How to Pay Your Federal Income Tax After Filing Form 1040

How to pay your federal income tax bill

After you file Form 1040, the IRS will tell you whether you owe money or are getting a refund. If you owe, you have several ways to pay — and the method you choose affects when the payment reaches the IRS and whether you can set up a plan if you cannot pay in full right now.

The IRS accepts payment through its own website (IRS.gov), through your bank, by mail, or by phone. Each route has different timing and fees. You do not have to pay by the tax important date if you file on time; you can file by April 15 and request a payment plan that lets you pay over months or years. The key is filing the return itself by the important date, even if you cannot pay the full amount.

Key Takeaways

You can pay directly through IRS.gov, through your bank's bill-pay system, by phone at 1-800-829-1040, or by mail — each method has different processing times and fees.
If you cannot pay in full by the important date, you can still file on time and set up a payment plan with the IRS that spreads your bill over months or years.
Paying by electronic funds withdrawal (direct debit) from your bank account is usually free and the fastest way to reach the IRS.
If you pay by credit or debit card through IRS.gov, you will pay a processing fee of roughly 2 percent, charged by a third-party processor, not the IRS.
The IRS charges interest and penalties on unpaid taxes, so the sooner you pay or set up a plan, the less you will owe in total.

Paying in full by the tax important date

If you owe and can pay the entire amount by April 15 (or October 15 if you filed for an extension), the fastest and cheapest way is electronic funds withdrawal — a direct debit from your checking or savings account. This method is free, and the IRS receives the payment within one business day. You set this up on IRS.gov under "Pay Now" or through your own bank's bill-pay system.

If you prefer to pay by credit or debit card, you can do so through IRS.gov, but a third-party payment processor will charge you a fee — typically 1.87 to 2.35 percent of the amount you pay, depending on which processor you use. That fee is not refundable and is not deductible. For example, if you owe $1,000 and pay by card, you might pay an additional $18.70 to $23.50.

Paying by check or money order through the mail takes longer — usually 7 to 10 business days — and you should mail it to the address shown on your tax return notice or on IRS.gov. Write your Social Security number, the tax year, and "Form 1040" on the check. Keep a copy of the front and back of the check for your records.

You can also pay by phone at 1-800-829-1040 using a debit card or bank account information. This is free if you use your bank account, but card payments carry the same processor fee as online card payments.

Setting up a payment plan if you cannot pay in full

If you owe but do not have the money to pay by the important date, you can still file your return on time and request a payment plan (also called an installment agreement). This lets you pay your bill in monthly installments over time. You do not need the IRS's permission to file late if you set up a plan; you just need to file the return itself by April 15.

The IRS offers two types of plans. A short-term plan lets you pay within 120 days with no setup fee. A long-term plan spreads payments over months or years and requires a setup fee (usually $31 to $225, depending on how you set it up). You can request a plan on IRS.gov, by phone at 1-800-829-1040, or by mail.

While you are on a payment plan, the IRS still charges interest and penalties on the unpaid balance. Interest accrues daily at a rate set by the IRS each quarter (it varies). Penalties are usually 0.5 percent of the unpaid tax per month. The longer you take to pay, the more interest and penalties you will owe, so paying faster saves you money even if you have to make smaller monthly payments now.

What happens if you miss the important date and do not pay

If you do not file your return by April 15 and do not pay what you owe, the IRS will charge you a failure-to-file penalty and a failure-to-pay penalty in addition to interest. The failure-to-file penalty is usually 5 percent of the unpaid tax for each month you are late (up to 25 percent total). The failure-to-pay penalty is 0.5 percent per month.

You can reduce or eliminate these penalties if you have a reasonable cause — for example, a serious illness, a death in the family, or a natural disaster. You will need to explain the reason in writing when you contact the IRS. Even if you cannot pay, filing your return on time stops the failure-to-file penalty from growing, so filing is always the first step.

Paying through your bank or employer

Many banks offer bill-pay services that let you schedule a payment to the IRS directly from your checking account. This is free and works the same way as paying through IRS.gov. You will need the IRS payment address (found on IRS.gov or your tax notice) and your Social Security number.

If your employer offers a payroll deduction option, you may be able to have taxes withheld from your paycheck to cover what you owe. This is not a payment method for a bill you already owe, but it can prevent you from owing in the first place on next year's return. Talk to your payroll or human resources department about adjusting your W-4 form.

Tracking your payment and getting a receipt

After you pay, the IRS sends a confirmation number or receipt. Keep this for your records. If you paid online or by phone, you will receive a confirmation when ready. If you mailed a check, the IRS will send you a notice showing the payment was received, usually within 4 to 6 weeks.

You can check the status of your payment on IRS.gov using "Where's My Refund?" or "Where's My Payment?" — even though these tools are named for refunds, they also show the status of payments you have made. You will need your Social Security number, filing status, and the exact amount you paid.

Frequently Asked Questions

Can I pay my taxes with a credit card without a fee?

No. The IRS itself does not charge a fee for credit card payments, but the third-party processors that handle card payments charge a fee of roughly 1.87 to 2.35 percent. You can pay by debit card from your bank account for free through IRS.gov or your bank's bill-pay system.

What if I file my return late but set up a payment plan on time?

If you file after April 15, you will owe a failure-to-file penalty even if you set up a payment plan when ready. The penalty is 5 percent of the unpaid tax for each month you are late. Filing on time, even if you cannot pay, stops this penalty from growing.

Do I have to pay the full amount by April 15 if I set up a payment plan?

No. If you set up a payment plan before the important date, you only need to make your first scheduled payment by the important date. The rest of your payments follow the schedule you agreed to with the IRS.

What if the IRS says I owe more than what I calculated?

The IRS may adjust your return if it finds an error. You will receive a notice explaining the change. You can agree with the adjustment, disagree and request an explanation, or ask for a payment plan if you owe more than you expected. Contact the IRS using the phone number on the notice.

Can I pay my taxes with cryptocurrency or a payment app like Venmo?

No. The IRS only accepts payment through its official channels: IRS.gov, your bank, by check or money order, or by phone. Payment apps and cryptocurrency are not accepted.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.