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Six Ways to Pay Your Tax Bills in 2020

Six Ways to Pay Your Tax Bills in 2020

July 15 is almost here, and it is a good idea to be getting started in what you owe as tax. There are several options with which you can pay your tax, and we discuss them here:

    •    By Cash

Sometimes ago, it was impossible to pay tax bills by cash. The IRS has, however, made this possible with a service called PayNearMe.

The biggest amount you can pay with cash is $1000. The whole process usually takes between five to seven business days. In making payment, you will need to get to their website and follow the instructions. You will be given a code that you will take to a retailer. With this code, you will be able to make your payments.

    •    Direct Pay

You can transfer what you owe directly to the IRS from your savings account. In doing this, click the Direct Pay page. You will have to select the tax form, reason for payment, and tax year as well. You will have to include your name, address, and social security number to verify your status. You will also have to enter the payment amount and date alongside the banking information. Follow the process to the end, and that is all.

You can either schedule a payment or pay it the same day. You can, however, only make two payments within 24 hours. 

    •    Pay by Wire

You can contact your financial institution to wire the funds you owe to the IRS. They will also supply you with the procedure and duration. There is a Same-Day Payment Worksheet you can download and take to your bank to make the payment.

    •    Electronic Fund Withdrawal

The electronic funds' withdrawal directly debits your bank account. It is free to use even though your bank might charge a token. You will need information on your bank routing number and account number to be successful with this.

    •    Pay by Credit or Debit Card

Whatever you owe, you can pay the IRS with a debit or credit card. You can use Discover, Visa, MasterCard, and American Express on many approved IRS payment platform. While there is no limitation on whatever you can pay, you can only have two credit card payments in a year. Besides, if you have to pay more than $100,000, you will have to coordinate with your card issuer. 

Bear in mind, however, that using a third party credit or debit card provider might involve a fee. The fee, however, depends on the credit card type, provider, and payment amount. For debit cards, the price ranges from $2.00 to $3.95, while credit cards have fees ranging from 1.87% to 1.99%.

When you complete the transaction, the tax payment will be labeled as "The United States Treasury Tax Payment," while the fees to your provider will be marked as "Tax Payment Convenience Fee."

    •    You can pay by Phone or Online Using the Electronic Federal Tax Payment System (EFTPS)

You will have to call 1.800.555.3453 to pay your tax using EFTPS by phone. People with a speech disability, with hearing difficulty or who are deaf, can call 1.800.733.4829, provided they have access to TDD/TTY equipment.

To pay using this mode, login, and follow the voice prompts. You can plan your payment by 8 p.m. EST at least one calendar day ahead of your due date. Bear in mind that even if the website is not available, your tax payment could be due hence try and plan.

You will, however, need to be enrolled to use the Electronic Federal Tax Payment System. On validating your data with the IRS, they will send you a personal identification number (PIN), which should arrive between five to seven business days. It could take a more extended period hence, be patient.

On a final note, you need to be careful of scammers as they are continually looking for means to defraud unsuspecting Americans. With this in mind, EFTPS will never send you an e-mail. Should you receive any mail claiming to be from EFTPS tax payment service or any strange sender, forward the mail to phishing@irs.gov. You should also call the Treasury Inspector General for Tax Administration at 1.800.366.4484.

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