one of these charges was for $3.95 and one was for $65.00 both from the third party, the tax bill was only $194.00
Did you use a credit card to pay the IRS? If so, that is the convenience fee charged by the provider of that service.
Did you pay directly on the IRS website here. See the third one down the list.
$60?! That is insane? I have never had that before and have been using Turbo Tax for years! The thing is that they charged it to the card that I paid my Turbo Tax fee with. I entered the spouse's card to pay the IRS, but our return was ultimately rejected, thus I never needed the "convenience" of paying online. Where is this stated? I would have thought I would have seen that somewhere when paying out...
Whenever you buy something with a credit card, the merchant pays a fee to the credit card company. (That's why gas stations often charge different prices for cash v. credit, and why some stores give a cash discount.). However, the US government is not permitted to pay that fee, so you must instead.
This is disclosed by TT when you make that selection.
I completely understand the fee. But it is generally 2.3- 2.5%...I was charged $60 for $194 tax bill. This is standard? I looked at the link you shared but it shows the above mentioned average fee percentage
And again, I did not pay online as my return was rejected...do I still have to pay this fee?
I got this fee when I paid My tax on my car registration. It was listed as opc tax service. I know your post is old but maybe my response could still help you.
I owed $6 on federal tax and was charged..................
03/28 03/26 OPC*US TREASURY PMNT [phone number removed] NE $191.00
03/28 03/26 OPC*US TREASURY SERV FEE [phone number removed] NE $4.76
I filed on 2/3/2019.
I get the service fee... $60 though seems off to me... Aside from that... can you deduct that fee since it is for a tax payment??? Say categorize it as a business expense....?????
No, the convenience fee charged by a credit card processor for payment of income taxes by credit or debit card is a miscellaneous itemized deduction and is no longer deductible. Please see page 4 of this link to Publication 529 for more information.