This is the time of the year that millions of Americans will find out if they paid Uncle Sam too little or too much over the previous calendar year. Based on their withholding, Americans will either receive thousands of dollars from the government in the form of a refund, or owe money to the government for underpaying their taxes throughout the year.
Luckily, the US Government allows people to make payments on their taxes by credit card, which makes paying your taxes quicker and easier if you owe money on your tax return.
Here’s how to pay by credit card:
1)Select a payment processor – The IRS uses five official payment processors, which offer varying rates for credit card payments direct to the IRS. You’ll need to choose the best option for you, but expect to pay as much as 3% in fees to pay by credit card.
2)Agree to the charges – Once you’ve picked a processor, simply enter your credit card information and agree to the charges. The money will be sent to the IRS immediately, removing any amount that you may have owed. The amount plus fees will then be charged to your credit card, which you can pay off like any other balance.
Be sure to pay with a credit card after exhausting all other options. Other payment methods, including payment by money order, does not require a fee for each transaction. Credit cards are the fastest way to clear your record with the IRS, however, which may be worth the convenience fee if you’re late, worried about being late, or simply want to get out from tax debt owed to the IRS.