How can I pay my taxes?
1. You can send your check directly to the IRS. Include a payment voucher, but also on the check write your social security number, the year the payment is for, and what taxes it is for. Such as payment for 2020 1040 taxes.
2. Go to IRS.gov and at the top of the page click, PAY. You can pay by automatic debit at no charge, a debit card at around $3.00 per transaction, or use a credit card for about a 2% transaction fee.
- Go to https://www.irs.gov/payments to pay
3. Setup and installment plan. For information follow this link to IRS FAQ for Payment Plan.
– If your plan is to pay in less than 120 days, you can set up an installment plan.
- There is no setup fee
- If you do an automatic debit from your account the monthly penalty is .25% of the remaining balance
- without an automatic debit from your account, the monthly penalty is .5% of the remaining balance
- additionally, you will be charged 4% annual interest (.34% monthly) on the remaining balance
- Interest and penalties are based on the remaining balance, including any penalties and interest
- To set up go to https://www.irs.gov/payments/online-payment-agreement-application
– If you plan to pay in more than 120 days, you can also set up a long term installment plan
- The setup fee is $31 if you are using an automatic debit from your account
- The setup fee is $149 if you are NOT using an automatic debit
- Special pricing for low-income families of $43. Click here to see if you qualify. https://www.irs.gov/pub/irs-pdf/f13844.pdf
- A monthly penalty of .25% of the remaining balance if using an automatic debit. .5% if you are not.
- Interest rate is variable but currently around 4% annual or .34% monthly on the remaining balance.
- To set up go to https://www.irs.gov/payments/online-payment-agreement-application
The other option is to pay when you can without setting up an installment agreement. The IRS will send you a notice of the amount due with penalties and interest. Just remember the penalties and interest will continue to accumulate until paid off.
NOTE: Even if you cannot pay, be sure you file as there are much larger penalties for failure to file.