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
Apr 9, 2015, 10:53 pm
#271
Join Date: Aug 2012
Location: SEA
Programs: Bonvoy Gold
Posts: 1,946
From officialpayments.com:
To make paying taxes a little less taxing we have new, lower pricing for debit card payments. Federal tax payments made on our secure site using your personal Visa or MasterCard debit card now receive our lowest fee of just $3.50 for payments of $1,000 or less. Payments greater than $1,000 have a fee of just $3.95.
To make paying taxes a little less taxing we have new, lower pricing for debit card payments. Federal tax payments made on our secure site using your personal Visa or MasterCard debit card now receive our lowest fee of just $3.50 for payments of $1,000 or less. Payments greater than $1,000 have a fee of just $3.95.
May 16, 2015, 4:20 pm
#272
Join Date: Nov 2013
Location: Sacramento, CA
Posts: 437
Hello, I am new to this thread, so I am curious what you guys think about the security risk of providing your ssn to one of these tax Payment Processor.
I know these sites are recommended and approved by the IRS, but I am bit nervous giving out my ssn to a site called "PayUSAtax.com". It just looks sketchy as hell.
Any links to articles I can read to allay my fears?
I know these sites are recommended and approved by the IRS, but I am bit nervous giving out my ssn to a site called "PayUSAtax.com". It just looks sketchy as hell.
Any links to articles I can read to allay my fears?
May 17, 2015, 10:33 am
#273
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,044
The fact that they are on the IRS's web page is good enough for me:
http://www.irs.gov/uac/Pay-Taxes-by-...-or-Debit-Card
In an era when companies like Anthem let your SSN slip, there's only so much safety you can expect, unfortunately.
http://www.irs.gov/uac/Pay-Taxes-by-...-or-Debit-Card
In an era when companies like Anthem let your SSN slip, there's only so much safety you can expect, unfortunately.
May 18, 2015, 10:59 am
#277
Join Date: Nov 2013
Location: Sacramento, CA
Posts: 437
May 18, 2015, 11:11 am
#279
Join Date: Nov 2013
Location: Sacramento, CA
Posts: 437
Good to know! ^
Last edited by mia; May 18, 2015 at 12:02 pm Reason: Threads merged as suggested by poster.
May 19, 2015, 9:55 pm
#280
Join Date: Feb 2006
Programs: HH Gold (again), US/UA/DL non-elite, ZE Presidents Circle, WN reluctant no fee convert.
Posts: 1,449
Hmmm.
I went to Official Payments dot com and after indicating a desire to pay Fed 1040 taxes, I filled in $3K to pay. Then I put in a GC Visa card no. to get to the next page where the fee would display. It displayed as $3.95. There was no indication of difference between cards on the page.
Gonna try this again closer to a personal MC account end date and see if the fee holds.
I went to Official Payments dot com and after indicating a desire to pay Fed 1040 taxes, I filled in $3K to pay. Then I put in a GC Visa card no. to get to the next page where the fee would display. It displayed as $3.95. There was no indication of difference between cards on the page.
Gonna try this again closer to a personal MC account end date and see if the fee holds.
May 20, 2015, 10:57 am
#281
Join Date: Aug 2010
Posts: 633
I am not following what you are trying to say. You put in a Visa GC # and it gave you a fee of $3.95.
Hmmm.
I went to Official Payments dot com and after indicating a desire to pay Fed 1040 taxes, I filled in $3K to pay. Then I put in a GC Visa card no. to get to the next page where the fee would display. It displayed as $3.95. There was no indication of difference between cards on the page.
Gonna try this again closer to a personal MC account end date and see if the fee holds.
I went to Official Payments dot com and after indicating a desire to pay Fed 1040 taxes, I filled in $3K to pay. Then I put in a GC Visa card no. to get to the next page where the fee would display. It displayed as $3.95. There was no indication of difference between cards on the page.
Gonna try this again closer to a personal MC account end date and see if the fee holds.
May 20, 2015, 6:09 pm
#282
Join Date: Feb 2006
Programs: HH Gold (again), US/UA/DL non-elite, ZE Presidents Circle, WN reluctant no fee convert.
Posts: 1,449
May 23, 2015, 12:02 pm
#283
Join Date: Aug 2010
Posts: 633
But I am not understanding the point of your post. All Visa GCs that I know of are debit cards, so it looks like they are coding these correctly.
People use Visa GCs to pay their taxes and they are charged the debit card fee, which is about .8% with $3.95 for $500. Since it costs you 1% to get Visa GC, this cost is 1.8% total which is about what the fees are to pay taxes with a CC.
Just trying to understand if you are talking about something else, like inputting a Visa GC # for a $3.95 but then being able to change the # to a CC after that, etc.
People use Visa GCs to pay their taxes and they are charged the debit card fee, which is about .8% with $3.95 for $500. Since it costs you 1% to get Visa GC, this cost is 1.8% total which is about what the fees are to pay taxes with a CC.
Just trying to understand if you are talking about something else, like inputting a Visa GC # for a $3.95 but then being able to change the # to a CC after that, etc.
Jun 14, 2015, 5:57 pm
#285
Join Date: Oct 2009
Location: SFO
Posts: 515
pending authorization for visa gift card?
I just used a $500 visa gift card to pay estimated taxes for the first time, using value tax payment from irs site. Payment was 497.51+ fee of 2.49= 500. Transaction went through, received confirmation from value tax payment, however vanilla visa website shows transaction as pending and as hold/preauthorized as opposed to debit.
Normal and will clear normally or a possible glitch/problem?
thanks
edit: never mind, charge cleared overnight, everything ok
Normal and will clear normally or a possible glitch/problem?
thanks
edit: never mind, charge cleared overnight, everything ok
Last edited by adlibitum; Jun 15, 2015 at 10:18 am