There are many different methods to pay your taxes. Weather you’d like to or not, finding the best payment method for you might at least make the process of paying taxes a little more bearable.
Can Taxes be paid with credit cards?
Yes, the IRS does accept credit and debit cards.
However, we don’t recommend paying your tax liability with a credit card because you will incur fees simply to use a card for payment. Typically, people don’t want to pay more taxes than needed. So other payments methods may be better suited.
Additionally, there are limits and restrictions for credit card payments. For example, liabilities greater than $100,000 may have special requirements and employer’s federal tax deposits cannot be paid with card.
Can taxes be paid in installments?
Absolutely. Installment payments can be set up and often times desired for cases that have large liabilities due.
You may pick the amount and time of month to set up scheduled payments overtime.
We recommend if you pick this method, please check your bank account periodically to ensure the installment payments are occurring as agreed upon by the installment agreement that was set up. Double checking is helpful to ensure everything got processed smoothly and to avoid future complications.
What are the most common tax payment methods?
Direct withdrawals also known as electronic fund transfers (ETFs) from your bank account is one of the most common methods to pay your taxes. (We see this the most out of all our tax clients.)
Paying online or with checks/money orders are also easy options a lot of tax payers utilize.
What other (lesser known) tax payment methods exist?
PayPal and Click to Pay are always methods you can use to pay your taxes.
You may also call and pay over the phone (contact info here ), however other methods may be easier and less of a time constraint. Calling the IRS can take various hours.
What method is the best way to pay taxes?
It’s completely up to you with how you feel comfortable paying your liability.
We typically recommend direct withdrawals from your bank account because it is the fast and easiest way to verify and ensure payments are processed. This will help you save headaches down the line.
Setting up direct withdrawals will also be recorded within your bank history, so if you get a letter in the mail about a liability that is overdue (that you already paid), you have a quick and reliable method to provide proof of payment. Oddly enough, we see letters like this more than you’d expect. The IRS makes mistakes too!
Bonus tip: If you also have a tax refund that you’re expecting, you will receive it faster with direct deposit set up. Often times, there are individuals who will get a refund from the state or fed and have a liability with the state or fed. With direct deposits/withdrawals set up, the refund can help you pay for the liability. This method is the most efficient way to verify receipt and payment. In return, it’ll help ease your stress so you can focus on better things in life.
Need help for any reason at all? Contact us today.