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Paying USA income, property or other taxes with CC. [2010-2012]

Paying USA income, property or other taxes with CC. [2010-2012]

Old Apr 16, 2012, 7:27 pm
  #151  
 
Join Date: Mar 2012
Location: EZE
Posts: 123
I just used my Ink Bold to pay my federal income taxes. Fee of 2.9%. But it will help me clear the signup bonus, which is like a rebate of 20%, so I came out way ahead.
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Old Apr 16, 2012, 7:45 pm
  #152  
 
Join Date: Dec 2006
Location: USA
Posts: 3,947
Originally Posted by milevalue
I just used my Ink Bold to pay my federal income taxes. Fee of 2.9%. But it will help me clear the signup bonus, which is like a rebate of 20%, so I came out way ahead.
Where did you find such a high fee for paying Federal Taxes with a credit card? There is 1.89% available.
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Old May 7, 2012, 2:36 pm
  #153  
 
Join Date: Dec 2011
Programs: Hyatt Globalist, Marriott Titanium, Hilton Diamond, Wyndham Diamond, IHG Diamond, Omni Platinum
Posts: 199
Originally Posted by drod
Yes, it's targeted. My bonus expires 4/30 while others have theirs expire 5/31. There's a thread about it here on FT. If you don't have the offer, you can look into getting the new United Club card (not sure of the exact name) which has 1.5 pts per $1 spent (also has an annual fee of ~$400-450)

Also, thanks to Mia. I just sent 1 of 2 federal tax payments on the Explorer card. I'll report back after my statement closes with the results.
Success!
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Old May 13, 2012, 8:16 am
  #154  
ffI
 
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Originally Posted by mia
Now 1.90% for Mastercard (only) at a separate site created by Official Payments Corporation:
https://mastercard.choicepay.com/mcfed/index.jsp
I tried that and it gave a 2.35% cost for mastercard
I think the 1.90 is for debit cards only.
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Old May 13, 2012, 8:22 am
  #155  
 
Join Date: Aug 2004
Programs: Delta Platinum, HH Diamond
Posts: 364
1.89% for MC and Visa here:
https://www.payusatax.com/
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Old May 13, 2012, 2:01 pm
  #156  
mia
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Signatures.
 
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Posts: 49,207
Originally Posted by ffI
I tried that and it gave a 2.35% cost for mastercard
I think the 1.90 is for debit cards only.
The post to which you replied is two tax seasons old. That link now re-directs to the main Official Payments site, but at the time the rate was valid for MasterCard credit cards. The link provided by budblab is current.
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Old May 13, 2012, 5:55 pm
  #157  
 
Join Date: May 2004
Programs: AA lifetime platinum, Jet Blue Mosaic
Posts: 438
I paid my 2011 federal income taxes with my Citi Thank You Premier MC at 1.89% service fee. Received promotional bonus of 5 points per $ spent. Net benefit 3.11 points per tax $ charged.
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Old May 15, 2012, 8:00 pm
  #158  
 
Join Date: Jul 2010
Location: BUF/YYZ
Programs: UA, CO, AA
Posts: 328
any experience using the various payments sites for making quarterly 1040-ES payments using VISA GCs (largest i saw at officemax was $500) or AMEX GCs (largest $3000 on amex website via bigcrumbs) or Reloadable VISAs or AMEX (2500/month limit?) cards....
i thought i saw someone mention somewhere that you can only make 2 payments or use 2 cards...but i cant remember where i saw that.... i am trying to figure this out.
assume a $10k quarterly tax payment. I am trying to find a way to make all of this worth while. paying 2+% to pay via credit card doesnt seem worth it to me.
but if i can keep expenses to less than 1% (purchase or activation fees of the GCs + tax payments) i'd be happy....but i dont even know if the tax payment websites will charge a percent as like a CC or debit card low fee of just a few bucks.
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Old May 17, 2012, 1:53 am
  #159  
 
Join Date: Jun 2010
Posts: 292
Originally Posted by cotter77
any experience using the various payments sites for making quarterly 1040-ES payments using VISA GCs (largest i saw at officemax was $500) or AMEX GCs (largest $3000 on amex website via bigcrumbs) or Reloadable VISAs or AMEX (2500/month limit?) cards....
i thought i saw someone mention somewhere that you can only make 2 payments or use 2 cards...but i cant remember where i saw that.... i am trying to figure this out.
assume a $10k quarterly tax payment. I am trying to find a way to make all of this worth while. paying 2+% to pay via credit card doesnt seem worth it to me.
but if i can keep expenses to less than 1% (purchase or activation fees of the GCs + tax payments) i'd be happy....but i dont even know if the tax payment websites will charge a percent as like a CC or debit card low fee of just a few bucks.
This page seems to be updated by the IRS as vendors and rates change: http://www.irs.gov/efile/article/0,,id=101316,00.html .

I have paid federal and state income tax with a variety of gift cards with basically no problems. The gift cards are treated just like any other credit card.

The limitation of two credit card payments per type is discussed in the IRS web page. It is not specific to gift cards. There does not seem to be any such limit for my state income tax payments.

Just to squeeze out every last cent, I try to pay an amount ending in $.50 that leaves at least $1 on the gift card. This way, I get the maximum round up to whole dollar amounts, and can fully use the remaining dollar or so as a payment to a utility that has a minimum credit card payment amount of a dollar.

Last edited by skynerd; May 17, 2012 at 1:53 am Reason: spelling
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Old May 17, 2012, 7:26 am
  #160  
 
Join Date: Jul 2010
Location: BUF/YYZ
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Posts: 328
a) so AMEX gift cards are charged a % instead of the flat 3.49 bedit card fee?
b) i dont understand your comment about leaving $1.50 on the card. why would you do that? why not use the card up?
c) so i can't use 4 AMEX giftcards of $3000 each to pay a $12000 tax bill?

Originally Posted by skynerd
This page seems to be updated by the IRS as vendors and rates change: http://www.irs.gov/efile/article/0,,id=101316,00.html .

I have paid federal and state income tax with a variety of gift cards with basically no problems. The gift cards are treated just like any other credit card.

The limitation of two credit card payments per type is discussed in the IRS web page. It is not specific to gift cards. There does not seem to be any such limit for my state income tax payments.

Just to squeeze out every last cent, I try to pay an amount ending in $.50 that leaves at least $1 on the gift card. This way, I get the maximum round up to whole dollar amounts, and can fully use the remaining dollar or so as a payment to a utility that has a minimum credit card payment amount of a dollar.
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Old Jun 12, 2012, 11:45 pm
  #161  
 
Join Date: Dec 2009
Programs: Curr Noob, Ex Road Warrior
Posts: 492
Any idea if AMEX Prepaid card can be used to pay estimated taxes? If so will it be charged the flat $3.49 fee or the % based fee? Appreciate some insight. Thanks.
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Old Jun 13, 2012, 12:18 am
  #162  
 
Join Date: May 2006
Posts: 1,433
Originally Posted by cotter77
a) so AMEX gift cards are charged a % instead of the flat 3.49 bedit card fee?
b) i dont understand your comment about leaving $1.50 on the card. why would you do that? why not use the card up?
c) so i can't use 4 AMEX giftcards of $3000 each to pay a $12000 tax bill?

Leave whatever oddball amount you want (although more than $10 works best).

go to a gas station and put $27.43 or whatever of gas in your car. Toss gift card in trash.

Easiest way, by far, to not end up with an orphaned balance.
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Old Jun 13, 2012, 8:00 am
  #163  
 
Join Date: May 2008
Location: PHL (kinda, no airport is really close)
Programs: AA Exp, but not sure for how long. Enterprise Platinum woo-hoo!
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Originally Posted by cotter77
any experience using the various payments sites for making quarterly 1040-ES payments using VISA GCs (largest i saw at officemax was $500) or AMEX GCs (largest $3000 on amex website via bigcrumbs) or Reloadable VISAs or AMEX (2500/month limit?) cards....
i thought i saw someone mention somewhere that you can only make 2 payments or use 2 cards...but i cant remember where i saw that.... i am trying to figure this out.
assume a $10k quarterly tax payment. I am trying to find a way to make all of this worth while. paying 2+% to pay via credit card doesnt seem worth it to me.
but if i can keep expenses to less than 1% (purchase or activation fees of the GCs + tax payments) i'd be happy....but i dont even know if the tax payment websites will charge a percent as like a CC or debit card low fee of just a few bucks.

I'm not positive this would work, but you could investigate. The Suntrust promotion gives you a Visa Debit card. It requires a $3000 minimum balance and $75 annual fee (and gives 30K DL miles). I believe it gives 1 mile per dollar spent. If that were the case, you could very easily cover the $75 fee and cost of parking $3000. Just randomly assuming 3% cost of parking the money, $75 fee, and $3.49 convenience fee per use, in your situation that would be about $180 for 40K DL miles (plus the 30K bonus.) Pretty sweet deal.
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Old Jun 13, 2012, 8:59 pm
  #164  
 
Join Date: Sep 2011
Location: Ann Arbor, MI
Posts: 308
Originally Posted by ikonos
Any idea if AMEX Prepaid card can be used to pay estimated taxes? If so will it be charged the flat $3.49 fee or the % based fee? Appreciate some insight. Thanks.
I expect that you can use it to pay taxes, but I'm pretty sure you would be charged the % fee
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Old Jun 14, 2012, 6:46 am
  #165  
mia
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Signatures.
 
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Originally Posted by Frequent Miler
I expect that you can use it to pay taxes, but I'm pretty sure you would be charged the % fee
Correct, because American Express does not issue Debit cards (linked to a bank account), only Prepaid cards which are processed as Credit cards.
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