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
Mar 24, 2016, 9:24 pm
#316
Join Date: Jan 2016
Posts: 22
I had the same idea but for my property tax. I think the one concern is how many money orders they will accept. I plan to call tomorrow to determine that before I go through the hassle of trying to get that many money orders. Would love to hear if you have success.
Mar 25, 2016, 7:04 am
#317
Join Date: Jan 2016
Programs: Ink/Sapphire/Freedom/SPG
Posts: 338
sure, will update here.
Apr 7, 2016, 8:50 pm
#318
Join Date: Sep 2012
Programs: UA AA DL SW Marriott
Posts: 251
Newbie to this topic -
We usually e-file, 1st time attempting using CC. with over 15K due on April 15, wanted to pay $3k via Pay1040.com (1.87%) to meet Marriot card minumum spend, 12K via debit or bank ACH.
Not sure how to do this though. Should we pay advance, i.e., today or tomorrow, with CC for $3K via pay1040.com? Then note on tax return' already paid $3K'? Or via the integrated at e-file @2.35%, and split $3K and bank acct info for $12K?
Thank you...
We usually e-file, 1st time attempting using CC. with over 15K due on April 15, wanted to pay $3k via Pay1040.com (1.87%) to meet Marriot card minumum spend, 12K via debit or bank ACH.
Not sure how to do this though. Should we pay advance, i.e., today or tomorrow, with CC for $3K via pay1040.com? Then note on tax return' already paid $3K'? Or via the integrated at e-file @2.35%, and split $3K and bank acct info for $12K?
Thank you...
Last edited by Tinker25; Apr 13, 2016 at 8:32 pm
Apr 15, 2016, 12:14 am
#320
FlyerTalk Evangelist
Join Date: Jul 2008
Location: IAH
Programs: DL DM, Hyatt Ist-iest, Stariott Platinum, Hilton Diamond
Posts: 12,790
I wouldn't think you need to note anything on the tax return. I paid my taxes with pay1040.com this year and they ask for your SSN along with payment, I presume so it gets matched up correctly.
Apr 15, 2016, 8:29 am
#321
Join Date: Aug 2012
Location: Dreamland
Posts: 927
anyone know if "time stamping" via these payment sites is all that counts?
I.E., as long as I click "submit" by 11:59pm Monday 4/18, I'm OK as far as IRS concerned? Kinda like a postmark?
Asking for a procrastinating friend
I.E., as long as I click "submit" by 11:59pm Monday 4/18, I'm OK as far as IRS concerned? Kinda like a postmark?
Asking for a procrastinating friend
Apr 15, 2016, 9:29 am
#322
Community Director Emerita
Join Date: Oct 2000
Location: Anywhere warm
Posts: 33,745
Apr 16, 2016, 7:04 am
#323
Join Date: Apr 2007
Posts: 499
It is possible to obtain a transcript of all transactions for a past tax year but apparently not for a current year (ie 2016 now, but you could get the 2015 record.)
Apr 16, 2016, 11:31 am
#325
Join Date: Dec 2006
Location: USA
Posts: 3,945
Based on your income throughout a year, you might get hit with underpayment interest charges. The best think is to consult with an accountant to review your personal situation.
Apr 16, 2016, 12:29 pm
#326
Join Date: Jan 2016
Programs: Ink/Sapphire/Freedom/SPG
Posts: 338
Apr 16, 2016, 1:02 pm
#327
Join Date: Aug 2010
Location: LAS, MPL
Programs: DL Platinum, 1 MM
Posts: 1,320
You could overpay during the year to meet a credit card incentive pay for example and get a refund to your checking account when filing your taxes. Probably not the most efficient way, but a way to manufacture some spending.
Apr 26, 2016, 8:22 am
#328
Join Date: Jun 2005
Location: DFW/DAL
Programs: AA 1MM Gold, Marriott Gold, Hilton Diamond, Hyatt Discoverist
Posts: 1,524
Why am I still not able to make 2016 1040ES payments for Q2? The sites are saying I've reached the maximum payments for this quarter. It's after both 4/1/16 and 4/18/16. I made 2 payments per processor (6 total) in Q1 to 2016 1040ES with no problem (3/9, 3/10 and 3/26).
Apr 26, 2016, 9:15 am
#330
Join Date: Jun 2005
Location: DFW/DAL
Programs: AA 1MM Gold, Marriott Gold, Hilton Diamond, Hyatt Discoverist
Posts: 1,524
Ahh ok. I was wondering about that. I usually do my payments closer to due dates so that makes sense. Was just trying to get rid of some of my VGCs now while I have extras.