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EFT Threshold of $750

  • EFT Threshold of $750

Pursuant to Section 41-1-20, Code of Alabama 1975, on each occasion that a business taxpayer is obligated to make a tax payment of $750 or more to the Alabama Department of Revenue, such payment must be remitted electronically through an electronic funds transfer (EFT) method. Voluntary participation of transactions less than $750 is encouraged.

EFT ACH DEBIT METHOD PAYMENT: There is no pre-registering to make an electronic payment using the EFT ACH Debit Method. If your return is filed early, you can choose to “warehouse” or delay your payment until the date that you specify. You can file and pay your taxes anywhere, anytime as the system is available 24 hours, 7 days a week. Just be sure to file and pay no later than 4:00 p.m. (central time) of the due date so that your return and payment will be considered timely. See the steps below to make an electronic payment.

If your tax payment meets the $750 threshold, follow these easy steps to file your return and make your your electronic payment:

STEP 1:After completing and “Submitting” your return, you will be taken directly to the “Confirmation” page. Click the “Yes, Make EFT Payment” button.
STEP 2:At the Make Payment page, read the notes and reminders at the top of the page and then: simply elect the payment date if filing prior to the due date, select whether account is checking or savings, enter your bank routing number and bank account number.
STEP 3:To save your banking information for future payments, click the “Save as default…” link beneath the Account Number Confirm box. (You can change this information at any time in the future by clicking the “New payment source” radio button.)
STEP 4:Click “Submit” to verify your payment.
STEP 5:Enter your system password to initiate your EFT payment.
STEP 6:You will get a Confirmation page with a 10-digit confirmation number. This confirms that your payment was successfully submitted.

If your tax payment does not meet the $750 threshold, you can voluntarily choose to pay by EFT by going through the above referenced steps.

EFT ACH CREDIT PAYMENT METHOD: ACH Credit Payment Method requires pre-registration and ALDOR approval. Although the returns must be filed electronically through the My Alabama Taxes portal, tax payments made through this EFT method must be initiated through the taxpayer’s financial institution separate from the filing of the return. The TXP Banking Convention Addenda Record must contain the required information as provided in this document.  To be considered timely paid, you must initiate your ACH Credit method tax payments with your financial institution so that the payments are immediately available to the state on or before the first banking day following the due date of payment.

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