We talk a lot about the 100 million or so Americans who get tax refunds every spring, admonishing you to adjust your payroll withholding so that less is taken out of your paychecks every payday.
But what about the 35 million or so who actually have to pay extra tax with their returns? If you're among that minority, how should you handle things?
You could, of course, pay the old fashioned way by writing a check. If you do, make it out to the U.S. Treasury. Congress decided a few years ago that because so many folks think IRS is a dirty word, you shouldn't have to write it on your checks. (Also, it's easy for a crook to change IRS to MRS and add a name to make it look like the check is made out to a married woman.) If you send a check, the IRS would like you to include a 1040-V form to help the agency process your payment more efficiently.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you are among the growing army of taxpayers who file electronically, you have the option of simply telling the IRS to dip into your bank account for the amount due. If you choose the direct debit option, you can file as soon as your return is done and tell the government not to take the money until April 15. That's not quite as much "float" as if you drop the check in the mail at the midnight deadline, but the convenience should count for something.
Another choice is available whether you file electronically or on paper: You can charge your bill to a credit card. We think this is usually a bad idea because you have to pay a "convenience fee" to pay your taxes. We bet you're paying enough already. If you owe more than you can afford to pay, you should consider using the IRS installment plan. More about that later.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
How to Manage Risk With Diversification"Don't put all your eggs in one basket" means different things to different investors. Here's how to manage your risk with portfolio diversification.
-
On the Naughty List: Holiday Tax Scams to Look Out ForTax Tips The IRS says scammers are on the prowl for your financial information. Know the signs so you don't fall victim.
-
Retirement Abroad? Three Countries Without Inheritance TaxRetirement Taxes These 2025 top-retiree-friendly countries have an added benefit: potential tax savings for you and your heirs.
-
Five Tax-Savvy Ways To Donate This Holiday SeasonCharitable Donations Food pantries, toy drives, and animal sanctuaries are popular ways to support others year-round.
-
Tax Pros: Is Someone Fraudulently Filing Returns With Your PTIN?Tax Filing An unmonitored preparer tax identification number (PTIN) can lead to serious issues.
-
Are You a Renter? You Could Save on TaxesTax Breaks With these tax savings at your fingertips, rent may be more affordable
-
2025 Open Enrollment: Some DACA Recipients Can Purchase Affordable Care Act Health InsuranceOpen Enrollment Your eligibility to purchase health insurance from the federal marketplace may have changed. Here's what you need to know.
-
Holiday Office Party Taxes: Know Before You GoTax Tips The IRS could tax your gifts from Christmas raffles, Secret Santa, and White Elephant. Here’s how.
-
New Mexico Small Business Saturday Tax Holiday 2024Tax Holiday Here's how you can save on taxes during New Mexico’s Small Business Saturday.
