Why should I add a Bank Account vs a Credit Card?

Why Sidr Tax Recommends Adding a U.S. Bank Account for Tax Payments

At Sidr Tax, we strive to make your tax payment process as smooth and efficient as possible. One of the best ways to ensure a hassle-free payment experience is by adding a U.S. bank account to your Sidr Tax profile. Here’s why using a U.S. bank account is our recommended method for paying your taxes, especially compared to using a credit card.

1. Lower Costs

Using a U.S. bank account to pay your taxes directly through an ACH (Automated Clearing House) transfer is generally free of any transaction fees. In contrast, paying with a credit card often incurs convenience fees. These fees can vary but typically range from 1.87% to 1.99% of the payment amount. Over time, especially with large tax payments, these fees can add up, making credit cards a more expensive option.

2. Wide Acceptance

While credit cards are widely used for various transactions, not all states accept them for tax payments. Some states may have restrictions or may not accept credit card payments for taxes at all. On the other hand, payments from U.S. bank accounts are universally accepted across all states for tax purposes, ensuring you can pay your taxes regardless of your location within the United States.

3. Simplicity and Security

Linking a U.S. bank account to your Sidr Tax profile simplifies the payment process. Once set up, payments can be automated and scheduled in advance, reducing the risk of late payments and the stress of last-minute transactions. Moreover, bank transfers are secure, and using them through Sidr Tax ensures that your financial data is protected with state-of-the-art security measures.

4. Direct Control Over Payments

When using a U.S. bank account, you have direct control over your payments. You can easily track payments, view transaction histories, and manage your funds more effectively. This direct linkage offers a clear financial pathway from your bank to the tax authorities without intermediaries that could complicate or delay the process.

Tip: State sites rarely support foreign bank accounts as a payment method.

Updated on: 07/15/2024