Do You Absolutely Need the IRS Payment Voucher?

IRS 1040-V, the IRS Payment Voucher

When you send a payment to the IRS through the mail, there’s usually an IRS payment voucher that should accompany it.  The most common is the IRS Form 1040-V, which is for paying your individual income tax.  It’s the same payment voucher whether you filed 1040, 1040A or 1040 EZ.

When you prepare your taxes through commercial tax software, the 1040-V will print out when you print your tax return, if you owe money upon completion.

But do you really need it?  The answer is no.  It’s optional and definitely makes things go smoother and faster but it’s not required.   The IRS likes it when you use the voucher, since it has all the necessary information pre-printed on it, allowing them to quickly process your payment.

If you’d like a bland IRS payment voucher, get it here on the IRS website.

If you’d like to know where to mail your payment voucher, visit our payment address page.

 

IRS 1040-ES

If you don’t have the 1040-ES payment vouchers that printed out when you did your taxes, you can just fill out new ones from the blank form available on the IRS website.  It’s nice to use the ones from when you did your taxes because the info is all pre-printed for you.  Either one works, however.

The best way to pay estimated taxes is online, with the IRS’s electronic payment system called EFTPS.  You create an account, then every time you need to make a payment just log in and pay.

Read more about it here.

 

 

Pay the IRS Online

You can make your IRS payment online in one of three ways, and if you meet the following conditions.  You can use your credit card, you can sign up for the IRS’s electronic payment system, or you can set up direct payment from your bank account.  Here’s how they work:

IRS Direct Pay

This is for making online payments towards your 1040 return.  The IRS website will tell you that you just can’t make estimated payments using Direct Pay, but you actually can.  Also, if you are paying on your 1040 but not submitting it yet because you asked for an IRS extension, Direct Pay can actually handle this type of payment even though it says it can’t yet.  It can’t handle many types of tax payments but it does handle 1040-ES (estimated payments) and extension payments.*

To use Direct Pay, simply follow these steps:

  1. Go to the Direct Pay page on the IRS website and click the Pay Now button.
  2. Choose the type of payment you’d like to make.  The choices are:
    1. installment agreement
    2. tax return
    3. estimated tax
    4. proposed tax assesment
    5. extension
    6. amended return
    7. Other (1040 only)
  3. Choose the tax year for your payment.
  4. Now you verify your identity.  It will ask you for your “filing status” from your tax return which only you should know.  Of course you’ll also be asked to enter your Social Security number and contact information.
  5. Now enter your payment information.  You’ll need your checking or savings account number plus your bank’s routing number.
  6. Now confirm that everything is correct and give your electronic signature.
  7. Print your receipt and keep as proof that you paid.

Pay Online Using EFTPS

EFTPS stands for the IRS’s online payment system.  Once you’re registered with them, you can make payments by phone or online.  This is available for businesses or individuals, and payments can be made 24/7.

The beauty of EFTPS is that is can handle all types of tax payments, whereas Direct Pay handles only the short list you see above.  For example, with EFTPS you can make the following types of payments online:

  • employment taxes
  • excise taxes
  • estimated taxes

You also get a login, where you can access a dashboard and see all your payments going back 16 months.  Enrollment in EFTPS is done at www.eftps.gov.  It’s so easy, you will wonder why you didn’t enroll sooner.  No more writing checks for the IRS, or worse yet, getting money orders from the Post Office every time you need to pay taxes.

Pay Online Using Your Credit Card

You can use credit card or debit card to pay your taxes online.  This sounds like a great option until you find out it’s not free.  It’s the only IRS online payment you can make that’s not free, in fact.  The IRS simply gives a list of third-party businesses that have been approved to handle credit and debit card payments for the IRS.

Feed for using your debit card are usually a flat fee, ranging from $2.79 to $3.95.  For using your credit card, the fee is a percentage of the payment amount, ranging from 1.87% to 2.35%.

Some of the third-party businesses accept only Visa or Mastercard, while others accept American Express and Discover.  If your tax payment is over $100,000 then you’ll have to call your credit card company first to let them know what’s coming.

 

 

*The IRS expects to add more forms to the Direct Pay system in the future so be on the lookout for developments here. 

IRS Payment Address

The IRS payment address you’re looking for will depend on what type of payment you’re sending.  It’s also going to depend on what state you live in.  The IRS website has dozens of payment address on it.  Here’s how to choose the right one.

If you are a Nonresident Alien, the addresses will be different.  The following types of Tax returns will also have their own special addresses.  Furthermore, the addresses will be different if there is no payment, rather just a tax return.  This is a list of only the most common types of forms for which you might require an IRS Payment address. There are more on the IRS website.

  • IRS Form 1040NR, Nonresident Alien Income Tax Return
  • IRS Form 1040NR-EZ, Income Tax Return for Certain Nonresident Aliens With No Dependents
  • IRS Form 1040-PR Self-Employment Tax Return – Puerto Rico
  • IRS Form 1040-PR SCH H Household Employment Tax
  • IRS Form 1040-SS U.S. Self-Employment Tax Return
  • IRS Form 1040V
  • IRS 1040X Amended US Individual Income Tax Return
  • IRS Form 1041 US Income Tax Return for Estates and Trusts
  • IRS Form 1041-A U.S. Information Return Trust Accumulation of Charitable Amounts

Paying on Your 1040

If you’re sending a tax payment on your individual tax return, there are five address to choose from.  It’s simple: just find your state and use the IRS payment address that corresponds.

Note: if you are using either 1040A or 1040EZ the IRS payment address is not necessarily always the same as for the 1040.  See further down for those addresses.

Your State   IRS Payment Address
Alabama, Georgia, Kentucky, Missouri, New Jersey, North Carolina, South Carolina, Tennessee, Virginia Internal Revenue Service
P.O. Box 931000
Louisville, KY 40293-1000
Florida, Louisiana, Mississippi, Texas Internal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214
Alaska,  Arizona, California,  Colorado, Hawaii, Idaho, New Mexico, Nevada, Oregon, Utah, Washington, Wyoming Internal Revenue Service
P.O. Box 7704
San Francisco, CA
94120-7704
Arkansas, Illinois,  Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska,  North Dakota, Ohio, Oklahoma, South Dakota, Wisconsin Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501
Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts,
New Hampshire,
New York, Pennsylvania, Rhode Island, Vermont, West Virginia
Internal Revenue Service
P.O. Box 37008
Hartford, CT 06176-7008

 

Paying Estimated Tax (IRS 1040 ES)

If you need the IRS payment address for sending your estimated tax payments withe form 1040 ES, here are the addresses you would choose from, depending on the state in which you live:

Your State   IRS Payment Address
Alabama, Georgia, Kentucky, Missouri, New Jersey, North Carolina, South Carolina, Tennessee, Virginia Internal Revenue Service
P.O. Box 931100
Louisville, KY 40293-1100
Florida, Louisiana, Mississippi, Texas Internal Revenue Service
P.O. Box 1300
Charlotte, NC 28201-1300
Alaska,  Arizona, California,  Colorado, Hawaii, Idaho, New Mexico, Nevada, Oregon, Utah, Washington, Wyoming Internal Revenue Service
P.O. Box 510000
San Francisco, CA
94151-5100
Arkansas, Illinois,  Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska,  North Dakota, Ohio, Oklahoma, South Dakota, Wisconsin Internal Revenue Service
P.O. Box 802502
Cincinnati, OH 45280-2502
Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts,
New Hampshire,
New York, Pennsylvania, Rhode Island, Vermont, West Virginia
Internal Revenue Service
P.O. Box 37007
Hartford, CT 06176-7007

 Paying on Your IRS 1040 A

Your State   IRS Payment Address
Alabama, Georgia, Kentucky, Missouri, New Jersey, North Carolina, South Carolina, Tennessee, Virginia Internal Revenue Service
P.O. Box 931000
Louisville, KY 40293-1000
Florida, Louisiana, Mississippi, Texas Internal Revenue Service
P.O. Box 1214
Charlotte, NC 28201-1214
Alaska,  Arizona, California,  Colorado, Hawaii, Idaho, New Mexico, Nevada, Oregon, Utah, Washington, Wyoming Internal Revenue Service
P.O. Box 7704
San Francisco, CA
94120-7704
Arkansas, Illinois,  Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska,  North Dakota, Ohio, Oklahoma, South Dakota, Wisconsin Internal Revenue Service
P.O. Box 802501
Cincinnati, OH 45280-2501
Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts,
New Hampshire,
New York, Pennsylvania, Rhode Island, Vermont, West Virginia
Internal Revenue Service
P.O. Box 37008
Hartford, CT 06176-7008

Paying on Your 1040 EZ

Right now, the IRS payment address for the 1040 EZ is that same as that of the 1040 A, above.

 

IRS Payment Plan

If you owe money this year to the IRS but have trouble paying, you have a few different ways you can work out a 2014 IRS Payment Plan.    The IRS will work with you to set up a way to pay your tax debt.   But be warned:  you will be charged money to set up an IRS Payment Plan.  Therefore, look for other ways to pay your tax debt and consider the IRS’s plan a last resort.

Why You Should Avoid Setting Up an IRS Payment Plan

The IRS is in the business of making money.  They really don’t like it at all when taxpayers don’t pay their taxes.  In fact, they go after individuals and businesses who have outstanding tax debt, and in some cases there are criminal charges involved.  You really don’t want to mess with the IRS – the hassle alone will wreck your life for a while.

Even when you try and be a good citizen and contact the IRS about paying your tax debt, they don’t go easy on you.  They will charge you a fee just for setting up any type of 2014 IRS Payment Plan.  Even if you agree to give them control of your paycheck and take regular payroll deductions before you even see that paycheck, they’ll charge you over $100.  That’s right: for the privilege of having the IRS shave your paycheck each month, you get to pay them $105.

How to Avoid an IRS Payment Plan

First, try your family…can you borrow money from someone?  For lots of people that’s completely out of the question, so let’s move on to the next option for avoiding the IRS plan.  How about credit cards?  Can you put the tax debt amount on a low-interest credit card?  There are lots of ways you can come out ahead on this one.  For example, many credit card offers come with a balance transfer option.  Transfer the balance from an old credit card and there are no fees and no interest for six months.  That’s just an example but if you can swing that setup it’s 100% better than an IRS Payment Plan.

If You Must, Here’s Now to Apply for a 2014 IRS Payment Plan

First, if you owe more than $50,000 none of this applies to you.    You’re in a whole other world of misery with the IRS.  You can’t apply online. and you’ll need to fill out an extra IRS form called Form 433-F, Collection Information Statement. 

So, let’s assume your tax debt is lower than $50,000, and you’ve exhausted all other means of paying it.  Here’s how to apply for the IRS Payment Plan. ..

  1. First you have to file your tax return.
  2. Then, wait until the IRS sends you a notice about owing money.  Why?  see # 5 below.
  3. Second, go here to the IRS website’s Online Payment Agreement Application.
  4. Third, make sure you have hand your Adjusted Gross Income (AGI) from your tax return.
  5. Fourth, if you got a notice from the IRS about your debt, you’ll need the Caller ID number from the top of that bill.
  6. Get your bank account info together because you’ll be giving that to the IRS so they can take your money out automatically.
  7. Have your job info ready, too.  If it’s decided that you’ll have regular paycheck withdrawals rather than bank account withdrawals, the IRS will need to set that plan up with your employer.

What’ll it Cost You?

The cheapest way to set up a 2014 IRS Payment Plan is when your income is below a threshold that they think is worth giving you a discount on the payment plan price.  You will pay only $43.  Even that seems like a lot to most people.  This is why credit cards or loans are preferable.

If your income is above that threshold, you’ll pay $105 to set up payroll deduction.   The price is only $52 to set up regular withdrawals from your bank account.   The minimum amount to pay on your tax debt each month is $25.

If you file taxes after setting up an IRS payment plan and you’re due an IRS refund well you’re out of luck.  That future refund will go straight towards paying off your bill with the IRS.  Told you- the IRS is all about getting that money.