Your tax refund sent through PayPal?


Daniel Webber
Daniel Webber
Founder & CEO
Daniel is Founder and CEO of FXcompared and has 18 years of experience in the international finance world focusing on cross-border payments, technology and the property sectors. Daniel is widely… Read more
  • Business taxes can now be paid through PayPal Credit, but customers are advised to read the fine print first before using the feature
  • US taxpayers can have the IRS send their refunds through PayPal, with the amount readily available for other transactions
  • Canadians can also pay their taxes using their PayPal accounts, but it is not clear if the Canadian government will be utilising the payment solution to send refunds

Taxpayers in the United States can now get their tax refund sent to their PayPal accounts. The option is available to PayPal users whether they have a cash card from the payments giant or not. Americans who owe taxes can also use money in their accounts to pay the US government.

It was also noted by the company that PayPal customers located or based in Canada can also do the same when paying for their taxes, but it is unclear if refunds can be received through the payments processor as well. Observers say that there will likely be another announcement made within the week to address these concerns. The company says that PayPal customers in Canada can pay for CRA taxes through PaySimply.

The new feature is a welcome development in the US, according to experts, as millions use PayPal for paying bills and for purchases online. Around 6 million Americans use PayPal based on 2016 numbers, and this has grown steadily over the years. PayPal now has over 180 million users around the world, experts note.

Business owners in the United States will also be able to utilise their PayPal accounts to pay for their taxes, the company adds, and those taxes can also be paid through PayPal Credit. The payments giant made the announcement through a corporate blog post. It said that PayPal users in the United States can pay taxes owed to the Internal Revenue Service by logging on to Income taxes can be paid over time through PayPal Credit and it comes with six months promotional financing for payments of $99 and above if the website is utilised. Reports note, however, that this is subject to credit approval and that taxpayers need to read the fine print before using this feature. It is also advisable to contact customer care regarding PayPal Credit.

For individuals who do not owe anything to the IRS, refunds can be sent straight to PayPal and can be used for any online transactions or deposited to their cash cards.

PayPal has maintained a steady growth in the past few years thanks to its affordable domestic and overseas transfer rates. PayPal is often used to transfer money internationally as it is one of the most accessible ways to do such transactions. The firm recently partnered with MercadoLibre to increase its share of the global payments market. The American payments giant reportedly invested $750 million in MercadoLibre’s latest funding round.

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