What Does Federal Tax Due Mean?

All over the world, people associate different months with different things. October means Halloween, November means Thanksgiving, and December means the Christmas Holidays. However, not all of these months have joyous things associated with them.

For example, for many people, the only thing they associate with April is tax day. 

Paying your taxes isn’t the easiest task in the world, and it is common for people to have a sense of anxiety associated with April 15th. There are millions of people who owe money to the IRS, and for these people April 15th is a very important day. A day associated with federal tax due.

If you are somebody who owes taxes to the IRS, then it is incredibly important that you make yourself familiar with the term “federal tax due”. So if you want to find out more, keep on reading!

What Does Federal Tax Due Mean?

So, let’s not mess around, instead let’s dive right in and take a look at exactly what “federal tax due” means. While it can seem like a scary phrase, federal tax due is actually pretty simple to understand. In short, this term is simply referring to the money that you personally owe to the IRS for the tax year in question. 

You will most commonly see the term “federal tax due” when you are in the process of filing your taxes. This term is commonly used when you use tax software to file your own taxes, and it simply refers to the amount that you owe in tax. 

“Federal tax due” isn’t the only term that you will commonly see associated with the money that you owe to the IRS. While some software will refer to it as federal tax due, other software will use the phrase “amount you owe”. 

If you file your taxes the traditional way, using paper forms, then you will be more familiar with the term “amount you owe”. On digital software, the “federal tax due” figure will usually be listed in the top right-hand corner of the screen.

Whereas in traditional paper forms, the “amount you owe” will be found at the bottom of the form. Even though they are in different locations, these two phrases mean the same thing. 

How Can I Pay My Taxes?

Now that we have established that federal tax due is associated with the amount of money that you owe to the IRS, let’s talk about how you can pay your taxes. After all, as we have just established, the way in which you pay your taxes will affect whether it is listed as “federal tax due” or “amount you owe”.

So, let’s take a look at how you can pay your taxes. 

Well, it is important to note that the way in which you pay your taxes will depend on how you file your taxes. So if you file your taxes electronically you will be able to pay your taxes in one way, whereas if you file your taxes manually, the old fashioned way, you will be able to pay your taxes differently.

Electronically

If you are taking advantage of electronic software to help you file your taxes, then you have more options when it comes to paying the amount that you owe to the IRS. 

One of the most popular ways to electronically pay your taxes is to use your checking account. This is known as Direct Pay, and it is one of the most common ways to pay your taxes. There are lots of people across the country who take advantage of this and pay their taxes in this way. 

Although, if this doesn’t seem like the best option for you, then you can instead pay the money that you owe to the IRS using either your debit card or credit card. This is the option that most people choose if they are tight on time, and need the money to reach the IRS quickly.

A simple wire transfer and your taxes will be paid. 

Manually

Alternatively, if you are keeping things traditional, and are filing your taxes manually, then you will need to pay your taxes differently. Unfortunately, you will not be able to pay via credit or debit card in the same way that you can when filing electronically. 

When you file your taxes manually, you can simply send a check or cash with your tax forms when you post them. The only restriction on this is that the IRS does not accept single checks or cash payments of more than $1 million.

If you do not feel comfortable sending the cash value of your taxes in the post, then you can pay with cash at IRS retail partner locations. You will only be able to pay up to $1,000 at these locations, and a $3.99 charge will be added to your bill. 

Summary

In short, federal tax due simply refers to the amount of money that you owe on your taxes. This is money that you have to pay to the IRS based on your income for the financial year, and it will need to be filed and paid ready for tax day. 

So, if you are filing your own taxes, “federal tax due” is a term that you should make yourself familiar with!

Frequently Asked Questions

What Does it Mean When It Says Your Tax Due?

When it says “tax due” anywhere on your tax forms, this is simply referring to the money that you owe the IRS for your taxes. It might be listed as “federal tax due” or “amount you owe”. 

Can I File My Taxes Electronically?

Yes, you absolutely can file your taxes electronically. If you file your taxes electronically you will be able to pay your taxes in a number of different ways, and this is part of the appeal of paying your taxes in this way.