How to Set Up EFTPS for Automatic Payments

What is EFTPS?

EFTPS stands for Electronic Federal Tax Payment System. It's the IRS's free online payment platform that allows individuals and businesses to pay federal taxes electronically. Unlike IRS Direct Pay, which lets you make one-time payments without registration, EFTPS requires enrollment but offers a major advantage: you can schedule payments in advance.

For quarterly estimated taxes, this is the single biggest quality-of-life improvement available. Enroll once, calculate your four quarterly payments, schedule all four at the beginning of the year, and you're done. The IRS withdraws the money automatically on each due date.

EFTPS vs. IRS Direct Pay

How to enroll in EFTPS, step by step

Step 1: Go to eftps.gov and click "Enrollment" at the top of the page.

Step 2: Select "Individual" and enter your Social Security Number, name, and address exactly as they appear on your tax return.

Step 3: Enter your bank account information (routing number and account number).

Step 4: Submit your enrollment. The IRS will mail a PIN to your address on file, this typically takes 5, 7 business days.

Step 5: When your PIN arrives, log in to eftps.gov, enter your PIN, and create a password. Your account is now active.

How to schedule your quarterly payments

Step 1: Use our estimated tax calculator to determine your quarterly payment amount.

Step 2: Log in to your EFTPS account at eftps.gov.

Step 3: Select "Make a Payment" and choose "1040ES Estimated Tax" as the tax type.

Step 4: Enter your payment amount and select your payment date. You can schedule up to 365 days in advance.

Step 5: Repeat for all four quarterly due dates: April 15, June 15, September 15, and January 15.

You'll receive a confirmation number for each scheduled payment. Save these. You can cancel or modify a scheduled payment up to 2 business days before the payment date.

What if my income changes mid-year?

If your income changes significantly, a big new client, a slow quarter, a one-time windfall, you can log back into EFTPS and modify your upcoming scheduled payments. Cancel the old payment and schedule a new one with the updated amount. As long as you meet the safe harbour for the year, the adjustment is straightforward. That means paying at least 90% of this year's tax, or 100% of last year's, rising to 110% if your prior-year AGI was over $150,000. Hit any one of those 3 and the size of each individual quarter matters far less.

EFTPS enrollment takes time, plan ahead

The PIN mailing process means EFTPS enrollment takes about a week. If a quarterly deadline is approaching, use IRS Direct Pay for your immediate payment and enroll in EFTPS simultaneously so it's ready for your next quarterly payment.