Consumer Payment Card News

Paper or Plastic?

The “P-Generation” is here as the number of people using debit and credit cards to make their tax payments rises. Last year, there were 1.4 million credit card payments to the IRS. Taxpayers usually aren’t thrilled to send off their money to the IRS, so they might be even more upset to learn that several credit and debit cards tack on an additional fee, called a “convenience fee,” to tax payments.
But before you send off your check in the mail, note that there are a few obvious advantages to payments made with plastic. Most importantly, the payment made by plastic is made immediately, whether you are in a tax-preparation office or using a computer. As soon as your card number is received, payment is received, and you will not have to worry over late fees or checks getting lost in the mail. Although not as crucial, payment cards might also be preferred because of the rewards they offer, like earning miles. The other obvious reason for using a credit card: budget. Some taxpayers would rather spread out their payments, making them more affordable, rather than paying their taxes in one large lump sum.

H&R Block has announced that there are now several credit and debit cards that have eliminated convenience fees or have offered rebates or discounts to taxpayers. For instance, if a MasterCard credit card is used online to pay taxes, the taxpayer will receive a convenience fee rebate of up to $350 of the payment (available to H&R Block’s TaxCut Online clients only). If taxpayers use a VISA check card, the convenience fee is eliminated completely; the fee for using a Visa credit card is reduced to 1.99%.

If you are interested in learning more about the payment options available with H&R Block, you can visit “www.hrblock.com/goto/taxpayment”:www.hrblock.com/goto/taxpayment.

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