Chances are you pay your many of your bills online these days. But did you know that you can also pay the IRS? With quarterly estimated tax time coming up, we thought we would give you the lowdown on paying your tax bills to Uncle Sam the easy way – electronically with the Electronic Federal Tax Payment System (EFTPS).
Enroll to Pay Your Taxes Online
Unfortunately, like many things having to do with the IRS and taxes, enrolling in EFTPS isn’t a quick process. For security, you’ll have to wait for your credentials to be mailed to you, so if you’re planning on paying your quarterly estimated taxes due on September 15th of this year through EFTPS, you’d better sign up today!
First, head over to the EFTPS website and click the red Enroll button. After accepting the terms of service, you’ll be asked whether you want to enroll as an individual, a business or a federal agency. Whether you enroll as a business or an individual will depend on your corporate structure and what taxes you intend to pay with EFTPS. Most of the time you will be paying quarterly estimated taxes as an individual. Ask your Tax Alli advisor if you have questions about how to enroll.
Next, you’ll be asked to enter some basic information, including your social security number of tax ID. After that, you’ll enter your bank information. EFTPS automatically deducts payments from your bank account. You will then have to verify your information by typing in your name and entering your social security number. From here, the IRS will verify your information and then mail you a PIN number. Don’t lose that pin! You’ll use it to later login and pay your taxes.
What Else You Need to Know about Paying Your Taxes Online
Once you are all enrolled, you should be good to go. There are a few things to remember, though, when paying your taxes with EFTPS:
•Don’t try to do same day payments. Payments through EFTPS must be scheduled by 8pm ET the day before the due date
•You can also use the telephone to schedule payments, though they must also be scheduled by 8pm the previous day
•You can schedule tax payments ahead of time through EFTPS. If you know you’ll be paying a fairly steady amount throughout the year, you could “set it and forget it” when it comes to paying quarterly estimated taxes.
•Though all states’ tax laws vary, you may have to pay quarterly estimated taxes to your state, too. Some states will also allow you to pay online. Check with your state’s taxing authority to find out. We hope this post has helped make tax time a little less stressful for you.