Options for Paying Your Tax Bill

Options for Paying Your Tax Bill

If you owe federal tax, you can typically use credit and debit cards to pay directly or through certain third-party apps. However, the number of cards you can use when submitting individual tax forms is generally limited to two per year or two per month (for details: Frequency limit table by type of tax payment | Internal Revenue Service ).

Also, there are processing fees involved. The cost of using a personal debit card is $2.15. It’s 1.75% of the total ($2.50 minimum) if you use a personal credit card. Commercial debit or credit cards are charged 2.89% ($2.50 minimum). And, you’ll likely incur interest if you carry a credit card balance. Note: Employers can’t use credit or debit cards to pay federal tax deposits.