Income tax return application is one of the most crucial e-filing documents that must go out on time. But, times are gone when it was a challenging and long-lasting process to pay income tax. Today, people can pay income tax online by sitting in any corner of the world. But, if you are a first-time payer of income tax online, the entire process may confuse you. When you Google for income tax payment online, you will come across different portals. Yet, not all the portals are official. Other questions may hit you hard. For example, can you pay income tax by debit or credit card? Or, is there a way to pay income tax by cheque?
If you are also wondering about all these questions, the following guide will help you. Following is a list of different methods to pay income tax online. Step-to-step instructions are given.
Disclaimer: In the event that you are unsure of the understanding of terms related to accountancy and income tax, please consult with a chartered accountant beforehand.
Method 1: Pay income tax online via DirectPay
This is one of the ineradicable ways to release your income tax payment online. Especially if you are on a deadline. Internet Revenue Service or IRS.com government online tax payment portal directly takes you to a webpage where you can view different options. You can link the webpage to DirectPay App by using a registered mobile number or social security number.
Before you link to DirectPay, please make certain that the payable tax amount is available in your checking or savings account. If your bank account does not have required money, you can instead use the second method given below.
Method 2: Add and Pay via Debit/Credit Card
Presuming that you are in a hurry to pay to the IRS, you will be surprised to know that the IRS payment portal supports both Debit Card and Credit Card. Whichever you want to use, please note that a small tax processing fee remains deductible from the card. Furthermore, if you are using a debit card, the processing fee will be returned in addition to the tax return from the IRS. But, if you use a credit card, the credit card company or banking institution may charge you interest over the payment.
Method 3: Electronic Tax Federal Payment System
Even though we are required to pay taxes one time a year, people often forget. What to do? Here’s a perfect solution: schedule your tax payment on the EFTPS.gov website. And, when the final date of payment will come, it will automatically go through. Electronic Tax Federal Payment system also delivers flexibility and adjustment capacity to the payer. For example, one can change, cancel, or reschedule the tax payment anytime before the initial scheduled date.
For the most part, this method is accurate for businesses and companies that require to pay taxes on behalf of employees. Bank Wire Transfer is another optional method to pay income tax online. However, it is less effective because the payment does not get through immediately.
Visit https://www.eftps.gov/eftps/ now.