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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 Mar 8, 2023, 6:26 pm
  #721  
 
Join Date: Apr 2015
Posts: 260
Originally Posted by darthbimmer
Where can you still make a payment for tax year 2022 before filing a return? I presumed earlier you were talking about quarterly estimated taxes. The last window for those closed Jan 17.
You can make 1040 (not 1040-ES) payments until you file your return. All the tax payment websites accept payments. These are designed for people who owe, but it can be used to overpay. These are great for the credit card game, as you can overpay just a couple of days before filing a return, so you minimize the time money is stuck with IRS.

I never mentioned estimated taxes in my posts above (although I did those as well).
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satellite779 is offline  
Old Mar 8, 2023, 8:38 pm
  #722  
 
Join Date: Dec 2004
Posts: 7,924
You can make a regular payment as if you owe for 2022. Later in the year it will come back to you as a separate check. I did it once and dont recommend since it took so long and interest rates are not close to 0.
rrgg is offline  
Old Mar 8, 2023, 8:44 pm
  #723  
 
Join Date: Apr 2015
Posts: 260
Originally Posted by rrgg
You can make a regular payment as if you owe for 2022. Later in the year it will come back to you as a separate check. I did it once and dont recommend since it took so long and interest rates are not close to 0.
It should come with your regular refund if you overpay before filing the return. I did it last year ($18k overpayment), filed taxes around the tax day, got all the money back in May.

IRS pays 7% annually for overpayments if they don't pay you the refund within 45 days of tax day.
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Old Mar 8, 2023, 9:03 pm
  #724  
 
Join Date: Dec 2004
Posts: 7,924
I forgot about that. They did pay a high interest rate but in my case arrived end of summer.
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Old Mar 19, 2023, 7:00 pm
  #725  
 
Join Date: Nov 2011
Posts: 150
Originally Posted by satellite779
You can make 1040 (not 1040-ES) payments until you file your return. All the tax payment websites accept payments. These are designed for people who owe, but it can be used to overpay. These are great for the credit card game, as you can overpay just a couple of days before filing a return, so you minimize the time money is stuck with IRS.

I never mentioned estimated taxes in my posts above (although I did those as well).
overpay just a couple days before filing a return, to minimize the time money is stuck..

outstanding... thankyou.. I was looking exactly for this kind of wording.

I'm looking to pump only about 10k on a card I've likely already charged 5K on it this year. I need a total of 15k spending on said card for this year to qualify for benefits.
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Old Mar 23, 2023, 8:27 am
  #726  
 
Join Date: Mar 2003
Posts: 153
Is it safe to use allpaid (govpaynow.com) to meet BOA credit card minimum spending?
tomcat is offline  
Old Mar 24, 2023, 9:25 pm
  #727  
 
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: 3,426
Refund Datapoint: New York State personal income tax refund (significant credit card estimated tax overpayments to meet multiple targeted NLL biz plat and gold SUB minimum spends) directly deposited to my bank account today, 12 days after electronic filing.
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Dr Jabadski is offline  
Old Mar 25, 2023, 11:09 am
  #728  
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Fellow Californians who file 1040-ES - don't make the mistake I did!

Not only are our taxes not due until 10/16/23, but our estimates for 2023 for the first three quarters can be delayed until then also. Looks like I gave the IRS an interest-free six month loan, which now means something.

https://www.irs.gov/newsroom/irs-may...ma-and-georgia

The Oct. 16 deadline also applies to 2023 estimated tax payments, normally due on April 18, June 15 and Sept. 15. It also applies to the quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31.
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Old Mar 28, 2023, 5:25 pm
  #729  
 
Join Date: Nov 2011
Posts: 150
https://www.pay1040.com I used them for my max of '2 payments per year'. They are already mentioned in this site on another thread.

I paid on the day I also went to my tax guy in the evening and he e-filed.

I was having difficulty creating an account while out of the country and ultimately got back into the states and tried a payment without creating an account.

Hope doing everything on the same day does not turn out to be too "tight" for me to not be able to get back my money when they send my refund into my bank account.

I am getting 5 k back, but pumped 7k and looking for 12k total back.

Last edited by abc5; Mar 30, 2023 at 7:29 pm
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Old Apr 6, 2023, 5:41 pm
  #730  
 
Join Date: Nov 2011
Posts: 150
so crap. today I see my Fed refund appeared yesterday into my checking account via direct deposit. That's fast, 7 days since filing. Problem is, my 7k pumped in, did not come along with it. Is it not supposed to be the same deposit?

Originally Posted by Dr Jabadski
Refund Datapoint: New York State personal income tax refund (significant credit card estimated tax overpayments to meet multiple targeted NLL biz plat and gold SUB minimum spends) directly deposited to my bank account today, 12 days after electronic filing.
Q:
what do you mean by 12 days after filing, did you mean you got the overpayment BACK with your tax refund?
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Old Apr 6, 2023, 5:57 pm
  #731  
mia
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Originally Posted by abc5
,,,,
I paid on the day I also went to my tax guy in the evening and he e-filed.....I am getting 5 k back, but pumped 7k and looking for 12k total back.
Did your tax preparer include the $7,000 payment in your Total Payments for 2022, and show the Amount Overpaid as $12,000?
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Old Apr 6, 2023, 6:56 pm
  #732  
 
Join Date: Sep 2003
Posts: 270
Originally Posted by abc5
Hope doing everything on the same day does not turn out to be too "tight" for me to not be able to get back my money when they send my refund into my bank account.

I am getting 5 k back, but pumped 7k and looking for 12k total back.
My understanding is that you can
  • overpay your est tax in jan - include the payment on your tax form and get a refund
  • overpay by filing an extension by apr - include the payment on your tax form and get a refund, BUT wait a few days before efiling to make sure the payment shows in your IRS account first
  • pay the exact amount due shown on your form. Cannot be used if you have a refund.
I'm not sure what happens in the third case if you overpaid something that the IRS does not expect based on your 1040. I read they will just hold it expecting a return or amended return to show up. However, maybe you can check your IRS account and see what it says.
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Old Apr 7, 2023, 1:33 am
  #733  
 
Join Date: Apr 2015
Posts: 260
Originally Posted by abc5
so crap. today I see my Fed refund appeared yesterday into my checking account via direct deposit. That's fast, 7 days since filing. Problem is, my 7k pumped in, did not come along with it. Is it not supposed to be the same deposit
Did you include the $7k payment in your return? What was the refund amount you were seeing before filing: $5k or $12k.

It should be the same refund payment.

Last edited by satellite779; Apr 7, 2023 at 1:39 am
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Old Apr 7, 2023, 1:36 am
  #734  
 
Join Date: Apr 2015
Posts: 260
Originally Posted by tomcat
Is it safe to use allpaid (govpaynow.com) to meet BOA credit card minimum spending?
​​​​​​
only use the 3 processors listed on IRS' website: https://www.irs.gov/payments/pay-you...or-credit-card
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Old Apr 8, 2023, 11:50 am
  #735  
 
Join Date: Nov 2011
Posts: 150
Originally Posted by mia
Did your tax preparer include the $7,000 payment in your Total Payments for 2022, and show the Amount Overpaid as $12,000?
oh my goodness... no! i did not know there was a line item on the tax form for that, and thus was not aware of that needing to be claimed as part of filing! i thought the overage that i paid would come though automatically.

Originally Posted by satellite779
Did you include the $7k payment in your return? What was the refund amount you were seeing before filing: $5k or $12k.

It should be the same refund payment.
hi. no i was not aware of having to include the 7k$ pump, into my return. The refund tabulated on my return submitted by my preparer was not 12k.

Last edited by mia; Apr 8, 2023 at 3:18 pm Reason: Combine consecutive replies
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