IRS Direct Pay .

Estimated taxes being due this week, thought I would post this payment alternative:

Sure you can pay with a credit card and make money . . . . though not a lot. I can use that CC payment space to better advantage with my side hustle where I get to keep ALL of the profit. The IRS provides a friendly facility to help people in my situation avoid the US Mail. It’s called IRS Direct Pay:

Natch, the payment reaches the IRS via ACH.

Cost to the taxpayer: zero . . . . . except for the tax itself, of course. :wink:

Many states also offer a version of this way to pay.

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You are assuming one’s credit limit is, “limited” :slight_smile:

Also you forgot about debit cards.

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I used IRS Direct Pay for the first time today. Things went quite smoothly. I even was able to schedule the payment for tomorrow, when it’s actually due, leaving a lot of money in my savings for one extra day. Liked that.

In the past I paid estimated tax using a credit card. I got more back via my CC reward than the service fee. But this way I pay no service fee at all. I can use the CC credit thus freed up to buy other stuff (CDs) and pocket the entire reward as opposed to paying a portion of it out as a service fee.


Using Direct Pay your payment to the IRS is pretty . . well . . pretty direct. So I lose the payment money out of my bank account straightaway. However:

Whatever I buy instead will still not need to be paid off for many weeks. So it all works out.


Does it require you to give the IRS ACH access to your account?

Yes, it does . . . . .

. . . in a manner similar to the data they receive when you ask them to send your income tax refund via ACH . . . . .

. . . . . or when you request your Social Security monthly payments be sent to your account . . . . . also via ACH.

Giving the government your ACH data is not particularly unprecedented.

It has been MANY years since the IRS has sent me a paper check . . . for anything.