How to Pay Your Federal Taxes Online (Credit Card, Bank Account and IRS Account)

Published on October 24, 2025 by David Lim, CPA

On March 25, 2025, President Trump issued Executive Order 14247, which essentially requires all federal agencies, including the IRS, to stop issuing paper checks and accepting checks and money orders, effective on September 30, 2025. For taxpayers, it means that the only method of payment to and from the IRS (i.e., tax balance, estimated tax, penalty, tax refund, etc.) is electronic method. There are exemptions that apply to a tiny percentage of taxpayers, but I am not going to discuss it here.

Here are four ways of paying your federal tax liabilities:

Option A — Pay from your bank (free) with IRS Direct Pay

Best for most people: no fee, no sign-in required.

1. Go to the IRS Direct Pay page at https://www.irs.gov/payments/direct-pay-with-bank-account and choose Make a Payment.
2. Reason for Payment: choose one that’s applicable
   • Balance Due (for a filed 1040)
   • Estimated Tax (Form 1040-ES) (quarterly estimates)
3. Apply Payment To: usually Income Tax – Form 1040, then choose the tax year*.
4. Verify Identity: use a recent return (prior-year filing status, address, etc.).
5. Enter bank info (routing/account).
6. Schedule today or a future date (you can schedule ahead) and submit. I highly recommend printing it to PDF the confirmation number – and forward it to your CPA.
   • You can change/cancel within 2 business days.
   • Caveat: this only applies if you schedule your payment ahead of time (i.e., longer than 2 days). The IRS help webpage does not specifically address the cancelation on a payment scheduled on the same day. This implies that once you schedule it and change your mind later, you can’t cancel the payment as the process is irreversible.

Good to know: Direct Pay is free, secure, and you can schedule payments up to a year in advance.

Option B — Pay by debit/credit card or digital wallet (fees apply)

Use one of the IRS-approved processors listed on the IRS page at https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card. Fees may vary (E.g., ~1.75–1.85% for credit cards; a small flat fee for debit). If you like chasing credit card points, then this is the way to go.

Steps:

1. Open the IRS Pay by debit/credit card page and select a payment processor.
2. Choose tax type (e.g., 1040 balance due or estimated tax) and tax year*.
3. Enter card/payment details and complete the payment—save the confirmation.

Option C — Pay from your IRS Online Account

If you want to see your balance, payment history, or set a plan, use your Online Account.

1. Go to Online Account for Individuals at https://www.irs.gov/your-account and sign in/create account (ID verification required).
2. View amounts owed by year and Pay Now or start a payment plan if eligible.

Option D — EFTPS (good for power users)

The Electronic Federal Tax Payment System is free but requires a one-time enrollment. You can schedule payments up to a year out; payments generally must be scheduled by 8 p.m. ET the day before the due date.

Which option should I use?

• Most individuals: Direct Pay (free, fast).
• Need points or prefer wallet: Card/digital wallet (accept the fee).
• Want balance/plan visibility: Online Account.
• Make lots of payments/schedule far out: EFTPS.

Quarterly estimated tax due dates (for individuals)

Typical deadlines (check the current year’s 1040-ES for exact dates): April, June, September, January of the following year. You can compute with Form 1040-ES and pay by Direct Pay, card, or EFTPS.

Tips to avoid mistakes

• Pick the correct tax year. This is the most common mistake.
• Match the “Reason for Payment” to what you owe (e.g., don’t send estimates as “balance due”).
• Save confirmations (PDF or screenshot) and reconcile with your Online Account later.

This article is for general educational purposes only and does not constitute tax advice. Tax laws change frequently, and each situation is unique. Consult a qualified tax professional before acting on any information in this article.

Have questions about this topic? Contact me.