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Options for Paying Your Federal Income Tax

So you finished your tax return and now you owe the IRS additional money. Below are different ways to pay your tax bill.

Check or money order

If you choose to pay by check or money order:

  • Make it out to the United States Treasury.
  • Make sure these 4 items are on the front the check or money order:
    • Your name
    • Address
    • Social Security Number
    • Daytime phone number
  • Mail the check or money order to the IRS, along with Form 1040-V, by the April 15 tax filing deadline to avoid a late payment penalty on your 2012 return.

The address to mail your payment will be on your Form 1040-V.

 

Note: If you receive an IRS letter after the deadline, you may also be eligible to pay any additional taxes due by check or money order. Follow the instructions in your IRS letter.

 
 

 

Direct debit (e-filed returns only)

With direct debit, the IRS automatically withdraws the owed amount from the account at your financial institution. Make sure you enter the correct account and routing numbers in TurboTax; incorrect numbers will delay the withdrawal, possibly resulting in non-payment penalties.

Direct debit is only available for e-filed returns. More info about direct debit payment.

Credit card (e-filed returns only)

Yep, the IRS accepts the major credit cards: American Express, Discover, MasterCard, and VISA. If your card offers bonuses, you can earn points, miles, or money back. (Check your card issuer for terms, conditions or eligibility details.)

Of course, convenience comes with a price tag – 2.49% of the total amount you owe for most cards.* This means that for every $1,000 in taxes you owe the IRS, you'll pay an extra $24.90 if you choose to pay by credit card.

Your card will be charged when your return is accepted. The transaction is handled just like any other credit card charge; you can pay the full balance due or make monthly payments.

* If you belong to the VISA Personal Signature Debit program, you will be charged a convenience fee.

Note: In TurboTax, the credit card payment option is only available if you e-file. If you're filing a paper return and want to pay your federal taxes with a credit card, visit this IRS Web page for a list of authorized providers. (In TurboTax, mark the "pay by check" option if you are asked how you want to pay.)
 

IRS Installment Agreement

If you just don't have the money to pay your tax bill now, you can apply for an IRS installment agreement.

However, there may be a fee (up to $105) associated with this. Learn more

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