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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
-
Dow Hits New Intraday High on Fed Day: Stock Market TodayNot even the most important stock in the world could keep the oldest equity index down on a significant day for markets.
-
Savings Goal CalculatorTools Want to know how much you need to save each month to reach your financial goals? Our calculator helps you build a realistic savings plan.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
The Final Countdown for Retirees with Investment IncomeRetirement Tax Don’t assume Social Security withholding is enough. Some retirement income may require a quarterly estimated tax payment by the September 15 deadline.
-
Standard Deduction 2025 Quiz: How Much Do You Really Know?Quiz Test your knowledge of IRS rules that impact how much money you keep in your wallet.
-
IRS in Turmoil: GOP Budget Cuts and Staff Shake-Ups Threaten Taxpayer ServicesIRS Republican lawmakers advance a controversial budget bill that would gut IRS funding further, risking your 2026 tax filing season.
-
Cruise Lines Sue to Block Hawaii’s New Climate Tourism TaxState Tax Your vacation to the Aloha State could come at a higher price tag next year. Here’s why.
-
21 Last-Minute Gifts for Grandparents Day 2025 to Give Right NowHoliday Tips Last-minute gifting is never easy. But here are some ideas to celebrate Grandparents Day.
-
New $6,000 'Senior Bonus' Deduction: What It Means for Taxpayers Age 65-PlusTax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.
-
Claiming the Standard Deduction? Here Are 10 Tax Breaks For Middle-Class Families in 2025Tax Breaks Working middle-income Americans won’t need to itemize to claim these tax deductions and credits — if you qualify.
