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Paying USA income, property or other taxes with a credit card

Paying USA income, property or other taxes with a credit card

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Old Jul 16, 22, 1:12 pm   -   Wikipost
Please read: This is a community-maintained wiki post containing the most important information from this thread. You may edit the Wiki once you have been on FT for 90 days and have made 90 posts.
 
Last edit by: graytidy
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There are three services to pay your U.S. federal taxes:
pay1040.com 1.87% fee on credit (lowered from 1.99% on 01/01/2022). $2.50 flat fee on debit.
payUSAtax.com - 1.96% fee on credit (rate updated 01/02/2021). $2.55 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.

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 $110k 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

Pre-Funding allowed:
Amex Charge Cards

Pre-Funding not-allowed:
Chase

Quarterly tax due dates: the 15th of April, June, September, January















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Old Jul 1, 20, 7:54 pm
  #496  
 
Join Date: Nov 2016
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Originally Posted by popomama View Post
Do we know if MGC works at officialpayments.com?
Worked for me yesterday.
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Old Jul 12, 20, 4:53 pm
  #497  
 
Join Date: Nov 2013
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Originally Posted by popomama View Post
Do you have an update? I was wondering if I pay twice right before July 15 for my Q1/Q2 estimated tax, will I still be allowed to pay via the same processor in early September for the Q3 estimated tax(due 9/15)..
I never heard back from them. I've now done 2 1040-ES via pay1040.... Would they potentially stop me on my third attempt if I try it, or does it get rejected after submission or by IRS?
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Old Jul 22, 20, 12:53 pm
  #498  
 
Join Date: Dec 2013
Location: California
Posts: 263
Originally Posted by soartoday View Post
I've now done 2 1040-ES via pay1040.... Would they potentially stop me on my third attempt if I try it, or does it get rejected after submission or by IRS?
payusatax wouldn't let me submit a 3rd payment (this was in June). I haven't tried pay1040, but I'm guessing it'd stop you.

Last edited by sbft77; Jul 22, 20 at 12:56 pm Reason: meant payusatax, not officialpayments
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Old Jul 26, 20, 12:08 pm
  #499  
 
Join Date: Oct 2012
Posts: 221
made a payment using my wife's SSN number after reaching the limit with mine (file jointly). Hope it credits correctly.
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Old Jul 26, 20, 5:21 pm
  #500  
 
Join Date: Oct 2006
Location: USA
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Originally Posted by Boraxo View Post
Has anyone used the Fidelity cash back card for tax payments? There is currently a promo of 3% that applies to online purchases but not sure if tax payments are included.
I used mine for my latest 1040-ES with no problems.
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Old Aug 3, 20, 4:23 pm
  #501  
 
Join Date: Aug 2015
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My local tax office appreciates that the pandemic has had a significant impact on our residents and businesses. As your County Tax Collector, I know there are members of our community who are struggling to make ends meet and who have concerns about what the economic future will hold. All these concerns are understandable, and I want to assure everyone that they are being addressed in a thoughtful and deliberate manner. blah blah blah Yet, partial payments and payment plans are not offered through this program. You can not make two timely credit card payments amounting to the total due.

I usually get around occasional minor cases of various such inflexibility by pushing payments through my Amex Serve card. But now I’m gearing up for some signup bonuses and at application time will need to spend thousands of dollars within three months for every new credit card. Granted, this dilemma doesn’t constitute any hardship as envisioned by most public offices. But there are, I’m sure, people who turn to cards with an introductory 0% interest for nine months and due to their modest means could get credit lines that each may not meet the property tax amount.

I know. By now, you are itching to inform me of online options such as officialpayments.com, but my county office doesn’t accept that. You can call, mail or go online on the county webpage. It doesn’t matter if you are married to the mayor’s daughter or voted for the governor. The absolutely only exception is putting two checks in the same envelope, and I am not aware how you can turn a charge into a check and still have it count towards the signup bonus.

Any out-of-the-box suggestion is appreciated.
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Old Sep 10, 20, 9:19 pm
  #502  
 
Join Date: Nov 2010
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Originally Posted by popomama View Post
Do you have an update? I was wondering if I pay twice right before July 15 for my Q1/Q2 estimated tax, will I still be allowed to pay via the same processor in early September for the Q3 estimated tax(due 9/15)..


Do we know if MGC works at officialpayments.com?
Just used MCGC and made two more payments at officialpayments.com after making two payments in June. It gets the $2 rate.
Unfortunately MCGC does not get the discounted rate at PayUSATax or Pay1040 (at least the Metabank ones you can find at grocery stores). So I'll be shifting to VGC like normal for my other four payments.
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Old Nov 27, 20, 8:30 am
  #503  
 
Join Date: May 2013
Posts: 95
Has anyone tried PayPal Key for taxes yet? Did the 3 main services all treat it as debit for fees? Were you charged a cash advance fee on the backend? Did PayPal let you go up to the $2999.99 PPK transaction limit?
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Old Jan 2, 21, 5:53 am
  #504  
 
Join Date: Aug 2012
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Posts: 804
Pay1040 raises Fee to 1.99%

Looks like Pay1040 is no longer 1.87%. Slight rate hike to 1.99%. Wiki updated.
Also, the rate at PayUSAtax is 1.96%. The Wiki was listing 1.97%, so I updated that as well.
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Last edited by flyaxa; Jan 2, 21 at 5:59 am
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Old Jan 12, 21, 12:14 pm
  #505  
 
Join Date: Jun 2007
Posts: 101
I made payment to 2020 Estimated Tax via Officialpayments on Dec 26th, 2020. I don't see it posted to my IRS account on 1/12/2021. Anyone else has the similar experience? Thanks.
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Old Jan 12, 21, 12:50 pm
  #506  
 
Join Date: Aug 2012
Posts: 4,585
If I recall, it's always posted within a few days. Do you also have EFTPS? You can check there too, since I recall last week I recall a message saying the IRS online account was updating.
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Old Jan 16, 21, 12:29 pm
  #507  
 
Join Date: Feb 2013
Programs: Hyatt Globalist, MLife Gold, Marriott Gold, HHonors Gold, Caesars Diamond, Amex Plat
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Question: can I prepay a portion of annual income tax before filing? I won’t be able to file till March but have an Amex offer I’d like to use before 1/31. How would I document that prior payment when filing? Just subtract the $2k?

Update: was able to create IRS online account for spouse (for some reason it wouldn’t let me do it with my info). I can see payment history etc.

Last edited by Stgermainparis; Jan 16, 21 at 12:49 pm
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Old Jan 16, 21, 2:55 pm
  #508  
mia
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Originally Posted by Stgermainparis View Post
Question: can I prepay a portion of annual income tax before filing?
The IRS calls this an Estimated Tax payment:

Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
Read more: https://www.irs.gov/businesses/small...stimated-taxes
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Old Jan 16, 21, 10:18 pm
  #509  
 
Join Date: Feb 2013
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Originally Posted by mia View Post
The IRS calls this an Estimated Tax payment:



Read more: https://www.irs.gov/businesses/small...stimated-taxes
Thanks, MIA. Our income and taxes vary so much year to year that I never pay estimated taxes. Might be zero, might be 10k. But I suppose since I know I will owe this year, I can prepay some of that and then enter it on 1040 as such. I am puzzled if I need to actually file anything separately when prepaying.
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Old Jan 17, 21, 5:56 am
  #510  
 
Join Date: Dec 2004
Posts: 7,483
If you make an estimated tax payment online you don’t need to file a separate form. When you file your 1040 there will be a place to enter the amount you prepaid. Is that what you’re asking?
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