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 13, 2024, 6:26 am
#841
Join Date: May 2022
Posts: 2,263
Mar 14, 2024, 9:18 am
#843
Join Date: Aug 2014
Posts: 1,303
My Vanilla/Sutton Bank/InComm did not. I'm just trying to figure out how to get these to liquidate via MO because the $479 got the "not authorized." Other Vanillas serviced by BHN would probably have better success I imagine
Last edited by DeltaNeutral28; Mar 14, 2024 at 9:19 am Reason: .
Mar 14, 2024, 9:59 am
#844
Join Date: Jul 2010
Location: Adelphi, MD
Programs: Korean Air Skypass, ANA Skyweb, Amex Premier Rewards, Chase Sapphire Preferred
Posts: 745
I value Chase Sapphire Preferred points at about 1.25% on regular spend. You only get 1% back but if you use the Chase travel portal, you get a 25% discount on travel (flights, Hotels)! So a 2% fee works out about even.
Mar 14, 2024, 1:30 pm
#845
FlyerTalk Evangelist
Join Date: May 2008
Location: San Francisco
Programs: GM on VX, UA, AA, HA, AS, SY; Budget Fastbreak
Posts: 27,626
I used to charge government things on my rewards credit card and I considered it worthy of the fee.
so yes - just factor in the fee for using the card. Sub is great. One consideration - would you earn the sub if you didn’t use card for taxes? Is it that difficult to charge 5k or 10k or whatever your minimum requirement is for the sub?
$200 or even $20 fee is still money used that could go elsewhere. Now I don’t charge government things with a fee. I can’t avoid it at restaurants etc as I try to carry $20 or less.
so yes - just factor in the fee for using the card. Sub is great. One consideration - would you earn the sub if you didn’t use card for taxes? Is it that difficult to charge 5k or 10k or whatever your minimum requirement is for the sub?
$200 or even $20 fee is still money used that could go elsewhere. Now I don’t charge government things with a fee. I can’t avoid it at restaurants etc as I try to carry $20 or less.
Mar 14, 2024, 2:33 pm
#846
Join Date: Jun 2023
Posts: 157
Mar 14, 2024, 3:59 pm
#848
Join Date: Jun 2023
Posts: 157
I guess it could also make sense if you're sure you're paying enough but you don't have enough time to get the documents together.
Mar 18, 2024, 8:34 pm
#849
Join Date: Mar 2008
Posts: 1,536
How are you all doing the overpayments with the IRS? Filing estimated payments? (ie: extension, estimated payments)?
Going directly to the payment processors, paying and then eFiling your return? But if you do that, Turbotax (for example) won't know anything about your overpayment (and there's no section to enter it unless you do estimated taxes).
I don't see a way to do this with TurboTax (I mean you can pay independently but there's no real option I can see in TurboTax to indicate you overpaid when you eFile).
Short of filing for an extension and then overpaying estimated taxes. But apparently that'll delay your refund big time
Going directly to the payment processors, paying and then eFiling your return? But if you do that, Turbotax (for example) won't know anything about your overpayment (and there's no section to enter it unless you do estimated taxes).
I don't see a way to do this with TurboTax (I mean you can pay independently but there's no real option I can see in TurboTax to indicate you overpaid when you eFile).
Short of filing for an extension and then overpaying estimated taxes. But apparently that'll delay your refund big time
Last edited by hurnik; Mar 18, 2024 at 8:42 pm
Mar 18, 2024, 10:08 pm
#850
A FlyerTalk Posting Legend
Join Date: Feb 2001
Location: Berkeley, CA USA
Programs: Piggly Wiggly "Shop the Pig!" Preferred Shopper
Posts: 57,084
How are you all doing the overpayments with the IRS? Filing estimated payments? (ie: extension, estimated payments)?
Going directly to the payment processors, paying and then eFiling your return? But if you do that, Turbotax (for example) won't know anything about your overpayment (and there's no section to enter it unless you do estimated taxes).
I don't see a way to do this with TurboTax (I mean you can pay independently but there's no real option I can see in TurboTax to indicate you overpaid when you eFile).
Short of filing for an extension and then overpaying estimated taxes. But apparently that'll delay your refund big time
Going directly to the payment processors, paying and then eFiling your return? But if you do that, Turbotax (for example) won't know anything about your overpayment (and there's no section to enter it unless you do estimated taxes).
I don't see a way to do this with TurboTax (I mean you can pay independently but there's no real option I can see in TurboTax to indicate you overpaid when you eFile).
Short of filing for an extension and then overpaying estimated taxes. But apparently that'll delay your refund big time
Mar 19, 2024, 5:12 am
#851
Join Date: May 2022
Posts: 2,263
How are you all doing the overpayments with the IRS? Filing estimated payments? (ie: extension, estimated payments)?
Going directly to the payment processors, paying and then eFiling your return? But if you do that, Turbotax (for example) won't know anything about your overpayment (and there's no section to enter it unless you do estimated taxes).
I don't see a way to do this with TurboTax (I mean you can pay independently but there's no real option I can see in TurboTax to indicate you overpaid when you eFile).
Short of filing for an extension and then overpaying estimated taxes. But apparently that'll delay your refund big time
Going directly to the payment processors, paying and then eFiling your return? But if you do that, Turbotax (for example) won't know anything about your overpayment (and there's no section to enter it unless you do estimated taxes).
I don't see a way to do this with TurboTax (I mean you can pay independently but there's no real option I can see in TurboTax to indicate you overpaid when you eFile).
Short of filing for an extension and then overpaying estimated taxes. But apparently that'll delay your refund big time
Mar 19, 2024, 8:17 am
#852
Join Date: Mar 2008
Posts: 1,536
So basically let's say your return says you owe $200.
You use third party website to pay via CC and overpay (let's say, $5,000)
Then file return (eFile) the next day or two after.
From my reading you shouldn't have to request a refund from the IRS? Their website says they'll automatically refund it to you (may take 4-6 weeks) unless you direct them to apply the overpayment to next year's taxes. Or do you speed things up by using Form 843?
Mar 19, 2024, 10:34 am
#853
Join Date: May 2022
Posts: 2,263
Gotcha
So basically let's say your return says you owe $200.
You use third party website to pay via CC and overpay (let's say, $5,000)
Then file return (eFile) the next day or two after.
From my reading you shouldn't have to request a refund from the IRS? Their website says they'll automatically refund it to you (may take 4-6 weeks) unless you direct them to apply the overpayment to next year's taxes. Or do you speed things up by using Form 843?
So basically let's say your return says you owe $200.
You use third party website to pay via CC and overpay (let's say, $5,000)
Then file return (eFile) the next day or two after.
From my reading you shouldn't have to request a refund from the IRS? Their website says they'll automatically refund it to you (may take 4-6 weeks) unless you direct them to apply the overpayment to next year's taxes. Or do you speed things up by using Form 843?
I typically overpay by $15,000 using my Hilton Surpass Card, which means I get 45,000 points and a free night. Not a bad deal for about $275 in costs. My surpass card is in the sock drawer the rest of the year besides for the quarterly credits
Mar 19, 2024, 10:47 am
#854
Join Date: Mar 2008
Posts: 1,536
Just request a refund on your return, and give your routing info for the refund. Electronic refunds are much quicker than check.
I typically overpay by $15,000 using my Hilton Surpass Card, which means I get 45,000 points and a free night. Not a bad deal for about $275 in costs. My surpass card is in the sock drawer the rest of the year besides for the quarterly credits
I typically overpay by $15,000 using my Hilton Surpass Card, which means I get 45,000 points and a free night. Not a bad deal for about $275 in costs. My surpass card is in the sock drawer the rest of the year besides for the quarterly credits
Looks like you are supposed to use estimated taxes with federal extension:
https://thefinancebuff.com/overpay-t...#htoc-turbotax
Last edited by hurnik; Mar 19, 2024 at 11:50 am
Mar 19, 2024, 3:16 pm
#855
FlyerTalk Evangelist
Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,722
Unfortunately (depending on your perspective) I will owe a significant amount this year so a couple of questions:
- Can I do one US fed income tax payment per quarter with each service? In this case I would be looking at doing 1 in March and 1 in April. These would both be for 2023 annual return, not 2024 quarterly.
- Can I pay 2023 before I file annual 2023? Assume yes, I don't plan to file until April.