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Ways to e-pay your tax bill

April 13, 2012

You put off filing your taxes because you knew you were going to have to pay the IRS.

At least Uncle Sam makes it relatively easy, and in a couple of cases fee-free, to pay him electronically.

These tax e-payment options are today's Daily Tax Tip.

First, here's a look at the e-pay ways that'll cost you: credit or debit card transactions.

Service Provider Website
and Telephone
Convenience Fees on
Credit Card Payments
Convenience Fees on
Debit Card Payments
WorldPay US, Inc. payUSAtax.com
1-888-9-PAY-TAX
(1-888-972-9829)
1.89% $3.49
WorldPay US, Inc. ValueTaxPayment.com
1-855-9-PAY-TAX
(1-855-972-9829)
2.29% $3.49
Official Payments Corp. officialpayments.com/fed
1-888-UPAY-TAX
(1-888-872-9829)
2.35% $3.95
Link2Gov Corp PAY1040.com
or
Businesstaxpayment.com
1-888-PAY1040
(1-888-729-1040)
2.35% $3.89

Contact the service provider for up-to-date fee information.

Generally, there is a flat per debit card transaction.

For credit card payments the minimum convenience fee is $3.89 for WorldPay and Link2Gov and $3.95 for Official Payments.

The one possible positive here is that if you itemize, you can count these fees as part of your miscellaneous expenses on next year's Schedule A.

Direct from you: If you don't mind moving money directly from your bank account to the U.S. Treasury, you also can use electronic electronic funds withdrawal, or EFW, or Electronic Federal Tax Payment System, known as EFTPS.

There's usually no charge for these transactions.

EFW essentially is the reverse of the direct deposit that the IRS encourages for receipt of refunds. You can pay this way via Free File, commercial software or a paid preparer. You'll need your financial institution's routing transit number and account number. Check with your bank to confirm these numbers, especially the routing data since it's not always the same as on your paper checks.

Since EFTPS requires some set-up time, if you haven't already established an account it's out of the tax e-pay picture for the impending filing deadline. But after you're through with your 2011 return and tax payment, check it out.

EFTPS can be used to pay a variety of business and individual tax bills throughout the year, including estimated tax payments, the first of which for the 2012 tax year also is due April 17.

You also might find these items of interest:

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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