Paying Taxes With a Credit Card: Yea or Nay?

[veracious]

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.

[pizzadude]

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..

[veracious]

---

@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.

[pizzadude]

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...