Finalizing efile from turbotax, timing of paying the owed tax through IRS direct pay?

[ShinDiors]

First time having to pay owed federal tax for 2021.  Pretty much on the final step of submit the efile. 

From my reading, it seems that to pay by credit card directly within the turbotax software would incur higher convenience fee than to go through IRS direct pay (three sites, 1.8x% fee).   I also see people mention that you just pick "pay by check" in the turbotax software at the final step but instead paying it at the IRS direct pay site.

In order to minimize changes to the almost finalized tax form, what is the best way of paying the owe tax?  I do not need extension, but want to put the payments on two credit cards

1.  If I pay at the IRS direct pay before I turned in the e-file,  do I need to somehow idenfity that payment in the form?

2. If I pay online after turning in the e-file (chose pay by check), would it incur unnecessary trouble for myself as it would ask IRS to link my online payment to the tax return with owed amount and a expeced check)

Thanks a lot.

[JulieS]

Yes, you can select pay by check, but then pay online using the IRS website. When you pay online, you need to tell the IRS who you are and what the payment is for. 

Answer the questions to pay your 2021 tax due:

1. Reason - Balance due
2. Apply payment to - Income tax 1040
3. Tax period for payment - 2021
4. Verify your identity by providing personal information as it appeared on your last tax return.
5. Continue,
6. Provide your payment information and authorize payment.

That is all that is needed to match your payment with your tax account and your return. It doesn't matter if you pay first then file, or the other way around, as long as both are done by April 18. 

[ShinDiors]

Thanks a lot Julie.  

I saw in this thread Solved: How to enter into TurboTax an IRS Direct Pay payme... (intuit.com) , that the best answer mentioned in OP's situation (paid 2019's tax in March 2020, prior to filing the tax), it would be best for him to report that payment in the tax forms under "estimated tax payments".   Also, other users were saying just pick "pay by check" and not to report.  Which one is correct?

It makes more sense to me to report it under "estimated tax payments" if it is paid prior filing the tax return (to get the exact number of owed tax), and that should be counted as credit to offset the owed tax right?  Say, in my case, if the software says I owed $5000 in tax, and I pay it right away at IRS direct pay, and then put the $5000 in "estimated tax payment", the updated final calculation of tax owed/tax credit should be exact zero.  Is that right?  

Of course, by doing this it does not change any outcome other than having to enter one extra line.  But if one decides to overpay that amount, he/she could get the extra payment back in cash in the tax return format.  Maybe it would be faster than waiting IRS to cut a refund check directly after matching your online payment and the number owed in the filed tax return? Other than that I could not think any benefits of paying it prior to filing the tax.

Do I get this right?

[AmyC]

Estimated payments were all due by Jan 15 and this is April. You do not want to enter your tax due on the return as an estimated payment. When you go to the IRS website, it will ask what you are paying. You want to pay your tax bill for 2021.  

When you tell the program that you are going to pay by check, you are just telling the program. It has nothing to do with your tax return and what the IRS receives. Otherwise, select to pay by debit and enter your bank information so the IRS can draft your account. The IRS receives either instructions to debit your account or no instructions from the section. The IRS knows you can pay in person many places, credit, draft, payment plan, etc. See Payments.