How to file and pay your 2023 taxes online

The holidays are over and a new year is here, and in addition to all the turmoil we face, most of us also have to deal with our annual income taxes. (Common quotes about death and taxes are here.)

Although we were able to wait until April 18 in 2023, this year, tax day returns to its traditional Monday, April 15. That said, unless you live in Maine or Massachusetts, you have until Wednesday, April 17 to do so, since it’s the Patriots Day and Emancipation Day holidays.

While many of us feel stressed when dealing with our annual taxes, don’t worry—we’re going to list some resources available so you can prepare your taxes. As always, it’s probably not a bad idea to start taking care of these tax issues as soon as possible to avoid any last-minute panic. Whether you’re a full-time worker processing a single W-2, or a freelancer/gig worker getting a series of 1099s, the fastest way to pay a piper today is to pay online.

Now, in 2024, there’s a new way to file your taxes: through the IRS’s own Direct File program pilot. We’ll discuss this later.

First, the IRS provides a set of instructions on its website to help U.S. citizens calculate their taxes, report their taxes and pay (or claim a refund) using its e-file online method. Here’s a rundown of what’s available and where to find it, starting with how to fill out the tax form.

As mentioned above, the IRS has developed its own free filing software, Direct File, and is running a pilot program for a limited number of taxpayers. You must live in one of 12 states:

• Arizona
• California
• Florida
• Massachusetts
• Nevada
• New Hampshire
• New York
• south dakota
• Tennessee
• Texas
• washington state
• Wyoming

In addition, residents of four states (Arizona, California, Massachusetts, and New York) can also file state taxes through direct filing or related state programs.

Currently, the direct filing pilot program is limited to fairly simple tax scenarios. For example, you cannot use it if you are self-employed or have any gig economy income, have income from a pension or retirement account distribution (although you can use it if your income comes from Social Security or unemployment), Itemize your deductions, want to claim the child tax credit or have income over $200,000 – there’s more. If you click “Check My Eligibility” on the direct submission page, you will see a multi-page questionnaire to help you determine if you can submit using this program.

If your 2023 adjusted gross income is $79,000 or less, you can use the IRS free filing option. There are several what the IRS calls “trusted partners” to choose from. When you go to the IRS to file for free, you will receive a series of questions to find out if you qualify; if you do, you will be referred to the appropriate partner.

You might notice that two well-known tax software companies are missing: Intuit, the maker of TurboTax, and H&R Block. There has been some tension between the IRS and these companies for some time. For example, in March 2022, the FTC sued Intuit on the grounds that its claims of free tax filing were deceptive, and in May of the same year, Intuit agreed to refund $141 million to consumers who were tricked into paying taxes for free. Serve.

Finally, when the IRS announced its intention to develop Direct File, Intuit and H&R Block withdrew from the Free File program in protest.

If your income exceeds $79,000, you can still use the fillable forms provided by IRS Free File, but you won’t get support from the free software, and you won’t be able to pay state taxes this method. (If you really want to file your own taxes, you may want to check out the IRS’s tax tips page.)

If you’re not a professional at filling out your taxes, you’ll have to use e-filing and one of the software solutions available, or find a tax preparer who can do it for you. For people who earn $60,000 or less, have a disability, or have limited English proficiency, the IRS has a program called the Volunteer Income Tax Assistance (VITA) program to help them file their taxes. There is also Tax Counseling for the Elderly (TCE) for those aged 60 or older. Please visit the pages describing these programs for more information. You can also use the locator tool to find providers of these programs near you. There’s also the AARP Foundation Tax Assistance Program, which is available through April 15 and offers a variety of services, including guidance from a tax advisor.

If you use a tax preparer, the person or company filing your taxes will need to be authorized to use electronic filing; if you don’t already have a tax professional, you can find one on the IRS website.

If you have to actually do your taxes, it’s much easier to do it online. The IRS lists several payment options.

First, you can use Direct Pay to pay your annual taxes (using Form 1040), quarterly estimated taxes, or many other types of taxes; they are listed here. Direct Pay is used to pay personal taxes. If you have business taxes to pay, you can do so through the Electronic Federal Tax Payment System (EFTPS). Please note that processing new EFTPS registrations can take up to five business days, according to the IRS.

You can also pay via credit or debit card or a digital wallet such as PayPal or Click to Pay; however, there are fees involved (as the IRS will not absorb the fee your credit card company charges for this service). If you pay with a debit card, the fee may be $2.14 to $2.50 or more, depending on the service you use. If you use a credit card, it may cost you an additional 1.98% of the amount you pay – so paying direct is definitely your best option if you can.

If you owe taxes but don’t have enough funds to pay them, you can arrange a payment plan. If you owe less than $100,000 and are able to pay the entire amount within 180 days, you can set up a short-term payment plan with no set-up fees (although you will pay penalties and interest on the amount you owe). Otherwise, you may qualify for a monthly payment plan, which you can apply for online, by phone, or by mail. If you agree to monthly debits from your checking account, in addition to penalties and interest, you will be required to pay an additional $31 setup fee if you apply online (or $107 if you apply by phone, mail, or in person), although You can get this fee waived if you qualify. Any other payment method will be expensive: the installation fee is $130 for online applications and $225 for other methods.

One of the ways the IRS tries to convince you to file online is by assuring you that you’ll get your refund faster—less than 21 days in most cases, but there are exceptions. (If you submit by paper, processing may take six months or more.) Once submitted, you can check the status of your refund online within 24 hours of submission. You can also download the official IRS2Go mobile app, which allows you to check the status of your refund, pay your taxes, and get other information.

If you can’t pay your taxes by the deadline due to a family emergency, work stress, or simply putting it off for too long, you can apply for an extension. We have a separate article telling you how to do this here.

Updated March 4, 2024 at 4:57 pm ET: This article was originally published on January 19, 2024, and has been updated with information about direct filing and other tax filing resources.