Easy Ways To Pay Taxes
IRS Tax Tip 2018-87, June 6, 2018
The IRS offers several payment options where taxpayers can pay immediately or arrange to pay in installments. Taxpayers should not ignore a bill from the IRS because as more time passes, interest and penalties accumulate.
Here are some ways to make payments:
- Direct Pay. Taxpayers can pay tax bills directly from a checking or savings account free with IRS Direct Pay. Taxpayers receive instant confirmation once theyve made a payment. With Direct Pay, taxpayers can schedule payments up to 30 days in advance. They can change or cancel a payment two business days before the scheduled payment date.
- Taxpayers can also pay their taxes by debit or credit card online, by phone or with a mobile device. The IRS does not charge a fee, but convenience fees apply and vary depending on the card used.
- Installment agreement. Taxpayers who are unable to pay their tax debt immediately may be able to make monthly payments. Before applying for any payment agreement, taxpayers must file all required tax returns. They can apply for an installment agreement with the Online Payment Agreement tool, which also has more information about whos eligible to apply for a monthly installment agreement.
How To Dispute Interest You Owe
We may reduce the amount of interest you owe only if the interest is applied because of an unreasonable error or delay by an IRS officer or employee.
To dispute interest due to an unreasonable error or IRS delay, submit Form 843, Claim for Refund and Request for AbatementPDF or send us a signed letter requesting that we reduce or adjust the overcharged interest. For more information, see Instructions for Form 843PDF.
Who Does Not Have To Pay Estimated Tax
If you receive salaries and wages, you can avoid having to pay estimated tax by asking your employer to withhold more tax from your earnings. To do this, file a new Form W-4 with your employer. There is a special line on Form W-4 for you to enter the additional amount you want your employer to withhold.
If you receive a paycheck, the Tax Withholding Estimator will help you make sure you have the right amount of tax withheld from your paycheck.
You dont have to pay estimated tax for the current year if you meet all three of the following conditions.
- You had no tax liability for the prior year
- You were a U.S. citizen or resident for the whole year
- Your prior tax year covered a 12-month period
You had no tax liability for the prior year if your total tax was zero or you didnt have to file an income tax return. For additional information on how to figure your estimated tax, refer to Publication 505, Tax Withholding and Estimated Tax.
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Penalty For Underpayment Of Estimated Tax
If you didnt pay enough tax throughout the year, either through withholding or by making estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. There are special rules for farmers, fishermen, and certain higher income taxpayers. Please refer to Publication 505, Tax Withholding and Estimated Tax, for additional information.
However, if your income is received unevenly during the year, you may be able to avoid or lower the penalty by annualizing your income and making unequal payments. Use Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts , to see if you owe a penalty for underpaying your estimated tax. Please refer to the Form 1040 and 1040-SR Instructions or Form 1120 Instructions PDF, for where to report the estimated tax penalty on your return.
The penalty may also be waived if:
Office Of Tax And Revenue
Office HoursConnect With Us
|Make a payment using your credit or debit card. A convenience fee of 2.5% will be charged by the credit card processor for each payment.Visit MyTax.DC.gov|
|Check or Money Order||Taxpayers who choose to mail their payments can do so via checks or money orders. Make your check or money order payable to the DC Treasurer and write your Taxpayer Identification Number , daytime phone number and the tax year on your payment.|
|ACH Credit||Reference the Electronic Funds Transfer guide|
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Individual Income Tax Return Payment Options
Use these options if you’re paying after you’ve filed your return. You can also pay at the time of filing through approved electronic filing options, and schedule your payment for any day up to the filing deadline.
Online, directly from your bank account
- Log in to your online services account.
- Dont have an account? Create one now.
Not ready to create an account?
You can pay using eForms.
- Individual return payment: 760PMT eForm
- Qualifying farmers, fishermen, and merchant seamen: 760PFF eForm
Make a return payment through Paymentus. A service fee is added to each payment you make with your card.
Check or money order
Mail the 760-PMT voucher with check or money order payable to Virginia Department of Taxation to:
Virginia Department of Taxation
Include your Social Security number and the tax period for the payment on the check.
Qualifying farmers, fishermen, and merchant seamen should use the 760-PFF voucher.
Note: If you filed a paper return with your local Commissioner, mail the voucher and check to the same place you sent your return and make the check payable to the local Treasurer.
Payment Fee – Returned Payments
If your financial institution does not honor your payment to us, we may impose a $35 fee . This fee is in addition to any other penalties and interest you may owe.
Online Credit Card Payments
Credit card payments may be paid through JetPay, the authorized agent of the Bexar County Tax Assessor-Collector. There is a convenience charge of 2.10% added by JetPay to cover the processing cost. To pay with a major credit card, you must have your 12 digit tax account number and your credit card number. Payments may be made by calling 1-888-852-3572 or online.
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When To Pay Estimated Taxes
For estimated tax purposes, the year is divided into four payment periods. You may send estimated tax payments with Form 1040-ES by mail, or you can pay online, by phone or from your mobile device using the IRS2Go app. Visit IRS.gov/payments to view all the options. For additional information, refer to Publication 505, Tax Withholding and Estimated Tax.
Using the Electronic Federal Tax Payment System is the easiest way for individuals as well as businesses to pay federal taxes. Make ALL of your federal tax payments including federal tax deposits , installment agreement and estimated tax payments using EFTPS. If its easier to pay your estimated taxes weekly, bi-weekly, monthly, etc. you can, as long as youve paid enough in by the end of the quarter. Using EFTPS, you can access a history of your payments, so you know how much and when you made your estimated tax payments.
Corporations must deposit the payment using the Electronic Federal Tax Payment System. For additional information, refer to Publication 542, Corporations.
Secured Property Taxes Terms
Annual Secured Property Tax BillThe annual bill, which includes the General Tax Levy, Voted Indebtedness, and Direct Assessments, that the Department of Treasurer and Tax Collector mails each fiscal tax year to all Los Angeles County property owners by November 1, due in two installments.
Adjusted Annual Secured Property Tax BillA bill that replaces the Annual Secured Property Tax Bill due to the following reasons: a change or correction to the assessed value of the property the allowance of an exemption that was previously omitted the correction of a Direct Assessment placed on the property from a municipality or special district or the inclusion of a penalty for failure to comply with certain requirements of the Office of the Assessor prescribed by law .
Ad ValoremAccording to the value Based on value. For example, the Office of the Assessor calculates property taxes based on the assessed value of a property.
Non-Ad Valorem Not according to the value.
AssessmentThe rate or value of a property for taxation purposes.
Assessors Identification Number A 10-digit number that identifies each piece of real property for property tax purposes, e.g., 1234-567-890.
California Relay ServiceA telecommunications relay service that provides full telephone accessibility to people who are deaf, hard of hearing, or speech impaired.
Current YearThe current fiscal tax year in which the Department of Treasurer and Tax Collector issues an Annual Secured Property Tax Bill.
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Estimated Tax Payment Options
Use the following options to make estimated tax payments. For more information about filing requirements and how to estimate your taxes, see Individual Estimated Tax Payments.
Online, directly from your bank account
- Log in to your online services account to schedule all 4 quarterly payments in advance.
- Dont have an account? Create one now.
Not ready to create an account? Use eForms – make sure to choose the correct voucher number for the payment you’re making.
- Individual estimated payment: 760ES eForm
Pay by ACH credit and initiate sending payments from your bank account to Virginia Tax’s bank account. See our Electronic Payment Guide for details on requirements and set-up with financial institutions, which may include fees.
Pay using a credit or debit card through Paymentus . A service fee is added to each payment you make with your card.
Check or money order
Mail the correct 760ES voucher for the tax period to:
Virginia Department of Taxation
Coronavirus Tax Relief For Self
Coronavirus Aid, Relief, and Economic Security Act permits self-employed individuals making estimated tax payments to defer the payment of 50% of the social security tax on net earnings from self-employment imposed for the period beginning on March 27, 2020 and ending December 31, 2020. This means that 50% of the social security tax imposed on net earnings from self-employment earned during the period beginning on March 27, 2020, and ending December 31, 2020, is not used to calculate the installments of estimated tax due. Please refer to Publication 505, Tax Withholding and Estimated TaxPDF, for additional information.
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Stop And Start Dates For Underpayment Interest
In general, we charge interest on underpayments starting on the due date of the amount you owe and will continue to accrue until the balance is paid in full:
- Tax is due on the return filing date extensions to file do not extend the date for payment of the tax.
- Penalties and additions to the tax due dates vary by penalty type:
- Failure to File penalty, also called the delinquency penalty, is due on the return due date, or extended return due date if an extension of time is filed.
- Failure to Pay, Underpayment of Estimated Tax by Corporations, Underpayment of Estimated Tax by Individuals and Dishonored Check penalties are due on the date we send you a notice or assess the penalty.
- Accuracy-related penalties are due on the return due date, or extended return due date if an extension of time is filed.
If you received a notice, you will not be charged interest on the amount shown if you pay the amount owed in full on or before the “pay by” date.
Important Electronic Payment Information
All credit card and eCheck payments will take 3 to 5 business days to process and post to your account. However, your payment will be posted as of the date of the online transaction. Before you begin the credit card or eCheck payment process, it is important to make the necessary modifications to your spam blocker to allow the confirmation e-mail to be sent to you. Once you receive the e-mail confirmation, you can go back and enable your spam blocker. You may also include the to your authorized list of senders.
If you should have any questions or concerns, please feel free to contact the Office of the Tax Assessor-Collector during our regular business hours at 210-335-2251.
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Stop And Start Dates For Overpayment Interest
In general, we pay interest on the amount you overpay starting from the later of the:
- Tax return filing due date
- Late filed tax return received date
- Date we get your return in a format we can process
- Date the payment was made
We stop paying interest on overpayments on the date we refund your overpayment or offset it to an outstanding liability.
Exception: We have administrative time to issue your refund without paying interest on it.
Extended Due Date Of First Estimated Tax Payment
Pursuant to Notice 2020-18PDF, the due date for your first estimated tax payment was automatically postponed from April 15, 2020, to July 15, 2020. Likewise, pursuant to Notice 2020-23, the due date for your second estimated tax payment was automatically postponed from June 15, 2020, to July 15, 2020. Please refer to Publication 505, Tax Withholding and Estimated TaxPDF, for additional information.
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How To Figure Estimated Tax
Individuals, including sole proprietors, partners, and S corporation shareholders, generally use Form 1040-ES, to figure estimated tax.
To figure your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year.
When figuring your estimated tax for the current year, it may be helpful to use your income, deductions, and credits for the prior year as a starting point. Use your prior year’s federal tax return as a guide. You can use the worksheet in Form 1040-ES to figure your estimated tax. You need to estimate the amount of income you expect to earn for the year. If you estimated your earnings too high, simply complete another Form 1040-ES worksheet to refigure your estimated tax for the next quarter. If you estimated your earnings too low, again complete another Form 1040-ES worksheet to recalculate your estimated tax for the next quarter. You want to estimate your income as accurately as you can to avoid penalties.
You must make adjustments both for changes in your own situation and for recent changes in the tax law.
Corporations generally use Form 1120-W, to figure estimated tax.
How To Pay Your Taxes
If you owe taxes, the IRS offers several options where you can pay immediately or arrange to pay in installments:
- Electronic Funds Withdrawal. Pay using your bank account when you e-file your return.
- Direct Pay. Pay directly from a checking or savings account for free.
- . Pay your taxes by debit or credit card online, by phone, or with a mobile device.
- Pay with cash. You can make a cash payment at a participating retail partner. Visit IRS.gov/paywithcash for instructions.
- Installment agreement. You may be able to make monthly payments, but you must file all required tax returns first. Apply for an installment agreement through the Online Payment Agreement tool.
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Pay Using Your Online Services Account
Pay directly from your bank account for free, or pay with your credit or debit card for a fee.
To make a payment:
An Online Services account also allows you to view your current balance on open bills, respond to department notices, review your account summary, and view messages from the department.
Visa, MasterCard, Discover and American Express accepted. To learn more about the convenience fee and to read the payment card disclaimer, see .
Expanded Penalty Waiver Available If 2018 Tax Withholding And Estimated Tax Payments Fell Short Refund Available For Those Who Already Paid 2018 Underpayment Penalty
The IRS lowered to 80 percent the threshold required for certain taxpayers to qualify for estimated tax penalty relief if their federal income tax withholding and estimated tax payments fell short of their total tax liability in 2018. In general, taxpayers must pay at least 90 percent of their tax bill during the year to avoid an underpayment penalty when they file. On January 16, 2019, the IRS lowered the underpayment threshold to 85 percent and on March 22, 2019, the IRS lowered it to 80 percent for tax year 2018.
This additional expanded penalty relief for tax year 2018 means that the IRS is waiving the estimated tax penalty for any taxpayer who paid at least 80 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two.
Taxpayers who have not filed yet should file electronically. The tax software was updated and uses the new underpayment threshold and will determine the amount of taxes owed and any penalties or waivers that apply. This penalty relief is also included in the revision of the instructions for Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts.
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Convenience At Your Fingertips
- Schedule payments up to 365 days in advance.
- Make your tax payment from home or office, 24/7.
- Pay your income, employment, estimated and excise federal tax payments.
- Easily change or cancel scheduled payments.
- Track your payment with email notifications.
- View 15 months of payment history.
- Receive help with payments or questions from Customer Service Agents.