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 10, 2017, 4:23 am
#361
Join Date: Apr 2005
Location: ATL
Posts: 802
I also have the AMEX blue for business when the offer was double points for the first $50K and 30% at end of year- effectively 2.3 AMEX points per dollar charged. If you use this in combination with the AMEX business platinum, which gives you 50% points back on the airline of your choice (American for me) or in business/ first, you are essentially getting 4.6% back, with the service fee of 1.87% this is a 2.73% margin!!!!
If you weren't able to get the AMEX blue for business, as mentioned the AMEX everyday preferred if you do enough transactions per month (30?) you get 1.5 MR points per dollar. Coupled with the AMEX business platinum with the logic above, you get 3% back which is still a very nice 1.23% margin.
If you weren't able to get the AMEX blue for business, as mentioned the AMEX everyday preferred if you do enough transactions per month (30?) you get 1.5 MR points per dollar. Coupled with the AMEX business platinum with the logic above, you get 3% back which is still a very nice 1.23% margin.
Apr 11, 2017, 9:44 pm
#362
Join Date: Apr 2003
Location: Scottsdale AZ
Posts: 727
Sorry, I disagree. There's a high bar for deducting your income tax credit card payment fees. Basically, it's only the amount over two percent of line 38 (your MAGI). For example, if you have a $200,000 income and pay $80,000 in taxes, your fees at 2% are $1600 (schedule A line 22). But 2% of your MAGI would be $4000 (schedule A line 26)- which is much greater than $1600. The only way you can get over this is if you have a lot of unreimbursed job expenses reported on form 2106 (schedule A line 21). But if you had lots of unreimbused job expenses, then by definition you're (probably) employed and have withholdings- minimizing the amount of taxes you'd need to pay via credit card, which means you wouldn't be able to deduct a whole lot..
Apr 12, 2017, 4:32 pm
#363
Join Date: Aug 2012
Posts: 779
How long does it take for payments to show in your IRS account? I made a couple payments using pay1040 on 04/08. Until mow they are not shown in my account. According to IRS website, it may take 2 days for electronic payments to show in the account. I assume paying using credit card to be considered electronic payment. Thanks.
Apr 13, 2017, 6:20 pm
#364
Join Date: Jan 2011
Location: HKG • Ex SFO, NYC
Programs: UA 1K, AA EXP; Marriott Amb; Hyatt Globalist; Shangri-la Diamond; IHG SpireAmb; Hilton D; Accor G
Posts: 3,319
How long does it take for payments to show in your IRS account? I made a couple payments using pay1040 on 04/08. Until mow they are not shown in my account. According to IRS website, it may take 2 days for electronic payments to show in the account. I assume paying using credit card to be considered electronic payment. Thanks.
Apr 14, 2017, 3:53 pm
#366
Join Date: Sep 2011
Location: ORD/MDW
Programs: AA EXP, DL-Plat, WN-CP | Hotels: Choice-Gld, IHG-Plt, Rad-Gld, HH-Dia, Hyatt-Glob, Marriott-LtPlt
Posts: 2,889
How long does it take for payments to show in your IRS account? I made a couple payments using pay1040 on 04/08. Until mow they are not shown in my account. According to IRS website, it may take 2 days for electronic payments to show in the account. I assume paying using credit card to be considered electronic payment. Thanks.
I believe pay1040 is an electronic payment option - see: https://www.irs.gov/payments & https://www.irs.gov/uac/pay-taxes-by...-or-debit-card
Apr 15, 2017, 4:31 am
#367
Join Date: Apr 2005
Location: ATL
Posts: 802
Sorry, I disagree. There's a high bar for deducting your income tax credit card payment fees. Basically, it's only the amount over two percent of line 38 (your MAGI). For example, if you have a $200,000 income and pay $80,000 in taxes, your fees at 2% are $1600 (schedule A line 22). But 2% of your MAGI would be $4000 (schedule A line 26)- which is much greater than $1600. The only way you can get over this is if you have a lot of unreimbursed job expenses reported on form 2106 (schedule A line 21). But if you had lots of unreimbused job expenses, then by definition you're (probably) employed and have withholdings- minimizing the amount of taxes you'd need to pay via credit card, which means you wouldn't be able to deduct a whole lot..
Apr 15, 2017, 9:05 am
#368
Moderator: Chase Ultimate Rewards
Join Date: Apr 2005
Location: SFO
Programs: UA 2P, MR LT Plat, IHG Plat, BW Dia, HH Au, Avis PC
Posts: 5,439
Guidance from the IRS:
The deduction is only the amount above 2% of your Adjusted Gross Income. In other words, if you make $50000, only the fees above $1000 would be deductible. If you're deducting more than that, your tax return may be inaccurate.
Not everyone who pays the fees will be able to deduct them. Taxpayers first must be eligible to file a Form 1040 Schedule A to itemize their expenses. And, taxpayers must have enough miscellaneous expenses to exceed the 2 percent threshold. These expenses include items such as tax preparation costs, job search expenses and unreimbursed employee expenses.
Apr 15, 2017, 10:23 am
#369
Join Date: Aug 2012
Posts: 779
Are you two sure you're not talking past each other? I don't think one can pay "rent / mortgage" through pay1040. Was helvetic thinking of plastiq?
I believe pay1040 is an electronic payment option - see: https://www.irs.gov/payments & https://www.irs.gov/uac/pay-taxes-by...-or-debit-card
I believe pay1040 is an electronic payment option - see: https://www.irs.gov/payments & https://www.irs.gov/uac/pay-taxes-by...-or-debit-card
Apr 15, 2017, 11:39 am
#370
Join Date: Sep 2012
Location: Up In The Cloud
Programs: UA 1K MM; BA S, AA G; AS G; DL | SPG P50, M G, CC G, IHG P, HLT S | Hertz PC, Avis F
Posts: 682
Apr 17, 2017, 2:34 am
#372
Join Date: Apr 2005
Location: ATL
Posts: 802
Guidance from the IRS:
The deduction is only the amount above 2% of your Adjusted Gross Income. In other words, if you make $50000, only the fees above $1000 would be deductible. If you're deducting more than that, your tax return may be inaccurate.
The deduction is only the amount above 2% of your Adjusted Gross Income. In other words, if you make $50000, only the fees above $1000 would be deductible. If you're deducting more than that, your tax return may be inaccurate.
I regret not using "YMMV" in my initial post.
Last edited by bigbuy; Apr 17, 2017 at 2:39 am
Apr 17, 2017, 9:39 am
#373
Moderator: Chase Ultimate Rewards
Join Date: Apr 2005
Location: SFO
Programs: UA 2P, MR LT Plat, IHG Plat, BW Dia, HH Au, Avis PC
Posts: 5,439
Apr 17, 2017, 9:28 pm
#374
Join Date: May 2011
Location: Bay Area, CA
Programs: SPG, Hyatt Diamond Member, Club Calrson Silver, AA, Hilton Gold, BA
Posts: 476
Filed my taxes today.
I wanted to pay my taxes with a CC to hit minimum spending on my AMEX SPG card.
But H&R Block program told me to file first and wait until IRS accepts my return. And then pay the IRS via CC? Is that how it works? Since its so close to the deadline, I hope I dont get a penalty.
I know I know, I shouldnt have waited last minute. T.T
I wanted to pay my taxes with a CC to hit minimum spending on my AMEX SPG card.
But H&R Block program told me to file first and wait until IRS accepts my return. And then pay the IRS via CC? Is that how it works? Since its so close to the deadline, I hope I dont get a penalty.
I know I know, I shouldnt have waited last minute. T.T
Apr 18, 2017, 7:42 am
#375
Join Date: Aug 2006
Posts: 1,246
Filed my taxes today.
I wanted to pay my taxes with a CC to hit minimum spending on my AMEX SPG card.
But H&R Block program told me to file first and wait until IRS accepts my return. And then pay the IRS via CC? Is that how it works? Since its so close to the deadline, I hope I dont get a penalty.
I know I know, I shouldnt have waited last minute. T.T
I wanted to pay my taxes with a CC to hit minimum spending on my AMEX SPG card.
But H&R Block program told me to file first and wait until IRS accepts my return. And then pay the IRS via CC? Is that how it works? Since its so close to the deadline, I hope I dont get a penalty.
I know I know, I shouldnt have waited last minute. T.T
No don't wait. Are you paying through H&R block? If you use one of the companies on the IRS website they wouldn't know any different.
