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 29, 2022, 10:44 am
#662
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
Apr 29, 2022, 11:04 am
#663
Join Date: Sep 2003
Posts: 265
- Form 1040ES Estimated Tax - Tax Year 2021: 01/01/22 - 02/01/22, 7 AM ET
- Form 1040ES Estimated Tax - Tax Year 2022: 1st Quarter 03/01/22 - 05/15/22, 2nd Quarter 05/15/22 - 07/15/22, 3rd Quarter 07/15/22 - 10/15/22, 4th Quarter 10/15/22 - 01/01/23, 7 AM ET
Apr 29, 2022, 11:47 am
#664
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,037
It doesn't really matter if it's called ES1 or ES2 when you pay. But if you are waiting for the 2 per limit to reset, it probably goes by the dates in their faqs, eg https://www.pay1040.com/TaxPayerTool...ons#question02
Thanks for the link. Two weeks and I'll go again.
Apr 29, 2022, 1:19 pm
#665
Join Date: Feb 2011
Location: NYC suburbs
Programs: UA LT Gold (BIS), AA LT Plat (CC SUBs & BD), Hilton Dia (CC), Hyatt Glob (BIB), et. al.
Posts: 3,290
What’s the take-home point? (In that time frame in 2020 the SP500 went down 34% and in that time frame this year (thus far) the SP500 is down 14%.
BREAK
Agreed, interesting. FWIW, last year (but NOT at Band Camp 
) although originally intending to make 4 equal estimated payments by the IRS deadline date, I ended up paying a little less for 2 payments and a little more for the last 2 payments, all still on time, due to a clear majority of my income occurring in the 4th quarter (mutual fund distributions). My accountant ended up calculating that the difference in payments resulted in a small (dreadfully infamous 
) Underpayment Penalty.
Also interesting that these dates allow 3 out of 4 payments to be up to 30 days “late” and require the 4th payment to be 16 days “early”.
FWIW, I made my 4th 2021 estimated payment after 1/1/22 (but prior to the IRS deadline), perhaps Pay1040.com will revise their FAQs.
BREAK
) although originally intending to make 4 equal estimated payments by the IRS deadline date, I ended up paying a little less for 2 payments and a little more for the last 2 payments, all still on time, due to a clear majority of my income occurring in the 4th quarter (mutual fund distributions). My accountant ended up calculating that the difference in payments resulted in a small (dreadfully infamous ) Underpayment Penalty.
2022 Form 1040-ES Instructions Payment Due Dates
You can pay all of your estimated tax by April 18, 2022, or in four equal amounts by the dates shown below.
1st payment .. April 18, 2022
2nd payment .. June 15, 2022
3rd payment .. Sept. 15, 2022
4th payment .. Jan. 17, 2023*
* You don’t have to make the payment due January 17, 2023, if you file your 2022 tax return by January 31, 2023, and pay the entire balance due with your return.
You can pay all of your estimated tax by April 18, 2022, or in four equal amounts by the dates shown below.
1st payment .. April 18, 2022
2nd payment .. June 15, 2022
3rd payment .. Sept. 15, 2022
4th payment .. Jan. 17, 2023*
* You don’t have to make the payment due January 17, 2023, if you file your 2022 tax return by January 31, 2023, and pay the entire balance due with your return.
(Pay1040.com FAQs) Form 1040ES Estimated Tax - Tax Year 2022: 1st Quarter 03/01/22 - 05/15/22, 2nd Quarter 05/15/22 - 07/15/22, 3rd Quarter 07/15/22 - 10/15/22, 4th Quarter 10/15/22 - 01/01/23, 7 AM ET
FWIW, I made my 4th 2021 estimated payment after 1/1/22 (but prior to the IRS deadline), perhaps Pay1040.com will revise their FAQs.
Last edited by Dr Jabadski; Apr 29, 2022 at 1:51 pm Reason: avoid consecutive posts
May 2, 2022, 9:16 am
#667
Join Date: Mar 2005
Programs: Continental Onepass, Hilton, Marriott, USAir and now UA
Posts: 6,438
It doesn't really matter if it's called ES1 or ES2 when you pay. But if you are waiting for the 2 per limit to reset, it probably goes by the dates in their faqs, eg https://www.pay1040.com/TaxPayerTool...ons#question02
I thought that in order to avoid paying late fees and underpayment penalties that you had to have your estimated taxes in on or before the date required.
In other words, I had to make my first quarter 2022 tax payment by 4/18/22 or face penalties or fees.
Looking at the above quote, that seems to contradict this.
Who is correct? (except the IRS, who is always right
)
May 2, 2022, 12:13 pm
#668
FlyerTalk Evangelist
Join Date: Jul 2000
Location: in the vicinity of SFO
Programs: AA 2MM (LT-PLT, PPro for this year)
Posts: 19,781
This is strange.
I thought that in order to avoid paying late fees and underpayment penalties that you had to have your estimated taxes in on or before the date required.
In other words, I had to make my first quarter 2022 tax payment by 4/18/22 or face penalties or fees.
Looking at the above quote, that seems to contradict this.
Who is correct? (except the IRS, who is always right)
I thought that in order to avoid paying late fees and underpayment penalties that you had to have your estimated taxes in on or before the date required.
In other words, I had to make my first quarter 2022 tax payment by 4/18/22 or face penalties or fees.
Looking at the above quote, that seems to contradict this.
Who is correct? (except the IRS, who is always right
)For example, I've not been informed by the IRS or a tax advisor that I have to pay estimated taxes, but when I vest a large number of RSU shares each quarter which I know I'm going to owe taxes on at the end of the year, it's much more convenient to just send them the money quarterly and not worry about whether I "had to" vs. earning that 0.5% on the float that I might have gotten in a HYSA.
(Looking at the rules, it looks like my W2 withholding should have easily hit the safe harbor 100% for the prior year for the past two years, while with the current slide in stock prices it probably won't this year. Regardless, it's still worth the convenience of paying quarterly rather than having to manage the cash for a negligible return.)
May 2, 2022, 12:19 pm
#669
FlyerTalk Evangelist
Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,720
This is OT, but vesting of options does not create tax liability - taxes become due when you exercise your options. If you do a same day sale when you exercise, your broker (like mine) may automatically subtract income taxes from the proceeds. If you exercise the options but retain the shares in your account, then you may incur tax liability as well.
May 2, 2022, 9:28 pm
#670
FlyerTalk Evangelist
Join Date: Jul 2000
Location: in the vicinity of SFO
Programs: AA 2MM (LT-PLT, PPro for this year)
Posts: 19,781
This is OT, but vesting of options does not create tax liability - taxes become due when you exercise your options. If you do a same day sale when you exercise, your broker (like mine) may automatically subtract income taxes from the proceeds. If you exercise the options but retain the shares in your account, then you may incur tax liability as well.
That said, I haven't gotten ISOs rather than RSUs in over a decade. RSUs have no strike price, and when they vest, you get stock, the full value of which is W-2 income. Some of that is immediately sold to pay your taxes. Unfortunately for almost anyone not in the 22% bracket, that is at the fixed bonus rate which is usually 22% (goes up to 37% over a million, although I believe that is the bonus, not the total W-2 income for the year) - which will be too high for some, too low for others, and often substantially so if some of the RSU issues push you into top tax bracket.
There are a couple of days between when the shares vest (and are sold for taxes, typically the same day) and you can sell shares to cover the rest of taxes or diversify out, during which time you can end up with a short term loss baked in (or a gain, but usually a loss.)
Jun 20, 2022, 5:52 pm
#671
Join Date: Jun 2007
Posts: 138
I have paid my 2022 estimated tax twice via each of the 3 processors (total 6 times) around 6/5/2022. Anyone knows what is the earliest time I can make payment again on PayUSA/ACI/Pay1040 sites as I have some credit card sign-up spending needs to meet asap?
Thanks.
Thanks.
Sep 7, 2022, 10:24 am
#672
Join Date: Dec 2013
Posts: 3,506
How can Amex gift cards be classified as debit when they don't have a debit PIN function?
Oct 24, 2022, 6:58 am
#673
Join Date: Aug 2012
Location: BOS/MHT/PVD/BDL
Programs: Belong to Many but No Longer Loyal to Any
Posts: 880
For those who pay quarterly, BOA has an interesting promotion for one day only. 2% bonus on all spend on Nov. 5th. If you are Preferred Rewards Platinum member, you'll earn 4.62%. Pay1040 charges 1.87% fee so that's a net of 2.75%. 71 days between Nov 5 and Jan 15 = 14.14%APR. Not bad if you have to pay quarterly anyway.
Details: https://promotions.bankofamerica.com...morerewardsday
Details: https://promotions.bankofamerica.com...morerewardsday
Oct 29, 2022, 4:20 pm
#674
Join Date: Aug 2012
Location: SEA
Programs: Bonvoy Gold
Posts: 1,946
Oct 30, 2022, 7:21 am
#675
FlyerTalk Evangelist
Join Date: Sep 1999
Location: New York, NY, USA
Posts: 12,482
For those who pay quarterly, BOA has an interesting promotion for one day only. 2% bonus on all spend on Nov. 5th. If you are Preferred Rewards Platinum member, you'll earn 4.62%. Pay1040 charges 1.87% fee so that's a net of 2.75%. 71 days between Nov 5 and Jan 15 = 14.14%APR. Not bad if you have to pay quarterly anyway.
Details: https://promotions.bankofamerica.com...morerewardsday
Details: https://promotions.bankofamerica.com...morerewardsday
I wonder why I didn't receive any notice?