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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 Jun 27, 2023, 9:13 am
  #781  
 
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: 3,433
Originally Posted by trialsandmiles
Same. Not to.mention they don't have any physical stores in NYC, so most MS options there involve going to New Jersey. Some consider that worse than the customer service.
Been there (almost), done that. Years ago made some efforts toward gift card to money order to checking account MS involving the Walmart (which closed several years ago) and adjacent Bank of America in White Plains NY, about 20 miles north of the city, 30-120 minutes depending on traffic. Yes, that Walmart CS, a combination of typical Walmart CS attitude plus typical NYC CS attitude, truly was a recipe for unbearably cruel and unusual punishment . Gotta REALLY want those miles (and points) to endure that sort of experience . Yeah, good point, no disrespect intended but NJ is almost just as bad !

(On the other hand, based on casually following some of the MS threads here, it seems that Walmart CS in some locations is quick and helpful and efficient, maybe an alternate universe ?)

BREAK

Anyone else notice that as of recently the only possible login to oneís IRS account is via ID.me? IIRC, ID.me was announced as the only official login (to IRS) 2-3 years ago and the start date was delayed once or twice. IIRC creating an ID/me sign in was a significant hassle which included the automated system rejecting my scanned ID several times and a video call to an ID.me agent of questionable reliability with (apparently) little training and skills.

To see my IRS account (related to me June 15th estimated payments), I could not login directly to the IRS, I had to use my ID.me sign in. Fortunately, after not using it for a year or 2 or 3, it still worked. Then, to add some concern to the process, the IRS sent the notice below, which (until I opened it) I thought (in a stoical way) was a notification of an audit .


Last edited by Dr Jabadski; Jun 29, 2023 at 9:31 am Reason: after "Break" comments added, avoid consecutive posts
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Old Jul 1, 2023, 11:47 pm
  #782  
 
Join Date: Feb 2013
Programs: Hyatt Globalist, MLife Gold, Marriott Gold, HHonors Gold, Caesars Diamond, Amex Plat
Posts: 6,086
So I paid various tax payments via cc, including one for minor son. He got the email below (but had not gotten anything from IRS). I did not get this email, though I paid my own taxes the same way. Anyone else get this?

Dear Customer,

Due to higher receipts than normal, the IRS is experiencing a delay in processing payments. If the information you entered does not match the IRS systems information, your payment may need additional processing and handling before crediting your account.

If you received a notice from the IRS that they have not received your payment after making a successful payment through payUSAtax.com, please follow the steps below to resolve the issue:
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Old Sep 22, 2023, 4:44 pm
  #783  
 
Join Date: Mar 2018
Location: SFO
Posts: 56
Dumb question: Since we can only make two payments for form 1040 per year, I assume "Direct pay" (from one's bank account) count as one payment, so I can only do one CC payment after?
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Old Oct 10, 2023, 12:23 pm
  #784  
 
Join Date: Sep 2003
Posts: 270
I paid using pay1040 last week and and got the usual confirmation email, but then got another one today with different info - mainly the date of credit. It's always been the date paid, so this extra delay is new and disconcerting (if you happen to be cutting it close):

last week:
This email confirms that your federal tax payment was received and processed by PAY1040 on 10/5/2023 8:51 PM CT. The IRS will use this date as the effective date of your payment.

today:
This email confirms that the IRS has accepted your tax payment. The effective date of your payment is 10/10/2023 5:44 AM.
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Old Oct 16, 2023, 11:11 pm
  #785  
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Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, AS MVP, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,956
Updated wiki to reflect new Southwest Companion Pass threshold.

Note pay1040.com uses Central Time Zone for the payment date and payusatax uses EDT. Not Good for those of us who live West...
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Last edited by Boraxo; Oct 16, 2023 at 11:29 pm
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Old Nov 6, 2023, 4:48 am
  #786  
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Join Date: Mar 2006
Location: DFW
Programs: AA 1M
Posts: 31,526
For joint tax filers, has anyone had complications from making payments in the name of your spouse to get around the 2 payments limit? Also how would one do that in pay1040? It asks for primary SSN and spouse SSN on the payment page.
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Old Nov 10, 2023, 3:27 pm
  #787  
 
Join Date: Aug 2012
Location: BOS/MHT/PVD/BDL
Programs: Belong to Many but No Longer Loyal to Any
Posts: 882
Originally Posted by UA Fan
For joint tax filers, has anyone had complications from making payments in the name of your spouse to get around the 2 payments limit? Also how would one do that in pay1040? It asks for primary SSN and spouse SSN on the payment page.
We pay quarterly estimates and have been doing this for quite a few years now. We list either myself or spouse as primary. Doesn't seem to matter. I do always check our IRS accounts to make sure the payments have posted.
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Old Nov 11, 2023, 11:24 am
  #788  
 
Join Date: Aug 2011
Location: missing YX more every day
Programs: Delta KM/PM/MM, Nexus, CLEAR, Sharriott Plat, IHG Plat, Hilton Gold, Hertz PC
Posts: 1,106
good strategy

Originally Posted by UA Fan
For joint tax filers, has anyone had complications from making payments in the name of your spouse to get around the 2 payments limit? Also how would one do that in pay1040? It asks for primary SSN and spouse SSN on the payment page.
Originally Posted by flyaxa
We pay quarterly estimates and have been doing this for quite a few years now. We list either myself or spouse as primary. Doesn't seem to matter. I do always check our IRS accounts to make sure the payments have posted.
Actually a good strategy if there's any chance you might file separately.
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Old Nov 12, 2023, 10:07 am
  #789  
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Join Date: May 2008
Location: San Francisco
Programs: GM on VX, UA, AA, HA, AS, SY; Budget Fastbreak
Posts: 28,522
As I reach a SUB it is of course tempting to want to pay taxes in order to faster get that SUB. I strongly want to avoid that 2-3% surcharge! Even when I renew my $300 car registration every year I pay with ACH to avoid that $6 fee even if it means zero 300 base points plus bonus points.

I used to pay fees without hesitation. Iím trying to overall save on the avoidable fee despite the opportunity cost in points.
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Old Nov 12, 2023, 10:19 am
  #790  
 
Join Date: Sep 2008
Location: AUS
Programs: BAEC Gold, AA PPro, Hyatt Globalist, Amex Plat
Posts: 7,167
Originally Posted by gaobest
As I reach a SUB it is of course tempting to want to pay taxes in order to faster get that SUB. I strongly want to avoid that 2-3% surcharge! Even when I renew my $300 car registration every year I pay with ACH to avoid that $6 fee even if it means zero 300 base points plus bonus points.

I used to pay fees without hesitation. Iím trying to overall save on the avoidable fee despite the opportunity cost in points.
Umm... ok?!

Regards
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Old Dec 18, 2023, 12:33 pm
  #791  
 
Join Date: Aug 2021
Posts: 207
I was able to use the paypal method on payUSAtax a couple of weeks ago.

I tried again today and the paypal button seems to be broken?

The pop up immediately disappears. Are others also seeing that?

And pay1040 won't even let me start the process.

Pay1040 seems to be broken for me.

It won't allow me to select the tax form on this page: https://www.pay1040.com/#/payment/personal

Are others able to use it?

Last edited by mia; Dec 18, 2023 at 2:07 pm Reason: Please do not post the same information in more than one thread.
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Old Dec 18, 2023, 1:45 pm
  #792  
ned
 
Join Date: Nov 2002
Programs: MTD pass holder
Posts: 1,142
I am unable to use PayPal on PayUSA or ACI for estimated 2023 payment.
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Old Dec 21, 2023, 2:15 pm
  #793  
 
Join Date: Aug 2021
Posts: 207
I was just able to use paypal on ACI.

Paypal on PayUSA still doesn't work.
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Old Jan 3, 2024, 8:13 am
  #794  
 
Join Date: Aug 2012
Location: BOS/MHT/PVD/BDL
Programs: Belong to Many but No Longer Loyal to Any
Posts: 882
PayUSAtax is at 1.82%. Changed in Wiki.
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Old Jan 6, 2024, 2:13 pm
  #795  
 
Join Date: Dec 2012
Posts: 314
There is a new Freedom Unlimited offer that gives new applicants doubling the amount of UR points for the first year, could be very nice if you have a large tax bill. Doubt it but anyone think there is risk on the doubling not applying to tax payments? I have over 100k in taxes owed that I need to pay by April.
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