Hey there! Just finished up your taxes on TurboTax and realized you owe? Don't sweat it! Paying your taxes might seem like a daunting task, but TurboTax makes the process relatively straightforward. This comprehensive guide will walk you through every step of paying your federal and state tax dues after filing with TurboTax, making sure you understand all your options and avoid any last-minute panic.
The Importance of Timely Tax Payments
Before we dive in, let's emphasize one crucial point: paying your taxes on time is just as important as filing your return on time. While TurboTax helps you file, you are responsible for ensuring the payment reaches the IRS and your state tax agency by the deadline. Missing the payment deadline can result in penalties and interest, adding to your tax burden. The general federal tax payment deadline for individual income taxes is April 15th each year (unless it falls on a weekend or holiday, in which case it shifts to the next business day). State deadlines can vary, so always double-check.
Let's get started on getting those taxes paid!
Step 1: Confirm Your Tax Due Amounts
Alright, before you do anything else, let's make sure you know exactly how much you owe and to whom.
Sub-heading: Federal vs. State Taxes
TurboTax separates your federal tax liability from your state tax liability. You'll need to pay each separately.
After you've completed your return on TurboTax and reached the "File" section, you'll see a summary page. This page will clearly show your federal tax due and any state tax due.
If you've already e-filed your return, you can log back into your TurboTax account and navigate to your filed return. The summary or "Print & Save" section will display your tax liabilities.
For federal taxes, look for "Amount You Owe" on your Form 1040.
For state taxes, refer to your state's specific tax form summary.
Make a note of these exact amounts. This will be your target for payment.
Step 2: Choose Your Federal Tax Payment Method
The IRS offers several convenient ways to pay your federal tax due. TurboTax integrates with many of these, making it easy to select your preferred option.
Sub-heading: Electronic Payment Options (Highly Recommended!)
Electronic payments are generally the fastest and most secure way to pay your federal taxes.
Option A: Direct Debit from Your Bank Account (E-Pay through TurboTax)
This is often the most straightforward method if you're filing electronically with TurboTax.
How it works: During the filing process in TurboTax, when you reach the "File" section, you'll be prompted with payment options. If you owe, you can choose to have the IRS directly debit the amount from your checking or savings account.
What you'll need: Your bank account routing number and account number.
Key Benefit: No fees involved! This is a free service. You also get to choose a specific withdrawal date, as long as it's on or before the tax deadline.
Important Note: If you select a future payment date, ensure you have sufficient funds in your account on that day to avoid bounced payment fees from your bank and potential IRS penalties.
Option B: IRS Direct Pay (via IRS website)
If you prefer to pay directly through the IRS website rather than through TurboTax's integrated system, this is your go-to.
How it works: After you've filed your return with TurboTax, you can go to the official IRS Direct Pay website (irs.gov/payments/direct-pay). You'll verify your identity using information from a prior year's tax return or an IRS account.
What you'll need: Your bank account routing number and account number.
Key Benefit: Also free, and you can schedule payments up to 365 days in advance.
Pro Tip: If you've already e-filed and your return has been accepted by the IRS, you can use IRS Direct Pay immediately. If your return is still pending, you might need to wait for acceptance.
Option C: Pay by Debit or Credit Card (via Third-Party Processors)
This offers flexibility but comes with a convenience fee.
How it works: The IRS uses third-party payment processors to handle credit and debit card payments. TurboTax may offer a direct link to these processors, or you can go to the IRS website and find a list of approved processors.
What you'll need: Your credit/debit card details.
Key Consideration: Be aware of the convenience fees. These fees are charged by the processor, not the IRS, and can range from 1.87% to 2.95% of your payment, with a minimum fee often around $2.50 to $3.95. For larger tax bills, these fees can add up significantly.
Good for: Those who want to earn credit card rewards, or need a few extra days to gather funds and pay by a later date (payment date is the authorization date).
Option D: Electronic Federal Tax Payment System (EFTPS)
Primarily used by businesses and individuals who make estimated tax payments, but available to everyone.
How it works: This requires prior enrollment. Once enrolled, you can schedule payments directly from your bank account.
What you'll need: An enrolled EFTPS account.
Key Benefit: Free and secure. Ideal for those who regularly interact with the IRS for various payment types.
Sub-heading: Traditional Payment Options
While electronic payments are generally preferred, you still have traditional options.
Option A: Pay by Check or Money Order
How it works: If you prefer to mail a payment, you'll need to print a Form 1040-V, Payment Voucher, from TurboTax or the IRS website.
What you'll need: A check or money order made payable to the "U.S. Treasury."
Important Details:
Write your Social Security number, the tax year (e.g., 2024), and "Form 1040" on the memo line of your check or money order.
Do not staple the payment to your return.
Mail your payment and Form 1040-V to the IRS address specified on the Form 1040-V instructions. This address varies based on your state.
Ensure your payment is postmarked by the tax deadline.
Option B: Pay with Cash (through retail partners)
How it works: The IRS has partnered with various retail stores (like 7-Eleven, CVS, etc.) to allow cash tax payments through providers like PayNearMe or Official Payments.
What you'll need: You'll need to generate a payment code or barcode online from one of the approved providers' websites.
Key Consideration: There may be a small fee associated with this service, and daily payment limits might apply.
Check the IRS website for authorized retail cash payment providers and their processes.
Step 3: Choose Your State Tax Payment Method
Paying your state taxes is a separate process and the methods vary by state. TurboTax will guide you to your state's specific payment options after you've completed your state return.
Sub-heading: Navigating State-Specific Payments
After filing your state return in TurboTax, the software will usually provide a link or instructions on how to pay your state tax due.
Many states offer similar electronic payment options to the federal government: direct debit from a bank account, or payment via credit/debit card (often with a convenience fee).
Some states require you to visit their official Department of Revenue website to make a payment. TurboTax will typically provide the direct link for this.
Mailing a check or money order is almost always an option, but again, ensure you use the correct state-specific voucher and mailing address.
Always confirm the acceptable payment methods and associated fees directly with your state's tax agency. A quick search for "[Your State] Department of Revenue tax payments" will usually lead you to the official site.
Step 4: Double-Check and Confirm Your Payment
Once you've selected your payment method(s) and initiated the payment(s), it's crucial to confirm everything.
Sub-heading: Verify Payment Details
For Direct Debit (Federal and State via TurboTax or IRS/State sites):
You should receive a confirmation number or email after scheduling the payment. Keep this for your records.
Check your bank account a few business days after the scheduled withdrawal date to ensure the funds have been successfully debited.
For Credit/Debit Card Payments:
Note the confirmation number provided by the third-party processor.
Check your credit card statement or bank account statement (for debit cards) to confirm the charge appears.
For Checks/Money Orders:
Make a copy of your check or money order for your records before mailing it.
While you won't get an immediate confirmation, monitoring your bank account to see when the check clears is a good practice.
Step 5: What If You Can't Pay Your Taxes by the Deadline?
Life happens. If you find yourself in a situation where you can't pay your full tax liability by the deadline, don't ignore it. The IRS (and most state agencies) have options to help.
Sub-heading: Understanding Penalties and Interest
Failure-to-Pay Penalty: This is typically 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid, up to a maximum of 25%.
Interest: Interest is charged on underpayments and unpaid taxes, and it can accrue daily from the tax due date until the balance is paid in full. The interest rate can change quarterly.
Even if you can't pay the full amount, pay what you can by the deadline. This will reduce the amount subject to penalties and interest.
Sub-heading: IRS Payment Options for Financial Hardship
Short-Term Payment Plan: You might be granted up to 180 days to pay your tax liability in full, though interest and penalties will still apply. There's no setup fee for this.
Offer in Compromise (OIC): This allows certain taxpayers to settle their tax debt with the IRS for a lower amount than what they originally owe. This is typically for extreme financial hardship.
Installment Agreement: This allows you to make monthly payments for up to 72 months. A setup fee may apply, but it can be waived for low-income taxpayers. Interest and penalties still apply, but the failure-to-pay penalty rate is reduced.
You can apply for an installment agreement online through the IRS website.
For state taxes, contact your state's Department of Revenue directly to inquire about their payment plans or hardship programs.
10 Related FAQ Questions
How to check if my TurboTax payment went through?
If you paid via direct debit through TurboTax or the IRS Direct Pay site, you should receive a confirmation number or email. Check your bank statement a few business days after your scheduled payment date to confirm the debit. For credit/debit card payments, check your card statement.
How to pay estimated taxes with TurboTax?
TurboTax can help you calculate estimated tax payments (Form 1040-ES) if you're self-employed or have income not subject to withholding. While TurboTax helps prepare the vouchers, you'll pay these amounts quarterly directly to the IRS (and your state) using IRS Direct Pay, EFTPS, mail, or other approved methods.
How to find my federal tax payment information in TurboTax after filing?
Log back into your TurboTax account. Navigate to your filed return. You should be able to access the summary pages or print/save your return, which will show the payment details you entered during filing, including the method chosen and scheduled date.
How to change my tax payment method in TurboTax after filing?
Once your return is e-filed and accepted, you generally cannot change the payment method through TurboTax. If you chose direct debit through TurboTax and need to change it, you might need to contact the IRS directly (or your state tax agency) before the scheduled withdrawal date to cancel the payment and then make a new payment using your preferred method.
How to pay federal taxes if I already filed but didn't select a payment method in TurboTax?
No problem! You can still pay directly through the IRS website using IRS Direct Pay (recommended for direct bank payments, free) or via one of their approved third-party credit/debit card processors (with a fee). You can also mail a check with Form 1040-V.
How to pay state taxes if I already filed but didn't select a payment method in TurboTax?
You will need to visit your specific state's Department of Revenue website. Most states offer online payment portals where you can pay directly from your bank account or via credit/debit card. You can also typically mail a check or money order with the appropriate state payment voucher.
How to get an extension to pay my taxes (not just file)?
Filing an extension (Form 4868 for federal) only grants you an extension to file your return, not to pay your taxes. You still need to pay any estimated tax due by the original deadline. If you truly cannot pay, you'll need to contact the IRS to explore options like a short-term payment plan or an installment agreement.
How to avoid tax penalties if I can't pay by the deadline?
Pay as much as you can by the deadline. Then, contact the IRS (or your state tax agency) as soon as possible to discuss payment options like a short-term payment plan or an installment agreement. The sooner you address it, the lower the penalties and interest may be.
How to find the IRS mailing address for tax payments?
The correct IRS mailing address for your payment (with Form 1040-V) depends on your state. You can find the specific address on the IRS website (irs.gov) by searching for "Form 1040-V instructions" or by using the IRS "Where to File" tool.
How to confirm my state tax payment was received?
Similar to federal payments, if you paid electronically, look for a confirmation number or email. Check your bank statement to see the debit. If you mailed a check, keep a copy and monitor your bank account to see when the check clears. Some state tax agencies also offer online tools to check payment status.