Tax Bill Payment Options Expand Digitally

Understand the options and costs

As the payment alternatives continue to evolve in the economy, so too are the payment options available to you to pay your tax bill. Here is what's available to you this tax filing season along with each option's related costs.​

Various payment methods to pay taxes

1. Electronic funds withdrawal. This comes out of the checking or savings account noted on your 1040 tax return. There is no charge for this service.
2. 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.
3. Pay with a credit card. The IRS provides two vendors (called merchant banks) for this service: Pay1040 and ACI Payments. There is an interchange rate charged to you ranging from 1.75% to 1.85% with a minimum fee of $2.50.
4. Pay with a debit card. Again there are various services that provide this with a fee of $2.10 to $2.15.
5. Pay by digital wallet or cash. This usually involves a $1.50 fee
6. Drop off cash payment, including to one of 60,000 locations. Yes, you can still bring in 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 for walk up payments in cash. Just make sure you have an appointment and follow online instructions.
• There are limits to the number of credit card transactions you can make in a year. You also need to get approvals if you think payments may exceed $100,000.
• If you find you cannot pay your taxes, there are also installment payment plans.

"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
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Mia Verc, CPA;  Janice Papais, CPA