Tax or taxation is an integral part of the government to boost the economy of the country to raise the standard of living of its citizens. Whatever country you live in, you’re bound to pay tax if your annual income exceeds normal income. The truth is, if you fail to pay tax on time, a penalty will be imposed. The question is- what the reason for the delay in filing the tax return. Sometimes what happens is that businessmen don’t find an effective method to file tax returns and then find themselves being in hot water. You may be sailing in the same boat, right? To save yourself from the penalty and pay taxes on time, you need to follow the ways (which suit you the most) to pay tax.
Have you ever wondered…
Different ways through which you can pay tax return?
If no, this article is a compilation of tax return methods that you can follow as per your requirements.
Let’s now talk about the different ways to pay tax return below.
Pay your tax return by following given methods
Below you will read about different ways of tax return, just make a choice which tax return method is best suits you.
#1. Use direct payment method from bank account
The very first method you have in this list is filing tax returns directly from a bank account. Regardless of tax software or tax professional, you’re using; you have the option to pay your tax bill through electronic funds withdrawal from your bank account. However, if you’re taking help from an IRS, then you no need to pay any fee for the transactions. Here you can provide your account number and also schedule a payment date accordingly.
#2. Pay taxes through debit and credit card
There are many tax filing systems that offer you the option of paying taxes with a debit or credit card. There is no doubt that paying taxes with debit and credit cards become much easier. However, there is a certain amount that companies impose for providing debit and credit card service facilities. The amount which is charged for availing of this service starts at $2 and goes up to $3.89 or $3.95. Well, paying taxes with a credit card is easy but may not be the best choice.
However, if you want to save this money then you can follow another method such as check or methods are given below if you continue reading the article.
#3. Using check or money order
In the above point, I told you to go with the check method if credit or debit card looks like an expensive method. So why should you go with the check method? Because checks are free and IRS still accepts checks and gives preference to it more than any other method. So how do you fill a tax return check? To pay tax return, in the check you have to write ‘US Treasury’ on the ‘Payee’ line, not ‘IRS’. Moreover, you also have to add your name, tax identification number, tax form number, tax period (all the relevant information that should be there is a form for paying tax return).
Remember one thing – don’t leave your check in an unlocked mailbox rather drop the envelope of your check into a post office drop box. With this, the IRS will only consider the payment date the day your envelope is postmarked.
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#4. Electronic Federal Tax Payment System (EFTPS)
What it is? EFTPS is a tax payment system free service provided by the U.S. Department of Treasury to pay your federal taxes. Undoubtedly, it’s a free, easy, safe, and most convenient method than the methods which I have mentioned above. Here you can pay taxes online or by phone on the IRS’s own systems. What do you need to do to avail this free tax-paying service from EFTPS? Basically, you need to set up an account on EFPTS. Once you proceed further, you will then receive an EFPTS personal identification number (PIN) and an internet password.
Well, these were the major tax return payment method which you read now. However, there are many other minor methods that do exist which includes –
- Taking a personal loan from banks to pay tax return.
- If you’re facing a money crunch, just request your IRS to delay collecting your taxes.
- Follow the cash method although the IRS doesn’t accept tax amounts in cash, you can request.
The tax return is essential to pay for any person whose annual income exceeds the basic assumption limit. If you don’t pay tax, you might get penalized for that. Therefore, try to follow the methods which suit you the most to pay tax return. Whatever method you find is easy and suitable, just follow that and pay a tax return. This ensures that you’re a reasonable citizen of the country. At last, I would say just face the music and pay tax on time.