Pay Your Income Taxes with a Credit Card

By: Barry Boggs Jr

If you have a tax liability to pay, you have the option of paying your taxes with a credit card. This payment option is available to you, regardless if you electronically file your tax return or file a paper return. Credit card payments are currently originated only by Official Payments Corporation (OPC), who provides this service to the IRS and most other states. OPC will charge you a convenience fee, based on the amount of tax being paid. All of the fee goes to OPC. Only the tax amount goes to the government. This fee is charged by OPC to cover operating costs associated with servicing thousands of transactions. The credit card payment transaction is strictly between you and OPC, and therefore, any disputes specific to the card payment are between you and OPC.

Features and Benefits of Paying Your Taxes with a Credit Card:

It's convenient - Taxpayers can e-file or paper file early, make a payment by credit card and yet delay out-of-pocket expenses. Payments can be made by phone, on-line or when e-filing.

It's safe and secure - standard, commercial card networks are used. The IRS does not receive or store card numbers.

The payment options are available through service providers.

Payment information will not be disclosed for any reason other than processing the transaction authorized by the taxpayer.

A confirmation number is provided at the end of the phone or Internet transaction. You should keep this for your records.

The "United States Treasury Tax Payment" is included on the card statement as further proof of payment. The convenience fee will be included on the statement as a "Tax Payment Convenience Fee" (or similar transaction).

The integrated e-file and e-pay credit card option is available through a number of tax preparation software products and tax professionals. For additional information about e-filing and paying all at once (including convenience fees and accepted credit cards), taxpayers can refer to tax preparation software or a tax professional.

When paying through tax preparation software, users will be prompted to enter the necessary credit card information.

When paying by Internet, taxpayers will be prompted to complete the necessary entry fields.

If the taxpayer has a reward credit card they may earn miles, points, rewards or money back from the credit card issuer. You should use a rewards credit card for your IRS payment for this reason. If you don't have one there are several you can apply for quickly and easily online.

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