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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 May 15, 2024, 8:36 am
  #931  
 
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: 3,375
Obviously your mistake was paying on the 13th (triskaidekaphobia*). Had you paid on the 12th or 14th AmEx would have picked up the tab like AmEx has always done for me .



(To avoid any misunderstanding, the comment above is entirely tongue-in-cheek**. AmEx has expected to paid for every penny I’ve ever charged to an AmEx card.)

I too have never had a problem using a BBP for the past few years to pay IRS, NYS and/or local taxes, estimated and/or due.

(* “Triskaidekaphobia” is fear or avoidance of the number 13. It is also a reason for the fear of Friday the 13th, called paraskevidekatriaphobia. … The supposed unlucky nature of the number 13 has several theories of origin.)

(** “Tongue-in-cheek” is an idiom that describes a humorous or sarcastic statement expressed in a serious manner.)
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Last edited by Dr Jabadski; May 16, 2024 at 6:40 am Reason: forgotten footnote * added
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Old May 17, 2024, 3:00 am
  #932  
 
Join Date: Nov 2006
Programs: Marriott Platinum, Hilton Diamond, IHG Platinum
Posts: 3,789
Overpayment earlier in the year resulted in slightly higher refund than I claimed. Seems to be interest from IRS. If so, a pleasant surprise.
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Old May 20, 2024, 3:45 pm
  #933  
 
Join Date: May 2024
Posts: 6
What will happen if I already paid my taxes for 2023 (IRS balance is shown 0), and try to pay again for 1040 - Current Tax Return 2023 (payusatax) right now using AMEX plat? Will IRS reject the payment? Or they will issue a check sometime soon for the CURRENT overpaid balance?
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Last edited by muscle_bull; May 20, 2024 at 4:11 pm
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Old May 20, 2024, 4:20 pm
  #934  
 
Join Date: Aug 2021
Posts: 207
Originally Posted by muscle_bull
What will happen if I already paid my taxes for 2023 (IRS balance is shown 0), and try to pay again for 1040 - Current Tax Return 2023 (payusatax) right now using AMEX plat? Will IRS reject the payment? Or they will issue a check sometime soon for the CURRENT overpaid balance?
Try it and report back.

Although I'm wiling to bet money that "soon" will not happen.
avogadro is offline  
Old May 21, 2024, 9:42 am
  #935  
 
Join Date: Jul 2010
Location: Adelphi, MD
Programs: Korean Air Skypass, ANA Skyweb, Amex Premier Rewards, Chase Sapphire Preferred
Posts: 751
If you overpay your taxes it can be refunded or applied to next years taxes. If you don't designate which one, It will be applied to next years Taxes
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smith80678 is offline  
Old May 21, 2024, 12:03 pm
  #936  
 
Join Date: May 2024
Posts: 6
Originally Posted by avogadro
Try it and report back.

Although I'm wiling to bet money that "soon" will not happen.
Def going to try, just wasn't sure if there is a time limit I can apply the balance to 2023 tax year.

Originally Posted by smith80678
If you overpay your taxes it can be refunded or applied to next years taxes. If you don't designate which one, It will be applied to next years Taxes
I would assume I would be able to select direct deposit on IRS website.

And with all that being said, are there any recent DPs on if paying taxes with AMEX will go towards the SUB spend?

I thought there were people complaining that it didn't work for SUB a year ago. Thanks.
muscle_bull is offline  
Old May 21, 2024, 12:35 pm
  #937  
mia
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Signatures.
Original Poster
 
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 49,061
Originally Posted by muscle_bull
I thought there were people complaining that it didn't work for SUB a year ago. Thanks.
That discussion is here:

https://www.flyertalk.com/forum/amer...ome-bonus.html
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Old Jun 12, 2024, 1:54 pm
  #938  
 
Join Date: Jun 2021
Location: LAX/SFO
Posts: 407
Any recent dp on payusatax? The site seems to be glitchy today. tia.
sof_lance is offline  
Old Jun 12, 2024, 3:20 pm
  #939  
 
Join Date: Apr 2011
Location: New York, NY
Posts: 392
Originally Posted by sof_lance
Any recent dp on payusatax? The site seems to be glitchy today. tia.
I paid estimated taxes with it this morning. No problems.
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katstarr is offline  
Old Jun 12, 2024, 7:56 pm
  #940  
 
Join Date: Jun 2021
Location: LAX/SFO
Posts: 407
Originally Posted by katstarr
I paid estimated taxes with it this morning. No problems.
Thx all good now. Earlier there was a cloudfare host issue.
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