Credit cards or debit cards are your best option, especially when making your payments online. Using a credit card may result in additional benefits in the form of awards. If you cannot pay the full amount, you can request an installment plan with the help of H&R Block.
So, if you are ready to remit your annual tax return but concerned about what payment options are available to you? H&R Block has many payment options that you can choose from. Keep reading as we explore them.
Payment Options in H&R Block
It only makes sense that a tax return enterprise should offer a variety of payment options to avoid wasting anyone’s time. Depending on what option you feel most comfortable with, you can make payment to IRS with no worries.
Credit Card or Debit Card payment
Using a credit or debit card is one of the fasters ways you can make your tax payment. When H&R Block prepares your taxes, you can use a MasterCard, Visa, Discover, or an American Express credit or debit card. You can do so through an authorized third party like pay1040 at about a 2.49% fee. You can simply call any third-party provider’s payment line or pay online on their website. The steps are pretty straightforward.
Pay using Direct Pay
With direct pay, you can make a transfer of funds from a savings account or check account. It does not require any registration and can be done on the IRS website or by downloading the IRS2Go app.
There is also an option to receive email notifications about your tax payments and to cancel any payment schedule at late as two days before it is due.
It is also important to note that the direct payment system will only accept two payments per day, and they must be less than $10 million.
Make Payment using Check
You can go traditional and pay using a check or pay to get a money order. If you choose this option, you will need to have a checklist of the following.
Personal data Details of Social Security Number Tax payment yearTax form number
Payment by check may not be the best option because if your mail is lost, the payment will not be resolved and penalties may apply.
Pay in Installment
Payment by installment must be approved by IRS. After the approval, you can make monthly payments but must commit to making timely payments which will require you to plan ahead in other to have enough withholding to cover future tax obligations.
To meet the installment requirements
Your records must show no installment payment in the last five years has been approved, and returns have been filed on time. the amount owed does not exceed $10,000. IRS has verified that you are unable to pay the full bill when due, and all information and documents required to make this verification has been provided by you. Bill must be paid within three years, and tax laws are completely obeyed.
Which payment option is best for me
Your best payment option will depend on the interest rates, and other charges incurred during tax payment. Try to pay the complete amount owed as soon as possible because interest and penalties will not be avoided no matter the payment option. Installment pay may seem like the most favorable but apart from the processing fee, interest will be charged at a current rate and a 0.5% late penalty fee. However, you will pay a 0.25% penalty fee on the condition that your tax returns were filed at the right time.
It is hard enough that one has to think of the activities that surround Taxes. Not having multiple payment options that suit every client’s need can be frustrating and time-wasting. H&R Block not only offers tax preparation options but different payment options, so whether you have a credit or debit card or you are old schools and want to send a check by mail, rest assured that your filling will be completed.
How to request a payment plan with H&R Block?
Request an installment payment plan from IRS by filing Form 9465 through H&R Block. Setting up a payment plan with IRS will cost a fee which will depend on the situation, which is detailed on the plan form in H&R Block Tax Software,
To fill the Form 9465 in H&R Block
First, open your return in the software. Select Take Me To, this can be found at the top of the screen by the right. scroll down to where you have the Miscellaneous and select Tax Installment payment. Select Go ToFollow the instructions as seen on the screenOnce this process is completed, H&R will forward your request to IRS
Should I File Taxes
The decision to file tax returns is influenced by a variety of factors such as age, income level, tax status, and others. You will not be excepted to file one if your total income does not exceed a specific limit and if you do not meet the filing requirement.
How do I calculate my tax?
Use the H&R tax calculator to calculate your tax, just by answering a few questions and providing basic information about your income and taxes.
What is the consequence of not filing my taxes?
If you owe taxes and do not pay them by filing returns, the IRS can get a garnishing order to collect the money or enforce a more severe measure for avoiding payment. You do not receive a penalty if you fail to file when you are expected to receive a refund, but you forfeit your right to the refund.
