topic Re: Paying Taxes With a Credit Card: Yea or Nay? in Credit in the News

Paying Taxes With a Credit Card: Yea or Nay?

veracious — Thu, 19 Jan 2012 14:51:27 GMT

From another forum.........

Taxes aren’t due this year until April 17 but already readers are asking: Should I pay my taxes with my credit card? Or better yet, a rewards credit card?

I’m all for maximizing cash back, miles, or points, but if you pay your taxes with a credit card, you have to pay a convenience fee, which varies by service provider. For example, if you e-file through Turbo Tax, you’ll pay a 2.49 percent fee.

Let’s take a look at the numbers and see if it makes sense:

http://www.credit.com/blog/2012/01/paying-taxes-with-a-credit-card-yea-or-nay/

I know the smart folks here would never do this, but , for the benefit of others, don't even think about it.

Re: Paying Taxes With a Credit Card: Yea or Nay?

pizzadude — Thu, 19 Jan 2012 15:42:30 GMT

It might actually make sense to bite the bullet and pay the extra money to do this, IF you are close enough to a certain level of rewards, and the purchase would push you over the top to redeem points, miles..etc..

Re: Paying Taxes With a Credit Card: Yea or Nay?

veracious — Thu, 19 Jan 2012 17:39:57 GMT

@pizzadude wrote:

It might actually make sense to bite the bullet and pay the extra money to do this, IF you are close enough to a certain level of rewards, and the purchase would push you over the top to redeem points, miles..etc..

OK pizzadude. Here's more food for your thoughts. Although it was an article from last year, it may be just what you were thinking.

Reader Request: Earning Miles & Points on a $1.4 Million Tax Bill?

http://millionmilesecrets.com/2011/12/27/taxes/

Happy trails to you! Just make sure the tax payment isn't excluded due to TOS restrictions.

Keep us posted if you find out more.

Re: Paying Taxes With a Credit Card: Yea or Nay?

pizzadude — Thu, 19 Jan 2012 18:37:34 GMT

Interesting article ~ thanks for posting. The one logistical issue that I didn't see them raise is that you would a CC with a $1Million CL to pay it this way ~ otherwise you would still have to pay it in multiple chunks, each with its own transaction fee...