Go Back  FlyerTalk Forums > Miles&Points > Credit, Debit and Prepaid Card Programs > Credit Card Programs
Reload this Page >

Paying USA income, property or other taxes with a credit card

Old Mar 18, 2016, 8:54 am
FlyerTalk Forums Expert How-Tos and Guides
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.
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


Print Wikipost

Paying USA income, property or other taxes with a credit card

Old Mar 31, 2013, 11:52 pm
  #136  
 
Join Date: Nov 2010
Location: ONT
Programs: AGR, UA, AA
Posts: 476
Originally Posted by ned
Other than Official Payments do any payment sites provide for the payment of California State Income Tax? Thanks
California only has one vendor for payment of State Income Tax. Of course, you could use the bill payment feature of Bluebird or something similar.
calwatch is offline  
Old Apr 2, 2013, 3:04 pm
  #137  
 
Join Date: Jun 2009
Posts: 2,175
Guys - I need to complete some spend on my Chase MARRIOTT REWARDS Visa. Instead of buying gift cards, can I simply use this card and expect to see it as a regular credit transaction and get 1x points per $ spent?

Thanks
sam007 is offline  
Old Apr 3, 2013, 4:03 am
  #138  
 
Join Date: Apr 2005
Location: ATL
Posts: 803
Originally Posted by sam007
Guys - I need to complete some spend on my Chase MARRIOTT REWARDS Visa. Instead of buying gift cards, can I simply use this card and expect to see it as a regular credit transaction and get 1x points per $ spent?

Thanks
I have used the Chase United CC with no problems paying taxes and getting the points.
bigbuy is offline  
Old Apr 3, 2013, 10:26 am
  #139  
 
Join Date: Feb 2010
Posts: 63
Originally Posted by metoo
need help with completing e-filing for tax. On the last step "How do you want to pay for your federal tax?"....If I want to use Payusatax.com for credit card payment, do I check off " i will mail a check"?
I have a similar question. I'd like to pay only a portion of my 1040 balance due by credit card, but there doesn't seem to be anywhere in the standard forms to account for a portion paid by credit card. I get a form saying I owe $x and that I am paying it by check, but my check would be less than $x by the amount I paid by credit card.

How have other people handled this?

Thanks.
hellothere is offline  
Old Apr 4, 2013, 10:43 am
  #140  
 
Join Date: Nov 2007
Location: PHX
Posts: 4,792
So, I've made two payments using payusatax and two using officialpayments. Earlier in the thread, it says officialpayments will take more than two payment using telephone, but I tried and was unable to make a third payment.

Does anyone else have any advice for getting around the 2 payments per quarter limit?
lkar is offline  
Old Apr 5, 2013, 11:04 pm
  #141  
 
Join Date: Aug 2012
Location: the south of Cal
Posts: 26
Exclamation How to pay my taxes with Alaska Air debit card?

deleted

Last edited by milester; Apr 13, 2013 at 1:22 pm
milester is offline  
Old Apr 6, 2013, 10:38 am
  #142  
 
Join Date: May 2012
Posts: 610
If it is for business, the fees are deductible. Combine that with a 2% CB business card and you will make out ahead. Since most debt cards have daily limits of 2k, you would have a tough time being able to pay this with a debt card. If it is due on April 15th, you really need to send in a check or pay via electronic debt. In the future, use quarterlies payments with a 2% CB credit card and you will come out ahead. As for now, there is little options available.
comptalk is offline  
Old Apr 6, 2013, 12:58 pm
  #143  
 
Join Date: Aug 2012
Location: the south of Cal
Posts: 26
deleted

Last edited by milester; Apr 13, 2013 at 1:49 pm
milester is offline  
Old Apr 6, 2013, 1:02 pm
  #144  
 
Join Date: May 2012
Posts: 610
Originally Posted by lahaina
Thanks so much for your reply. I'm assuming that when you say 2% cash back business card, you're referring to a credit card, right?

And that the fees are deductible - that this would refer to the fees assessed by the likes of Officialpayments, pay1040, etc.?

(yes, will be planning to do as you stated for estimated quarterlies from here on)
Yes, that is correct.
comptalk is offline  
Old Apr 6, 2013, 1:08 pm
  #145  
 
Join Date: Aug 2012
Location: the south of Cal
Posts: 26
deleted

Last edited by milester; Apr 13, 2013 at 1:23 pm
milester is offline  
Old Apr 7, 2013, 1:26 pm
  #146  
mia
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Signatures.
Original Poster
 
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: HH & IHG Gold; Marriott & AA Perpetual Platinum
Posts: 49,196
Moderator action

lahaina's question has been appended to this established thread on the topic of tax payments.
mia is offline  
Old Apr 8, 2013, 12:31 am
  #147  
 
Join Date: Jun 2010
Posts: 292
Originally Posted by lkar
So, I've made two payments using payusatax and two using officialpayments. Earlier in the thread, it says officialpayments will take more than two payment using telephone, but I tried and was unable to make a third payment.

Does anyone else have any advice for getting around the 2 payments per quarter limit?
I have made more than two payments using the live phone support through officialpayments, but haven't tried in 2013. When I did it, I was very clear that I was calling the live support in order to exceed the two payment limit, and the person who I spoke to was very clear that that was a legitate reason for using the live phone support.

If you were referring to some automated phone payment system, I don't think anyone has reported success exceeding the two payment limit that way, and you should try the live phone support.

If the live phone suppport staff refused to your request to exceed the two payment limit, I would appreciate it if you would post more details of the conversation. For example, did the phone representative try the transaction only to have their computer refuse it or did the phone represenative refuse to try? If the represenatitive's computer blocked it, that is more likely a real policy change. If the represenative wouldn't try, it still might have been a real policy change, but it might have just been one mistaken phone representative.

Last edited by skynerd; Apr 8, 2013 at 1:22 pm Reason: grammar: "very clear about that I was" --> "very clear that I was"
skynerd is offline  
Old Apr 8, 2013, 1:14 am
  #148  
 
Join Date: Dec 2009
Location: DCA
Posts: 814
When you call to override the two payment limit using debit cards, are you still charged the $2.99 fee for each one?
Montacute is offline  
Old Apr 8, 2013, 1:34 pm
  #149  
 
Join Date: Jun 2010
Posts: 292
Originally Posted by Montacute
When you call to override the two payment limit using debit cards, are you still charged the $2.99 fee for each one?
I was charged the debit card fee separately for each card, which makes sense to me, given that the cards were separate Visa accounts.
skynerd is offline  
Old Apr 8, 2013, 1:49 pm
  #150  
 
Join Date: Apr 2002
Location: Chicago - AA EXP, UA 1K, Marriott PL, Starwood PL, Hyatt Gold
Posts: 415
Originally Posted by lkar
So, I've made two payments using payusatax and two using officialpayments. Earlier in the thread, it says officialpayments will take more than two payment using telephone, but I tried and was unable to make a third payment.

Does anyone else have any advice for getting around the 2 payments per quarter limit?
I was able to make a third payment on the phone with Officialpayments today - you have to actually talk to a person as the automated system will say that you've already made 2 and will kick you out.

Call 800-487-4567 and select option 2 (it ends with 'all other inquiries). You will (eventually) get a live person. Although the guy I got initially said 'I don't think we can do that' when I said I wanted to make an estimated payment, he looked it up and quickly said 'oh, yes you can' and took my info. I didn't tell him it was my third, just let him put it in to see what happened. It went through and I got the email and can print the details from the web site.
I012609 is offline  

Thread Tools
Search this Thread

Contact Us - Manage Preferences Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.