Federal income taxes for both businesses and individuals are pay-as-you-go tax. There are two ways to pay taxes as you go. You can either estimate taxes or withhold tax. If you have employees working for you, withholding tax is already something that you’re aware of. On the other hand, you must do some calculations for to estimate your tax return. Whether it be for that month, quarter or annually, how you’re going to pay taxes is always going to be the same—at least online.
The Internal Revenue Service offers a lot of tools when it comes to making payments. You can be sure that you’ll never be left out trying to make payments. There are two ways you can pay taxes online. The first and the most convenient for the most is through Direct Pay. The second is paying using your debit or credit card.
While there are no fees for paying with the IRS Direct Pay, you will pay a small processing fee when paying with your credit card. However, you can only pay using your bank account through IRS Direct Pay and each of your payments must be less than $10 million.
Paying with IRS Direct Pay
With IRS Direct Pay, you can pay income taxes, estimated taxes, amended taxes, other associated forms, and file an extension at no cost to you. The IRS Direct Pay is free of fees and you can only pay with a bank account.
Click here to open Direct Pay.
If you made payments in the past you can also track by clicking on Look Up Payment.
Get to Make a Payment and select the reason for your payment. Then, select the tax forms that apply to your payment and proceed. Fill out the form to verify your identity and you’ll be instructed on how to make your payment.
Paying with a Debit or Credit Card
The electronic payments only accept payments with a debit or a credit card. Unlike the payment method above, there is a processing fee. This fee will vary depending on which payment processor you choose. On average, the processing fee is about $2.50 for debit cards and 1.80% for credit cards.
Keep in mind you will not make small business tax payment directly to the IRS. Instead, you will make your payments with Pay1040, OfficialPayments, or PayUSAtax.