Discussion:E-file & credit card payment of tax
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| + | {{ForumReplyPost|UserID=TheTinCook|Date=15 April 2009|Text=Partial payment with direct debit (EFW) depends on the soft ware. It's not automatically denied. You can do partial payments with debit or credit, but you are limited to two transactions per year for a 1040 (not counting est payments), or at least with pay1040.}} | ||
Revision as of 06:05, 15 April 2009
Discussion Forum Index --> Basic Tax Questions --> E-file & credit card payment of tax
Discussion Forum Index --> Tax Questions --> E-file & credit card payment of tax
| April 14, 2009 | |
| Countdown is on. Can a tax return be e-filed if tax due with the return is paid via credit card? Instructions state to write the confirmation number and amount paid in left-hand corner of 1040. | |
TheTinCook (talk|edits) said: | 14 April 2009 |
| You can e-file if you pay by credit card. I've done it. | |
| 14 April 2009 | |
| Natalie better than a credit card I suggest that my clients have the tax owed taken from a little used bank account...that way they don't have to pay the credit card fee and the agencies are not getting access to their main bank account. Or you can efile the return and for computer savvy clients send them to EFTPS to make their payment. taxea | |
| 14 April 2009 | |
| How EFTPS is different from direct debit in terms of "them" having access to your account? | |
| April 14, 2009 | |
| Thanks for the suggestion Laura. My clients don't have the cash on hand right now, so they have very few options.
It's been a while since I set up EFTPS. Doesn't it take a few days to get a password or acknowledgment that it's been done? | |
| April 15, 2009 | |
| Kevin, I don't understand your response. I was in a rush -- had to get the draft return to the client this morning, so I just did a quick check regarding e-filing returns and credit card payments. If the confirmation number is required to be written in the corner of the 1040, I don't know how it can be e-filed. Perhaps some software packages allow that information to be input, but Lacerte does not. | |
| 15 April 2009 | |
| natalie even so...I would suggest that if they are doing an IA that you have them make the first payment by tomorrow. Then they can set up the payments online and it will cost 56. to process the IA instead of 105.
"Your confirmation materials will be created and mailed within 15 business days to the primary contact name and address you indicate" also: Any individual taxpayer making payments for Forms 1040, 706 estate, 709 gift taxes or installment payments can use EFTPS online. Note: If you do not currently have an IRS approved installment agreement, you will need to apply for an installment agreement by contacting the IRS at 1-800-829-1040 or by using the form 9465 (Installment Agreement Request). If you owe $25,000 or less for Form 1040 taxes only, you may also use the Online Payment Agreement (OPA) Application at www.irs.gov to enter into an agreement with the IRS. Scheduling payments using EFTPS does not mean that you have entered into an approved installment agreement for any balance due accounts. EFTPS does not charge taxpayers for its services. I usually recommend to my clients that they set up a separate bank account in a different bank and deposit funds into it that will cover their payment and leave a balance in the account. | |
TheTinCook (talk|edits) said: | 15 April 2009 |
| That direction is for the client to keep the number for his records. The e pay provider will send all the payment information to the IRS. It's entirely independent of the tax software or efile in general. | |
| 15 April 2009 | |
| BusAd...they don't get the account numbers it is all done it computer coding. You get instant confirmation of the payment order, they request the transfer from the bank. You have total control over when the payment is made. It is like on-line banking except that the funds are transferred electronically on the date of your choosing. When you set up on-line banking they cut a check and mail it. If you set it up for electronic payment with the bank, the bank charges a fee. | |
| 15 April 2009 | |
| About half on topic:
Client wishes to e-file and have part of tax due drawn from bank account and remainder paid by credit card. Looking at the 1040 instructions payment can be made by check, OR money order, OR credit card, OR etc... Apparently the credit card is the only card available and has a low limit otherwise I'd have advised to use the card only and pay it off ASAP. Thank you. | |
TheTinCook (talk|edits) said: | 15 April 2009 |
| Partial payment with direct debit (EFW) depends on the soft ware. It's not automatically denied. You can do partial payments with debit or credit, but you are limited to two transactions per year for a 1040 (not counting est payments), or at least with pay1040. | |
