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 Apr 9, 2013, 9:22 pm
  #151  
 
Join Date: Dec 2009
Location: DCA
Posts: 814
Virginia State Income Tax

Virginia uses officialpayments.com to process state income tax payments. I looked at the site and the convenience fee to use a Visa debit card is $3.95, but to use a Mastercard debit card it costs 1%!! Bummer as Suntrust seems to be a mastercard.
Montacute is offline  
Old Apr 9, 2013, 10:39 pm
  #152  
 
Join Date: Nov 2007
Location: PHX
Posts: 4,790
Thanks. I will try tomorrow. I couldn't figure out how to get through to a real person.

Originally Posted by skynerd
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.
Originally Posted by I012609
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.
lkar is offline  
Old Apr 10, 2013, 10:44 am
  #153  
 
Join Date: Nov 2009
Posts: 521
can I use Citi AA cards to pay my payroll tax on payusataxusa.com? Would that count towards my 2500 spending for bonus eligibility?
mak101 is offline  
Old Apr 10, 2013, 10:51 am
  #154  
FlyerTalk Evangelist
 
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,118
Originally Posted by mak101
can I use Citi AA cards to pay my payroll tax on payusataxusa.com? Would that count towards my 2500 spending for bonus eligibility?
Citi is pretty tough about considering cash equivalents to be cash advances, so be aware of the possibility.
josephstern is offline  
Old Apr 10, 2013, 12:34 pm
  #155  
 
Join Date: Nov 2007
Location: PHX
Posts: 4,790
Originally Posted by skynerd
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.
Just made a third payment using the live operator. Thanks!
lkar is offline  
Old Apr 11, 2013, 8:15 am
  #156  
 
Join Date: Apr 2013
Posts: 5
how many tax payment can u make?
askaricars is offline  
Old Apr 11, 2013, 4:22 pm
  #157  
 
Join Date: May 2010
Programs: AA, Marriott rewards, United, AA, Delta
Posts: 150
I tried to use my ST debit to pay our return today and it was declined on Payusatax.com. I can't figure it out. I called ST and they can't figure it out either. Anyone have the same problem? Seems like nothing is ever simple.
shadow1woman is offline  
Old Apr 11, 2013, 5:20 pm
  #158  
 
Join Date: Dec 2009
Location: DCA
Posts: 814
Originally Posted by shadow1woman
I tried to use my ST debit to pay our return today and it was declined on Payusatax.com. I can't figure it out. I called ST and they can't figure it out either. Anyone have the same problem? Seems like nothing is ever simple.
I just used my new ST debit card to make a payment and it was fine, but I used pay1040.com. Did you try to spend more than the 35k per day limit?
Montacute is offline  
Old Apr 11, 2013, 5:47 pm
  #159  
 
Join Date: May 2010
Programs: AA, Marriott rewards, United, AA, Delta
Posts: 150
Originally Posted by Montacute
I just used my new ST debit card to make a payment and it was fine, but I used pay1040.com. Did you try to spend more than the 35k per day limit?
Nope, under 20K. The lady on the phone said it might have a block for a limit but she checked and said no. So annoying. I guess the pay1040.com gives the miles, right?
shadow1woman is offline  
Old Apr 11, 2013, 6:33 pm
  #160  
 
Join Date: Dec 2009
Location: DCA
Posts: 814
Originally Posted by shadow1woman
Nope, under 20K. The lady on the phone said it might have a block for a limit but she checked and said no. So annoying. I guess the pay1040.com gives the miles, right?
Yes, pay1040 gives miles. Any of the tax services would give you miles, but these two have the cheapest fee.
Montacute is offline  
Old Apr 11, 2013, 6:40 pm
  #161  
 
Join Date: May 2010
Programs: AA, Marriott rewards, United, AA, Delta
Posts: 150
Thank you, I will try that one. Very strange IMO.
shadow1woman is offline  
Old Apr 11, 2013, 7:58 pm
  #162  
 
Join Date: Dec 2009
Location: DCA
Posts: 814
Originally Posted by shadow1woman
Thank you, I will try that one. Very strange IMO.
It is pretty strange. Good luck. Post back if it went through ok.
Montacute is offline  
Old Apr 11, 2013, 10:00 pm
  #163  
 
Join Date: Apr 2010
Location: los angeles
Programs: amex rewards,el al matmid,american,delta,united,hertz#1
Posts: 3
Need help and fast.....Can you pay California estimated taxes with a credit card or debit card? Have a suntrust debit and credit cards but can't find how to use them ...anyone know? Have a 70k tax bill and would like to earn the miles...thanks

how much did they charge on pay1040 to use your suntrust debit. do you know if they take more than one payment. i have a very large tax bill to pay and the daily limit is 35k to debit out of suntrust. i am wondering if i can do 3-4 transactions to get in all the payments in by april 15th? any thoughts?

Last edited by mia; Apr 12, 2013 at 8:31 am Reason: Combine consecutive replies
laurieblu is offline  
Old Apr 12, 2013, 8:12 am
  #164  
 
Join Date: Apr 2013
Posts: 5
thank you for sharing this! all the above comments are informative!
askaricars is offline  
Old Apr 12, 2013, 11:53 am
  #165  
 
Join Date: Feb 2013
Posts: 212
Using BB checks I have in hand to pay IRS

Now that Bluebird checks have arrived and many of us have them in hand, I may not be the only person with small enough tax payments due to enable paying the taxes with Bluebird.

I just need a little reassurance. I have only used BB once, to send a mortgage payment, and that was before I received my checks in the mail. It worked fine. Now I want to pay a federal tax bill of under $2000, a state bill of a few hundred, and an estimated federal payment of $300. I have the BB checks in hand and enough money in the account, so can I just go onto the site, pre-authorize the three checks immediately since they are under $2000 each, write the authorization numbers on the checks along with the other details, and mail them on their way?

Sounds almost too good to be true.

Have you done this or do you plan to?

Thanks.

PS - I did check the Bluebird thread and did not find pertinent info other than one post commenting on someone's hesitation to do this.... Thanks again.
TWA44 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.