The Internal Revenue Service, IRS, claims that it is possible to pay your taxes by debit card or using your digital wallet. However, you should bear in mind that there are some processing delays at the moment. Thus, it needs additional handling to make sure it is fine. For those who don’t know it, the Agency uses third party payment processors.
These payment processors are for payments made by debit or credit card. If you need to pay the IRS any tax, do not worry because these payment methods are both safe and secure. As a matter of fact, your information is used solely to process your payment.
Will paying by digital wallet suit you? Or is it best by credit card?
These IRS payment methods allow taxpayers to pay online or even over the phone. If you have a digital wallet, it will only be accepted if it is either PayPal or Click to Pay.
However, there is a limit to the number of card payments allowed, which is based on your tax type as well as payment type. For your information, employer’s federal tax deposits cannot be paid by card.
Sometimes taxpayers need to make huge card payments. When it comes to card payments, if they are of $100,000 or over, special conditions will definitely apply.
Fees when you make payments by card or digital wallet
One way to decide whether to make the tax payment to the IRS by credit, debit card, or digital wallet is to check the fee you will have to pay with each payment method.
Pay1040 fees:
Some taxpayers only have consumer or personal debit cards. In this case, the IRS claims that the fee citizens will have to pay is $2.15. Those Americans who prefer to pay by credit card will not save money if compared to the previous method.
The fee to pay 1040 by credit card is 1.75% but the minimum fee will be $2.50 regardless of how low your tax payment is. Some taxpayers have a commercial credit or debit card. The minimum fee is also $2.50, but it is 2.89%. Only have cash to pay? Then, it is just $1.50. Check all the payment methods below:
- Debit/Credit card
- Visa, Mastercard, Discover, American Express, STAR, Pulse, NYCE, Accel, AFFN, Cirrus, Interlink, Jeanie, Shazam, Maestro
- Digital wallet
- Click to Pay; PayPal
- Pay with cash
- VanillaDirect
Source:
- https://www.irs.gov/payments/pay-your-taxes-by-debit-or-credit-card