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
Dec 7, 2018, 4:29 pm
#451
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,026
That is true. For years, I did this in January to get the money back fast in April. Now that interest rates are more than zilch, the calculus has changed a bit.
But I'd halve that number. If you pay in mid January, use some credit card float, and file timely returns, you should be out the cash for less than three months.
But I'd halve that number. If you pay in mid January, use some credit card float, and file timely returns, you should be out the cash for less than three months.
Dec 7, 2018, 10:08 pm
#452
Join Date: May 2017
Posts: 480
That's kinda my thought. I'll pay $1000 in fees and loose out on 3 months of interest. At most this might be $1250. So I'm still ahead $1750 for not much effort.
Dec 8, 2018, 4:40 pm
#453
Moderator
Original Poster
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
Did Capital One give you a credit limit adequate to make a $50,000 payment?
Dec 9, 2018, 9:36 am
#454
Join Date: May 2017
Posts: 480
I think the Spark offer is $2,500 (250,000 "miles") for spending $50,000, but you will also earn $0.02 (2 "miles") for the spend which should bring the total to $3,500 (350,000 "miles"). How did you calculate 300,000?
Did Capital One give you a credit limit adequate to make a $50,000 payment?
Did Capital One give you a credit limit adequate to make a $50,000 payment?
Not a $50k limit. I was approved for $10k. So I'll have to make several payments in a short time while also paying down the credit card. I figure 5 total payment of $9500 each to my estimated tax. I'll pay tax and pay credit card down same day, should take 3-5 days to post, then repeat. Should take 15-25 business days. I should have at least 19 business days before January 15th by the time i get my card, so it'll be close but dooable. If I can't make the last payment, I'll be able to just get organic spend for the rest in the 1st 6 months.
Dec 9, 2018, 9:41 am
#455
Join Date: May 2017
Posts: 480
Where are you finding CD rates of that kind? I'm seeing rates for 6mo CD in the 2% range, wich will only yield $500, might be able to squeeze $600.
Dec 9, 2018, 11:02 am
#456
Join Date: Aug 2007
Location: Truth or Consequences, NM
Programs: HH Diamond, Marriott Titanium, Hertz President's Circle, UA Silver, Mobile Passport Unobtanium
Posts: 6,192
The Spark Miles card offer I received was 50k miles for $5k in spend, then another 150k miles for $50k in spend. So total of 200k bonus miles and 100k regular miles for $50k in spend( 2 miles per $)
Not a $50k limit. I was approved for $10k. So I'll have to make several payments in a short time while also paying down the credit card. I figure 5 total payment of $9500 each to my estimated tax. I'll pay tax and pay credit card down same day, should take 3-5 days to post, then repeat. Should take 15-25 business days. I should have at least 19 business days before January 15th by the time i get my card, so it'll be close but dooable. If I can't make the last payment, I'll be able to just get organic spend for the rest in the 1st 6 months.
Not a $50k limit. I was approved for $10k. So I'll have to make several payments in a short time while also paying down the credit card. I figure 5 total payment of $9500 each to my estimated tax. I'll pay tax and pay credit card down same day, should take 3-5 days to post, then repeat. Should take 15-25 business days. I should have at least 19 business days before January 15th by the time i get my card, so it'll be close but dooable. If I can't make the last payment, I'll be able to just get organic spend for the rest in the 1st 6 months.
Dec 10, 2018, 4:07 pm
#457
Join Date: May 2017
Posts: 480
But, from a few searches and a little digging seems like most of the cycling and then subsequent shut downs were from MS. Buying on Simon gift card mall, walmart MO etc. By paying tax I would think it's not seen as MS, and actually seen as organic spend. Obviously I could be wrong, and also risk a shut down. But, all of the accounts I've read being shut down involved heavy MS with GC and MO.
Dec 10, 2018, 4:11 pm
#458
Moderator
Original Poster
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
Dec 10, 2018, 9:35 pm
#459
Join Date: Aug 2007
Location: Truth or Consequences, NM
Programs: HH Diamond, Marriott Titanium, Hertz President's Circle, UA Silver, Mobile Passport Unobtanium
Posts: 6,192
The Spark Miles card offer I received was 50k miles for $5k in spend, then another 150k miles for $50k in spend. So total of 200k bonus miles and 100k regular miles for $50k in spend( 2 miles per $)
Not a $50k limit. I was approved for $10k. So I'll have to make several payments in a short time while also paying down the credit card. I figure 5 total payment of $9500 each to my estimated tax. I'll pay tax and pay credit card down same day, should take 3-5 days to post, then repeat. Should take 15-25 business days. I should have at least 19 business days before January 15th by the time i get my card, so it'll be close but dooable. If I can't make the last payment, I'll be able to just get organic spend for the rest in the 1st 6 months.
Not a $50k limit. I was approved for $10k. So I'll have to make several payments in a short time while also paying down the credit card. I figure 5 total payment of $9500 each to my estimated tax. I'll pay tax and pay credit card down same day, should take 3-5 days to post, then repeat. Should take 15-25 business days. I should have at least 19 business days before January 15th by the time i get my card, so it'll be close but dooable. If I can't make the last payment, I'll be able to just get organic spend for the rest in the 1st 6 months.
Honestly hadn't thought of, or really heard of, cycling till you mentioned it. Thanks for the heads up.
But, from a few searches and a little digging seems like most of the cycling and then subsequent shut downs were from MS. Buying on Simon gift card mall, walmart MO etc. By paying tax I would think it's not seen as MS, and actually seen as organic spend. Obviously I could be wrong, and also risk a shut down. But, all of the accounts I've read being shut down involved heavy MS with GC and MO.
But, from a few searches and a little digging seems like most of the cycling and then subsequent shut downs were from MS. Buying on Simon gift card mall, walmart MO etc. By paying tax I would think it's not seen as MS, and actually seen as organic spend. Obviously I could be wrong, and also risk a shut down. But, all of the accounts I've read being shut down involved heavy MS with GC and MO.
I have no data on that but I'm pretty sure Capitol One does.
Edit to add: I know a lot of folks do the pre-pay taxes gimmick to generate points. Personally, I don't want any more scrutiny from the IRS than is normal. A $50,000 refund? Unless your income is so high that it might reasonably support such a refund , no thank you.
Last edited by Diplomatico; Dec 10, 2018 at 9:50 pm
Dec 15, 2018, 5:13 pm
#461
Join Date: Jan 2017
Posts: 100
I’m debating paying my taxes this year on a CC. I have the following:
1. AmEx blue business
2. Spark miles for business.
3. CSR
im going to hit the welcome bonus for spending 50k on the Capitol one card anyway, not looking to hit any spend bonus or anything and I can hit the 50k limit anyway on the blue business so for my situation I guess I just need to see if paying 1.87% is worth it for points which may only be worth 2c
another option is that I could max out my Amex blue business and open another under another company I have and do it like that. That would allow me to essentially get a return of 4c per dollar for my spend.
Anyone have any input ?
1. AmEx blue business
2. Spark miles for business.
3. CSR
im going to hit the welcome bonus for spending 50k on the Capitol one card anyway, not looking to hit any spend bonus or anything and I can hit the 50k limit anyway on the blue business so for my situation I guess I just need to see if paying 1.87% is worth it for points which may only be worth 2c
another option is that I could max out my Amex blue business and open another under another company I have and do it like that. That would allow me to essentially get a return of 4c per dollar for my spend.
Anyone have any input ?
Dec 15, 2018, 6:41 pm
#462
Moderator
Original Poster
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
I assume you mean Blue Business Plus. This may, or not, work. You are the applicant, not the company. However, American Express may approve a second card, without a second new account bonus. We do not have sufficient data because most people are only interested in opening a duplicate account for the bonus, but Blue Business Plus is a different proposition.
Jan 11, 2019, 7:08 am
#463
Join Date: Sep 2008
Location: AUS
Programs: BAEC Gold, AA PPro, Hyatt Globalist, Amex Plat
Posts: 7,024
Procedural question. I understand there is a "maximum" number of payments (dependent upon type of payment) for a given time period (e.g. two times per payment vendor for quarterly taxes). What I'm curious about is, assuming you use only one payment vendor, is the number of payments per time period/form tied to the individual taxpayer or the form you are paying against? (hope that makes sense). For example, you are allowed 2 payments per quarter for 1040ES. However, if I'm married filling jointly, can both my wife and I execute two payments per quarter? Or is it just two "per household?"
Also, I assume both taxpayers can make the payments, correct? For example, I assume that I could pay half the taxes due with a CC in my name, then pay the other half with a credit card in my wife's name. Is that accurate?
Regards
Also, I assume both taxpayers can make the payments, correct? For example, I assume that I could pay half the taxes due with a CC in my name, then pay the other half with a credit card in my wife's name. Is that accurate?
Regards
Jan 12, 2019, 1:39 pm
#464
Moderator
Original Poster
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
Piecing together information from FAQ posted by three payment services (below), it looks as if using two Social Security numbers during the payment process may allow you to make four payments of the same type, BUT that the IRS could have difficulty applying payments made using the second person's SSN.
It does not matter whose payment card is used.
https://www.officialpayments.com/fed...irs_mp_p.jsp#5
https://payusatax.com/IRS/Home/LoadS...ageName=FAQ#20
https://www.pay1040.com/TaxPayerTool...ons#question09
It does not matter whose payment card is used.
5. What is the maximum number of payments allowed?
Below is a list of the maximum number of payments allowed for the same Social Security Number (or ITIN).
Below is a list of the maximum number of payments allowed for the same Social Security Number (or ITIN).
For joint filers, please make sure you enter the social security number of the first spouse listed on the tax return.
The IRS applies payments based on the Social Security Number or Individual Taxpayer Identification Number (ITIN) entered during the transaction process. To ensure that the payment is properly applied to the joint filer account, use the Social Security Number or ITIN of the first spouse listed on the tax return.
Jan 13, 2019, 6:02 am
#465
Join Date: Sep 2008
Location: AUS
Programs: BAEC Gold, AA PPro, Hyatt Globalist, Amex Plat
Posts: 7,024
Piecing together information from FAQ posted by three payment services (below), it looks as if using two Social Security numbers during the payment process may allow you to make four payments of the same type, BUT that the IRS could have difficulty applying payments made using the second person's SSN.
It does not matter whose payment card is used.
https://www.officialpayments.com/fed...irs_mp_p.jsp#5
https://payusatax.com/IRS/Home/LoadS...ageName=FAQ#20
https://www.pay1040.com/TaxPayerTool...ons#question09
It does not matter whose payment card is used.
https://www.officialpayments.com/fed...irs_mp_p.jsp#5
https://payusatax.com/IRS/Home/LoadS...ageName=FAQ#20
https://www.pay1040.com/TaxPayerTool...ons#question09
Regards
