Over the past decade, more people have moved to electronic payments of their monthly bills and expenses.
The days of sitting down and writing checks to pay bills has quickly become a thing of the past. In fact, for many people under the age of 30, they do not know, nor have they ever had a physical checkbook!
Based upon this change in payment method, we frequently get phone calls inquiring about the ability to make online payments for federal, state, and municipal individual income tax liabilities. Luckily, there is a payment solution for the U.S. Department of the Treasury, the State of Ohio and the Regional Income Tax Agency.
In order to utilize these online payment resources, advanced set-up is required. The following is a summary of each of the tax agency’s services:
U.S. Department of the Treasury
The Internal Revenue Service utilizes the Electronic Federal Tax Payment System (EFTPS) to accept ACH online payments for many types of taxpayers, including individuals. THE EFTPS is a free service that allows you to schedule payments of all federal taxes up to 365 days in advance.
Set-up of an individual taxpayer account can take between seven to 10 business days, assuming timely delivery of account confirmation information by the U.S. Postal Service. You can access the EFTPS registration site at eftps.gov/eftps/.
Here is how the Federal enrollment process and Federal tax payment service works:
STEP 1: Enroll online
To get started, you will need the following:
- Taxpayer Identification Number (your Employer Identification Number if you are enrolling as a business or your Social Security Number if you are enrolling as an individual)
- Banking account number and routing number
- Address and name as they appear on your IRS tax documents
Then, simply follow these instructions:
- Select "Enrollment"
- Select "Business," "Individual," or "Federal Agency"
- Enter the requested information
- Submit
In seven business days, you will receive your PIN in the mail.
STEP 2: Get your password
- Go to EFTPS.gov and click on "Log In"
- Click on "Need a Password"
- Enter your EIN or SSN and your PIN
- Verify your banking information or your EFTPS enrollment number (which appears on your PIN letter or was given to you when you activated your enrollment via phone) and select "Next"
- Create your new Internet password
STEP 3: Make your payment
- Go to EFTPS.gov and select "Make a Payment."
- Select "Log In" again and use your EIN, PIN, and the password you just set.
- Enter the payment information in the step-by-step screens.
- When you're finished, save a copy of the Payment Confirmation page. This contains your EFT Acknowledgment Number that acts as a receipt for your payment instruction.
State of Ohio
The State of Ohio’s free ePayment Service allows you to electronically make Ohio individual income and school district income tax payments. This includes extension and estimated tax payments, original and amended return payments, and billing or assessment payments. Also, you can view payments made within the past 61 months.
To use Online Services taxpayers must first register at: tax.state.oh.us/IFILE/IFileRegWeb/regStart.do.
To complete the one-time registration, taxpayers must provide their:
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Last name
- Date of birth
- Previous year’s Ohio withholding amount (Ohio IT 1040, line 14) or the issue date of your current Ohio Driver's License or State ID.
The information you provide must match the information on file with the Department. If you have recently renewed your driver’s license or your state ID, you may not be able to use it to register.
Please note, if you are a first time Ohio filer, you are not able to register for Online Services.
Ohio ePayment allows you to make Ohio individual income and school district income tax payments using one or both of the following methods:
- Electronic Check: This payment method withdraws funds directly from your checking or savings account. There is no fee for using this payment method. Generally, your payment will be withdrawn within 24 hours of the date you choose for payment. You must ensure the funds are in your account and available on the date you choose for payment. The payment will show on your bank statement as “STATE OF OHIO.”
- Credit Card (Discover, VISA, MasterCard or American Express): This payment method charges your credit card using ACI Payments Inc., a credit card service provider. You cannot future-date a credit card payment. Your credit card will be charged on the date you authorize the payment.
ACI Payments, Inc. charges a convenience fee equal to 2.5 percent of your payment or $1, whichever is greater. The state of Ohio does not receive any of this fee. The payment will appear on your credit card statement as two separate entries – one for the payment itself and a second for the ACI Payments, Inc. service fee.
You may choose to make a payment using both electronic check and credit card. Simply enter the amount you want to be withdrawn from your checking or savings account and also the amount to be charged to your credit card.
If a problem occurs with your electronic payment (such as insufficient funds or incorrect payment information) that results in nonpayment or late payment, you may be subject to interest, penalties, and other fees.
Regional Income Tax Agency
The Regional Income Tax Agency also has an online payment system accessible through their MyAccount system. You can create your MyAccount online at:
eservices.ritaohio.com/webtax/auth/login.
RITA offers the following payment options:
- Checking or savings account
- Visa™, Master Card™ or Discover Card™
Please note a 2.75 percent service charge will be added to payments made by credit card. Payments made by check or via ACH will not incur this service charge.
The MyAccount system allows taxpayers to:
- eFile your taxes
- Make payments
- Check refund status
- Update account profile
- View payment history
- Change your estimate
- Send secure messages
- Change your address
If you are interested in making electronic payment for the upcoming fourth quarter estimated tax payment filings and your 2021 individual income tax filings, we highly recommend that you establish your individual payment accounts with each of the taxing agencies well in advance of the payment deadlines.
If you need assistance with this process, please feel free to contact your Zinner Client Service Team member.