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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 Feb 18, 2013, 12:04 pm
  #76  
 
Join Date: Jan 2013
Posts: 25
Yea my whole plan got ....ed when they took away the $500 OD cards. 22k will Probably be going AMEX SPG.
Mike5889 is offline  
Old Feb 18, 2013, 4:26 pm
  #77  
 
Join Date: May 2010
Posts: 189
Originally Posted by bigbuy
Actually, it could be much more than .11% profit. Those fees are tax deductible for many folks including myself. My net fee is about 1.45% instead of 1.89. That would give me more than a 25% profit on the Fidelity Amex if I had one. Considering you can buy Starwood points on Starwoods site for a high 3.5 cents per point, this is where I bulk up on those points with every quarterly payment.
I assume that the fees are subject to the 2% floor for misc deductions?
tjguitar85 is offline  
Old Feb 19, 2013, 3:08 am
  #78  
 
Join Date: Apr 2005
Location: ATL
Posts: 803
Originally Posted by tjguitar85
I assume that the fees are subject to the 2% floor for misc deductions?
Yes
bigbuy is offline  
Old Feb 19, 2013, 9:48 am
  #79  
geg
 
Join Date: Aug 2012
Posts: 5
I would get 3 My Vanilla Debit Cards ( permanent ) and load less than the 10,000 max on each and use one of the tax payment services that charge $ 3.95 per tax payment on debit cards.
geg is offline  
Old Feb 19, 2013, 11:54 am
  #80  
 
Join Date: Jun 2010
Posts: 10
I would like to know this one as well. anyone?

thanks!

Originally Posted by nature1370
Has anyone here successfully use Bluebird to pay Property Taxes? Is it possible? I have used Bluebird to pay for my student loans and mortgage without a problem. My guess it should be possible to pay Property Taxes as well. Thanks.
kvchang is offline  
Old Feb 19, 2013, 12:47 pm
  #81  
 
Join Date: Mar 2007
Location: S Cal
Programs: AA Lifetime Plat, United Silver, Marriott Plat, IHG Plat
Posts: 1,142
Yes, I paid property tax with BB.

I own property in more than one county. The Bluebird website recognized one of the counties, but not the other. However, I still decided to have the checks mailed to me. I then made a Xerox copy for myself and mailed in the check along with the payment voucher that the county sends me.

On the Bluebird website, I entered the info as:
County of XXX Tax Collector
For My Name
My mailing address

I gave my APN (Assessor's Parcel Number) as the account number.

So each check arrived at my home, but payable to the County of XXX Tax Collector.

That was done in early December for property tax installment #1. No comments from the counties to date.

I did this exact same thing for the most recent quarterly estimated tax payment to my state (Bluebird mails check to me, I make a copy for my records, and I then mail it to the state along with the voucher).
GetawaysRus is offline  
Old Feb 19, 2013, 2:27 pm
  #82  
 
Join Date: Jun 2010
Posts: 10
Originally Posted by GetawaysRus
Yes, I paid property tax with BB.

I own property in more than one county. The Bluebird website recognized one of the counties, but not the other. However, I still decided to have the checks mailed to me. I then made a Xerox copy for myself and mailed in the check along with the payment voucher that the county sends me.

On the Bluebird website, I entered the info as:
County of XXX Tax Collector
For My Name
My mailing address

I gave my APN (Assessor's Parcel Number) as the account number.

So each check arrived at my home, but payable to the County of XXX Tax Collector.

That was done in early December for property tax installment #1. No comments from the counties to date.

I did this exact same thing for the most recent quarterly estimated tax payment to my state (Bluebird mails check to me, I make a copy for my records, and I then mail it to the state along with the voucher).
Thanks!!^
kvchang is offline  
Old Feb 19, 2013, 11:07 pm
  #83  
 
Join Date: Apr 2007
Posts: 29
double dip?

ok, so I need to pay a lot taxes this year...
just wonder if it's worth to jump through the hoops

1) apply Suntrust delta debit card
2) apply Amex Bluebird
3) deposit the money into suntrust
4) charge amex bluebird with suntrust
5) pay taxes with Amex BB

by doing so, I got miles for Suntrust and points from amex BB
any thoughts? any way to get more points/miles?
shynelong is offline  
Old Feb 20, 2013, 8:33 am
  #84  
 
Join Date: Mar 2007
Location: S Cal
Programs: AA Lifetime Plat, United Silver, Marriott Plat, IHG Plat
Posts: 1,142
Do you mean that you are going to have to pay A LOT of taxes this year?

When I paid my 4th quarter California estimated tax, Bluebird limited me to $5000 in payments that month. So if you are going to have to pay A LOT of taxes (well in excess of 5K), you may need to do it from more than one Bluebird account (yours and a spouse, for example) or you might want to prepare your payments over several months so that you can exceed that $5000 per month limit.

I don't have a Suntrust account, so I don't know if there is a monthly limit and I don't know if you'd get Delta miles for paying taxes with the Suntrust card, but I wonder if you might be better off just paying your taxes directly with the Suntrust card rather than using Suntrust to fund Bluebird?

I do have a B of A Alaska debit card and I'm pretty sure I read somewhere that there are NO Alaska miles awarded for paying taxes directly with the Alaska debit card. If there is a workaround with the Alaska debit card, I would welcome a PM.
GetawaysRus is offline  
Old Feb 20, 2013, 8:55 am
  #85  
 
Join Date: Apr 2005
Location: NYC
Posts: 1,756
I have some large state(CT) and Federal personal income tax for 2012 as well as estimate payments for 2013 to pay today and just checked officialpayments.com and with my suntrust debit card(master) it is going to charge me 2.x% instead of a flat fee. Was there a recent change? I have done it last year and was charged a flat fee with the same card.
yoyo is offline  
Old Feb 20, 2013, 10:19 am
  #86  
 
Join Date: Jan 2009
Programs: Hilton Diamond, IHG Spire Ambassador, Radisson Gold, Hyatt Discoverist
Posts: 3,638
Here is my question:

I know I am going to owe a 30k+ 2012 tax bill come April 15. I don't know the exact amount because I haven't finished calculating it yet.

Can I pay a portion of the tax now in late Feb./March by credit card to meet minimum spends, such as by going to payusatax.com and providing my SS# and making a bulk payment. Then when I figure out the exact amount in a few weeks, I pay the rest.

Would this work? The payusatax.com website refers to paying taxes for which you have a "balance due" with the IRS. Would the payment be rejected if I haven't filed my return yet?

Also, if I later try to file by turbotax, will turbotax let me file in late March/April if I'm not paying the full tax due at the time (i.e. because I've already made the earlier bulk payment?). Thanks.
jphripjah is offline  
Old Feb 20, 2013, 12:13 pm
  #87  
 
Join Date: Feb 2012
Location: NJ
Posts: 78
i have to pay close to 3k in taxes...read though the thread...lot of confusion...could someone please tell me whats the best way?
(I can buy vanilla debit card if needed from a CVS close by - I have surpass to take advantage)
airride is offline  
Old Feb 20, 2013, 3:26 pm
  #88  
 
Join Date: Jan 2013
Posts: 25
Originally Posted by jphripjah
Here is my question:

I know I am going to owe a 30k+ 2012 tax bill come April 15. I don't know the exact amount because I haven't finished calculating it yet.

Can I pay a portion of the tax now in late Feb./March by credit card to meet minimum spends, such as by going to payusatax.com and providing my SS# and making a bulk payment. Then when I figure out the exact amount in a few weeks, I pay the rest.

Would this work? The payusatax.com website refers to paying taxes for which you have a "balance due" with the IRS. Would the payment be rejected if I haven't filed my return yet?

Also, if I later try to file by turbotax, will turbotax let me file in late March/April if I'm not paying the full tax due at the time (i.e. because I've already made the earlier bulk payment?). Thanks.
Don't know for the first part, but for the second part you can definitely file with Turbo without even paying at all. Hell three years ago I forgot to pay for 3 months until I got a bill in the mail saying I owed my taxes + some small accrued interest.
Mike5889 is offline  
Old Feb 20, 2013, 7:44 pm
  #89  
 
Join Date: Sep 2001
Location: Washington, DC
Programs: UA Plat MM, AA Gold, Hyatt Explorist, Hilton Gold, IHG Plat, Marriott Titanium Elite
Posts: 5,015
Originally Posted by GetawaysRus
I don't have a Suntrust account, so I don't know if there is a monthly limit and I don't know if you'd get Delta miles for paying taxes with the Suntrust card...
Originally Posted by yoyo
I have some large state(CT) and Federal personal income tax for 2012 as well as estimate payments for 2013 to pay today and just checked officialpayments.com and with my suntrust debit card(master) it is going to charge me 2.x% instead of a flat fee. Was there a recent change? I have done it last year and was charged a flat fee with the same card.
1. GetawaysRus: No, there is no monthly limit on paying taxes with a SunTrust debit card, and you do get SkyMiles for the taxes paid. There is a $35K per transaction limit, but I had a SunTrust official temporarily increase the limit to $41K for one of my payments (but I had to escalate my request to a manager).

2. yoyo: You are using the WRONG third-party payer. You need to use payusatax.com, NOT officialpayments.com, to get a flat fee of $3.49.
DCBob is offline  
Old Feb 20, 2013, 7:50 pm
  #90  
 
Join Date: Sep 2001
Location: Washington, DC
Programs: UA Plat MM, AA Gold, Hyatt Explorist, Hilton Gold, IHG Plat, Marriott Titanium Elite
Posts: 5,015
Originally Posted by bigbuy
Yes
The 2% floor only applies to the fee allocable to the personal portion of your tax. If you have a rental property, business, or farm, you can deduct the part of the fee that applies to Schedule C, E, or F on the applicable schedule based on the percentage of the tax allocable to that schedule.
DCBob is offline  

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