IRS Highlights Free Direct Pay Option Ahead Of September Estimated Tax Deadline

With the September 15 estimated-tax deadline approaching, the IRS is reminding taxpayers that they can make federal tax payments directly from a checking or savings account using IRS Direct Pay, a free online payment option.

Direct Pay is available through IRS.gov and does not require taxpayers to create an account or pay a processing fee. Users provide basic information to verify their identity and can make a one-time payment directly from their bank account.

The service can be used for several types of individual federal tax payments, including estimated taxes, balances due on an income tax return and certain other federal income tax obligations.

For taxpayers making quarterly estimated payments, the reminder is particularly timely. The third installment of 2026 estimated taxes for individuals is due September 15, 2026. Estimated taxes generally apply to people who receive income that is not subject to sufficient withholding, which can include self-employed individuals, independent contractors, investors and some business owners.

Payments Can Be Scheduled in Advance

Taxpayers using Direct Pay can schedule a payment as much as 365 days in advance. Scheduled payments can generally be changed or canceled up to two business days before the payment date.

After submitting a payment, taxpayers receive a confirmation number that should be retained in case they need to review, modify or cancel the transaction.

Unlike some electronic payment methods, Direct Pay does not charge a fee for payments made from a bank account.

Estimated Tax Payments Help Avoid Underpayment Issues

Federal income taxes generally must be paid throughout the year as income is earned. Employees typically accomplish this through withholding from their paychecks, while taxpayers whose income is not sufficiently covered by withholding may need to make quarterly estimated payments.

Failing to pay enough tax during the year can potentially result in an underpayment penalty, even if the remaining balance is paid when the taxpayer files an annual return.

For 2026, the third-quarter estimated-tax payment covers income earned from June 1 through August 31 and is due September 15. The final estimated-tax payment for the year is generally due January 15, 2027.

Taxpayers should review their income, withholding and estimated payments periodically rather than waiting until tax-filing season to determine whether enough tax has been paid.

 

Source: IRS