Taxpayers who owe the IRS 2019 income tax, in addition to estimated tax for 2020, must make two separate payments on or by July 15, 2020. These payments will be split between their liability for 2019 and their estimated tax payments for 2020. Many individuals know that they taxes but are unsure of how to pay them. Below is 6 ways how to pay the IRS your estimated tax payments.
- Electronic Funds Withdrawal (EFW). This option allows taxpayers to file and pay electronically from their bank account when using tax preparation software or a tax professional. EFW is free and only available when electronically filing a tax return.
- Direct Pay. Direct Pay is free and allows taxpayers to securely pay their federal taxes directly from their checking or savings accounts without any fees or preregistration. Taxpayers can schedule payments up to 30 days in advance. After submitting a payment through Direct Pay, taxpayers will receive immediate confirmation. They can opt-in to receive email notifications about their payments each time they use Direct Pay.
- Credit, Debit Card, or digital wallet. Pay online, by phone, or with a mobile device through any of the authorized payment processors. The processor charges a fee. The IRS doesn’t receive any fees for these payments. Go to IRS.gov/payments for authorized card processors and phone numbers.
- IRS2Go. The IRS2Go mobile app is free and offers taxpayers the option to make a payment with Direct Pay for free, or by debit, credit card, or digital wallet through an approved payment processor for a fee. Download IRS2Go free from Google Play, the Apple App Store, or the Amazon App Store.
- Electronic Federal Tax Payment System. This free service gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online. To enroll and for more information, call 800-555-4477 or visit eftps.gov. Both business and individual taxpayers can opt-in to receive email notifications about their payments.
- Cash. Taxpayers paying with cash can use the PayNearMe option. Payments are limited to $1,000 per day, and a $3.99 fee applies to each payment. Taxpayers choosing this option should start earlier rather than later because PayNearMe involves a four-step process. Initiating a payment well ahead of the tax deadline will help taxpayers avoid interest and penalty charges. The IRS offers this option in cooperation with OfficialPayments and participating retail stores. Details, including answers to frequently asked questions, are at IRS.gov/paywithcash.
As a reminder, you must file their 2019 tax returns by July 15, 2020, or request a three-month extension to October 15, 2020. Any taxes owed, however, are still due on July 15 and even if they can’t pay, taxpayers should still file an extension to avoid the higher penalties for not filing at all. If you have any further questions please read the IRS’s Payments Page for further information.
