Need to Pay Taxes? Try Online Payment Options

By: Mengjiao (Sherry) Yao, CPA, Cover & Rossiter
Paying your taxes online is convenient and secure.

The pandemic changed people’s lifestyles from cutting hair at home to paying taxes online. The IRS and most jurisdictions allow several convenient ways for taxpayers to pay their taxes online. With a couple of clicks, you can pay your balance due from your bank accounts or credit cards at no or little cost.

Here is a list of online payment options offered by the IRS and all states. Online options are convenient, easy-to-use and secure!

Identity Verification:

The IRS and states will use information from one of your prior year’s processed tax returns to verify your identity. You will need some or all of the following information to verify your identity:

  • Social Security number
  • Filing status; Address
  • First and last name
  • Birthdate
IRS Payments:
  • Direct Pay. Taxpayers can pay tax bills directly from a checking or savings account free with IRS Direct Pay. Taxpayers receive instant confirmation once they’ve made a payment. With Direct Pay, taxpayers can schedule payments up to 30 days in advance. They can change or cancel a payment two business days before the scheduled payment date.
  • Electronic Federal Tax Payment System (EFTPS) is for individual and business taxpayers to pay federal taxes electronically online or by phone for free. To enroll or for more information, taxpayers should visit EFTPS.gov or call 800-555-4477.
  • Credit or debit cards. Taxpayers can also pay their taxes by debit or credit card online. The IRS does not charge a fee, but convenience fees apply and vary depending on the card used.
State Payments:

Below is a chart of key states in our region. Most states accept payments in the form of direct (ACH) payments, debit cards and credit cards. Note that there may be fees associated with credit card payments. Please check with each state.

StateWebsite LinkNotes
DelawareDelaware Dept of Revenue 
MarylandMaryland Taxes Online
New JerseyNew Jersey Division of Taxation
New YorkNew York Dept of Taxation and FinanceYou need to set up online account
PennsylvaniaPA Dept of RevenueCan be used for the following forms: PA-40, PA-41, PA20S, and PA-65
All other statesTax Links Tax Links is a service provided on Cover & Rossiter’s website under Resources
Helpful Tips:
  • Have a copy of your tax return, personal information, and payment information ready.
  • Make sure you select the current tax and payment type.
  • Be sure to print payment confirmation from the website and keep with your tax records.
References:

https://www.irs.gov/newsroom/irs-offers-options-to-help-taxpayers-who-cant-pay

https://dorweb.revenue.delaware.gov/scripts/olp/olp.dll/pitest

To check answers to FAQs, visit

https://www.irs.gov/payments/direct-pay-help#q05

https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card

Sherry Yao is a Supervisor in the Tax department at Cover & Rossiter. She joined the firm in 2015.