PAYING BY CHECK OR MONEY ORDER
You can pay by check or money order even if you e-file. To pay what you owe for 2019, make your check or money order payable to “United States Treasury” for the full amount due. Write “2019 Form 1040” on the memo line together with your Social Security Number (if you are filing a joint return, write the SSN shown first on your tax return on the memo line). Make sure that your name, address, daytime phone number are on the check; that info may already be printed on your check so no need to duplicate it. Include payment together with a form 1040-V, Payment Voucher (if you cannot find the voucher we provided you email firstname.lastname@example.org and we will get one to you fast! Arizona residents mail your payment to:
Internal Revenue Service
PO Box 7704
San Francisco, CA 94120-7704.
If you are not in Arizona you can reference the chart below and mail the payment together with your form 1040-V to the address that corresponds to the state where you live:
While I know that writing a check to pay your taxes can be painful, be smart: Don’t write a check that you do not have the funds to cover. You are not fooling anybody, and there is a penalty for writing a bad check to the IRS ($25 or 2% of the check, whichever is more). It is not worth it. And remember that the Internal Revenue Service (IRS) no longer accepts checks over $100 million (you’re welcome).
PAYING ONLINE USING IRS DIRECT PAY
Pay online using the IRS Direct Pay website with your bank account for FREE!
You can pay your taxes directly from your checking or savings account. To make a payment, click on over to the IRS Direct Pay website. Click on the Make a Payment button and it will take you to here:
You will select the appropriate payment type and reason for your payment. If you are paying your 2019 1040 balance you will select the same options as in the picture above.
You will need to verify your identity by providing information about your filing status from your last return (best if you use your 2018 1040) as well as your name, SSN, birth date and address. Enter the payment amount, payment date and your bank account information. Click through to the end and you are done. The IRS does not keep your bank account information after payments are made and there is no fee for using the system.
You can schedule a payment or pay the same day, but IRS Direct Pay will not accept more than two payments within a 24-hour period. And if you owe bunches, note that each payment must be less than $10 million.
PAYING ONLINE USING A DEBIT OR CREDIT CARD
You can pay what you owe by debit or credit card. Most of the approved IRS payment processors accept Visa, MasterCard, Discover, and American Express. You can find a list of payment processors here.
Generally, there is no limit on the amount you can pay, but you are restricted to paying by credit card two times in one year for the same individual tax bill. High-balance payments of more than $100,000 may require coordination with your credit card or debit card provider.
Third-party credit and debit card providers may charge a fee, which may vary by provider, card type, and payment amount. APPLICABLE FEES FOR DEBIT CARDS range from $2.00 to $3.95 while FEES FOR CREDIT CARDS range from 1.87% to 1.99% (minimum fees apply). The convenience fee paid to your provider will be listed as “Tax Payment Convenience Fee” or something similar, while the tax payment will show “United States Treasury Tax Payment.” Keep in mind that different rules (and fees) apply for integrated IRS e-file and e-pay service providers
USE THE ELECTRONIC FEDERAL TAX PAYMENT SYSTEM (EFTPS) TO PAY BY PHONE OR ONLINE
To make a payment using EFTPS by phone, call 1.800.555.3453. People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1.800.733.4829. To make a payment using EFTPS online, log in and follow the prompts. You can schedule your payment by 8 p.m. EST at least one calendar day in advance of the due date. It is worth noting that your tax payment is due even if the website is not available, so plan ahead.
You must be enrolled to use EFTPS. To enroll, click here and follow the steps. After your information is validated with the IRS, you will receive a personal identification number (PIN) in the mail in five to seven business days. Between the IRS and the U.S. Postal Service, you are going to need to be patient.
Also, as scammers ramp up their efforts to steal your personal and financial information, keep in mind that EFTPS will never contact you via e-mail. If you receive an e-mail that claims to be from the EFTPS tax payment service or from a sender you do not recognize that claims to have information about a payment scheduled through this service, forward the e-mail to email@example.com or call the Treasury Inspector General for Tax Administration at 1.800.366.4484.
A FEW MORE PAYMENT TIPS:
PLAN AHEAD. If you pay by mail, your payment is generally treated as paid as of the date of the postmark. For other payment options, your payment is considered received when accepted, not initialized. Be sure to schedule electronic payments in advance to avoid late fees and penalties. And remember that accidents happen, so leave some extra time, just in case.
These options apply if you are filing your tax return and if you are filing for an extension. REMEMBER, AN EXTENSION EXTENDS THE TIME TO FILE, NOT THE TIME TO PAY. You will want to make a payment with your extension request if you will owe tax.
PAYING LATE? PAY ANYWAY. Notwithstanding the above, it is better to pay late than not at all. If you are going to be late, do not let it stop you.
BE SMART. No matter how you choose to pay, do not send cash through the mail.
PAY ATTENTION TO YOUR CLICKS. If you are not sure that you are using a legitimate payment method, you can always click back to the IRS website. Only use the methods approved by the IRS. Remember that you cannot pay your taxes with iTunes or other gift cards.
USE THE RIGHT CURRENCY. Even if you are paying tax on foreign income, you must pay in U.S. dollars.
AND HERE’S YOUR MONEY-SAVING TIP OF THE DAY: You do not have to send payment if the amount you owe is under $1. This information, of course, assumes that you have the money to pay your tax bill. If you cannot pay your tax bill in full, consider an installment agreement or one of the many other options.
As always, should you have any questions or concerns regarding your tax situation please feel free to contact us.
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