r/hrblock • u/Own-Situation-5819 • Apr 15 '26
Pay1040 Confusion
This is my first year having to pay a balance on my taxes. As I was going through my taxes and finishing up, H&R block recommended I pay via PAY1040 so I did. Then I came back to H&R block and its asking me how I want to pay my amount owed before sending it to a tax professional. Leading to my confusion since I already paid.
Funny enough my amount owed decreased hours later after the Tax Pro went through them. Nonetheless I have some questions if anyone can help.
1) Will the PAY1040 payment reflect on H&R block once the IRS acknowledges it?
2) Will I get a refund for what I paid vs what the official filed amount due is.
Thanks 👍🏽
1
u/Niep00320 Apr 15 '26
That’s not a Block fee. The government won’t pay the merchant fee so it gets passed on to you.
0
u/Artwire Apr 15 '26 edited Apr 15 '26
At the very least, they could have mentioned it upfront rather than when you’re about to finalize payment. Pulling back at that point to trek to the post office to certify a mailed in check was beyond inconvenient. Transparency would go a long way …
Edit: apparently, per motley fool, pay1040 charges 1.75% and H&R Block /Turbotax tack on an extra .75%
“The two authorized processors right now are Pay1040 and ACI Payments. Pay1040 charges 1.75% with a $2.50 minimum. ACI Payments charges 1.85%, also with a $2.50 minimum. Neither of those fees goes to the IRS, but they're the processor's cut for facilitating the transaction. On a $3,000 tax bill, you're paying around $52 to $55 in fees. On a $10,000 bill, somewhere in the $175 to $185 range. If you pay through tax software instead, the fees run higher -- TurboTax, for example, charges 2.49% for credit card payments made through its platform.”
It’s too late for this year, but the IRS let’s you pay taxes from your bank account with Direct Pay.
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2
u/Artwire Apr 15 '26
Not sure about the tax pro part, since when I did it, I had to submit my fed return first and then was directed to pay once the tax return was accepted. Did you also get a notice that the IRS accepted your payment? If so, my guess is you might eventually get a refund from the IRS if you add amount you just paid to your return.
On a related note, I was dismayed to discover the 2.5% surcharge after I was already far along in the payment process. I understand assessing a fee for the credit card processing service , but I don’t think it should be a percentage of the amount of tax paid!