Do you pay your taxes on time? If your answer is yes, then you have been doing your civic duty phenomenally. The amount from taxes helps the country in more than one way and this is why the Internal Service Revenue is tasked with making sure that everyone capable of paying taxes pays them, or else, gets penalized.
Today, you have many easy ways to pay federal income tax online. That’s right, both individuals, as well as companies, can pay their taxes either in one go or in installments. Before we walk you through how to pay the federal income tax online, let’s discuss its importance.
Why is it Important to pay Federal Income Tax?
As mentioned above, taxes are important for the smooth running of a country. What makes us say that? Well, your tax money is distributed among many places. For starters, it is used to compensate the government employees for their services. Additionally, the police department and the firefighters are funded by your taxes.
Moreover, the construction and maintenance of the roads you travel on are only possible via tax money. And not only the government employees but various non-profit government programs that aim to change the lives of the less fortunate, are funded by your tax money.
So, the picture is clear. You have a part to play in the success of your country and whether you are playing it responsibly or not gets determined by the IRS.
Paying Estimated Federal Income Tax Online
In order to pay the estimated federal income tax online, download the “IRS2Go app” first. Then, head over to IRS.gov/payments to find out all the payment options at your disposal.
Whether you are an individual or a business looking to pay your taxes, it’s recommended that you opt for the Electronic Federal Tax Payment System (EFTPS) as it has been touted as one of the easiest ways for paying federal taxes.
EFTPS stands out because it allows you to make all, and we mean all, of your federal income tax payments via its platform. These payments include federal tax deposits (FTDs), estimated tax payments, and installment agreements.
But what if you don’t want to pay all your taxes at the same time? Well, that’s not a problem when you are using EFTPS because the said service allows you to break down your total tax payment into several installments i.e. weekly, bi-weekly, monthly, and so on. What matters the most is that by the end of a given quarter, you have paid a sufficient amount in taxes.
How to Pay Federal Income Tax Online | Guide To IRS Payment
In case you fail to pay at least 90% of the tax amount you owe to the government within a particular year or you have underpaid the tax by over $1,000, then there’s a high chance of you getting penalized by the IRS.
However, in case your reason behind not making timely tax payments has to do with the disruption in your income over the same year, the penalty imposed on you could be lowered or even waived entirely.
The penalty may also not hold if you have failed to make the tax payments due to unforeseen and unfortunate incidents such as casualties and disasters.
Additional Options for Paying Federal Income Tax Online
Other than EFTPS, you can also complete your tax payments via a digital wallet or a card (debit or credit). Additionally, you can rope incredible tax software to help you calculate and pay your taxes online.
While making payment via card, it should be noted that processing charges would apply.
You can also pay easily via the IRS2Go app as it includes several easy ways to make payments.
As a citizen of the United States of America, it is your duty to pay your taxes on time if you belong to the working class and get your salary on time over the year. Different states have implemented different payment deadlines.
In the age of technology, it has gotten way easier to pay federal income tax online. There are countless channels for you to do the same and whether you would like to pay your taxes at the same time or in installments, the choice is in your hands. So, do your part and encourage others to do the same.