tractor
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Post by tractor on May 10, 2021 10:59:19 GMT -5
Stupid question. I’ve never paid federal taxes before (other than paycheck deductions). I owe this year. Do you still just send in a check? Or use a routing number for direct withdraw? If a check, how long does it typically take for the check to be processed?
I don’t plan to submit my forms until the due date, but am especially curious about the timing of the funds transfer.
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bean29
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Post by bean29 on May 10, 2021 11:22:33 GMT -5
If you let them direct withdraw, it will probably take a day or two to process. I usually figure it will happen ASAP though.
You can still mail a check on the due date, so if you choose to get as much benefit from the "float" as possible, write a check and have it postmarked on the 17th.
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buystoys
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Post by buystoys on May 10, 2021 11:38:31 GMT -5
I always write a check when taxes are due. This year, we get a refund and it's been 12 weeks already. Every time I check, it's still processing. I wish I could be 12 weeks later on sending in my payments!
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Tiny
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Post by Tiny on May 10, 2021 11:44:21 GMT -5
When my tax preparer filed my taxes (electronically) back in early April - I owed the State some pittance. And got a Federal refund. I went with electronic payment for both - and the State pulled the money from my account within 10 business days from the date my return was filed. The Federal Refund appeared about a 8 business days later.
A couple of years ago I owed a large amount for Federal taxes about 3K - I paid that electronically and the money was pulled from my account within 10 business days of my file date.
If you opt to pay electronically - have the money in your account when you file.
FWIW: I would assume the .55 cent stamp will be more than the 'interest' you would get on the money you owe if it sat in your account a few extra days.
opps... maybe you are mailing in your return (and payment) and not doing an electronic file and then pay later via mail....
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andi9899
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Post by andi9899 on May 10, 2021 11:46:09 GMT -5
I have to pay every year and I just pay through the website using my bank info.
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billisonboard
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Post by billisonboard on May 10, 2021 11:48:56 GMT -5
I like living in a fantasy world so I would use a money order so that I wouldn't be giving them my account information.
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justme
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Post by justme on May 10, 2021 12:00:35 GMT -5
I always write a check when taxes are due. This year, we get a refund and it's been 12 weeks already. Every time I check, it's still processing. I wish I could be 12 weeks later on sending in my payments!
Wow! I was surprised when I got mine in about 2 weeks.
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buystoys
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Post by buystoys on May 10, 2021 12:02:21 GMT -5
I always write a check when taxes are due. This year, we get a refund and it's been 12 weeks already. Every time I check, it's still processing. I wish I could be 12 weeks later on sending in my payments!
Wow! I was surprised when I got mine in about 2 weeks. It's a fairly large (for us, anyway) refund. We had a claim on the rental property that decreased what we owed by a bunch. It's just frustrating that it's taking so long for the refund. We did get the confirmation that they received the file the day after we filed.
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billisonboard
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Post by billisonboard on May 10, 2021 12:07:04 GMT -5
Never been in the situation so have to ask. Do they refund and then question or question first?
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Post by The Walk of the Penguin Mich on May 10, 2021 12:38:35 GMT -5
We have always written checks. One year, we had to empty 2 accounts so they got 2 checks.
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tractor
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Post by tractor on May 10, 2021 12:42:48 GMT -5
I owe @ $3k and have the money sitting in an account. I think I’ll file electronically and mail a check. However, even a 10-day withdraw delay won’t be too bad, at least I can keep an eye out for it.
I am nervous about giving them access to remove money, although they direct deposited my previous refunds (and stimulus), so they technically already have access if they want it.
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jeffreymo
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Post by jeffreymo on May 10, 2021 12:54:10 GMT -5
We haven’t owed in a while. We used to do quarterly estimates payments at eftps.gov
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resolution
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Post by resolution on May 10, 2021 13:17:09 GMT -5
I owe @ $3k and have the money sitting in an account. I think I’ll file electronically and mail a check. However, even a 10-day withdraw delay won’t be too bad, at least I can keep an eye out for it. I am nervous about giving them access to remove money, although they direct deposited my previous refunds (and stimulus), so they technically already have access if they want it. I usually mail a check for the same reason, I don't like giving others permission to withdraw from my bank account.
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pooks
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Post by pooks on May 10, 2021 13:17:19 GMT -5
We owed this year. Our accountant filed electronically and we mailed a check. The check was mailed on Friday and the money was withdrawn on Tuesday. So in my experience, the withdrawal was fast.
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dannylion
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Post by dannylion on May 10, 2021 14:07:56 GMT -5
I owe @ $3k and have the money sitting in an account. I think I’ll file electronically and mail a check. However, even a 10-day withdraw delay won’t be too bad, at least I can keep an eye out for it. I am nervous about giving them access to remove money, although they direct deposited my previous refunds (and stimulus), so they technically already have access if they want it. This is another reason I like having the option of multiple subaccounts with my online savings accounts -- each subaccount has a separate account number. I have one subaccount designated for tax payments since I pay my state taxes quarterly and occasionally need to pay estimated federal taxes. I like the convenience of paying taxes electronically, so I just give them that specific account number that only accesses the account with the tax money in it. I have been doing this for several years and have never had any problems.
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Post by minnesotapaintlady on May 10, 2021 14:12:49 GMT -5
Like you said, they already have your account number and it's on any check you would mail too.
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irishpad
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Post by irishpad on May 10, 2021 14:57:14 GMT -5
I'm self-employed for SS purposes, an employee for IRS purposes (they get me coming and going.... pay 15% for SS but can't take business deductions for IRS) so I pay quarterly and always do it by check. Averages just 3-4 days from when I mail it to when it is taken from my account.
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dannylion
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Post by dannylion on May 10, 2021 15:12:08 GMT -5
Forgot to mention that when you schedule tax payments online, you get to specify the date the money is withdrawn from the account. It has always happened on the specified day for me.
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NoNamePerson
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Post by NoNamePerson on May 10, 2021 15:28:30 GMT -5
I owe @ $3k and have the money sitting in an account. I think I’ll file electronically and mail a check. However, even a 10-day withdraw delay won’t be too bad, at least I can keep an eye out for it. I am nervous about giving them access to remove money, although they direct deposited my previous refunds (and stimulus), so they technically already have access if they want it. I look at it as if they put in the wrong amount no big deal but if they withdraw wrong amount good luck with getting that corrected! And it could cause problems! And I have had utilities, house notes, car payments, insurance drafted from checking over the years. I was comfortable with that. But mainly because felt correction would be easy. But in 40 years I’ve never had a problem. But I wouldn’t trust irs to straighten it out within a 12 month period. I keep a good cushion in account but one extra 0 could cause havoc. 500.00 turns into 5,000.00?
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TheOtherMe
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Post by TheOtherMe on May 10, 2021 16:02:13 GMT -5
If you pay by check, they will cash it as soon as the envelope is opened. That does not mean your return is processed.
As long as it is postmarked by May 17, you are good. If I owed and was mailing on May 17, I would somehow get a postmark and take a photo with my phone (is getting a postmark even possible any more?) or send it certified mail, return receipt requested.
That's the advice we always gave our clients when filing on the exact due date. You want the statute of limitations to start, especially if you owe. If audited, interest starts on the later of the due date or filing date. Same for penalties. Not that it is likely you will be audited.
The extra stimulus that I was deposited in my account was gone by the next day. I had never used that account with the IRS so I don't know how the money got there. I knew it wasn't mine so I wasn't going to spend it.
ETA: I did have the state withdraw what I owed this year. The correct amount came out on the date specified.
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alabamagal
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Post by alabamagal on May 10, 2021 20:21:21 GMT -5
I owe the Feds $4 this year. I am waiting until last minute to file to maximize the interest by leaving money in my account as long as possible.
I am paying online, if I mailed a check the stamp would increase the amount I pay by 13%.
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teen persuasion
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Post by teen persuasion on May 10, 2021 20:43:26 GMT -5
I just walked DS4 thru his taxes tonight. He had a tiny bit of 1099 income, so owed SE tax. Input the routing and account numbers, specify the date for withdrawal (between today and 5/17). All done efiling and paying.
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Tiny
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Post by Tiny on May 10, 2021 21:11:36 GMT -5
I owe @ $3k and have the money sitting in an account. I think I’ll file electronically and mail a check. However, even a 10-day withdraw delay won’t be too bad, at least I can keep an eye out for it. I am nervous about giving them access to remove money, although they direct deposited my previous refunds (and stimulus), so they technically already have access if they want it. I get it that everyone has their own "comfort" level. There is no "right" or "better" way to do it.... But the mailing a check to avoid some sort of "hacking" issue doesn't make much sense. If your check doesn't fall into the wrong hands on it's way to the IRS, once it arrives the IRS is going to run your check thru a machine which will capture the bank routing # and account# and the dollar amount off of it and other information to tie YOUR check to YOUR return. It's gonna store that info (encrypted I'm sure) in a database. It's then gonna use that information to create an "ACH" like file which it will transmit to your bank and your bank will do what it's gonna do (create an ACH to send the money to the IRS from your Account. After your check goes thru the machines hopefully it gets shredded... Odds are no human will have to touch your check from start to finish. If your check gets "stuck" in the machine (if they are using old timey check processing machines) or if the image is blurry (if they are using newer imaging machines) A human is gonna have to look at your check - and could "steal your bank routing # and Account #".... Also if your paper check doesn't get destroyed - the same thing could happen. If you do it electronically - the only time a human would have to look at your bank routing/account number would be if the payment/pull fails. If everything works without an error - no human eyes involved. Other wise - your bank routing/account info and the tie back to your IRS return all get into a database (hopefully encrypted). A check and the electronic "OK" to take money from your checking account are pretty much the same thing. The IRS could screw up and withdraw $30,000 from your checking account if their processing messes up the amount on the check. The IRS could try to "cash the check" twice if their electronic processes screw up. Potentially the same issues with an electronic "check". I'm guessing once the info is in the data base the only way to tell if the "bank routing/account number" originated from a check or "electronically" or some other way I can't think of - would a "flag" on the transaction - so that some sort of reporting can be done on the volume for the different types of input. The rest of the data on the transactions/tables in the Database is all gonna look the same. You've got the same amount of hacking risk once your account is in the database - if anything I would think a paper check opens you up to more "issues"... It doesn't matter if you do a paper check or tell them to do it electronically - the middle (your info in a data base) and the end result (the IRS gets paid) are the same. The only difference is the amount of "steps" involved in getting to the "middle" part of the process.
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bookkeeper
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Post by bookkeeper on May 11, 2021 7:09:37 GMT -5
We got a check in the mailbox yesterday from the IRS! It was the last round of stimulus money, sent to our home address in a paper check.
I filed on paper on March 15 and had a refund due me of over $3000. There has been no information on IRS.gov as to my return being filed or my refund being processed. There is a sub group on Reddit that is posting about how long the IRS is taking to process returns. People who filed late in February are finally getting their refunds. I am guessing ours is still a month away, however the fact that we received the "Biden Bucks" stimulus money may mean they have our tax return and they have verified that we qualify for the stimulus.
We did sign up for health insurance through the marketplace and provided our tax returns for income verification. Maybe that was the reason we got the stimulus check in the mail. I didn't expect to get the final stimulus until we filed our 2021 tax return.
How the government works is still a mystery.
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schildi
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Post by schildi on May 11, 2021 23:40:51 GMT -5
I usually have to pay .... And quite a bit.
And I don't want to give them any account access or info - so I pay with as credit card, get an extra 30-45 days float and cash back.
This year, the IRS payment processing outfit charged a 1.96% fee, and I get 2% cash back. So I pocket 0.04%, or $0.08 on my $2K payment. 🤣💸
Heck, didn't cost me anything, and they didn't get my checking account information. At least I think so. 🤣👍🏻
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schildi
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Post by schildi on May 11, 2021 23:49:31 GMT -5
I owe @ $3k and have the money sitting in an account. I think I’ll file electronically and mail a check. However, even a 10-day withdraw delay won’t be too bad, at least I can keep an eye out for it. I am nervous about giving them access to remove money, although they direct deposited my previous refunds (and stimulus), so they technically already have access if they want it. I get it that everyone has their own "comfort" level. There is no "right" or "better" way to do it.... But the mailing a check to avoid some sort of "hacking" issue doesn't make much sense. If your check doesn't fall into the wrong hands on it's way to the IRS, once it arrives the IRS is going to run your check thru a machine which will capture the bank routing # and account# and the dollar amount off of it and other information to tie YOUR check to YOUR return. It's gonna store that info (encrypted I'm sure) in a database. It's then gonna use that information to create an "ACH" like file which it will transmit to your bank and your bank will do what it's gonna do (create an ACH to send the money to the IRS from your Account. After your check goes thru the machines hopefully it gets shredded... Odds are no human will have to touch your check from start to finish. If your check gets "stuck" in the machine (if they are using old timey check processing machines) or if the image is blurry (if they are using newer imaging machines) A human is gonna have to look at your check - and could "steal your bank routing # and Account #".... Also if your paper check doesn't get destroyed - the same thing could happen. If you do it electronically - the only time a human would have to look at your bank routing/account number would be if the payment/pull fails. If everything works without an error - no human eyes involved. Other wise - your bank routing/account info and the tie back to your IRS return all get into a database (hopefully encrypted). A check and the electronic "OK" to take money from your checking account are pretty much the same thing. The IRS could screw up and withdraw $30,000 from your checking account if their processing messes up the amount on the check. The IRS could try to "cash the check" twice if their electronic processes screw up. Potentially the same issues with an electronic "check". I'm guessing once the info is in the data base the only way to tell if the "bank routing/account number" originated from a check or "electronically" or some other way I can't think of - would a "flag" on the transaction - so that some sort of reporting can be done on the volume for the different types of input. The rest of the data on the transactions/tables in the Database is all gonna look the same. You've got the same amount of hacking risk once your account is in the database - if anything I would think a paper check opens you up to more "issues"... It doesn't matter if you do a paper check or tell them to do it electronically - the middle (your info in a data base) and the end result (the IRS gets paid) are the same. The only difference is the amount of "steps" involved in getting to the "middle" part of the process. I say use a credit card to avoid all of the issues above. See my other post above ...
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Bob Ross
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Post by Bob Ross on May 17, 2021 12:29:47 GMT -5
Stupid question. I’ve never paid federal taxes before (other than paycheck deductions). I owe this year. Do you still just send in a check? Or use a routing number for direct withdraw? If a check, how long does it typically take for the check to be processed? I don’t plan to submit my forms until the due date, but am especially curious about the timing of the funds transfer. Your Cayman Islands offshore "accountant" should have all the answers you need.
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finnime
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Post by finnime on May 18, 2021 8:04:59 GMT -5
Filed last night. We owe, we owe. $3k to the feds, less than half that to the state. Maryland doesn't tax SS at all. Part of it is, of course, our income was bigger than expected. Plus my DH receives income from a residuary trust left by his father. Last year unlike previous years it was almost entirely in securities, so taxable. The bonds that made up a good part of it in prior years are now mostly out of the portfolio, so his taxable income from that trust was more than double what is typical.
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Opti
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Post by Opti on May 19, 2021 6:19:53 GMT -5
If you pay by check, they will cash it as soon as the envelope is opened. That does not mean your return is processed. As long as it is postmarked by May 17, you are good. If I owed and was mailing on May 17, I would somehow get a postmark and take a photo with my phone (is getting a postmark even possible any more?) or send it certified mail, return receipt requested. That's the advice we always gave our clients when filing on the exact due date. You want the statute of limitations to start, especially if you owe. If audited, interest starts on the later of the due date or filing date. Same for penalties. Not that it is likely you will be audited. The extra stimulus that I was deposited in my account was gone by the next day. I had never used that account with the IRS so I don't know how the money got there. I knew it wasn't mine so I wasn't going to spend it. ETA: I did have the state withdraw what I owed this year. The correct amount came out on the date specified. I ended up filing for an extension because I didn't know how to handle the fact I did not receive stimulus payments on the 1040. The one time I filed an amended form because of a mistake I made, I learned how little of the 1040 you can actually amend. I'd really like to figure that out and get it in by month end even though I should be getting some money back.
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TheOtherMe
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Post by TheOtherMe on May 19, 2021 7:03:31 GMT -5
Almost everything on the 1040 can be amended.
The only think I can think of off hand is filing status if you filed joint and want to amend to married filing separately.
It's a redo of your return. Only certain numbers carry over to the 1040X form, but the entire return is sent in.
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