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 7, 2022, 2:51 pm
#601
Join Date: Oct 2009
Location: ATL
Programs: AA GLD 1MM DL PLT
Posts: 351
I already made a 1040-ES payment for 2021 in December. I have yet to fill out and file my tax return yet (still have a month!), but I was wondering if there's any potential problem with making another pre-payment for 2021 now? Such that any overpayment from this and my previous pre-payment will be refunded soon after filing my return. It seems straightforward enough, but I just want to be sure I'm not overlooking anything!
Mar 7, 2022, 4:17 pm
#602
Join Date: Feb 2016
Location: New York
Programs: Navy A-4 Skyhawk, B727 FE/FO, S80 FO, B757/767 FO, B737 CA
Posts: 1,342
I already made a 1040-ES payment for 2021 in December. I have yet to fill out and file my tax return yet (still have a month!), but I was wondering if there's any potential problem with making another pre-payment for 2021 now? Such that any overpayment from this and my previous pre-payment will be refunded soon after filing my return. It seems straightforward enough, but I just want to be sure I'm not overlooking anything!
Mar 7, 2022, 4:44 pm
#603
Join Date: Jun 2011
Posts: 3,528
You could make an extension payment (4868)
Mar 7, 2022, 4:50 pm
#604
Join Date: Feb 2016
Location: New York
Programs: Navy A-4 Skyhawk, B727 FE/FO, S80 FO, B757/767 FO, B737 CA
Posts: 1,342
He was specifically asking about the 1040-ES payments, which end like I said. But I don't know anything about the 4868 ones, but it looks like you have to estimate (fill out a form) how much you will owe when you file....would that work when you are purposely overpaying?
Mar 7, 2022, 5:15 pm
#605
Join Date: Oct 2009
Location: ATL
Programs: AA GLD 1MM DL PLT
Posts: 351
He was specifically asking about the 1040-ES payments, which end like I said. But I don't know anything about the 4868 ones, but it looks like you have to estimate (fill out a form) how much you will owe when you file....would that work when you are purposely overpaying?
To be honest though, I don't want to do anything too unusual, which it sounds like this would be. Thanks for the quick feedback to both of you!
Mar 8, 2022, 11:58 pm
#606
Join Date: Jun 2011
Posts: 3,528
He was specifically asking about the 1040-ES payments, which end like I said. But I don't know anything about the 4868 ones, but it looks like you have to estimate (fill out a form) how much you will owe when you file....would that work when you are purposely overpaying?
Mar 28, 2022, 12:22 pm
#608
Join Date: May 2008
Posts: 198
I paid my 2021 taxes due via ACI payments online. I paid 2x$5K using me as primary. Another $5k was paid by my spouse as primary. Unfortunately, my spouse payment doesn't reflect in my IRS account. My payment does reflect in her IRS account though. The only way is to call IRS? If so, what option does one select from the tree of option provided in every prompt?. Anyone in this scenario before?.
Last edited by NBG007; Mar 28, 2022 at 12:41 pm
Mar 28, 2022, 3:44 pm
#609
Join Date: Aug 2004
Programs: Delta Platinum, HH Diamond
Posts: 362
point neon debit card
Saw an ad for this debit card online today, 1% cash back on all non-category purchases. Has anyone used this card to pay taxes?
https://www.point.app/
https://www.point.app/
Mar 28, 2022, 8:57 pm
#610
Join Date: Mar 2016
Posts: 25
Using $45K IRS payment as minimum spending for signup bonus
NOTE: I believe this post was incorrectly moderated to be merged to this tax thread. This is really not a question about paying taxes, it is a question about opening many cards at once. So I've created a new thread that leaves taxes out completely.
-----
It turns out I will need to pay $45K to the IRS this April. I know I can pay that with credit cards for a fee of a bit less than 2%, so it seems it makes sense to do that if I use it as minimum spending to get signup bonuses (SUBs) that correspond roughly to 8% to 10% of that required minimum spending.
Because most cards require $3K of minimum spending (with a few exceptions), I would need to get around 10 new cards all at once. I've never done that and thought I would ask here about any pitfalls I may be missing.
I plan to get business cards since it sounds like banks are more liberal with those (also they don't count against the Chase 5/24 rule).
My main concern is whether SUBs may be denied if banks observe I obtained several cards around the same time. Are they able to obtain that information from other banks or from the credit bureaus?
And of course, if I get multiple cards from the same bank, they will know. Is that a problem? If, for example, I get two business cards with large SUBs from Amex, may that lead them to deny me the SUBs under the reasoning that I am gaming the system?
Two examples:
- last month I got the Chase Ink Business Cash. If I request the Chase Ink Preferred now, will that be a problem?
- if I apply for the Amex Business Platinum and Gold cards on the same day (considering the personal Blue Cash Preferred as well), will that be a problem?
Any advice (including other ways to go about this) is appreciated.
-----
It turns out I will need to pay $45K to the IRS this April. I know I can pay that with credit cards for a fee of a bit less than 2%, so it seems it makes sense to do that if I use it as minimum spending to get signup bonuses (SUBs) that correspond roughly to 8% to 10% of that required minimum spending.
Because most cards require $3K of minimum spending (with a few exceptions), I would need to get around 10 new cards all at once. I've never done that and thought I would ask here about any pitfalls I may be missing.
I plan to get business cards since it sounds like banks are more liberal with those (also they don't count against the Chase 5/24 rule).
My main concern is whether SUBs may be denied if banks observe I obtained several cards around the same time. Are they able to obtain that information from other banks or from the credit bureaus?
And of course, if I get multiple cards from the same bank, they will know. Is that a problem? If, for example, I get two business cards with large SUBs from Amex, may that lead them to deny me the SUBs under the reasoning that I am gaming the system?
Two examples:
- last month I got the Chase Ink Business Cash. If I request the Chase Ink Preferred now, will that be a problem?
- if I apply for the Amex Business Platinum and Gold cards on the same day (considering the personal Blue Cash Preferred as well), will that be a problem?
Any advice (including other ways to go about this) is appreciated.
Last edited by osonda; Mar 29, 2022 at 7:10 am Reason: "Image" deleted by moderator because it contained no image, just raw text.
Mar 29, 2022, 7:30 am
#611
Moderator
Original Poster
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,956
1) If you have a question about the moderators' decision to move a post, please contact us directly, rather than leaving a comment in the thread, and duplicating the post.
2) You seem to be under the impression that you will be able to use ten different cards to pay your income taxes. Read here: https://www.irs.gov/payments/frequen...of-tax-payment Then you may wish to review the thread to learn how the processors implement the IRS rule.
2) You seem to be under the impression that you will be able to use ten different cards to pay your income taxes. Read here: https://www.irs.gov/payments/frequen...of-tax-payment Then you may wish to review the thread to learn how the processors implement the IRS rule.
Last edited by mia; Mar 29, 2022 at 7:37 am
Mar 29, 2022, 7:47 am
#612
Join Date: Mar 2016
Posts: 25
Sorry about that, and thank you for the clarification. What is the best way to contact moderators in these cases? Simply replying to the "Forum Alert" private message I got when the thread was merged?
Mar 29, 2022, 7:53 am
#613
Moderator
Original Poster
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,956
The best way is to click the red Alert icon in the lower left corner of your own post. This automatically sends the message to all of the moderators assigned to that specific forum.
Mar 29, 2022, 8:19 am
#614
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: 21,624
Mar 29, 2022, 8:33 am
#615
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,044
I know this is largely irrelevant, but any idea why there's a limit of two charges per processor per payment? I could get a lot more accomplished if I could do, say, four per.
Also, it sounds like paying in your spouse's name to double the options doesn't always work so well. Any tips on that?
Also, it sounds like paying in your spouse's name to double the options doesn't always work so well. Any tips on that?
