each cash payment will mean paying VanillaDirect, which provides a list of participating retail outlets, a $1.50 fee.
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6. Online payment agreement: If you apply and get accepted for this payment plan, you will have the opportunity to pay off your balance over time. Individual tax return specifics, enrollment though ID.me and possible fees are considered depending on whether you want to pay the full amount or select a short-term or long-term (installment agreement) plan.
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