Paying estimated tax is a proactive way to stay ahead of your taxes, especially if you’re self-employed—independent contractors, locum tenens, CRNAs, freelancers, gig workers, and small business owners. Since no one withholds taxes from your income, it is your responsibility to make estimated tax payments in quarterly periods throughout the year. Doing so helps you avoid large tax bills and penalties at the end of the year.
The IRS provides different options to pay taxes, but we always recommend using the IRS Online Account . It is a secure and fast way to make payments, and it allows you to track your payment history and balance. Read our dedicated blog to find out more about the IRS Online account.
But if you still do not have an IRS Online account, the next best option is to pay via Direct Pay.
What is IRS Direct Pay?
The IRS Direct Pay is a free online payment method in which you can pay federal taxes directly from your checking or savings account at zero cost to you. It is convenient, fast, secure, and no sign-in is required to use it.
However, if you have never filed or it’s been over 6 years since you filed, you cannot use Direct Pay. You may opt to pay your taxes by debit or credit card or digital wallet, however processing fees apply.
How to Pay via Direct Pay (Bank Account)
- Go to https://www.irs.gov/payments and choose Direct Pay with bank account.
- On the screen choose to “Pay Individual Tax” under “Personal tax payments”.
- On the next screen click “Make a Payment”.
You will then be directed to the IRS Direct Pay Screen. There are 5 steps to complete your estimated tax payments.
Step 1. Tax Information – Select the reason for payment, the tax form and tax year to apply the payment.
Step 2. Verify Identity – Using prior year’s return, you must input data exactly as written on your selected return, otherwise your identity will not get verified. For your reference, you may select any 1040 return that was filed not over 6 years. If you are filing jointly, be sure to input the information of the primary taxpayer to ensure seamless tax payments.
Step 3. Your Payment Information – Provide your payment details including bank information.
We highly encourage you to choose to receive email confirmation and notifications by inputting your email address and ticking the box as shown below.
Step 4. Review & Sign – This page allows you to review and directly edit your responses. Once you are satisfied with the accuracy of your responses, electronically sign this page and submit your payment.
Step 5. Confirmation – Done! This page simply confirms your submitted tax payment. Save or print a copy, especially if you did not subscribe to the email confirmation, for tax documentation and filing reference.
Want to learn more?
You may want to consult and work with 1099 Accountant – We offer online bookkeeping, online advisory services and online tax and accounting services. We offer reasonable rates. We only work with independent contractors, freelancers, and one-person business. We work with locum tenens from California to New York City and everywhere in between. Yes, even Hawaii!
Contact us toll-free (855)529-1099 or make an appointment for a free consultation. Contact Us
