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 12, 2013, 12:29 pm
#166
Join Date: May 2010
Location: SoCal
Programs: SPG PLAT, AA Plat (2MM), BA, UA/CO
Posts: 442
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?
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?
Apr 12, 2013, 12:31 pm
#167
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,047
You can use a debit card also, but you'll be paying the same fee as for a credit card.
Apr 12, 2013, 12:53 pm
#168
Join Date: Jan 2012
Location: Southern California
Programs: UA Platinum, Marriott Gold, SPG Gold, Club Carlson Gold
Posts: 317
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.
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.
Apr 12, 2013, 4:52 pm
#171
Join Date: Nov 2007
Location: PHX
Posts: 4,787
http://www.irs.gov/uac/Pay-Taxes-by-...-or-Debit-Card
Apr 13, 2013, 11:16 am
#172
Join Date: Sep 2012
Location: IAD/DCA
Programs: Bunch of mid-tiers
Posts: 1,034
If you're willing to share, how long did it take for you to get the notice? Was it in a reasonable time for mailing, processing, etc. or did it take weeks?
Apr 13, 2013, 1:49 pm
#174
Join Date: Feb 2013
Posts: 212
I am quite new here but I would like to comment that moving my question which was quite specific to paying the IRS with a paper bluebird check (Post 165 here) from the thread I started (which I believe had the title "Using BB checks I have in hand to pay IRS") to this thread makes it much less accessible.
As people may be rushing to pay taxes, having to read through a twelve page thread entitled "Paying USA income, property or other taxes with CC. [2013]" to find info on paying taxes with a paper BB check is not very direct or intuitive. Anyone trying to check this kind of info will not necessarily look here. Luckily, Groobie posted an answer to my question before it was moved so I had the info I needed easily. Thanks again, Groobie.
If I am speaking out of turn, I apologize, but I do think that someone coming to FT to answer this question would not know to search this thread, because its title does not make the reader think the answer would be here. As a newbie, I surely did not think the info I sought would be here.
Thank you.
As people may be rushing to pay taxes, having to read through a twelve page thread entitled "Paying USA income, property or other taxes with CC. [2013]" to find info on paying taxes with a paper BB check is not very direct or intuitive. Anyone trying to check this kind of info will not necessarily look here. Luckily, Groobie posted an answer to my question before it was moved so I had the info I needed easily. Thanks again, Groobie.
If I am speaking out of turn, I apologize, but I do think that someone coming to FT to answer this question would not know to search this thread, because its title does not make the reader think the answer would be here. As a newbie, I surely did not think the info I sought would be here.
Thank you.
Apr 13, 2013, 3:36 pm
#176
Join Date: Dec 2009
Programs: Curr Noob, Ex Road Warrior
Posts: 492
Could you make 2 CC payments and 2 BB payments with 2 different payment providers on Monday? Both my wife and I are planning to make use of 1 CC and 1BB card to pay as part of our joint filing. Is there anything to be worry? Thanks.
Apr 13, 2013, 4:36 pm
#177
Join Date: Jul 2011
Programs: American Airlines, Alaska Airlines, Hawaiian Airlines, Southwest
Posts: 296
For paying Federal taxes -- Payusatax has a lower fee than Official Payments (1.89% versus 2.35%) -- but only for Federal taxes.
As long as one is getting >2 cents on the mile with frequent flyer miles it can be made to work. I've found I typically get 5 cents to the mile (long haul flights) and recently got an off the charge value of close to 15 cents to the mile with Cathay Pacific 1st class via Alaska miles.
As long as one is getting >2 cents on the mile with frequent flyer miles it can be made to work. I've found I typically get 5 cents to the mile (long haul flights) and recently got an off the charge value of close to 15 cents to the mile with Cathay Pacific 1st class via Alaska miles.
Apr 13, 2013, 7:11 pm
#178
A FlyerTalk Posting Legend
Join Date: Feb 2001
Location: Berkeley, CA USA
Programs: Piggly Wiggly "Shop the Pig!" Preferred Shopper
Posts: 57,084
In a post in a thread closed and referred to this one, someone asked the usual question "Is it worth paying the fees to pay my taxes with a credit card?"
Not a simple question. Let me answer.
Most of the time, probably not. Most people would value most points between about 1.5 and 2.0 cents per point. Payment fees are toward the top end of that range.
However there can be a lot of exceptions.
1) If you need a defined number of miles for an award and happen to have the appropriate credit card, it can be worth it compared to buying them from the airline. But you will have to wait for the miles to clear, and the award you want might not be available by then.
2) If you are regularly buying tickets that cost more than 2 cents per mile and are available as award tickets, and don't have enough miles other ways. If you were about to run out and buy a business class overseas ticket for $4, $6, $8 thousand, and you're sure it will be available in a month, and you can get it for 100K or 150K miles, it's worth paying $2k or $3K in fees.
3) If you're trying to meet a minimum spend requirement to get a signup bonus on a credit card and have no other way to meet it. Taken totally in isolation, of course you would pay $60 in fees to charge $3000 on a Chase Sapphire Preferred card and get 43,000 points, worth at least 1 cent each and often more.
4) If you have ways to leverage the spend. Some people buy gift cards at office supply stores and get 5x points on a Chase Ink Bold card. Some have debit cards that award points they can use to pay credit card bills, so they get not only the original points but the debit card points.
5) If you can deduct the credit card fees. I'm not a tax expert, so take this with a grain of salt, but I think they are deductible only if (a) you use them to pay business taxes or (b) they are part of the miscellaneous deductions subject to the 2% threshold. Even then, it is possible the points should be considered taxable income, although the IRS pretty much has a hands-off policy on taxing points unless they are a bonus for opening a bank account.
6) If you have a debit card giving points, and can pay in large enough chunks, it's kind of a no-brainer. If you could pay a $5000 tax bill for a $4 fee and get 5000 points, that's clearly a win.
7) If you have only a modest supply of points, and you feel better about having enough for emergencies. I like to tell the story about a woman I really liked telling me that she suddenly had 5 days off she hadn't expected, and how she complained bitterly about the supervisors who had scheduled her time off so clumsily. By the time she was done venting, I had checked and found a 25,000 mile award ticket for the next morning that would have cost me $2,000 to buy. We had such a good time at that surprise meeting that a year and a half later she married me. I'm not saying we wouldn't have gotten married if I hadn't had a cache of miles, but it can't hurt. If you don't have another source of miles, just having them around might make you able to get redemptions worth much better than the 1.5-2 cents per mile guideline I gave earlier.
Speaking as someone who now works overseas and does not have taxes withheld, I will have to pay mid 5-figure estimated taxes, and I personally will use one or more of these strategies. I think if you are someone already deeply into the points/miles game, you will find a way to leverage your spend, and the information in this thread it useful. If you're not, then I probably wouldn't pay the fees just to see your balance creep up.
Not a simple question. Let me answer.
Most of the time, probably not. Most people would value most points between about 1.5 and 2.0 cents per point. Payment fees are toward the top end of that range.
However there can be a lot of exceptions.
1) If you need a defined number of miles for an award and happen to have the appropriate credit card, it can be worth it compared to buying them from the airline. But you will have to wait for the miles to clear, and the award you want might not be available by then.
2) If you are regularly buying tickets that cost more than 2 cents per mile and are available as award tickets, and don't have enough miles other ways. If you were about to run out and buy a business class overseas ticket for $4, $6, $8 thousand, and you're sure it will be available in a month, and you can get it for 100K or 150K miles, it's worth paying $2k or $3K in fees.
3) If you're trying to meet a minimum spend requirement to get a signup bonus on a credit card and have no other way to meet it. Taken totally in isolation, of course you would pay $60 in fees to charge $3000 on a Chase Sapphire Preferred card and get 43,000 points, worth at least 1 cent each and often more.
4) If you have ways to leverage the spend. Some people buy gift cards at office supply stores and get 5x points on a Chase Ink Bold card. Some have debit cards that award points they can use to pay credit card bills, so they get not only the original points but the debit card points.
5) If you can deduct the credit card fees. I'm not a tax expert, so take this with a grain of salt, but I think they are deductible only if (a) you use them to pay business taxes or (b) they are part of the miscellaneous deductions subject to the 2% threshold. Even then, it is possible the points should be considered taxable income, although the IRS pretty much has a hands-off policy on taxing points unless they are a bonus for opening a bank account.
6) If you have a debit card giving points, and can pay in large enough chunks, it's kind of a no-brainer. If you could pay a $5000 tax bill for a $4 fee and get 5000 points, that's clearly a win.
7) If you have only a modest supply of points, and you feel better about having enough for emergencies. I like to tell the story about a woman I really liked telling me that she suddenly had 5 days off she hadn't expected, and how she complained bitterly about the supervisors who had scheduled her time off so clumsily. By the time she was done venting, I had checked and found a 25,000 mile award ticket for the next morning that would have cost me $2,000 to buy. We had such a good time at that surprise meeting that a year and a half later she married me. I'm not saying we wouldn't have gotten married if I hadn't had a cache of miles, but it can't hurt. If you don't have another source of miles, just having them around might make you able to get redemptions worth much better than the 1.5-2 cents per mile guideline I gave earlier.
Speaking as someone who now works overseas and does not have taxes withheld, I will have to pay mid 5-figure estimated taxes, and I personally will use one or more of these strategies. I think if you are someone already deeply into the points/miles game, you will find a way to leverage your spend, and the information in this thread it useful. If you're not, then I probably wouldn't pay the fees just to see your balance creep up.
Thanks, redtop43, for spending the time to help other FTers with this.
Apr 13, 2013, 7:38 pm
#179
Join Date: Jun 2011
Location: Flyover Territory
Programs: Hilton Diamond
Posts: 687
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.
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.
I got an email several days after each informing me that the checks had been processed, so I have a high degree of confidence in this process.
Anita
Apr 13, 2013, 7:43 pm
#180
Join Date: Jun 2011
Location: Flyover Territory
Programs: Hilton Diamond
Posts: 687