Unless you’ve been living under a rock, you already know that Tax Day has been pushed back to July 15th this year. This gives you an additional three months to file and pay any owed taxes without penalty. Most filers actually receive a refund, but if you belong to the small group of people who owe the IRS, it’s best that you file early. Do your taxes now with ezTaxReturn.com so you can decide the best way to pay your tax bill. Here are some payment options Uncle Sam accepts.
Have the money automatically deducted from your bank account
When you e-file your taxes using tax software, you can choose to have the funds automatically withdrawn from your bank account at no cost. It’s one of the most popular payment options because there are no checks to write or mailing addresses to remember. Simply choose a date between now and July 15th and e-file as usual. Once your return has been accepted, the payment will be deducted on the date you selected. Keep in mind that if the date falls on the weekend or a holiday, your payment will be withdrawn on the next business day.
Send the IRS a check or money order
Sometimes a tax bill catches you off guard and you can’t afford to pay it immediately. What some people do is e-file now, then send in a check or money order once they’ve saved enough money to cover the payment. If you use ezTaxReturn, a Form 1040-V payment voucher will be included when you download a copy of your return. You’ll need to mail a copy of your tax return along with the payment voucher to the address that applies to you. Your check or money order must be made payable to “United States Treasury”.
Pay with a credit or debit card
Credit and debit cards are a convenient way to pay your bills online or over the phone. But if you plan to pay your tax bill using plastic your debt will be more expensive due to processing fees. The fee for paying by debit card starts at $2. If you prefer to use your credit card, the processing fee starts at 1.87%.
Apply for an installment agreement
If you can’t afford to make your full payment by July 15th, you can apply for an installment agreement which will allow you to make monthly payments. Depending on how much you owe, you may qualify for a short-term payment plan (less than 120 days) or long-term payment plan (more than 120 days). There’s no fee to set up a short-term plan but you will accrue penalties and interest until your debt is paid off. If you’re approved for a long-term plan and pay monthly through automatic withdrawals, the setup fee is $31 plus penalties and interest. For non-direct debit payments, the setup fee is $149 plus interest and penalties.