When making an online tax payment, it’s crucial to select the correct payment type to avoid delays and ensure your payment is processed efficiently. One common area of confusion is distinguishing between “Bill Payment” and “Amended Tax Return Payment.” Choosing the wrong option can lead to unnecessary delays and complications. Here’s a guide to help you make the right choice.
When to Select “Bill Payment”
The “Bill Payment” option is intended for several specific situations:
- Paying a Bill or Notice:
- Use this option if you’ve received a bill or notice indicating an amount due.
- Making a Payment on an Existing Balance Due:
- If you have an outstanding balance from a previous tax year or a recent tax filing, select “Bill Payment.”
- Making a Payment for a Payment Plan:
- This option is also suitable if you’re making a scheduled payment as part of an agreed payment plan.
- Paying a Dishonored Payment Penalty:
- If a previous payment was not honored (e.g., a bounced check), use this payment type to settle the penalty.
- Paying the Mandatory e-Pay Penalty:
- If you’re required to pay a penalty for failing to use electronic payment methods, this is the correct choice.
It’s important to note that even if you’ve received a Notice of Tax Return Change (NTRC), you should still use the “Bill Payment” option unless you are specifically filing an amended return.
When to Select “Amended Tax Return Payment”
The “Amended Tax Return Payment” option should be used only in specific circumstances:
- Filing a Current or Prior Year Amended Tax Return:
- If you need to amend a previously filed tax return for the current or any prior year, this is the correct option.
- Attached Schedule X:
- When filing an amended return, ensure it includes Schedule X, California Explanation of Amended Return Changes, with a balance due.
Selecting this payment type tells the system to hold off processing the payment until the amended return is fully reviewed and processed. This is crucial for ensuring that the payment is correctly applied to the amended return.
Common Mistakes and How to Avoid Them
One common mistake is selecting the “Amended” payment type after receiving a Notice of Tax Return Change (NTRC). Despite the notice, there’s no need to file an amended return unless you have additional changes beyond those noted in the NTRC. Instead, select “Bill Payment” to avoid delays.
Final Thoughts
Choosing the correct payment type—”Bill Payment” or “Amended Tax Return Payment”—is essential for smooth and timely processing of your tax payments. By understanding the specific circumstances for each type, you can avoid delays and ensure your payments are correctly applied. Always double-check your selection to match the situation you’re addressing, and consult with a tax professional if you’re uncertain.