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Paying your balance due

If you owe the IRS, here’s a breakdown of your options for paying your balance.

Updated over a week ago

If you’ve filed your taxes and owe the IRS, you have a few options to pay off your balance whether that be in full or by applying for a payment plan if the balance is a bit too hefty. Whether you owe when you file your tax return or you receive an IRS notice with an amount due, acting quickly is important—unpaid bills can rack up interest and penalties faster than you might think. By paying your bill in full and on time, you can keep those extra costs at bay and turn a taxing situation into a manageable plan. Remember, if you file an extension it gives you extra time to file, but it doesn't extend the deadline for paying any taxes you owe.

IRS payment options

DirectPay

With this nifty option, you can make up to two payments a day straight from your checking or savings account—totally free of charge. If you like to plan ahead, you can schedule payments up to a whole year in advance, getting email confirmations for each one.

Pay with IRS.gov or IRS2Go app

The IRS2Go app brings mobile-friendly options like Direct Pay and Payment Provider payments right to your smartphone. Imagine being able to handle your tax payments while you're on the go—whether you're grabbing coffee or waiting for your next adventure.

Check or money order

If you want to pay the IRS the old-school way, you can do it with a check or money order! Just make it out to "U.S. Treasury" and include all the essential information laid out below to ensure a smooth processing experience.

Your check or money order should show your name and address, along with a daytime phone number and the primary filer’s Social Security number from the tax return the payment or notice is for. It’s a great idea to write the tax year and/or the related tax form or notice number on the memo line, as well. Finally, you’ll need to send your payment to the address specified on the notice or instructions to guarantee it reaches the right destination! Just keep in mind it may take a bit longer for the IRS to process your payment this way.

Payment processor

You can pay using a credit card, debit card, or even a digital wallet through a payment processor. Just a little heads-up: there will be some processing fees, like a small price for the convenience.

Cash

If you’re all about that cash life, you can make your tax payment at a participating retail store. Just pick the cash option in the "Other Ways You Can Pay" section and follow the easy-peasy instructions. Just a heads up: there’s a daily payment limit of $1,000, and each payment comes with a $3.99 fee. It’s a straightforward way to tackle your taxes without any plastic involved!

What about my state taxes?

Make sure to check your state filing and payment deadlines, as they may not match up with the federal deadline. If you owe state taxes and want to pay the full amount or set up a payment plan, be sure to reach out to your state tax office directly. They’ll have all the information you need to get your payment plan in place or settle your balance!

What if I can’t pay my tax bill?

If you’re staring down a tax bill you can’t pay in full, don’t panic—the IRS has some options to help lighten the load. The important thing is to act quickly, as those unpaid bills can rack up interest and penalties quickly. Here’s some options to consider to tackle your tax bill:

Online Payment Agreement

If you owe $50,000 or less in combined income tax, penalties, and interest, you can easily set up an Online Payment Agreement with the IRS. It’s a quick process that usually takes just minutes, but keep in mind that some fees may apply.

Installment Agreement

If online isn’t your style, you can still apply for a payment plan by phone or by sending in Form 9465, Installment Agreement Request.

Temporarily Delaying Collection

If you're in a tight spot, reach out to the IRS and see if you can pause collection efforts. If you provide proof of your financial status, they might just delay collection until you’re back on your feet. Just remember, penalties and interest will continue to add up until everything is settled.

Offer in Compromise

If you’re really in a bind, you might qualify to settle your tax debt for less than what you owe through an offer in compromise. Use the Offer in Compromise Pre-Qualifier tool to see if this option is right for you.

How do I reduce my balance due for next year?

Doing a quick checkup on your tax withholding for next year can save you from surprises down the road, like unexpected tax bills and penalties when tax time rolls around. Now is a great time to take a look, especially if you’ve experienced a significant life change. You can use the IRS’s W4 checkup tool or, if you have access, april offers a W-4 optimizer tool where you can calculate your refund and update your withholding so you don’t owe when you file your taxes!

This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.

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