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 18, 2017, 8:56 am
#376
Join Date: May 2011
Location: Bay Area, CA
Programs: SPG, Hyatt Diamond Member, Club Calrson Silver, AA, Hilton Gold, BA
Posts: 476
Apr 23, 2017, 8:28 pm
#377
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: 5,457
I have a sense that this could be a problem.
On the evening of April 18, I entered a total of four Q1 estimated tax payments, across the three processors. All receipts confirm April 18 payment date.
Looking at the IRS EFTPS site, all show Settlement Dates days later, which was expected. However, they all show Initiation Dates ranging April 19-21.
I hope I won't have to fight a late payment penalty later. Ugh.
On the evening of April 18, I entered a total of four Q1 estimated tax payments, across the three processors. All receipts confirm April 18 payment date.
Looking at the IRS EFTPS site, all show Settlement Dates days later, which was expected. However, they all show Initiation Dates ranging April 19-21.
I hope I won't have to fight a late payment penalty later. Ugh.
Apr 24, 2017, 9:00 am
#378
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
I have a sense that this could be a problem.
On the evening of April 18, I entered a total of four Q1 estimated tax payments, across the three processors. All receipts confirm April 18 payment date.
Looking at the IRS EFTPS site, all show Settlement Dates days later, which was expected. However, they all show Initiation Dates ranging April 19-21.
I hope I won't have to fight a late payment penalty later. Ugh.
On the evening of April 18, I entered a total of four Q1 estimated tax payments, across the three processors. All receipts confirm April 18 payment date.
Looking at the IRS EFTPS site, all show Settlement Dates days later, which was expected. However, they all show Initiation Dates ranging April 19-21.
I hope I won't have to fight a late payment penalty later. Ugh.
Different question - does this seem to confirm that the online credit card processors do count as "electronic payments"?
Jun 7, 2017, 1:13 pm
#379
Join Date: Nov 2013
Location: PHL
Programs: All
Posts: 65
Today I tried to pay estimated taxes via Official Payments with OV prepaid cards. I have been doing this for several years with no problems. Today the payments were rejected and was told it is an issue with the card. The OV site shows the card is loaded.
I was able to use the same OV card to pay at PayUSAtax, so it appears to be an issue with Official Payments.
Anyone else having the same issue?
I was able to use the same OV card to pay at PayUSAtax, so it appears to be an issue with Official Payments.
Anyone else having the same issue?
Jun 7, 2017, 9:24 pm
#381
Join Date: May 2016
Programs: Various
Posts: 35
Jun 7, 2017, 9:51 pm
#382
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,047
By phone, I wasn't given that option. Not sure I would have taken it either, at least not without some math first.
Jun 8, 2017, 7:51 am
#383
Join Date: Nov 2013
Location: PHL
Programs: All
Posts: 65
I ended up using 2 of them at PayUSAtax with a slightly higher fee. The real problem is that Official Payments would let you make multiple payments via phone while the other providers limit you to 2 payments per period.
Jun 8, 2017, 8:15 am
#385
Join Date: May 2016
Programs: Various
Posts: 35
I see. I think I used to choose between credit and debit online, but maybe I'm remembering wrong. I see there isn't a choice now. I usually do it all online and use all the three processors to get my full payment. I have a couple AGCs, so I'll probably try those and report back if those work as credit.
Jun 8, 2017, 8:34 am
#386
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,047
I see. I think I used to choose between credit and debit online, but maybe I'm remembering wrong. I see there isn't a choice now. I usually do it all online and use all the three processors to get my full payment. I have a couple AGCs, so I'll probably try those and report back if those work as credit.
Hate to say it, but I think the days of the good deals on paying taxes are over.