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
Apr 17, 2018, 5:14 pm
#436
Join Date: Aug 2005
Location: DFW
Posts: 1,249
I just make sure my total payments are reflected on the tax return rather than claiming one amount on the form, paying more and waiting for the computer to refund the difference.
a refund is the only way to get printed I savings bonds.
Also, a card with 2% or better rewards is a money maker.
Apr 19, 2018, 8:34 am
#437
Join Date: Aug 2012
Location: Dreamland
Posts: 927
I'll post back if this works, but I used PayPal on PayUSATaxes to pay with Chase Freedom (Q2 bonus) for 5x.
The stupid mistake was putting more than $1,500 on the Freedom - it was late and I wasn't thinking straight.
ETA: worked, obviously not all the spend got 5x because i wasn't careful.
The stupid mistake was putting more than $1,500 on the Freedom - it was late and I wasn't thinking straight.
ETA: worked, obviously not all the spend got 5x because i wasn't careful.
Last edited by levilevi; Apr 23, 2018 at 2:53 pm Reason: follow up
Apr 19, 2018, 12:40 pm
#438
Join Date: Mar 2015
Posts: 483
It works, I got 5x for the $1500 in taxes I paid using it.
May 22, 2018, 10:11 am
#440
Join Date: Mar 2007
Location: S Cal
Programs: AA Lifetime Plat, United Silver, Marriott Plat, IHG Plat
Posts: 1,142
I'll post back if this works, but I used PayPal on PayUSATaxes to pay with Chase Freedom (Q2 bonus) for 5x.
The stupid mistake was putting more than $1,500 on the Freedom - it was late and I wasn't thinking straight.
ETA: worked, obviously not all the spend got 5x because i wasn't careful.
The stupid mistake was putting more than $1,500 on the Freedom - it was late and I wasn't thinking straight.
ETA: worked, obviously not all the spend got 5x because i wasn't careful.
Jun 15, 2018, 2:28 am
#443
Join Date: Aug 2010
Location: LAS, MPL
Programs: DL Platinum, 1 MM
Posts: 1,320
You can make quarterly estimated tax payments for the 2018 tax year. The money will stay with the IRS until you file your 2018 tax return.
Oct 7, 2018, 11:50 am
#446
Join Date: Jan 2008
Posts: 72
Big upcoming tax bill - any programs / cards to offset the 3%?
Have a decent tax bill coming up, and was wondering if I can get status or good points value for the 3% that fets charged, or I should just stick to a bank payment!
Have MR, UR points, have enough AA miles for a one way trip in biz, and have around 15k united miles. As always very interested in biz travel
Any ideas?
Have MR, UR points, have enough AA miles for a one way trip in biz, and have around 15k united miles. As always very interested in biz travel
Any ideas?
Oct 9, 2018, 12:50 pm
#448
Join Date: Nov 2013
Programs: AS Gold, Hyatt Diamond, Starriott LTPP
Posts: 341
Have a decent tax bill coming up, and was wondering if I can get status or good points value for the 3% that fets charged, or I should just stick to a bank payment!
Have MR, UR points, have enough AA miles for a one way trip in biz, and have around 15k united miles. As always very interested in biz travel Any ideas?
Have MR, UR points, have enough AA miles for a one way trip in biz, and have around 15k united miles. As always very interested in biz travel
Any ideas?
Dec 7, 2018, 11:14 am
#449
Join Date: May 2017
Posts: 480
Read through a lot of the 30 pages, but still have a question.
I see a lot of folks talking about overpaying their estimated taxes by 1k, 3k, 5k or even 10k. I'm thinking of overpaying by 55k. Now I know this money will be sent back in the form of a tax refund when I file, but does this amount of overpayment not set off that "red flag?" My wife and I make less than 100k combined and have a very simple tax filing. Just a bit worried about the irs wondering what in the world is going on and starting an audit.
I signed up for the Capitol One Spark Miles card and will earn 300k miles by spending the 50k on taxes. This will cost me around 1k in fees, but will net miles with a return value of a MINIMUM of 3k.
Any thoughts?
I see a lot of folks talking about overpaying their estimated taxes by 1k, 3k, 5k or even 10k. I'm thinking of overpaying by 55k. Now I know this money will be sent back in the form of a tax refund when I file, but does this amount of overpayment not set off that "red flag?" My wife and I make less than 100k combined and have a very simple tax filing. Just a bit worried about the irs wondering what in the world is going on and starting an audit.
I signed up for the Capitol One Spark Miles card and will earn 300k miles by spending the 50k on taxes. This will cost me around 1k in fees, but will net miles with a return value of a MINIMUM of 3k.
Any thoughts?
Dec 7, 2018, 4:10 pm
#450
Join Date: Aug 2010
Location: LAS, MPL
Programs: DL Platinum, 1 MM
Posts: 1,320
Read through a lot of the 30 pages, but still have a question.
I see a lot of folks talking about overpaying their estimated taxes by 1k, 3k, 5k or even 10k. I'm thinking of overpaying by 55k. Now I know this money will be sent back in the form of a tax refund when I file, but does this amount of overpayment not set off that "red flag?" My wife and I make less than 100k combined and have a very simple tax filing. Just a bit worried about the irs wondering what in the world is going on and starting an audit.
I signed up for the Capitol One Spark Miles card and will earn 300k miles by spending the 50k on taxes. This will cost me around 1k in fees, but will net miles with a return value of a MINIMUM of 3k.
Any thoughts?
I see a lot of folks talking about overpaying their estimated taxes by 1k, 3k, 5k or even 10k. I'm thinking of overpaying by 55k. Now I know this money will be sent back in the form of a tax refund when I file, but does this amount of overpayment not set off that "red flag?" My wife and I make less than 100k combined and have a very simple tax filing. Just a bit worried about the irs wondering what in the world is going on and starting an audit.
I signed up for the Capitol One Spark Miles card and will earn 300k miles by spending the 50k on taxes. This will cost me around 1k in fees, but will net miles with a return value of a MINIMUM of 3k.
Any thoughts?