How to Pay Your Individual Income Tax Balances

No one likes owing on taxes at the end of the year, but it happens to the best of us. Luckily, we’re here to help you learn how to manage this balance and prepare for the next tax season.

Direct Pay

For the Federal 1040 balance due, the best (and safest) method of payment is via Direct Pay. Direct Pay is a secure service offered on the Internal Revenue Service (IRS) website. You will need your tax return to answer some questions when making a payment this way.]

I advise you never to use a credit card as you will be charged convenience fees. Payment from a bank account is free and you can schedule it to be paid at a later time.

Tip: the taxpayer’s Social Security number that is attached to the payment should be the first name on the tax return

Federal Estimated Payments

Estimated payments make up a schedule created by the Internal Revenue Services to keep you on track for paying income taxes. This is especially helpful in situations where there is no W-9 taking the amount out every week. You can schedule estimated payments up to 365 days in advance (using Form 1040-ES) on the Direct Pay site. If you are self-employed, this is calculated based on your self-employment income profit plus income tax.

Estimated Payments are on the following dates this year:

  • April 15th
  • June 15th
  • September 15th
  • January 15th (2023)

Tip: If you missed a payment, divide the amount estimated into the number of payment dates remaining for the year. Again, the payment will be under the social security number of the person listed first on the tax return, unless you’re filing separately.

State Individual Income Tax

When paying the balance due for your state’s individual income tax, you will use the NC D-400 form for North Carolina. You can also pay this balance via Direct Pay. There is no need to create an account. Enter the taxpayer’s name (again, first on the return), email address for confirmation, and contact phone number.

You can only schedule payments out 30 days.

State Estimated Payments

Estimated payments for state taxes are due on the same dates as the federal. You will use the NC-40 form.

You can only schedule payments out 30 days.

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