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
Oct 17, 2021, 11:29 am
#541
Join Date: May 2019
Posts: 154
Agreed. I used the Amex Biz Plat last time and got 1.5x points. I thought it was a good deal as I almost always get >2 cpp redeeming for business class tickets on long haul international flights. With 2x from Venture, it has become more compelling and I have just upgraded my Venture One back into a Venture. The only problem is that the credit limit is not high enough and if I get hit with a 6 figure tax bill, I will still need the amex plat.
Oct 30, 2021, 3:31 pm
#542
Join Date: Aug 2012
Location: BOS/MHT/PVD/BDL
Programs: Belong to Many but No Longer Loyal to Any
Posts: 880
Another great option is the Amex +4 referral offer.
For example if you have the Blue Business Plus card which earns 2 MRs (up to $50K/yr) and you refer someone from that card who applies and is approved, you are rewarded with 4 extra MRs for all spend (up to $25K) in 3 months on the Blue Business = 6MRs. If you maxed out the the $25K, you would earn 150K MRs.
https://www.doctorofcredit.com/ameri...5000-in-spend/
For example if you have the Blue Business Plus card which earns 2 MRs (up to $50K/yr) and you refer someone from that card who applies and is approved, you are rewarded with 4 extra MRs for all spend (up to $25K) in 3 months on the Blue Business = 6MRs. If you maxed out the the $25K, you would earn 150K MRs.
https://www.doctorofcredit.com/ameri...5000-in-spend/
Nov 10, 2021, 5:29 pm
#543
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,623
Payusatax has a paypal option. Paypal is a 5% bonus category for 2021Q4. Will an estimated tax payment earn the bonus points?
Nov 18, 2021, 8:05 am
#545
Join Date: Aug 2012
Location: Dreamland
Posts: 927
Nov 28, 2021, 7:31 pm
#546
Moderator: Southwest Airlines, Capital One
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, Hyatt Globalist; United Club Lietime (sic) Member
Posts: 21,623
I tried making a second Paypal payment 2 weeks after my first and only one. The Paypal window pops up and then vanishes. This is known to be due to payusatax software, which either believes I have made two payments this quarter or is enforcing a limit of one Paypal payment per quarter. I would ask payusatax to clarify, but I'm confident nobody I could reach would respond intelligently, let alone have a clue about this problem.
If anyone has made two Paypal payments in one tax quarter, please post that result here.
If anyone has made two Paypal payments in one tax quarter, please post that result here.
Nov 29, 2021, 12:48 pm
#548
Moderator
Original Poster
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
Nov 30, 2021, 1:34 pm
#549
Join Date: Jun 2017
Location: SEA/NYC/IAD
Programs: UA 1K, Marriott Titanium, Hyatt Explorist
Posts: 1,921
Okay, so I have a few (dumb) questions --
1) why would anyone use a payment processor other than payUSAtax since they're 0.03% cheaper?
2) can I make a single estimated tax payment for Q4? i.e. I only want to pay Q4 taxes without having to make estimated tax payments for the rest of the year, but I can't seem to find any documentation reflecting that (seems to be "if you make estimated tax payments, you switch entirely to estimated payments for the whole year")
1) why would anyone use a payment processor other than payUSAtax since they're 0.03% cheaper?
2) can I make a single estimated tax payment for Q4? i.e. I only want to pay Q4 taxes without having to make estimated tax payments for the rest of the year, but I can't seem to find any documentation reflecting that (seems to be "if you make estimated tax payments, you switch entirely to estimated payments for the whole year")
Nov 30, 2021, 3:24 pm
#550
Join Date: Nov 2021
Posts: 20
I tried making a second Paypal payment 2 weeks after my first and only one. The Paypal window pops up and then vanishes. This is known to be due to payusatax software, which either believes I have made two payments this quarter or is enforcing a limit of one Paypal payment per quarter. I would ask payusatax to clarify, but I'm confident nobody I could reach would respond intelligently, let alone have a clue about this problem.
If anyone has made two Paypal payments in one tax quarter, please post that result here.
If anyone has made two Paypal payments in one tax quarter, please post that result here.
Last edited by EmailKid; Dec 5, 2021 at 10:06 am Reason: Back to back posts
Nov 30, 2021, 3:48 pm
#551
Moderator
Original Poster
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
Dec 2, 2021, 9:34 pm
#553
Join Date: Aug 2011
Programs: DL Plat, SPG Plat
Posts: 41
Can you please share which provider you used for the payments? Thank you!
Hi. Can you please share which provider you used for the payments? Thank you!
We have done single payments of up to $48K and cycled for well over that amount. Never had any problem with Chase, Amex or BOA. The 3x URs for a year on the Freedom Unlimited was great. Favorites now are:
-Amex Biz Blue (Plus)
-BOA Premium Rewards
-Various cards to hit large spend for bonus
-Various 1.5 Amex and Chase cards if we feel like "buying" those points at a bit of a discount
-Cap One cards might get interesting now that some 1:1 partners have been added.
-Amex Biz Blue (Plus)
-BOA Premium Rewards
-Various cards to hit large spend for bonus
-Various 1.5 Amex and Chase cards if we feel like "buying" those points at a bit of a discount
-Cap One cards might get interesting now that some 1:1 partners have been added.
I paid about $46k with my AMEX Blue Biz Card last year for federal income taxes.
This year my income tax bill was a little over $50k but I split it up with 4 cards for 350,000 Sign-Up Bonus Points.
I pay my income taxes with CCs every year as I can write off the convenience fees since I am self-employed.
This year my income tax bill was a little over $50k but I split it up with 4 cards for 350,000 Sign-Up Bonus Points.
I pay my income taxes with CCs every year as I can write off the convenience fees since I am self-employed.
Last edited by EmailKid; Dec 5, 2021 at 10:05 am Reason: Back to back posts
Dec 3, 2021, 5:47 am
#554
Join Date: Aug 2012
Location: BOS/MHT/PVD/BDL
Programs: Belong to Many but No Longer Loyal to Any
Posts: 880