Pay Federal Income Tax Online for 2009, 2010

Taxpayers have it easy when it comes to paying their federal income tax online. Things arent like they used to be when it comes to paying Uncle Sam. Everything can be done electronically now.

You can complete your income tax forms online using a tax preparation software company. When youre done filling out your forms you click the mouse and e-file your tax return. If you have a refund coming it can be in your account in as little as eight days. Seems like magic doesnt it?

What if I owe money?

You have several options to choose from;

• Check or money order
• Direct Debit
• Credit Cards
• Check or Money Order

If you choose the check or money order method you have to remember to include these details; (This information needs to be on the front of your check)

• Make it payable to United States Treasury
• Have your Name, Address, Social Security Number, Daytime Phone Number, Tax Year, and Form Number

Direct Debit

If you owe the IRS money you can have it transferred from your bank account right to the IRS. This is called the direct debit method and you can use this system if you e-file. The IRS will automatically withdraw the owed amount from your bank account.

Its acceptable to also have funds drawn from a credit union or other financial institutions. Check with your financial institution to make sure direct debit is allowed and make sure you enter the correct routing and account numbers.

Credit Card

If you use your credit card to pay your federal income tax you will be charged a service fee by a third party service provider such as Pay 1040 or Official Payments Corp. You will be charged an additional credit card tax payment convenience fee which will be 2.49% of the total amount you owe. The minimum fee is $3.95. The fee will appear on your next monthly statement. For example, if you owe $1,000, you will be charged an additional $24.90.

Online Tax Preparation Software

I suggest you use an online income tax software company like Turbo Tax Online. There are many excellent reasons why you should but, to keep it brief, Ill list a few. They are now part of the Visa Personal Signature Debit Card program.

This program is set up so your cards will be processed as a debit card, and the good news is you will be charged a flat rate of $3.95. Now doesnt that sound better than 2.49%? If youre not sure if you have this card, they will let you know after you enter the credit card information.

Learn More

In addition to saving you money in the above mentioned detail you are guaranteed the biggest refund possible (or least tax owed). They use the same encryption technology the banks use and have a very powerful firewall protected server.

Your information is safe and secure and you can access your data at anytime you want to, even in the comfort of your home in your pajamas! Visit TurboTax Online today to discover the top 6 reasons why you should choose TurboTax Online! Learn More about How to Pay Federal Income Tax Online.

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