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

Old Mar 18, 2016, 8:54 am
FlyerTalk Forums Expert How-Tos and Guides
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.
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


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

Old Jan 2, 2023, 10:48 am
  #691  
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Originally Posted by flyaxa
PayUSAtax.com now lowest at 1.85%.
Yeah - I just found that a few minutes ago and came here to post.

As a DP, it worked fine with my Amex Delta Platinum Business card.

Great to be able to make four payments in this price range (without trying the second taxpayer route).
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Old Jan 2, 2023, 12:42 pm
  #692  
nsx
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Originally Posted by flyaxa
PayUSAtax.com now lowest at 1.85%.
I would check that they have started answering their phone before using them.
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Old Jan 2, 2023, 2:50 pm
  #693  
 
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both PayUSAtax & Pay1040 are giving an error message when attempting to make payment on Chase Biz Hyatt card. i wonder if these sites are now not allowing business credit cards for personal 1040-ES payments? Or, perhaps it's just a banking holiday and stuff's not working right today.
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Old Jan 3, 2023, 7:41 am
  #694  
nsx
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Originally Posted by nsx
I would check that they have started answering their phone before using them.
I phoned payusatax early this morning. One hour on hold with no answer. It looks like their customer service is still inoperative. If something goes wrong with your payment you will have a difficult challenge.
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Old Jan 3, 2023, 8:16 am
  #695  
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Originally Posted by Colin
both PayUSAtax & Pay1040 are giving an error message when attempting to make payment on Chase Biz Hyatt card. i wonder if these sites are now not allowing business credit cards for personal 1040-ES payments? Or, perhaps it's just a banking holiday and stuff's not working right today.
A friend of mine had this problem. I had this problem with a Chase United Business card several months ago. I was able to just use PayPal to get around it.
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Old Jan 3, 2023, 9:30 am
  #696  
 
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Originally Posted by josephstern
A friend of mine had this problem. I had this problem with a Chase United Business card several months ago. I was able to just use PayPal to get around it.
Thanks, Joe! PayPal worked perfectly just now at Pay1040 using a Chase Biz card.
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Old Jan 4, 2023, 3:06 pm
  #697  
 
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Originally Posted by nsx
I would check that they have started answering their phone before using them.
Originally Posted by nsx
I phoned payusatax early this morning. One hour on hold with no answer. It looks like their customer service is still inoperative. If something goes wrong with your payment you will have a difficult challenge.
I just spent 45 minutes on hold with Pay1040.com before giving up. Not sure "hold time" is the differentiator between these services...

Regards
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Old Jan 4, 2023, 3:42 pm
  #698  
 
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Originally Posted by scubadu
I just spent 45 minutes on hold with Pay1040.com before giving up. Not sure "hold time" is the differentiator between these services...

Regards
Do you mind me asking for what issue you needed to contact them?
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Old Jan 12, 2023, 3:36 pm
  #699  
 
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delete

Last edited by ericdabbs; Jan 13, 2023 at 12:41 pm
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Old Jan 12, 2023, 7:02 pm
  #700  
 
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Originally Posted by josephstern
A friend of mine had this problem. I had this problem with a Chase United Business card several months ago. I was able to just use PayPal to get around it.
So I am getting rejected my Chase Hyatt Business card to pay personal estimated tax with both Pay1040 and PayUSA. I used this same card with no issues back in September 2022. Has there been a change? And, when you say you used PayPal, what did you do exactly?

ETA: Well, I just plunged ahead and selected PayPal, added my card info and it seems to have worked. Odd that there was the change from last quarter though.

Last edited by xooz; Jan 12, 2023 at 7:08 pm
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Old Jan 13, 2023, 8:21 am
  #701  
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Originally Posted by xooz
So I am getting rejected my Chase Hyatt Business card to pay personal estimated tax with both Pay1040 and PayUSA. I used this same card with no issues back in September 2022. Has there been a change? And, when you say you used PayPal, what did you do exactly?

ETA: Well, I just plunged ahead and selected PayPal, added my card info and it seems to have worked. Odd that there was the change from last quarter though.
I'd guess that these cards have unusually high fees and that therefore these processors are deciding to block them.

I do wonder if that breaches the terms of their agreements with Visa.
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Old Jan 13, 2023, 9:45 am
  #702  
 
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Originally Posted by josephstern
I'd guess that these cards have unusually high fees and that therefore these processors are deciding to block them.

I do wonder if that breaches the terms of their agreements with Visa.
I expected there might be issues when I first used it last September, Since that went through, I was surprised that I had a problem now. Resolved, but still wonder if it is the 3rd parties or Chase doing the rejecting.
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Old Jan 13, 2023, 10:17 am
  #703  
 
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Originally Posted by xooz
I expected there might be issues when I first used it last September, Since that went through, I was surprised that I had a problem now. Resolved, but still wonder if it is the 3rd parties or Chase doing the rejecting.
i put a Pay1040 transaction this month on my Chase Hyatt personal card without an issue. a 2nd transaction on my Chase Hyatt business card wasn't allowed directly, but went through fine via PayPal. the issue is not Chase. the issue is Pay1040 is not permitting Chase business cards for personal 1040-ES transactions.
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Old Jan 14, 2023, 10:18 pm
  #704  
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Do any the payment processors have a $ limit that is lower than my available credit?
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Old Jan 15, 2023, 4:30 am
  #705  
 
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Originally Posted by Boraxo
Do any the payment processors have a $ limit that is lower than my available credit?
I have not hit a limit yet. Highest single payment thus far was $85K at pay1040
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