Mar 18, 2016, 8:54 am
Last edit by: Boraxo
There are three services to pay your U.S. federal taxes: IRS Pay Your Taxes by Debit or Credit Card or Digital Wallet
pay1040.com 1.87% fee on credit (lowered from 1.99% on 01/02/2023). $2.50 flat fee on debit.
payUSAtax.com - 1.82% fee on credit (rate updated 01/03/2024 from 1.85%). $2.20 flat fee on debit.
Many states also permit online tax payment; check with your state or this list from MasterCard.
The IRS has a system to view payments, and it's good practice to confirm all payments within a short time frame, so that any rare lost payment issue can be disputed.
Be mindful of time zones if paying on the due date as pay1040.com uses CDT timestamp and payusatax.com uses EDT timestamp.
In general, you're allowed 2 payments per processor above per type of tax (annual and quarterlies being 2 different types, for example). They're not billed as cash advance fees. If 6 payments is not enough to pay your bill you can use a service such as plastiq (2.25% fee). If making multiple payments, it is advised you join here to track your payments link , you will be required to give your banking information and will receive a pin via snail mail
(Confirmed 4/2018 in post #429)
Fees are tax-deductible for C-Corps but not individuals (2018 tax reform eliminated "miscellaneous itemized deductions"). The majority of people will not be able to deduct that expense, check with your accountant.
When making multiple payments at or near your credit limit multiple times, allow yourself 3-5 days between payments for the charge to show up on your card and your bank payment to clear. If you wait until April 15th to make payments, you will only be able to clear the first payment.
Best Credit Cards to use/buy cheap points:
- Any credit card to hit minimum spend and achieve signup bonus or spend thresholds.
- BOA Premium Rewards 2.62% Cashback (Card holder needs to be a Preferred Rewards Platinum Honors member)
- Chase INK Premier 2.5% Cashback on purchases over $5k (Points are not transferable to airline or hotel programs)
- Capital One Venture X 2X Cap One Miles/Points (now transfer to most airline partners at 1:1)
- Amex Blue Business Plus 2X Membership Rewards (capped at $50,000 spend per calendar year)
- Chase United Business Club Card, 1.5X United Miles
- BOA Virgin Atlantic World Elite 1.5X Virgin Atlantic Points
- Chase Freedom Unlimited, 1.5X Ultimate Rewards, paired with a premium card (Sapphire Preferred, Sapphire Reserve, INK Preferred, INK Plus)
- Chase INK Unlimited, 1.5X Ultimate Rewards, paired with a premium card (Sapphire Preferred, Sapphire Reserve, INK Preferred, INK Plus)
- Amex Everyday Preferred 1.5X Membership Rewards, (need to make 30 transactions in a month for 50% bonus)
- Amex Business Platinum 1.5X Membership Rewards on purchases over $5K
Big Spend Bonuses:
- Amex Delta Reserve, spend $60k get 30k bonus miles and 30k MQM
- Citi Hilton HHonors Reserve, spend $10k get free weekend night, $40k, Platinum Status
- Chase Southwest, spend $135k get Companion Pass (WN points are redeemed at $.011, @ 1.87% fee, you're essentially buying the companion pass for $847)
- Chase Ritz Carlton Reserve, spend $10k get Gold Status spend $75k get Platinum Status
- Chase World of Hyatt, spend $15k get one free night
Cash Back cards:
Elan Fidelity 2%
Citi Double Cash 2%
Earn Status/Elite qualifying points:
- American, Delta, Alaska, Hyatt
Pre-Funding allowed:
Amex Charge Cards
Pre-Funding not-allowed:
Chase
Quarterly tax due dates: the 15th of April, June, September, January
pay1040.com 1.87% fee on credit (lowered from 1.99% on 01/02/2023). $2.50 flat fee on debit.
payUSAtax.com - 1.82% fee on credit (rate updated 01/03/2024 from 1.85%). $2.20 flat fee on debit.
See this thread about payUSAtax customer service. Many people have reported that they never respond to support requests.
ACI Payments, Inc - 1.98% fee on credit. $2.20 flat fee on debit.Many states also permit online tax payment; check with your state or this list from MasterCard.
The IRS has a system to view payments, and it's good practice to confirm all payments within a short time frame, so that any rare lost payment issue can be disputed.
Be mindful of time zones if paying on the due date as pay1040.com uses CDT timestamp and payusatax.com uses EDT timestamp.
In general, you're allowed 2 payments per processor above per type of tax (annual and quarterlies being 2 different types, for example). They're not billed as cash advance fees. If 6 payments is not enough to pay your bill you can use a service such as plastiq (2.25% fee). If making multiple payments, it is advised you join here to track your payments link , you will be required to give your banking information and will receive a pin via snail mail
(Confirmed 4/2018 in post #429)
Fees are tax-deductible for C-Corps but not individuals (2018 tax reform eliminated "miscellaneous itemized deductions"). The majority of people will not be able to deduct that expense, check with your accountant.
When making multiple payments at or near your credit limit multiple times, allow yourself 3-5 days between payments for the charge to show up on your card and your bank payment to clear. If you wait until April 15th to make payments, you will only be able to clear the first payment.
Best Credit Cards to use/buy cheap points:
- Any credit card to hit minimum spend and achieve signup bonus or spend thresholds.
- BOA Premium Rewards 2.62% Cashback (Card holder needs to be a Preferred Rewards Platinum Honors member)
- Chase INK Premier 2.5% Cashback on purchases over $5k (Points are not transferable to airline or hotel programs)
- Capital One Venture X 2X Cap One Miles/Points (now transfer to most airline partners at 1:1)
- Amex Blue Business Plus 2X Membership Rewards (capped at $50,000 spend per calendar year)
- Chase United Business Club Card, 1.5X United Miles
- BOA Virgin Atlantic World Elite 1.5X Virgin Atlantic Points
- Chase Freedom Unlimited, 1.5X Ultimate Rewards, paired with a premium card (Sapphire Preferred, Sapphire Reserve, INK Preferred, INK Plus)
- Chase INK Unlimited, 1.5X Ultimate Rewards, paired with a premium card (Sapphire Preferred, Sapphire Reserve, INK Preferred, INK Plus)
- Amex Everyday Preferred 1.5X Membership Rewards, (need to make 30 transactions in a month for 50% bonus)
- Amex Business Platinum 1.5X Membership Rewards on purchases over $5K
Big Spend Bonuses:
- Amex Delta Reserve, spend $60k get 30k bonus miles and 30k MQM
- Citi Hilton HHonors Reserve, spend $10k get free weekend night, $40k, Platinum Status
- Chase Southwest, spend $135k get Companion Pass (WN points are redeemed at $.011, @ 1.87% fee, you're essentially buying the companion pass for $847)
- Chase Ritz Carlton Reserve, spend $10k get Gold Status spend $75k get Platinum Status
- Chase World of Hyatt, spend $15k get one free night
Cash Back cards:
Elan Fidelity 2%
Citi Double Cash 2%
Earn Status/Elite qualifying points:
- American, Delta, Alaska, Hyatt
Pre-Funding allowed:
Amex Charge Cards
Pre-Funding not-allowed:
Chase
Quarterly tax due dates: the 15th of April, June, September, January
Paying USA income, property or other taxes with a credit card
Sep 10, 2014, 10:16 pm
#257
Join Date: Aug 2012
Location: SEA
Programs: Bonvoy Gold
Posts: 1,945
I have to pay estimated taxes as well and was trying to figure out a way I could get points from it. When I look at Official Payments, there is a 2.35% fee for using a CC.
Is there any better deal out there or better way to do this? At that rate I would end up paying more on the fee then probably what the points are worth. My debit card doesn't earn points, so no real reason to use that...
EDIT: I found this site from the IRS showing that some companies only charge a 1.87% fee, but this is still too high. I need less than 1%
Also, I can't really do this effectively by purchasing debit gift cards as I owe about $20k
Is there any better deal out there or better way to do this? At that rate I would end up paying more on the fee then probably what the points are worth. My debit card doesn't earn points, so no real reason to use that...
EDIT: I found this site from the IRS showing that some companies only charge a 1.87% fee, but this is still too high. I need less than 1%
Also, I can't really do this effectively by purchasing debit gift cards as I owe about $20k
Sep 26, 2014, 8:43 am
#258
Join Date: Jul 2013
Posts: 101
Pay taxes ... which card
I'm seriously considering paying my 1/15 estimated tax bill which will be about $60k. I really want the float since I have some distributions coming to me in late January.
I know the fees to use credit cards are about 1.8% but I'd like to help gain status on Hilton (diamond on my reserve card) and SPG (gold on my Amex card). I know these typically aren't great deals but just how bad is it. Can the status upgrard be worth something along with the bonus points on these two programs? Are there other programs that can acquire status easier or should I just get some sign-up bonuses. Alternatively, I can get the cash elsewhere and just write a check for the tax payment.
Thanks,
Mike (DaBears)
I know the fees to use credit cards are about 1.8% but I'd like to help gain status on Hilton (diamond on my reserve card) and SPG (gold on my Amex card). I know these typically aren't great deals but just how bad is it. Can the status upgrard be worth something along with the bonus points on these two programs? Are there other programs that can acquire status easier or should I just get some sign-up bonuses. Alternatively, I can get the cash elsewhere and just write a check for the tax payment.
Thanks,
Mike (DaBears)
Sep 26, 2014, 10:17 am
#259
Join Date: Dec 2013
Posts: 163
Of course, the value of the hotel status depends on how frequently you plan to stay, and which hotels you'll be staying at. If you already have a sense of the properties you'd be frequenting, you can read about each property in their respective thread and determine whether the status is likely to accomplish much for you. That being said, I've been underwhelmed by SPG Gold, and I suspect that you would discover that in many cases, you'll prefer the Hilton Diamond over SPG Gold, whenever you have the choice between two otherwise comparable properties. Quite frankly, if you're willing to shell out the transaction fee to achieve SPG Gold, I'd suggest getting the Amex Platinum card and getting it that way.
The Amex PRG card would give a 15K bonus for 30K spend, together with a 25K signup bonus (assuming you don't already have the card and are eligible for the bonus), makes for a fairly decent return (when coupled with the Hilton Diamond, assuming you'd make use of it). Not necessarily lucrative, but I'd say you're at least coming out ahead at the end of the day.
I have no issue paying $40 in service fees when it means satisfying a minimum spend and collecting 40K points as a result with minimal fuss. But you're talking about spending a lot more to get something that may or may not be as valuable, IMO. Personally, I'd consider directing that spend toward meeting minimum spend on a small collection of new cards, or at least splitting it between Hilton and new cards.
The Amex PRG card would give a 15K bonus for 30K spend, together with a 25K signup bonus (assuming you don't already have the card and are eligible for the bonus), makes for a fairly decent return (when coupled with the Hilton Diamond, assuming you'd make use of it). Not necessarily lucrative, but I'd say you're at least coming out ahead at the end of the day.
I have no issue paying $40 in service fees when it means satisfying a minimum spend and collecting 40K points as a result with minimal fuss. But you're talking about spending a lot more to get something that may or may not be as valuable, IMO. Personally, I'd consider directing that spend toward meeting minimum spend on a small collection of new cards, or at least splitting it between Hilton and new cards.
Sep 26, 2014, 9:22 pm
#260
Join Date: Aug 2012
Location: SEA
Programs: Bonvoy Gold
Posts: 1,945
I'm seriously considering paying my 1/15 estimated tax bill which will be about $60k. I really want the float since I have some distributions coming to me in late January.
I know the fees to use credit cards are about 1.8% but I'd like to help gain status on Hilton (diamond on my reserve card) and SPG (gold on my Amex card). I know these typically aren't great deals but just how bad is it. Can the status upgrard be worth something along with the bonus points on these two programs? Are there other programs that can acquire status easier or should I just get some sign-up bonuses. Alternatively, I can get the cash elsewhere and just write a check for the tax payment.
Thanks,
Mike (DaBears)
I know the fees to use credit cards are about 1.8% but I'd like to help gain status on Hilton (diamond on my reserve card) and SPG (gold on my Amex card). I know these typically aren't great deals but just how bad is it. Can the status upgrard be worth something along with the bonus points on these two programs? Are there other programs that can acquire status easier or should I just get some sign-up bonuses. Alternatively, I can get the cash elsewhere and just write a check for the tax payment.
Thanks,
Mike (DaBears)
Apr 2, 2015, 11:56 am
#261
Join Date: Sep 2012
Posts: 4,431
Any reason NOT to use a 3x card to pay taxes and all bills?
Like many others, I accepted a Citi retention offer for the TY Pref for unlimited 3x for 6 months. I have until late July.
I have 2 property tax checks to write totaling about $7K. I haven't mailed them in yet, as I just remembered that I can pay property taxes online. My LA County system charges 2.1% + $5.95 processing. For $7K, that's about $153. But if I use a 3x card to pay that, I would get 21K TYP, which conservatively valued at 1.4c, would be worth about $294. Also, I've been paying my mortgage out of my bank account, but now that Evolve allows credit card payments at 3%, I figure I could make a small profit (3 TYP > 3 cents). Any reason NOT to do this? It makes numerical sense, but I hesitate for some reason, yet I can't think of a reason not to do it.
I have 2 property tax checks to write totaling about $7K. I haven't mailed them in yet, as I just remembered that I can pay property taxes online. My LA County system charges 2.1% + $5.95 processing. For $7K, that's about $153. But if I use a 3x card to pay that, I would get 21K TYP, which conservatively valued at 1.4c, would be worth about $294. Also, I've been paying my mortgage out of my bank account, but now that Evolve allows credit card payments at 3%, I figure I could make a small profit (3 TYP > 3 cents). Any reason NOT to do this? It makes numerical sense, but I hesitate for some reason, yet I can't think of a reason not to do it.
Apr 2, 2015, 12:49 pm
#263
Join Date: Sep 2012
Posts: 4,431
Just got the Prestige card, so I can use them for 1.6c when booking AA flights, 1.25c for other airlines, or can transfer to Singapore program to book their premium class seats. I think one of the major bloggers has it at 1.5c, but I think that's an aggressive valuation.
Apr 2, 2015, 1:26 pm
#264
Moderator
Original Poster
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
http://www.flyertalk.com/forum/citi-...0-0125-pt.html
I am not sufficiently familiar with SQ to put a numerical value on their miles.
I am not disagreeing with your valuation. just making sure you realize some of the issues. I typically do pay income and property taxes by card, but I usually use a card on which I will earn a new account bonus which returns much more than 3 points per dollar.
Apr 7, 2015, 1:10 pm
#265
Join Date: Jul 2007
Location: Washington, DC
Posts: 1,437
Paying taxes in DC [the smart way]
As it seems as of this year OP has started tacking on a fee for Debits(3%) and I am at loss on how can I pay my taxes for miles. Anyone in the area have any ideas? I am trying to pay my Q1 and D40P taxes before they are due.
I looked everywhere but it looks as OP is the only provider in my neck of the woods.
I looked everywhere but it looks as OP is the only provider in my neck of the woods.
Apr 7, 2015, 3:22 pm
#266
Join Date: Jan 2015
Posts: 78
I owe approximately $36,000 ($24,000 tax year 2014 and $12,000 estimated) this April 15th (yay). Wife and I are planning a trip at a Starwood Hotel in January and the hotel we have picked out will get us approximately 3.5 cents per point. I can book the whole week with this many points. My only question is that my SPG Amex only has a $25,000 credit limit- does anyone know if Amex will have any problems with me paying the $24,000 bill and the $12,000 estimated bill on separate days and paying the balance in between or if I should just call Amex and warn them so they don't find it to be suspicious activity?
Apr 8, 2015, 10:28 am
#267
Join Date: Sep 2012
Posts: 4,431
I tried to pay my LA County property tax + supplement last night with a Citi card, and the charge was declined. However, the fee portion of about $100 did go through and is pending. I called the bank to verify the charge, and re-submitted it. It went through this second time, but there's another $100 in fees that shows up. Will the ionitial $100 fee charge fall off by itself? If not, do I contact the tax service about it? I talked to the Citi people, and they didn't seem to think anything of it. My wife used her new AMEX to pay another property, and experienced the same thing.
Apr 8, 2015, 2:17 pm
#268
Join Date: Mar 2007
Location: S Cal
Programs: AA Lifetime Plat, United Silver, Marriott Plat, IHG Plat
Posts: 1,142
My only question is that my SPG Amex only has a $25,000 credit limit- does anyone know if Amex will have any problems with me paying the $24,000 bill and the $12,000 estimated bill on separate days and paying the balance in between or if I should just call Amex and warn them so they don't find it to be suspicious activity?
Apr 9, 2015, 6:31 am
#269
Moderator
Original Poster
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
Apr 9, 2015, 8:31 am
#270
Join Date: Jan 2015
Posts: 78
This is exactly what I did- called Amex and they said it was fine- I ran the charges and then paid the statement mid statement. Wouldn't normally like paying the fees but we are going on this vacation no matter what (wife has her heart set on it) and I'd rather pay $600 on fees than $1400 for the hotel