Tax bill payment options expand digitally: Understand the options and costs
As payment alternatives continue to evolve in the economy, so do the payment options available to pay your tax bill. Here is what’s available to you this tax filing season and each option’s related costs.
Tax bill payment options
- Electronic funds withdrawal. This comes from the checking or savings account noted on your 1040 tax return. There is no charge for this service.
- Send in a check. Use an IRS voucher for this. Write your check out to the U.S. Treasury and send it via certified mail.
- Pay with a credit card. The IRS provides this service to two vendors (called merchant banks): Pay1040 and ACI Payments. You are charged an interchange rate ranging from 1.75% to 1.85%, with a minimum fee of $2.50.
- Pay with a debit card. Again, various services offer this for a fee of $2.10 to $2.15.
- Pay by digital wallet or cash. This usually involves a $1.50 fee
- Drop off a cash payment at one of 60,000 locations. You can still bring your tax payment to designated locations and pay in cash. If this is the option you take, you will need an appointment. Details can be found here.
Available payment suppliers
- Debit/Credit: Visa, Mastercard, Discover, American Express, Star, Pulse, NCYE, ACCEL, AFFN, Cirrus, Interlink, Jeanie, Shazam, Maestro
- Digital Wallet: Click to Pay, PayPal, Venmo
- Cash: Vanilla Direct
Interesting notes
If you have an online IRS account, you can make payments within this secure setting. IRS offices still allow walk-up cash payments. Just make sure you have an appointment and follow the online instructions. There are limits to the number of credit card transactions you can make in a year. You must also get approval if you think payments may exceed $100,000. If you find you cannot pay your taxes, there are also installment payment plans.
Contact our RRBB advisors if you have any questions.
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