Pay Taxes with Credit Card

A black credit cardIf you have ever wondered whether you could pay your tax liability with the use of a credit card, you are in luck. The IRS has authorized three companies to accept credit card payments for them when a taxpayer wishes to use their credit card to pay a tax liability.

The one drawback to using a credit card when paying your tax liability is that you will be required to pay a convenience fee that is dependent on the actually company you choose. This convenience charge is in addition to any interest that may be assessed by the credit card issuer.

Pay Taxes with Credit Card

If you choose to pay your tax liability with a credit card, the IRS has designated three companies for you to choose from. These companies include:

1. Official Payments Corp. This company can be contacted by calling them at 1-877-754-4413 or going on their website at www.officialpayments.com/fed to make your payments online.

2. Link2Gov Corporation. This company can be contacted by calling them at 1-888-658-5465 or going to either of the two websites they have www.pay1040.com / www.businesstaxpayment.com .

3. WorldPayUS, Inc. This company can be contacted by calling them at 1-888-877-0450 or going on their website at www.payusatax.com to make your payments online.

One important fact to remember is that just because you pay on a certain date does not mean that IRS will honor that date if something were to happy and your credit card was declined or there were insufficient funds. It is important to always verify that the payment has gone through because if the IRS does not receive the payment they will begin to charge you for interest and penalties.

Deduction for Paying by Credit Card

The IRS has announced that if you were to pay your tax liability with a debit or credit card the convenience fee that is charged to you can be deducted as a miscellaneous itemized deduction of Form 1040, Schedule A. If you qualify for this deduction, the convenience fee is actually deductible in the year it is paid.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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