How to Add a Payment Method in TaxCloud

Overview

Adding a payment method ensures your TaxCloud account can process subscription payments and (for SST states) fund tax returns. You can add both credit cards and ACH bank accounts, and set a default payment method for billing.

We recommend having both a credit card and a bank account on file to avoid unnecessary fees.

📺 Watch the video:

We’ve created a short walkthrough that shows exactly how to add and manage payment methods in your TaxCloud account. The video also explains important nuances and fees (like when TaxCloud uses your credit card vs. bank account, how defaults work, and when a 7% fee may apply) that are good to know.

Step 1: Navigate to Payment Methods

1. Log in to your TaxCloud account.
2. On the left-hand side menu, click Settings → Payment Methods.

Step 2: Add a Payment Method

1. Click Add Payment Method.

   Choose to add either a Credit Card or an ACH Bank Account.

   • You can add multiple payment methods (for example, a credit card and a bank account).

Step 3: Set Your Default Payment Method

• If you have more than one payment method, select which one should be your Default.

  The Default Payment Method will be used for:

  • Your annual subscription
  • Filing fees
  • Subscription overages

💡 Many merchants set a credit card as the default to earn card rewards. Subscription payments made with credit cards do not incur extra fees.

Step 4: Add a Bank Account for Tax Filing

If you use TaxCloud for filing your returns, you must add a bank account (ACH).

• SST States:
  • TaxCloud pulls tax funding directly from your bank account for SST filings.
  • If no bank account is on file, your credit card will be used instead — and you’ll incur a 7% credit card fee.

  • 👉 To avoid this fee, always add a bank account in addition to your credit card.

    Non-SST States:

  • TaxCloud does not pull tax funding for non-SST filings.
  • Payments for these states must be made directly in each state’s portal, using your own bank account on file there.

Troubleshooting Payment Method Issues

Sometimes merchants may see that a bank account is set as their primary payment method, but their credit card is being charged instead.

This usually means TaxCloud has been unable to debit the bank account. Common reasons include:

• A failed debit attempt in the past
• The bank has a block on ACH debits
• A prior chargeback occurred on that account

Once one of these issues happens, TaxCloud can no longer process payments from that bank account.

How to Fix It

To restore ACH functionality:

1. Go to Settings → Payment Methods.
2. Delete the existing bank account from your saved payment methods.
3. Re-add the bank account as a new payment method.

Once re-added, you can designate it as your primary billing option again.

⚠️ Important: Until the bank account is re-added, TaxCloud will continue charging your credit card for billing and funding.