Paying your taxes can sometimes feel like navigating a complex maze, but with TurboTax, the process is designed to be as straightforward as possible. Whether you owe federal taxes, state taxes, or both, TurboTax helps you understand your options and guides you through each step. Let's dive in and demystify the payment process!
How to Make Payments on TurboTax: A Step-by-Step Guide
Step 1: Understand Your Tax Situation – Do You Owe, or Are You Getting a Refund?
Before you even think about making a payment, the first and most crucial step is to finalize your tax return in TurboTax and determine your tax liability. Have you completed all sections, entered all your income, deductions, and credits? TurboTax will calculate whether you owe taxes or are due a refund.
If you're getting a refund: Congratulations! TurboTax will guide you on how to receive your refund (direct deposit is usually the fastest).
If you owe taxes: Don't fret! TurboTax provides several convenient options for paying your federal and, in most cases, your state taxes. This guide is specifically for you.
Once you see that "Amount Due" flashing on your screen, it's time to choose your payment method.
Step 2: Choosing Your Payment Method for Federal Taxes
TurboTax integrates with the IRS payment system to offer you various ways to pay your federal tax bill. You'll typically encounter these options when you're in the "File" section of TurboTax.
Sub-heading: Electronic Payment Options (Highly Recommended!)
These methods are generally the fastest, most secure, and often free for federal taxes.
Direct Debit (Electronic Funds Withdrawal - EFW):
This is often the easiest and most popular option when e-filing your federal return.
How it works: When you're reviewing your return and getting ready to e-file in TurboTax, you'll be given the option to "Withdraw the money from my bank account" for your federal taxes. You'll enter your bank account and routing numbers, and specify the date you want the payment to be withdrawn.
Benefits: No fees, convenient, and you receive instant confirmation. You can schedule the payment up to the tax deadline.
Important Note: The IRS will withdraw the entire owed amount. Partial payments via EFW aren't available through TurboTax's direct integration. If you need to make partial payments, you might need to use IRS Direct Pay or set up a payment plan directly with the IRS (more on that later).
Pay with Credit or Debit Card:
TurboTax allows you to indicate that you want to pay by credit or debit card.
How it works: You'll select "Charge my credit card" as your payment method in TurboTax. However, TurboTax itself doesn't process the credit card payment. Instead, you'll be directed to a third-party payment processor authorized by the IRS (like ACI Payments, Inc. or Pay1040). You'll complete the transaction on their secure website.
Benefits: Convenience, and you can potentially earn rewards on your credit card.
Drawbacks: These third-party processors charge a convenience fee, which can vary based on the payment amount (often a percentage for credit cards and a flat fee for debit cards). Be sure to check the fee before finalizing your payment.
Sub-heading: Traditional Payment Options
While less common when using TurboTax's e-filing features, these are still valid options.
IRS Direct Pay (Separate from TurboTax):
This is the IRS's free online payment service that allows you to pay directly from your checking or savings account.
How it works: If you choose not to use TurboTax's integrated direct debit (EFW), or if you've already filed and need to make a payment, you can go directly to the IRS Direct Pay website (
IRS.gov/DirectPay Benefits: No fees, allows you to schedule payments up to 365 days in advance, and you get immediate confirmation. You can also make partial payments here.
When to use it: If you want more control over your payment schedule, or if you filed your return and then realized you need to make a payment separately.
Check or Money Order (Mail-in Payment):
For those who prefer a physical payment.
How it works: In TurboTax, you'll select "Pay by check" when asked how you want to pay. TurboTax will then generate Form 1040-V (Payment Voucher) for you.
You'll need to print out Form 1040-V, make your check or money order payable to the "United States Treasury," and mail both to the address specified on the Form 1040-V.
Important: Write your Social Security number (or ITIN), taxpayer's name, mailing address, and daytime phone number on the front of your check or money order. Ensure it's postmarked by the tax deadline to avoid penalties.
Drawbacks: Slower processing, requires printing and mailing.
Electronic Federal Tax Payment System (EFTPS):
A government service designed for businesses and individuals who need to make various types of federal tax payments.
How it works: You need to enroll in EFTPS, which can take a few days. Once enrolled, you can schedule payments online or by phone.
Benefits: Good for those who make frequent estimated tax payments or need to pay other types of federal taxes.
Drawbacks: Requires a separate enrollment process outside of TurboTax.
Step 3: Paying Your State Taxes
Paying state taxes generally mirrors the federal payment options, but the specific methods available depend on your state's tax agency.
Sub-heading: State Electronic Payments
Direct Debit (Electronic Funds Withdrawal):
Many states offer this option when you e-file your state return through TurboTax.
How it works: Similar to federal direct debit, you'll enter your bank information, and your state tax agency will withdraw the owed amount on a specified date.
Check with TurboTax: TurboTax will clearly indicate if your state allows direct debit during the filing process.
Pay with Credit or Debit Card (Third-Party Processor):
Most states also allow credit/debit card payments through authorized third-party processors.
How it works: You'll be directed from TurboTax to the state's chosen payment processor website, where you'll complete the transaction.
Reminder: Convenience fees will apply.
Sub-heading: State Traditional Payments
Check or Money Order (Mail-in Payment):
All states allow you to pay by check or money order.
How it works: TurboTax will generate a payment voucher specific to your state. You'll mail this voucher with your check or money order to the designated state tax address.
Crucial: Ensure you mail it to the correct state agency and include all required identifying information (e.g., SSN, tax year).
State Tax Agency Websites:
If you prefer to pay directly outside of TurboTax, almost every state tax agency has its own online payment portal. You can visit your state's Department of Revenue or Tax Commissioner's website to find their specific payment options.
Step 4: Confirming Your Payments and Avoiding Penalties
Once you've selected your payment method, always double-check the details before finalizing.
Review: Verify the payment amount, bank account details (if using direct debit), and the scheduled withdrawal date.
Confirmation: For electronic payments, save your confirmation number. If you pay by credit card through a third party, you'll receive a confirmation from them. For mailed checks, keep a record of when you sent it.
Deadlines: Remember, even if you file an extension to file your tax return, your payment is still due by the original tax deadline (typically April 15th, unless extended due to a holiday or disaster). Paying late can result in penalties and interest.
Insufficient Funds: Ensure you have sufficient funds in your bank account if you choose direct debit to avoid bounced payment fees and further penalties from the IRS/state.
Step 5: What If You Can't Pay Your Tax Bill?
It happens! If you find yourself unable to pay the full amount you owe by the deadline, don't ignore it. The IRS and state tax agencies offer solutions:
Short-Term Payment Plan (IRS): You may be granted up to 180 days to pay your tax liability in full, though interest and penalties still apply. You can apply for this online through the IRS.
Installment Agreement (IRS): This allows you to make monthly payments for up to 72 months. There may be a setup fee, and interest and penalties still accrue. You can apply online through the IRS.
Offer in Compromise (IRS): This allows certain taxpayers to resolve their tax liability with the IRS for a lower amount than what they originally owed. This is generally for those experiencing significant financial hardship.
Temporarily Delay Collection Process (IRS): In some cases of extreme financial hardship, the IRS may temporarily delay collection until your financial condition improves.
TurboTax can help you prepare your return, but setting up payment plans or offers in compromise is typically done directly with the IRS or your state's tax department.
10 Related FAQ Questions
How to: Check if my TurboTax payment went through?
Quick Answer: For federal direct debit, check your bank statement a few days after the scheduled withdrawal date. For credit/debit card payments, check your credit card statement or the confirmation from the third-party processor. The IRS also has an online payment history tool.
How to: Change my payment method after filing on TurboTax?
Quick Answer: Once you've e-filed and selected a payment method through TurboTax, you generally cannot change it within TurboTax. If you need to change how you pay federal taxes, you'll typically need to go to the IRS Direct Pay website to cancel or modify your payment (if it's within the cancellation window) or make a separate payment. For state taxes, check your state's tax agency website.
How to: Pay for TurboTax software fees?
Quick Answer: You can pay for TurboTax software fees using a credit or debit card. TurboTax also offers an option to pay your fees directly from your federal tax refund, though this usually incurs an additional processing fee.
How to: Pay estimated taxes using TurboTax?
Quick Answer: TurboTax can help you calculate estimated taxes, and it often generates estimated tax vouchers (Form 1040-ES for federal). You can then pay these estimated taxes directly through IRS Direct Pay, EFTPS, or by mailing a check with the voucher. TurboTax does not process the actual estimated tax payments itself.
How to: Set up a payment plan for federal taxes after filing with TurboTax?
Quick Answer: You cannot set up a formal IRS payment plan (short-term or installment agreement) directly through TurboTax. You must apply for these plans directly with the IRS via their online payment agreement application tool on IRS.gov or by contacting them.
How to: Pay state estimated taxes?
Quick Answer: Similar to federal estimated taxes, TurboTax can help you calculate and generate vouchers for state estimated taxes. Payment methods vary by state but commonly include online payments through your state's tax portal, direct debit if available, or mailing a check with the voucher.
How to: Avoid late payment penalties?
Quick Answer: Always ensure your payment (whether electronic or mailed) is postmarked or submitted by the tax deadline, even if you file an extension for your return. If you can't pay the full amount, pay as much as you can by the deadline and arrange a payment plan with the IRS or your state tax agency as soon as possible.
How to: Find my federal tax payment confirmation number?
Quick Answer: If you paid via IRS Direct Pay, you would have received a confirmation number immediately. If you paid via direct debit through TurboTax, your e-file confirmation often serves as proof that the payment request was sent, but the ultimate confirmation is when the funds are withdrawn from your bank account. For credit/debit card payments, the third-party processor provides the confirmation.
How to: Pay taxes if my return was rejected by the IRS?
Quick Answer: If your return was rejected, you need to correct the errors and re-file. Once your return is accepted, you can proceed with the payment method you originally selected, or use IRS Direct Pay if you prefer to make a separate payment. If your original direct debit was linked to the rejected return, it won't be processed, so you'll need to initiate a new payment once accepted.
How to: Get help if I have a TurboTax payment issue?
Quick Answer: For issues related to TurboTax software and the payment selection process within the software, contact TurboTax customer support. For issues regarding the actual payment processing (e.g., a payment not showing up, or a question about a convenience fee), you'll need to contact the IRS (for federal payments), your state tax agency (for state payments), or the relevant third-party payment processor.
