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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 6, 2011, 3:30 pm
  #76  
 
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Not worth it.
Perfect answer. End thread.
fangtl is offline  
Old Apr 8, 2011, 9:23 pm
  #77  
 
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Originally Posted by bschaff1
The best option I could find was paying a 2.25% fee to pay my federal taxes via amex, so it's just not worth it IMO. If I was getting double points, I would definitely take it, but the only other way I would consider doing this would be if I got a 1.5% rate and had over a month until my Amex payment would be due to accrue some extra interest.
It will be 1.95% on payusatax.com, however, they only take MC and Discover online. The convenience fee is tax deductible in some cases. It is worth using it if you are charging it to a cc that gives bonus points for certain spending reach. I charged it to my Continental card (which is a MC), it gives 10k bonus miles for 25k spend in each calendar year. So, for $25k tax, you pay $485 and receive 35k in total. If tax deduction is allowed in your case, say, at 30%, it would then be $341 for 35k.
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Old Apr 9, 2011, 2:11 pm
  #78  
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Originally Posted by BSL
....I can confirm that it works on www.officialpayments.com.
Just to clarify, does that mean that your miles indeed posted?
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Old Apr 9, 2011, 4:23 pm
  #79  
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Originally Posted by fangtl
Perfect answer. End thread.
Disagree entirely. Get the Chase AARP card which offers 5% cash back (unlimited) first 6 months.
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Old Apr 13, 2011, 1:59 am
  #80  
 
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If the total fee is 1.95%, even just using the Venture Cap1 card essentially gets you 2% back that can be used to reimburse travel expenses. Seems easy and at least slightly advantageous.
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Old Apr 13, 2011, 2:21 pm
  #81  
 
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Originally Posted by DCfree
If the total fee is 1.95%, even just using the Venture Cap1 card essentially gets you 2% back that can be used to reimburse travel expenses. Seems easy and at least slightly advantageous.
Capital One Venture Rewards is Visa. Payusatax.com only accepts MasterCard and Discover. Its sister site, valuetaxpayment.com, accepts Visa and AmEx for a 2.29% fee.
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Old Apr 13, 2011, 7:48 pm
  #82  
 
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I know this is about paying taxes, and fortunately I was not in that position this year, but I did pay my CPA via the C1 card my accountant for her services which took a big chunk off the $1k spend
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Old Apr 13, 2011, 8:08 pm
  #83  
 
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You shoudn't count on the convenience fee being tax deductible.
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Old Apr 14, 2011, 10:15 am
  #84  
 
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Originally Posted by fangtl
Perfect answer. End thread.
There's no correct answer for everyone. It depends upon what options you have, which ones you employ, and how you value the results. For example, don't overlook a superb suggestion like the one Gleff gave a few posts up for the Chase AARP card. Also, don't overlook options like spending $30K on an Amex Delta Reserve card to get 15K MQMs and 45,000 SkyMiles. Save the "SkyPesos" rambling... IFF you value the MQMs (Delta status) and the RDMs highly enough, they alone could justify the fee. For those not valuing them highly, it could be a horrible waste of resources and time.

Originally Posted by kayjay
You shoudn't count on the convenience fee being tax deductible.
If you qualify to deduct them as a business expense, you can count on it. For personal deductions, absolutely not.
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Old Apr 15, 2011, 8:40 am
  #85  
 
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paying taxes

On frugalguy.com they posted this link this morning.
Anyone used this website before?

Pay Your Taxes with Your Visa Debit Card Only $3.89 Flat Fee and Earn Miles

If you have a Visa debit card it only costs you $3.89 with this special promo.


https://www.pay1040.com/SpecialOffers/Visa
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Old Apr 15, 2011, 10:17 am
  #86  
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Originally Posted by MelanieS
On frugalguy.com they posted this link this morning.
Anyone used this website before?

Pay Your Taxes with Your Visa Debit Card Only $3.89 Flat Fee and Earn Miles

If you have a Visa debit card it only costs you $3.89 with this special promo.


https://www.pay1040.com/SpecialOffers/Visa
I'm pretty curious about this too. I don't get how they know it's a debit card, but I called and they claim the system figures it out.

But, for this to accumulate miles/points, it has to post as a signature type purchase. So if it goes through that way, it can cost Pay1040 a lot more than $3.89.

There's some disconnect here, or Pay1040 is losing a lot of money. If it's the latter, I'm in!
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Old Apr 15, 2011, 10:34 am
  #87  
 
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I assume that the only way they can process your debit card payment is by using the "offline" process where the card is run like a credit card transaction. In that case the transaction looks like a signature type purchase and you would earn miles/points from your bank.
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Old Apr 15, 2011, 10:36 am
  #88  
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Originally Posted by volkswankin
I assume that the only way they can process your debit card payment is by using the "offline" process where the card is run like a credit card transaction. In that case the transaction looks like a signature type purchase and you would earn miles/points from your bank.
Sure - but how does this company make money charging me $3.89 to process my card as a credit card transaction?

Something's very fishy.
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Old Apr 15, 2011, 11:14 am
  #89  
 
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After reading some other posts it appears that Bank of America visa debit cards do not earn miles on tax payments using a debit card. So much for that idea.
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Old Apr 15, 2011, 12:56 pm
  #90  
 
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I used https://mastercard.choicepay.com/mcfed/index.jsp this year with a Chase Continental MasterCard. My motivation was simple and very much worth it. I had a complex and totally awesome Star Alliance award itinerary mapped out on prime high-season holiday dates to Asia with availability for everything. But.... My CO account was like 1,100 Onepass miles short booking it. I knew the availability would not last on the flights I had, and I knew my Chase statement closed in a few days and miles would post almost immediately so I paid my 2010 tax return balance due amount of $1,319. Cost was $25.06 for which I got 1,344 miles so total cost 1.86 cents per mile. I know an embarrassingly poor cost per mile by FT standards but I got my top off miles FAST when I needed them and was able to book my award itinerary before availability got grabbed up by someone else. Best $25 I ever threw away.


The interesting part will be this. I had already filed my tax return on-line by TurboTax a month earlier and had pre-authorized ACH payment of the amount due from my checking account on exactly April 18. Only a month later did I pay it by credit card instead. So the question becomes will the IRS still debit my checking account April 18 even though I already paid it by Credit card and then I have to file an amended return to get the "double payment" back? I'll find out Monday. In any case. My complex high season holiday award ticket is awesome so it's still worth it.
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