How to Pay Income Taxes With a Credit Card

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If you owe the IRS money, the thought of completing your taxes can be dreadful. For convenience, the IRS has developed a simple system for individuals and businesses to pay their taxes with a credit or debit card. Payments can now be made quick and easy online and over the phone with a credit card. As an added benefit, if you use your card to pay taxes, you may be eligible to earn miles, points and rewards from your credit card company.

Things You'll Need

  • Credit card
  • Personal information

File your taxes online through the IRS website or through various income tax filing companies such as H&R Block. When filing online, if you owe money to the IRS, you will be prompted to enter payment information at the end of your return. IRS payments by credit card reflect a payment date the same date the credit card is authorized. A confirmation screen will appear at the end of your transaction, and an e-mail confirming your payment will be sent to you.

Log on to the IRS website to pay a balance. If you have been sent a balance due letter from the IRS or owe back taxes, you can pay your balance online by credit card. The IRS website will refer you to websites such as Pay1040.com to enter your payment information. The IRS notes that service providers charge fees for these transactions.

Generally, taxpayers can make a payment through the service providers using credit cards such as American Express, Discover, MasterCard or Visa. An ATM or debit card can be used, but must contain the Visa logo or be a NYCE, Pulse or Star Debit Card.

Pay your taxes by phone with a credit card through trusted services such as Link2Gov, by calling (888) PAY-1040. Service fees will apply to phone payments as well. When paying by phone, taxpayers will be prompted for information through a scripted recording. Specific information such as the exact amount of payment you are authorizing, including dollars and cents, will be requested. A confirmation number will be given at the end of the call, which should be written down and kept with your tax-filing documents.

Tips & Warnings

  • Pay your taxes on time to avoid extra fees.
  • The IRS does not issue an immediate release of a federal tax lien when a credit or debit card payment is made to fully pay the tax liability.
  • Avoid giving your personal or credit card information to companies not authorized by the IRS.
  • Generally, payments cannot be cancelled, so be certain of the amount you are paying before authorization.

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