I owe $3500 for federal taxes. Discover will give me 5% for digital wallet purchases next month. I'll get a 2.2 percent fee from the IRS for a credit card payment but the 5 percent cash back makes up for it. Would it work. I'll pay 77 bucks to make 100 bucks. I do have the cash to pay the card off. Just trying to make a buck.
@FranknBeans wrote:I owe $3500 for federal taxes. Discover will give me 5% for digital wallet purchases next month. I'll get a 2.2 percent fee from the IRS for a credit card payment but the 5 percent cash back makes up for it. Would it work. I'll pay 77 bucks to make 100 bucks. I do have the cash to pay the card off. Just trying to make a buck.
how do you pay taxes with a mobile wallet, do all of the processors offer that or is it a specific one?
The IRS accepts Apple Pay. I can use Apple Pay with my linked Discover card to make the payment. Usually I pay with my checking account because it's free and a credit card has a 2.2 percent fee. But next month Discover is 5 percent cash back for digital wallets. Idk about others. I've thought about using cards before to hit my limit for bonuses,
@GZG wrote:
@FranknBeans wrote:I owe $3500 for federal taxes. Discover will give me 5% for digital wallet purchases next month. I'll get a 2.2 percent fee from the IRS for a credit card payment but the 5 percent cash back makes up for it. Would it work. I'll pay 77 bucks to make 100 bucks. I do have the cash to pay the card off. Just trying to make a buck.
how do you pay taxes with a digital wallet, do all of the processors offer that or is it a specific one?
but I need to use a card that would at least give me a 2 percent back to make it worth it.
Keep in mind that the 5% on Discover cards are limited to $1500 per quarter. I see that you have 2 of them in your signature, so you could pay most of your taxes via digital wallet between the 2 and make a tidy sum off the deal.
Thanks didnt event think of the $1500 spending cap on one card. I would have lost out on the money.
@FranknBeans wrote:The IRS accepts Apple Pay. I can use Apple Pay with my linked Discover card to make the payment. Usually I pay with my checking account because it's free and a credit card has a 2.2 percent fee.
I'm confused. The IRS doesn't accept direct credit card payments. All 3 of the official payment processors have fees under 2% for credit card payments. None accept ApplePay or other mobile wallet payments that I can see (digital wallets such as PayPal, yes, but that's not the same).
Where are you seeing that the IRS accepts credit card payments with mobile wallets? That would be huge for those of us with larger annual federal tax bills and/or quarterly estimated payments with cards such as US Bank Altitude Reserve that give an uncapped 4.5% (when redeemed for travel) on mobile wallet transactions.
Maybe I read it wrong but IRS says I can pay with digital wallet. Haven't tried that is why I'm asking. I know I can pay with a credit card because it shows up under my IRS account. I haven't logged in to check because I'm at work.
@FranknBeans wrote:Maybe I read it wrong but IRS says I can pay with digital wallet. Haven't tried that is why I'm asking. I know I can pay with a credit card because it shows up under my IRS account. I haven't logged in to check because I'm at work.
@Internal Revenue Service wrote:The IRS uses third party payment processors for payments by debit and credit card.
You can pay using digital wallets such as PayPal and Click to Pay.
@Discover Bank, Member FDIC wrote:Digital Wallet purchases include some online purchases and some in-store purchases made with your smartphone, tablet, or wearable. Wallets that qualify include Apple Pay, Samsung Pay, Garmin Pay and in store with Google Pay.
The IRS definition of digital wallet differs from Discover's definition of digital wallet (which really should be labeled as mobile wallet). The 2.2% is what intitally caught my eye; credit card fees for the 3 official payment processors are 1.85% to 1.98%.