The tax season is approaching and depending on the taxes you withheld or paid during the course of the tax year, you will either receive a tax refund or pay the IRS.
You can find out whether or not you owe to the IRS as soon as you file your federal income tax return. If the total amount of taxes paid to the IRS is less than what’s owed, you will have to make up the difference. If it is more, the IRS will refund the money with a tax refund. To see refund amount, check Line 20 of Form 1040.
As for paying taxes that you owe to the IRS, there are plenty of ways you can pay. Regardless of the type of tax you owe to the IRS, we suggest paying online since you don’t need to wait in line at the local IRS office and handle everything on your computer.
There are two main ways to pay taxes online. One is for debit and credit cards and the other is for paying with a bank account. While you’re not directly going to pay the IRS when paying with a debit or credit card, you will pay the IRS directly by paying with your bank account. Here is how to pay taxes online in 2021.
IRS Direct Pay – Bank Account
The Internal Revenue Service’s own payment method, Direct Pay allows taxpayers to pay taxes online using their bank account. Since you will be paying to the IRS directly, there won’t be any processing fees but it may take a while for your payment to reach the IRS. With that said, make sure to pay taxes as early as possible if you’re paying with Direct Pay.
Click here to open IRS Direct Pay
On Direct Pay, select the reason for your payment, for example, extension or tax return. Select the tax year that applies to your payment along with the tax form. Continue to fill out the form to verify who you are. At last, make your payment but don’t forget to save the confirmation number you’re givenç. You will use this number to track your payment. You can track payments on the first page of Direct Pay by clicking “Look up Payment”.
IRS-Approved Payment Processors – Credit Card
Since the IRS doesn’t accept payments from a credit card, you can only pay taxes using your credit card through a payment processor. The payment processor sthat are approved by the IRS are:
Each of the above payment processors above has its own processing fees for debit and credit cards. At the time of writing, the processing fees are around $2.50 (fixed) for debit cards and about 1.90% for credit cards. Pretty much all payments are accepted such as VISA, MasterCard, American Express, Amex Express, MasterPass, PayPal, etc.