Top Ten Things You Need to Know About Making Federal Tax Payments
April 6, 2010 – Special Edition TT-2010-67
Will you be making a payment with your federal tax return this year? If so, here are 10 important things the IRS wants you to know about making tax payments correctly.
- Never send cash!
- If you file electronically, you can file and pay in a single step by authorizing an electronic funds withdrawal via tax preparation software or a tax professional.
- Whether you file a paper return or electronically, you can pay by phone or online using a credit or debit card.
- Electronic payment options provide an alternative to paying taxes or user fees by check or money order. You can make payments 24 hours a day, seven days a week. Visit IRS.gov and search e-pay, or refer to Publication 3611, e-File Electronic Payments for more details.
- If you itemize, you may be able to deduct the convenience fee charged for paying individual income taxes with a credit or debit card as a miscellaneous itemized deduction on Form 1040, Schedule A, Itemized Deductions. The deduction is subject to the 2 percent limit.
- Enclose your payment with your return but do not staple it to the form.
- If you pay by check or money order, make sure it is payable to the "United States Treasury."
- Always provide your correct name, address, Social Security number listed first on the tax form, daytime telephone number, tax year and form number on the front of your check or money order.
- Complete and include Form 1040-V, Payment Voucher, when sending your payment to the IRS. This will help the IRS process your payment accurately and efficiently.
- For more information, call 800-829-4477 for TeleTax Topic 158, Ensuring Proper Credit of Payments. You can also find out more in Publication 17, Your Federal Income Tax and Form 1040-V, both available at IRS.gov.
Both TaxACT Free Federal and Deluxe editions include Forms 1040-V and 1040-ES and will guide you through completion of the forms. Start your TaxACT return now.