Direct debit method from IRS. If you have a credit card that gives you 2% cash back or better, you can use Pay1040 as they only charge 1.75% fee.
reddit_once-over on
Given various reports of mail theft and check washing, it is preferable to pay electronically (typically via an ACH debit set up on the IRS’s Direct Pay website [or after logging into your IRS account]).
Beet_slice on
If there is an under-withholding penalty, paying sooner is better. If not, you can usually have the money pulled from your checking account when you e-file. I have read it if you specify to have the payment made April 15, they do it then, even though you e-file sooner. I think your penalty amount accrues at 7%/365 per day.
If mailing, a personal check is good.
If you might be late, you can make an extension payment, and that permits you, but does not require you, to submit your return later.
HonestTarget5188 on
There are plenty of 2% cards out there. But 0.25% (12.5 dollars on 5000) for two month delay in paying is still great that’s apy of 1.5%
6 Comments
They’ll charge you more in fees than you’ll get in cash back.
Best option is to just do a direct withdrawal.
Nope. Fees on credit card payments are higher than 1.5%. Best way is either mailing a check/money order or direct debit from a bank account.
[https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card](https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card)
Direct debit method from IRS. If you have a credit card that gives you 2% cash back or better, you can use Pay1040 as they only charge 1.75% fee.
Given various reports of mail theft and check washing, it is preferable to pay electronically (typically via an ACH debit set up on the IRS’s Direct Pay website [or after logging into your IRS account]).
If there is an under-withholding penalty, paying sooner is better. If not, you can usually have the money pulled from your checking account when you e-file. I have read it if you specify to have the payment made April 15, they do it then, even though you e-file sooner. I think your penalty amount accrues at 7%/365 per day.
If mailing, a personal check is good.
If you might be late, you can make an extension payment, and that permits you, but does not require you, to submit your return later.
There are plenty of 2% cards out there. But 0.25% (12.5 dollars on 5000) for two month delay in paying is still great that’s apy of 1.5%