Taxes

4 Ways To Pay Your Taxes

filing taxes, taxes paid, tax season

 

WARNING, WARNING, the deadline for filing your taxes is fast approaching. Have you filed your taxes yet? Did you end up having to send payment to the government because you underpaid your taxes during the past year? If you have to pay, you’re not alone. I’m in the same boat with you. The good news is, at least the Federal Government makes paying your taxes easy by providing convenient payment options.

I used online calculatorsĀ and tax preparation software, and when it came time to file I was given several payment options:

Bank Account

The first option was to have the payment withdrawn directly from a bank account for free, AND choose what date to have the funds withdrawn.

Debit Card

I could also choose to pay using my debit card through a secure website. These are third party payment services that charge a fee for the transaction. For debit card transactions, there is a flat fee of $2-$4.

Credit Card

Through the same secure website, a credit card can also be used. Paying your tax bill with a credit card can incur higher fees, however. Taxpayers using this option will fork over about 2% of their payment as a convenience fee.

Paper Check

The final option was to print out a payment voucher, and mail it to the IRS.

Analysis

I have the money to pay my taxes, so there’s no reason to pay a 2% convenience fee to use a credit card. I also won’t be sending a paper check. It’s not that I don’t trust the post office, but I just like the immediate recognition of seeing the money has been removed, and knowing my taxes have been paid. I’m not sure why anyone would use their debit card, given that if they wanted to use funds in their checking account they could just use their account information and have the funds withdrawn for free.

For those reasons, I’ll be having my funds withdrawn directly out of my checking account by supplying my bank routing information and account number.

CleverDude_PayTaxes

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Make sure you file AND pay your taxes by April 15th, Clever Friends. There are separate fees and fines associated with filing late and paying late. Good Luck!

Have you filed your taxes yet? If you owed money, how did you pay your bill?

Brought to you courtesy of Brock

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Brock Kernin

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