Posted by Rosovich & Associates, Inc.

Recommended Ways to Pay Your Taxes

Recommended Ways to Pay Your Taxes

There are multiple options for anyone that wants to pay their taxes. This article will shed light on various payment options available from the IRS.

  1. Automatic Payment 

People who bank online can have an automatic payment set up to Uncle Sam, which happens with other bills. Before the filing deadline, people who want to file early can set up their payment bills before the 17th of May, this year. 

One needs to make sure the tax identification number is located on the payment; this is usually the taxpayer identification number. You also need to include your name and address on the form, alongside the tax period (Form 1040) that applies to the payment.

  1. Money Order or Check

Uncle Sam does not mind payments with money orders or checks. However, the IRS prefers checks since they are free, and one can write the check anywhere. 

The payee line when writing a check should read "US Treasury," not IRS. This is the Internal Revenue Service's recommendation as it will make it harder for anyone to steal your check even if they steal your check.

One will have to include the name, address (if they are not on your check), tax identification numbers, tax period, and the form number. This will be Form 1040.

Also, you should not leave tax payments going to the IRS via check in a mailbox. You will drop the envelope with the check into your post office drop box. According to Uncle Sam, your payment date is the date your envelope was postmarked. 

  1. Debit Card

The IRS has made tax payments as simple as paying for groceries; thus, you can even swipe your card to make a tax payment. 

This, however, comes with a fee – less than 4% from the company providing the credit card services. If you are not comfortable with the charges, you can consider other payment methods. 

  1. Electronic Federal Tax Payment Systems 

This option is free, convenient, and safe for users. One can either pay the tax online or by using a phone on the IRS's system. 

One needs to set up an EFTPS account system early to receive the EFTPS Personal Identification Number (PIN) alongside the internet Password. 

It is advisable not to wait till the last minute before filing taxes. One needs to schedule a payment at least 8 pm the day before the day you want to pay.

  1. Same-Day Wire

For people that cannot pay their taxes using the EFTPS system, there is a same-day wire transfer to Uncle Sam. You can contact your bank to allow you to make a tax payment by wire transfer alongside what they charge. 

There are same-day wire transfers applicable for business tax deposits. 

  1. Credit Card

One of the easiest ways to pay your tax is by credit card, but it might not be the best choice. 

There is no charge from Uncle Sam for payment using a credit card even though most times the company issuing the credit card does have some charges. There will be a convenience fee based on the amount you will pay, alongside the interest for the card if you are not paying at the moment.

Is A Cash Payment Possible?

It is not advisable to send cash to the IRS using mail. However, one might be able to pay cash at the local IRS office. 

For people owing more tax compared to what they can pay, it is recommended to spend what they can afford by the 15th of April. Also, one needs to pay the rest as soon as the fund is available. 

There are interests and penalties from Uncle Sam based on what someone owes and what time has passed.



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