If you have reached working age and pay taxes each year, you will need to know how to pay the taxes you owe the IRS.
In the past, paying taxes meant completing the 1040 income tax return each year, and if you owed anything to the IRS, you would only have to write a paper check and send it. If I owed more than I could afford, the IRS would. set up a payment plan and you’ll need to send a check each month.
In recent years, times have changed. The IRS has caught up with the rest of the world and now everything is electronic. You can make the one-time payment each year or set up installment payments electronically.
Log in to your IRS account
The IRS now offers a different control panel for your bank account or other business websites where you can pay your bills electronically.
You can access this board on the page IRS View your tax account page. To access your account, select Create or view your account button.
If this is your first time visiting your IRS account online, you should select Create account and follow the setup process. This includes providing your social security number, date of birth, and other identifying information so that the IRS can locate your tax account.
Once you’ve created your account with your username and password, you can sign in and view it.
The dashboard of your IRS account
Whenever you sign in to the dashboard of your IRS account, you will need to enter a 6-digit password that the IRS sends to your phone. The IRS uses the phone number you used when you made the front row.
The Home tab of the dashboard account has four main sections.
- Current account balance
- Payment plan information, including due date and current status
- Links to access your past tax records
- The Go to Payment Options button shows payment alternatives and previous payment activity
Select the file Account balance at the top to switch to a more detailed breakdown of your overall tax bill per year. The list will show you the balance of the remaining taxes you owed that year and how much you have left to pay.
You can select the file + icon next to any of these years to see a breakdown of the penalties and interest charged on the balance.
Select the file Payment activity to view all payments you have submitted to the IRS. This is a useful feature to keep track of the years you submitted your payments and the amount you paid in estimated tax payments for the following year. This is useful when you make your taxes and do not save any receipts for these estimated payments.
How to set up direct deposit with the IRS
Something that is important to know if you are trying to set up a direct deposit with the IRS for issues such as stimulus checks, which is handled in different ways depending on your tax situation.
Direct deposit by IRS stimulus checks
If you have filed taxes in the past and have not moved or need to change your address or bank information, you only need the direct deposit information you provide to the IRS direct payment system when you pay your taxes. The IRS will get the direct deposit information here.
If you are a first-time file and the IRS does not yet have your information, you must provide it manually on the page IRS Page Get My Payment.
You must provide your social security number, date of birth, postal address and postal code. The IRS will then tell you if you meet the requirements for an incentive payment and you will be asked for direct deposit information if you have not already registered.
Direct deposit for direct IRS payments
To set up a direct deposit payment using the IRS direct payment system, sign in to your IRS account and go to Account start from the control panel. Select the file Go to Payment Options button.
Scroll through the page and select Go to IRS Direct Pay in the Pay by bank account section.
On this page you will see a couple of options in the middle of the page. Select the file Make a payment to continue.
This will take you through the IRS payment wizard. These are several steps in which you must enter information about yourself and your payment.
The first step is to select why you are making a payment. The most common choices people make Reason for payment it is a term contract or a tax return or notice.
The selection you choose will fill in the following drop-down box. A la Apply payment to drop-down, select the payment type. The most common choice here is 1040, 1040A, 1040EZ – basically paying against a specific tax return.
Finally, you must choose the tax year that you do not pay to use Fiscal period for payment drop-down.
Please note that this is the year of the return you want to pay. Check this with the balances you see in your account information for each year you owe. Select the oldest year to pay, as the IRS wants to apply payments to years prior to the most recent.
Select Keep on, then confirm your selections and continue again.
The next page is the Verify identity page. You will need to select the fiscal year (select the most recent for address verification), filing status, name, social security number, and address.
Select Keep on to continue in the process. Finally, you will need to enter the direct deposit information.
First enter the amount you want to pay, then the routing number and account number for your bank account.
Select Keep on again. Upcoming screens will only require you to confirm your payment amount and bank details. You will then need to enter your name to “electronically sign” the payment.
Now that you have made a payment through the IRS direct payment system, the IRS has your direct deposit information for future reference.
Make direct payments to the IRS
Remember that you must always select the payment year as well as the year on your account board where you must pay a balance to the IRS. Always select the year of verification as the last year you filed your taxes and use your most recent address so that the IRS can confirm your payment identity.
Unfortunately, the process of providing your direct deposit information to the IRS is not as simple as it could be. It is not intuitive that in order to receive payments from the IRS you should have already made a payment. Fortunately, if you have never made a payment (you have only received refunds), the IRS has the direct filing information on the tax return that you used to make that refund.
And if you don’t have anything registered with the IRS, but you have to pay a stimulus, at least you now have the IRS Get My Payment page to get your direct deposit information.