
Paying back taxes online is a convenient and efficient way to settle your tax debt. You can do this through the IRS website, where you can make a payment using an electronic funds withdrawal from your bank account.
The IRS accepts various payment methods, including credit cards, debit cards, and digital wallets like PayPal. You can also use a check or money order, but these methods may take longer to process.
To pay by credit card, you'll need to have the card information ready, including the card number, expiration date, and security code. You can also use a credit card payment service like Pay1040.
If you're making a payment from a bank account, you'll need to have your bank routing number and account number handy. This information is usually found on your check or bank statement.
Payment Methods
You can pay back taxes online using several methods, including Direct Pay and Electronic Funds Withdrawal.
Direct Pay is a secure service that allows you to pay your tax bill directly from your checking or savings account at no cost to you. You can schedule payments up to 30 days in advance and change or cancel a payment up to two business days before the scheduled payment date.
Electronic Funds Withdrawal (EFW) is another option, but you may have to pay a small fee to your financial institution. You can only use this method if you e-file your federal taxes.
You can also use the Electronic Federal Tax Payment System (EFTPS), which allows you to make payments online, by phone, or by mail. With EFTPS, you can schedule payments up to 365 days in advance.
Here are the available payment methods:
- Direct Pay: Pay from your checking or savings account with no fees.
- Electronic Funds Withdrawal (EFW): Pay by direct debit from your bank account, but may incur a small fee from your financial institution.
- Electronic Federal Tax Payment System (EFTPS): Make payments online, by phone, or by mail, with the option to schedule payments up to 365 days in advance.
Remember to review the accepted forms of payment via INTIME, which include bank payment (ACH/e-check) with no fee, and debit and credit cards with a fee.
Electronic Funds Withdrawal
Electronic Funds Withdrawal (EFW) is another way to pay taxes, but it may involve a small fee to your financial institution.
You can only use EFW if you e-file your federal taxes using tax preparation software, a tax professional, or IRS Free File.
This payment method allows you to submit one or more payments through direct debit from your bank account.
You can also schedule payments up to 365 days in advance using EFW.
Visit the IRS website for information and instructions on completing the payment record transmitted via IRS e-file.
You will also find links to more information about making individual and business payments using EFW.
Note: The fee for EFW may vary depending on your financial institution.
Software Products
You can file your taxes for free with the Free Edition tax filing software product. TurboTax Deluxe is designed to help you maximize your tax deductions.
The TurboTax Live tax expert products offer additional support, including TurboTax Live Premium and TurboTax Live Full Service Pricing. You can also opt for TurboTax Live Full Service Business Taxes or TurboTax Live Assisted Business Taxes for your small business.
TurboTax Verified Tax Pros and TurboTax Verified Pros - Find Your Local Tax Professional can connect you with a local tax professional.
Planning and Scheduling
You can set up a payment plan to pay back taxes online, but first, you need to determine the best method for your situation. If you owe less than $50,000, you can apply for a long-term installment agreement online.
To set up an installment agreement, you'll need to specify the monthly amount and the day of the month you'll make the payment. You should base your monthly installment amounts on your ability to afford the payments.
You can make payments using various methods, including IRS Direct Pay, payroll deduction, check or money order, IRS EFTPS, credit or debit card, and Online Payment Agreement (OPA).
Here are the payment methods available for installment agreements:
- IRS Direct Pay
- payroll deduction from your employer
- check or money order
- IRS EFTPS
- credit or debit card
- Online Payment Agreement (OPA)
The IRS typically responds to an installment agreement request within 30 days of the application.
Plan Without Login
You can make an estimated tax payment without logging in to INTIME by following a few simple steps. Go to INTIME and locate the "Payments" panel, then click on "Make a payment."

To make an estimated payment without a Letter ID, go to the "Non-bill payments" panel and select Bank Payment (no fee) or Credit Card (fee).
If you have a Letter ID, go to the "Bill payments" panel and enter it to begin the process. Continue following the prompts to complete your payment.
You can also make a payment plan payment without logging in to INTIME by going to INTIME, locating the "Payments" panel, and clicking on "Make a payment." Then, locate the "Payment plan payments" panel and select Bank Payment (no fee) or Credit Card (fee).
Enter the Letter ID on your payment plan voucher to begin the process, and continue following the prompts to complete your payment.
Long-term Plan
If you owe taxes and can't pay immediately, setting up a long-term payment plan is a great option. You can apply for this plan online if you owe less than $50,000.
The IRS charges a fee for this application, and the fee is higher if you apply over the phone or in person. This fee is something to keep in mind when deciding how to apply.

You'll specify the monthly amount and day of the month for payments when setting up the agreement. This should be based on your ability to afford the payments to avoid default.
You can make payments using various methods while on an installment plan, including IRS Direct Pay, payroll deduction, and credit or debit card.
Here are some payment methods you can use while on an installment plan:
- IRS Direct Pay
- Payroll deduction from your employer
- Check or money order
- IRS EFTPS
- Credit or debit card
- Online Payment Agreement (OPA)
The IRS typically responds to an installment agreement request within 30 days of the application.
Setting Up a Plan
To set up a payment plan, you can use the IRS's online system, INTIME. You must have an existing logon or create one to access payment plan functionality on INTIME. You'll need to follow the steps outlined in the INTIME guide to making a payment plan payment.
If you owe more than $100, you can set up a payment plan through INTIME. You'll need to have the Letter ID from your payment plan voucher to begin the process. You can also make a payment plan payment without logging in to INTIME, but you'll need to follow the specific steps outlined in the guide.
If you're applying for a long-term payment plan and owe less than $50,000, you can apply for the agreement online. However, if you owe more than $50,000, you'll need to apply over the phone or in person, which comes with a higher fee.
Setting Up a Plan
Setting up a payment plan with the IRS can be a bit of a process, but don't worry, we've got you covered. You can set up a payment plan if you owe more than $100.
To get started, you'll need to have an existing logon or create one to access payment plan functionality on INTIME. You can find step-by-step guides for more help.
The IRS offers different types of payment plans, including short-term and long-term agreements. A short-term agreement must be paid in full in less than 120 or 180 days, depending on how you apply. You can apply online, by phone, mail, or in-person, and there are no fees to apply, but interest and penalties will apply until you pay off the taxes you owe.
If you owe less than $50,000, you can apply for a long-term payment plan online, but you'll be charged a fee. The fee is higher if you apply over the phone or in-person. You'll also be charged interest and late payment penalties until you pay the taxes you owe in full.

Here are the payment methods you can use to make payments on your installment agreement:
- IRS Direct Pay
- payroll deduction from your employer
- check or money order
- IRS EFTPS
- credit or debit card
- Online Payment Agreement (OPA)
You can also make a payment plan payment without logging in to INTIME by following a few simple steps. You'll need to enter the Letter ID on your payment plan voucher to begin the process.
Due Return (MI-1040)
If you're due to file a tax return in Michigan, you'll need to take care of it by April 15th to avoid any late fees. Make sure to submit your return and payment in separate envelopes to ensure accurate processing.
You can choose to pay your tax due through a direct debit from your checking or savings account, or by making a payment through the Michigan Individual Income Tax e-Payments system. This system is available for 2023 tax due returns, but not for prior year payments.
To make a payment, you can use the Collections e-Service payment system if you've received an assessment from the Michigan Department of Treasury's Collection Services Bureau. Any payment received after April 15th will be considered late, but you can still submit late or partial payments electronically.
If you're unable to submit the entire payment by April 15th, you can make a late or partial payment until you receive a Final Bill for Taxes Due. You can submit these payments online or by mail via check or money order.
To ensure accurate processing, it's essential to include your complete Social Security number on any mailed payments. You can also make a payment by check or money order, making sure to make it payable to "State of Michigan" and print your complete Social Security number and tax year on the front of the check or money order.
Here are some key payment options to consider:
- Direct debit from a checking or savings account
- Making a payment through the Michigan Individual Income Tax e-Payments system
- Using the Collections e-Service payment system (if you've received an assessment)
- Making a payment by check or money order
If you have questions or need assistance, you can contact the Michigan Department of Treasury at 517-636-4486, Monday through Friday, 8am to 4:45pm. Be sure to listen carefully to the prompts and enter your primary Social Security number when prompted.
Sources
- https://turbotax.intuit.com/tax-tips/tax-payments/how-to-pay-taxes-10-ways-to-pay-your-tax-bill/L6CR274jr
- https://www.in.gov/dor/i-am-a/individual/payments-and-billing/
- https://www.irs.gov/payments
- https://www.irs.gov/e-file-providers/paying-your-taxes
- https://www.michigan.gov/taxes/iit/tax-time/sending-payments-to-treasury
Featured Images: pexels.com