Pay taxes via credit card 2022 edition

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Update: Reminder that 2021 Q4 estimated tax payments are due January 18, 2022. This post has been updated to reflect the latest changes to paying taxes by credit card in 2022.

You might not like paying taxes, but when you pay taxes via credit card can be quite rewarding. The key is to earn credit card rewards that more than offset tax payment fees. For example, if you’ve signed up recently for a card that requires large spend to get a big welcome bonus, paying taxes via credit card can be the solution.

Since last publication the following updates have been made: Updated credit card and debit card processing fees. Removed expired 2021 deals and deadlines.

Here’s everything you need to know about paying taxes with credit cards…

Pay taxes via credit card

Important due dates

2021 Tax Year Due Dates

  • January 17 2022: 4th quarter 2021 estimated taxes due.
    (Payable online from 10/15/21 to ?)
  • April 15 2022: End of year taxes due.

2022 Tax Year Due Dates

  • April 15, 2022: 1st quarter 2022 estimated taxes due.
    (Payable online from 03/01/22 – 05/15/22)
  • June 15, 2022: 2nd quarter 2022 estimated taxes due.
    (Payable online from 05/15/22 – 07/15/22)
  • September 15, 2022: 3rd quarter 2022 estimated taxes due.
    (Payable online from 07/15/22 – 10/15/22)
  • January 16, 2023: 4th quarter 2022 estimated taxes due.
    (Payable online from 10/15/22 – ?)
  • April 17, 2023: End of year taxes due.

Deals

Current Deals

Future Deals

  • Discover It will offer 5% back on PayPal (and restaurants) on up to $1,500 spend, July – September 2022.  PayUSATax allows payments via PayPal.  See the Pay with PayPal section below for details regarding working around a PayUSATax/PayPal bug.

Pay taxes via credit card: Key Info

Here is key information you’ll need to know about paying taxes with credit or debit cards:

Credit card fee 1.87% to 1.98%

The IRS maintains a list of companies that accept credit and debit cards towards tax payments. You can find the current information by clicking here. Currently there are three separate payment processing companies on the list. At the time of this writing, debit card fees range from $2.20 to $2.55 per transaction and credit card fees range from 1.87% to 1.98%. Alternatively, you can pay taxes via the Plastiq Bill Pay service, but that will cost you more: 2.85%.

Additional Info Direct from the IRS

The IRS page that lists options for paying by credit or debit card also lists the following “Additional Information”:

  • No part of the card service fee goes to IRS.
  • You don’t need to send in a voucher if you pay by card.
  • Card processing fees are tax deductible for business taxes.
  • You must contact the card processor to cancel a card payment.
  • IRS will refund any overpayment unless you owe a debt on your account.
    [Editor’s caution: In recent years the IRS has been very slow to do so]
  • Your card statement will list your payment as “United States Treasury Tax Payment” and your fee as “Tax Payment Convenience Fee” or something similar.
  • Federal tax lien releases can take up to 30 days after we receive full payment; liens may remain for other individuals who haven’t fully paid their portion.
  • When you pay while filing your taxes through online software, different card fees apply.

Two payment limit per processor

The IRS maintains a table of frequency limits for paying taxes via credit or debit card (found here). In general, they say you can make up to two payments per tax period per type of tax payment. For example, you can make 2 payments every quarter to your quarterly estimated taxes, and you can make 2 payments every year to your annual taxes. Important: In my experience, these limits are enforced per payment processing company. That means that you can really make up to 6 payments per tax period per type of tax payment (or more if you make Plastiq bill payments as well). An IRS advisor I spoke with several years ago did not think that there would be any problem with making more than 2 payments by using different processors. Since then, I have made more than 2 payments per tax period many times and never had any issues. That is, of course, just my own personal experience. I can’t guarantee that your outcome would be the same.

Twice as many potential payments when filing jointly

If you file jointly with a partner, you can make payments in each person’s name, separately.  These payments will still apply to the one overall tax return, but not always automatically.  According to reader reports, in some cases the IRS matches these payments to the combined return automatically.  In other cases, people have reported the need to call the IRS to ask them to combine the payments.  I recommend calling shortly after filing your annual taxes to ensure that the IRS has correctly applied both sets of payments to the same return.

Obviously if you are filing separately, you can each make your own payments without any issues.

No cash advance fees

I’m often asked whether credit card companies charge cash advance fees when paying taxes by credit card. The answer is no. All three official IRS payment processors agree (via their FAQ pages) that the payment is treated as a purchase not a cash advance. You can find FAQ info here, here, and here.

Unlimited payments via Plastiq

If you’re willing to incur higher fees, you can make an unlimited number of tax payments via the Plastiq bill pay service. Plastiq usually charges 2.85% to pay bills (including taxes) via credit card, but they occasionally offer lower fees via short term promotions. For details, please see: Plastiq Bill Payment Service.

To pay taxes via Plastiq, use Plastiq’s tax payment screen: plastiq.com/us-taxes.

Are tax payment fees deductible?

Fees are no longer deductible for personal taxes: Tax preparation fees used to be deductible when itemizing deductions for personal tax returns, but that is no longer the case.

Card processing fees are tax deductible for business taxes: This can substantially reduce your net cost of using payment services.

Tax payment history (how to see your info online)

Once you’ve made payments through online processors, Plastiq, or other means, you may want to see proof that the IRS received the amount you sent. You can view past payments by signing up here: irs.gov/payments/view-your-tax-account.

Reporting estimated payments

Estimated payments should be reported when filing your annual taxes. In my experience, if you make a mistake and forget to report some of these payments, the IRS will eventually catch the error and refund the difference.

How to pay end of year taxes

Tell your tax preparer or tax software that you’ll pay via check. Then, browse to the appropriate tax payment site (e.g. Pay1040.com, OfficialPayments.com, PayUSAtax.com, or Plastiq.com/us-taxes) to pay your taxes. There is no need to mail in the 1040V payment voucher.

What happens if you over-pay your taxes?

Overpayments will be refunded: The IRS will refund any overpayment unless you owe a debt on your account.  Update/Caution: In recent years the IRS has been very slow to refund overpayments.

How to request a refund if it doesn’t come automatically

Schedule an appointment with the Taxpayer Assistance Center by calling 844-545-5640.  When you finally speak to an agent, explain that you overpaid and would like a refund rather than applying the extra to next year’s taxes.  Hat Tip: Rapid Travel Chai via personal communication.

Do you need to mail in payment vouchers?

No. No payment voucher is required. You don’t need to send in a voucher if you pay by card.

Pay with Paypal

PayUSATax allows payments via PayPal.  Sometimes cards like the Discover It, Discover It Student, and Chase Freedom offer 5% rewards for Paypal purchases (up to $1500 combined spend per quarter).  Tax payments during these times should count!

NOTE: There is a weird issue with selecting to pay with PayPal on the PayUSATax website. When clicking the PayPal button, a screen flashes up and disappears.  But I believe I’ve found a work-around: Put in valid credit card information first (for any credit card) and then press the PayPal button.  When doing it this way, I got the PayPal screen to successfully load.

Pay with Samsung Pay & Google Pay

Some tax payment websites support mobile wallet payments such as Samsung Pay or Google Pay. The US Bank Altitude Reserve card earns 3X for mobile wallet payments, so it should be a great match. However, readers have reported that Samsung Pay and Google Pay are only supported through Visa Checkout and that this does not trigger the Altitude’s 3X rewards.

Amex Express Checkout

Since Amex is strict about not counting manufactured spending towards new credit card welcome bonuses, tax payments are a great alternative. The nice thing about Amex Express Checkout is that you can use it to make payments even if you don’t have your card. If you recently signed up for a new Amex card and added it to your online account but haven’t yet received the physical card, you should still be able to pay through Amex Express Checkout.

Top 5 reasons to pay federal taxes with a credit card or gift card

1. Profit

A number of credit cards earn cash rewards greater than 2%. One great option is to earn 3% cash back in your first year of card membership:

Since you’ll earn 3% cash back on both the base tax payment and the processing fees with the above cards, your profit will be slightly more than 1% of your tax payment.

Example:

  • $10,000 tax payment + 1.96% fee = $10,196
  • Cash back earned at 3% = $305.88
  • Profit = $305.88 – $196 = $109.88 (1.1% of $10K)

For more examples of cards that earn better than 2% rewards, see: Best Rewards for Everyday Spend.

2. Meet minimum spend requirements

If you recently signed up for new credit cards, chances are good that you have to spend thousands of dollars in order to earn the associated signup bonuses. Paying taxes is a cheap and easy way to accomplish that.

Below are some of the most valuable current welcome bonuses for consumer cards.  If you’re interested in business cards, please click here to see the best business card offers.

Click on a card for details; Press “Next” to see more offers:

Card Offer
The Platinum Card® from American Express
125K points + 10x restaurants worldwide
125K after $6K spend in first 6 months plus 10x at restaurants worldwide on up to $25K in purchases in the first 6 months. Terms apply. (Rates & Fees)

$695 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 125K after $6K in the first 6 months + 15x when you Shop Small in the US and at restaurants worldwide on up to $25K in eligible purchases in the first 6 months [Expired 1/20/22]

Capital One Venture X Rewards Credit Card
100K miles + Up to $200 statement credit
Earn a one-time bonus of 100K Capital One miles after $10K spend in the first 6 months + a limited-time bonus of up to $200 in statement credits for vacation rentals charged to your card in the first year

$395 Annual Fee

The Platinum Card® from American Express Exclusively for Morgan Stanley
100K points
100K after $6K spend in first 6 months. Terms apply. (Rates & Fees)

$695 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 100K points + 10x when you Shop Small in the US & at restaurants worldwide [Expired 1/20/22]

American Express® Gold Card
75K Points + up to $250 back
75K after $4K spend in first 6 months plus 20% back as a statement credit on restaurant purchases worldwide for the first 12 months up to $250 back. Terms apply. (Rates & Fees)

$250 Annual Fee

The Aeroplan® Card
2 50K Reward Certificates + Elite Status
2 50K Reward Certificates after $4K spend in 3 months + Aeroplan 25K Elite Status for the remainder of the first calendar year, plus the following calendar year. Note that reward certificates never expire as long as your card remains open

$95 Annual Fee

Chase British Airways Visa Signature® Card
100K Avios
Get 100K Avios after $5K spend in first 3 months. Also get 5x on purchases with British Airways, Aer Lingus, and LEVEL for first 12 months (then 3x) and 3x on hotels booked directly with the hotel for first 12 months (then 2x)

$95 Annual Fee

Chase Aer Lingus Visa Signature® Card
100K Avios
Get 100K Avios after $5K spend in first 3 months. Also get 5x on purchases with British Airways, Aer Lingus, and LEVEL for first 12 months (then 3x) and 3x on hotels booked directly with the hotel for first 12 months (then 2x)

$95 Annual Fee

Chase Iberia Visa Signature® Card
100K Avios
Get 100K Avios after $5K spend in first 3 months. Also get 5x on purchases with British Airways, Aer Lingus, and LEVEL for first 12 months (then 3x) and 3x on hotels booked directly with the hotel for first 12 months (then 2x)

$95 Annual Fee

Chase Freedom Flex
20K points + 5X grocery + 15 months 0% APR
Earn 20,000 points (worth $200 cash back) after spending $500 in the first 3 months + 5x Ultimate Rewards points (worth 5% cash back) on grocery purchases for 1st year (on up to $12K in purchases, excludes Target & Walmart). 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.

No Annual Fee

This card is subject to Chase's 5/24 rule (click here for details). Even though this card is marketed as a cash back card, it actually earns Ultimate Rewards points which are redeemable for 1 cent each, or can be combined with other Ultimate Rewards-earning cards to get even more value. This product is available to you if you do not have this card and have not received a new cardmember bonus for this card in the past 24 months.

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

UBS Visa Infinite
Up to 100K points (call to apply)
50K after $10K spend in 3 months + 50K after paying 2nd year annual fee

No Annual Fee First Year, Then $495

Chase IHG® Rewards Club Premier Credit Card
125K + Free night
125K points + free night certificate valid for one night up to 40K points after $3K spend in 3 months

No Annual Fee First Year, Then $89

Capital One Venture Rewards Credit Card
60K miles
Earn a one-time bonus of 60K Capital One miles after $3K spend in the first 3 months

$95 Annual Fee

Recent better offer: 100K: 50K after $3K in the first 3 months + 20K after $20K in the first 6 months [Expired 7/19/21]

Alaska Airlines Visa Signature
60K miles + $100 statement credit + Companion Fare
60K miles + $100 statement credit + Companion Fare ($99 + taxes) after $3K spend in 3 months

$75 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: Up to 67K miles: 42K miles + Companion Fare ($99 + taxes) after $2K spend in 3 months + 25K miles after $8K total purchases in first 6 months [Expired during 2021]

Marriott Bonvoy Boundless™ Credit Card
3 Free Night Certificates (up to 50K each)
3 Free Night Certificates (valid for a single night each up to 50K points) after $3K in the first 3 months + 10x on up to $2500 in combined spend at gas stations, restaurants, and grocery stores in first 6 months.

$95 Annual Fee

This card is subject to Chase's 5/24 rule (click here for details).

See Also: Are you eligible for a new Marriott card?

Recent better offer: Earn 5 50K free night certificates after $5K spend in 3 months [Expired 10/28/20]

Chase Sapphire Preferred Card
60K Points
60K after $4K spend in 3 months

$95 Annual Fee

Recent better offer: 100K after $4K in purchases in the first 3 months

American Express® Green Card
50K Points + up to $150 back
50K after $2K spend in first 6 months plus 20% back as a statement credit on restaurant purchases worldwide for the first 12 months up to $150 back. Terms apply. (Rates & Fees)

$150 Annual Fee

Chase United Explorer Card
60K Miles
60K after $3K spend in 3 months
(Offer Expires 1/26/2022)

No Annual Fee First Year, Then $95

Chase United Quest Card
80K Miles
80K after $5K spend in first 3 months

$250 Annual Fee

This card is subject to Chase's 5/24 rule (click here for details).

Recent better offer: Expired 9/23/21: 100K miles after $10K total spend

United Club℠ Infinite Card
100K miles
100K miles after $5K spend in the first 3 months.
(Offer Expires 1/26/2022)

$525 Annual Fee

U.S. Bank Altitude Reserve Visa Infinite Card
50K points
50K after $4.5K spend in 90 days

$400 Annual Fee

Chase Sapphire Reserve Card
60K Points
60K after $4K spend in 3 months

$550 Annual Fee

Barclays JetBlue Plus Mastercard
50K Miles
50K miles after $1K spend and payment of the annual fee in 90 days

$99 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Alternate offer: You could get a bonus 5K miles for using an employee code. Details here.

Recent better offer: Expired 2/4/21: 100K after $6K spend

Chase Southwest Airlines Rapid Rewards® Plus Card
40K Points
40K Points after $1K Spend in 3 Months

$69 Annual Fee

This card is subject to Chase's 5/24 rule (click here for details).

Recent better offer: Expired 12/9/21: 100K (50K after $2K spend in 3 months plus 50K after a total of $12K spend in 12 months)

Chase Southwest Airlines Rapid Rewards Priority Credit Card
40K Points
40K Points after $1K Spend in 3 Months

$149 Annual Fee

This card is known to be subject to Chase's 5/24 rule.

Recent better offer: Expired 12/9/21: 100K (50K after $2K spend in 3 months plus 50K after a total of $12K spend in 12 months)

U.S. BANK ALTITUDE® CONNECT VISA SIGNATURE® CARD
50K points
50K after $2K spend in 120 days

No Annual Fee First Year, Then $95

Chase Southwest Airlines Rapid Rewards Premier Credit Card
40K Points
40K Points after $1K Spend in 3 Months

$99 Annual Fee

This card is known to be subject to Chase's 5/24 rule.

Recent better offer: Expired 12/9/21: 100K (50K after $2K spend in 3 months plus 50K after a total of $12K spend in 12 months)

Chase IHG® Rewards Club Traveler Credit Card
80K Points
80K Points after $2K spend in 3 months

No Annual Fee

Click here to view details about a similar card: IHG Rewards Club Premier

Recent better offer: 100K after $2K spend in 3 months

Chase World of Hyatt Credit Card
45K points
Up to 45K: 30K after $3K spend plus 1 extra point per dollar for non-bonused spend, up to $15K spend in 6 months.

$95 Annual Fee

The Hawaiian Airlines® World Elite MasterCard® issued by Barclays
Up to 80K miles
Up to 80K miles: 60K after $2K in the first 90 days + 20K after a total of $4K spend in 6 months

$99 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Alternate offer: You may be able to get 60K miles after 1st purchase via paper application distributed in-flight.

Delta SkyMiles® Platinum Credit Card from American Express
50K miles + 5K MQMs + up to $100 in statement credits
50K miles + 5K MQMs after $2K in purchases in the first 3 months plus up to $100 in statement credits for purchases at US restaurants in the first 3 months. Terms apply. (Rates & Fees)

$250 Annual Fee

Chase Freedom Unlimited
Extra 1.5x everywhere + 15 months 0% APR
Earn an extra 1.5x everywhere on up to $20K in purchases for the first 12 months. 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.

No Annual Fee

This card is subject to Chase's 5/24 rule (click here for details). Even though this card is marketed as a cash back card, it actually earns Ultimate Rewards points which are redeemable for 1 cent each, or can be combined with other Ultimate Rewards-earning cards to get even more value. This product is available to you if you do not have this card and have not received a new cardmember bonus for this card in the past 24 months.

Capital One VentureOne Rewards Credit Card
20K miles
Earn a bonus of 20K after $500 spend in 3 months from account opening

No Annual Fee

Alternate offer: Some people are targeted for a 40K offer. See this post for more detail.

Wyndham Rewards Earner Card
30K Points + $50 statement credit
30K points after $1K spend in first 90 days + $50 statement credit after first purchase

No Annual Fee

Citi Rewards+ Card
20K points
20K points after $1.5K spend in 3 months

No Annual Fee

Korean Air SKYPASS Visa issued by US Bank
30K miles
30K miles after $3K spend in 90 days

$95 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 40K after $2.5K spend targeted (last reported 2/26/2016)

30K: 15K after first purchase + 15K after $2k spend in 90 days

25K: 15K after first purchase, 10K after $2K spend in first 3 months (expired 1/18)

United Gateway Card
20K Miles
20K miles after $1K spend in first 3 months
(Offer Expires 1/26/2022)

No Annual Fee

Hotels.com Rewards Visa Credit Card
Up to $250 in reward nights
Get two reward nights worth $125 each when you spend $1,000 on purchases in the first 3 months. Excludes taxes and fees. If your reward night costs less than $125, you won't get the difference.

No Annual Fee

Choice Privileges® Visa Signature® Card issued by Barclays
32K points
32K points after $1K spend in first 90 days

No Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: Up to 75K points + 4x everywhere: 50K after $1K spend in 90 days + 25K after $2K total spend in 180 days. 2 additional points per dollar for all spend until December 31, 2021 (for a total of 4 points per dollar on everyday purchases) [Expired 9/21]

Capital One Quicksilver
$200 Cash Back
One time bonus: $200 after $500 spend in 3 months from account opening

No Annual Fee

Capital One SavorOne Cash Rewards Credit Card
$200 Cash Back
One time bonus: $200 after $500 spend in 3 months from account opening

No Annual Fee

American Airlines AAdvantage MileUp Card
10K miles + $50
Earn 10K AA miles + $50 statement credit after $500 spend in 3 months

No Annual Fee

Marriott Bonvoy Brilliant™ American Express® Card
75K points + up to $200 in statement credits
75K points after $3K in the first 3 months + up to $200 in statement credits for purchases at US restaurants in the first 6 months. Terms apply. (Rates & Fees)

$450 Annual Fee

Recent better offer: None. This is the best offer we've seen.

Blue Cash Preferred® Card from American Express
$300 back
$300 cash back as a statement credit after $3K in the first 6 months. Terms Apply. (Rates & Fees)

$95 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: Up to $350: 10% cash back on purchases at U.S. Restaurants in the first 6 months, up to $200 back. Plus, earn $150 back after $1K spend in 3 months. (Expired 5/3/17)

Discover it® for Students
$50 + First Year Double + $20/year
Get $50 after first purchase. All cashback earned in first 12 months will be doubled including 5% earned in rotating categories. Plus, get $20 cash back each school year your GPA is 3.0 or higher for up to the next 5 years.

No Annual Fee

Delta SkyMiles® Blue Credit Card from American Express
Discover it Miles - Double Miles your first year
$100 + First Year Double
Get $100 after first purchase. All "miles" earned in first 12 months will be doubled. This makes this a 3% cash back card for the first year.

No Annual Fee

Verizon Visa Card
$100 in Verizon credit
Up to $100 in credit applied over 24 monthly wireless bills

No Annual Fee

Delta SkyMiles® Reserve Credit Card from American Express
50K miles + 10K MQMs + $100
50K miles + 10K MQMs after $5K spend in the first 3 months + $100 back on US restaurant spend in first 3 months. Terms apply. (Rates & Fees)

$550 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 80K miles + 20K MQMs after $5K spend in the first 3 months + up to $200 statement credit for purchases at select US furnishings stores in first 3 months. [Expired 5/5/21]

Chase Slate Edge
$100 Cash Back
Earn $100 statement credit after $500 in purchases in first 6 months

No Annual Fee

This card is subject to Chase's 5/24 rule (click here for details). Even though this card is marketed as a cash back card, it actually earns Ultimate Rewards points which are redeemable for 1 cent each, or can be combined with other Ultimate Rewards-earning cards to get even more value. This product is available to you if you do not have this card and have not received a new cardmember bonus for this card in the past 24 months.

Allegiant World Mastercard® Credit Card
15K miles
15K after $1K in first 90 days

$59 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Alternate offer: You may be targeted for an offer including a $100 statement credit during a dummy booking.

BBVA
ClearPoints Credit Card
$100 statement credit
$100 statement credit after $1.5K in first 90 days. Note: This card is not available online without an invitation code. You may need to first open a checking account and then apply by phone or apply in-branch.

No Annual Fee

Discover it®
$50 + First Year Double
Get $50 after first purchase. All cashback earned in first 12 months will be doubled including 5% earned in rotating categories.

No Annual Fee

Manchester United Credit Card
Earn Double Points
Earn double points in your first year, up to 100K bonus points

No Annual Fee

Citi Double Cash Card

Recent better offer: None

3. Buy points cheaply

Several credit cards offer up to 1.5 transferable points or miles per dollar. In these cases, a 2% tax payment fee (rounding up a little) means that you can essentially buy miles for 1.3 cents each. Even better, some cards earn 2 transferable points per dollar for all qualifying purchases.  With these 2X everywhere cards you can essentially buy points/miles for 1 cent each.  Either way, if you plan to use your points toward high value awards, this is a cheap way to acquire those points.

2X Example:

  • $10,000 tax payment + 2% fee = $10,200
  • Miles earned at 2X = 20,400
  • Cost per mile = $200 / 20,400 = 0.98 cents per mile (round up to 1 cent per mile)

1.5X Example:

  • $10,000 tax payment + 2% fee = $10,200
  • Miles earned at 1.5X = 15,300
  • Cost per mile = $200 / 15,300 = 1.3 cents per mile

Cards that offer 2X transferable points per dollar:

Note that some cards offering 2x everywhere are not included below because their points are worth much less than airline miles. An example is that most Marriott cards offer 2x everywhere rewards.

  • Citi Double Cash: Earns 2 cents per dollar, uncapped. Cash rewards can be converted to ThankYou points, and when paired with a Citi Premier or Prestige card, those points can be transferred to a selection of airline and hotel programs.
    Card Offer and Details
    Citi Double Cash Card

    Recent better offer: None

    FM Mini Review: 2X rewards for all spend with no annual fee makes this card a winner. Earn 2X everywhere and redeem for the equivalent of 2% cash back or 2X ThankYou points. Pair with the Premier or Prestige card to make points transferrable to airlines.


    Card Type: Mastercard World Elite

    Base

    Earning rate: 2% cash back everywhere (1% cash back for each purchase + 1% when paying your credit card bill for that purchase)

    Noteworthy perks: 1X when you make a purchase + 1X when you pay for those purchases

  • Amex Blue Business Plus: Earns 2 Membership Rewards points per dollar on up to $50K spend per calendar year. Points can be transferred to a large selection of airline programs or to a few hotel programs.
    Card Offer and Details
    The Blue Business® Plus Credit Card from American Express
    15K points
    15K after $3K spend in 3 months. Terms apply. (Rates & Fees)

    No Annual Fee

    Alternate offer: Some people have been targeted for an offer in their online account for 50K points after $15K in purchases in their first 12 months.

    Recent better offer: 20K after $3K spend in 3 months (Expired 6/21/17)

    FM Mini Review: 2X rewards for all spend (up to $50K per year) with no annual fee makes this card a winner.


    Card Type: Amex Credit Card

    Base

    Earning rate: 2X Membership Rewards points on all purchases, up to $50K spend per calendar year (then 1X thereafter). Terms apply. (Rates & Fees)

  • Capital One Venture, Venture X, or Spark Miles. Capital One offers three cards that earn 2X “Miles” per dollar on all qualifying spend. These “miles” can be transferred to airline miles & hotel points, usually at a 1 to 1 rate. This means that the following cards are capable of earning 2X miles everywhere:
    Card Offer and Details
    Capital One Venture Rewards Credit Card
    60K miles
    Earn a one-time bonus of 60K Capital One miles after $3K spend in the first 3 months

    $95 Annual Fee

    Recent better offer: 100K: 50K after $3K in the first 3 months + 20K after $20K in the first 6 months [Expired 7/19/21]

    FM Mini Review: This card earns 2 "miles" per dollar, which are worth exactly 1 cent each toward travel. This makes the return on spend similar to a 2% cash back card (though in this case you must redeem your miles to offset travel in order to get 1 cent per mile). One big advantage over cash back: Capital One allows transfering their "miles" to airline miles & hotel points.


    Card Type: Visa Signature

    Base
    Other

    Earning rate: 2X everywhere.

    Noteworthy perks: Receive up to $100 application fee credit for Global Entry or TSA Pre✓® ⚬ Redeem miles for travel at value of 1 cent per mile ⚬ Convert "miles" to airline miles & hotel points ⚬ No foreign transaction fees

    Capital One Venture X Rewards Credit Card
    100K miles + Up to $200 statement credit
    Earn a one-time bonus of 100K Capital One miles after $10K spend in the first 6 months + a limited-time bonus of up to $200 in statement credits for vacation rentals charged to your card in the first year

    $395 Annual Fee

    FM Mini Review: This card offers annual rebates that easily mitigate the fee for those who travel often and could be worth it for the lounge access and travel protections given the cost/benefit ratio. Authorized users are free and also get access to perks like Priority Pass, Capital One Lounges, and Hertz President's Circle status. The card earns 2 "miles" per dollar on most purchases just like the Capital One Venture Rewards card, which are worth exactly 1 cent each toward travel. This makes the return on most spend similar to a 2% cash back card (though in this case you must redeem your miles to offset travel in order to get 1 cent per mile). One big advantage over cash back: Capital One allows transfering their "miles" to airline miles & hotel points.


    Card Type: Visa Infinite

    Base
    Other

    Earning rate: 10X on hotels and rental cars booked via Capital One Travel ⚬ 5x on flights booked via Capital One travel. ⚬ 2X everywhere else.

    Noteworthy perks: Up to $300 in statement credits annually for bookings made through Capital One Travel ⚬ 10,000 bonus miles each year starting at first anniversary ⚬ Receive up to $100 application fee credit for Global Entry or TSA Pre✓® ⚬ Cell phone insurance ⚬ Trip delay / cancellation insurance ⚬ Primary CDW coverage Redeem miles for travel at value of 1 cent per mile ⚬ Convert "miles" to airline miles & hotel points ⚬ No foreign transaction fees

    Capital One Spark Miles Business Credit Card
    50K "miles"
    Earn a one-time bonus: 50K "miles" after $4.5K spend in the first 3 months from account opening

    No Annual Fee First Year, Then $95

    Note: Capital One Business cards DO count against Chase's 5/24 Rule

    Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

    Recent better offer: Earn up to 200K "miles": 50K after $5K spend in the first 3 months from account opening and an additional 150K after $50K spend in the first 6 months from account opening [Expired 1/27/20 and breifly available in 2021]

    FM Mini Review: This card is basically the same as the Spark Cash for Business, but rewards are intended to be used to offset travel purchases. One big advantage over cash back: Capital One allows transfering their "miles" to airline miles & hotels through many partners, and "miles" can be combined with other cards or other customers.


    Card Type: Mastercard

    Base
    Travel

    Earning rate: 2X everywhere ⚬ Earn 5X miles on hotel and rental car
    bookings through Capital One Travel

    Noteworthy perks: Redeem miles for travel at value of 1 cent per mile ⚬ Convert "miles" to airline miles & hotel points ⚬ No foreign transaction fees ⚬ Fee credit for either $85 TSA Pre✓® application fee or $100 Global Entry application fee

Cards that offer 1.5X points or airline miles per dollar:

4. Earn valuable big spend bonuses: elite status, free nights, companion pass, etc.

Many credit cards offer bonuses for meeting high spend thresholds. You can find a comprehensive list here: Best big spend bonuses. Here are a few examples:

  • Amex Delta Reserve or Delta Reserve Business: Spend $30,000, get 15,000 Medallion Qualifying Miles (towards elite status). At $60,000, $90,000, and $120,000 you’ll get another 15,000 Medallion Qualifying Miles.
  • Amex Delta Platinum or Delta Platinum Business: Spend $25,000, get 10,000 Medallion Qualifying Miles (towards elite status). At $50,000 spend, get another 10,000 Medallion Qualifying Miles.
  • Southwest Plus, Southwest Premier, or Southwest Business: With Southwest, when you earn 125,000 points in a calendar year (including points earned from credit card spend) you get a companion pass good for an unlimited number of flights for the rest of that year and all of the next calendar year.
  • Barclaycard JetBlue Plus, or JetBlue Business: Spend $50,000 and get Mosaic status which offers free changes and cancellations; free checked bags; expedited security; early boarding; free drinks; enhanced point earnings; and 15,000 bonus points upon qualifying.

5. Liquidate Visa/MasterCard gift cards cheaply

Visa and MasterCard gift cards are debit cards. As such, they qualify for low flat fees for debit tax payments: $2.20, $2.50, or $2.55 (depending upon the tax processor you use). In other words, your cost to liquidate $500 gift cards will be approximately half a percent. That’s pretty cheap.

If you use $500 Visa/MasterCard gift cards, then you can pay the following amounts:

The biggest problem with this (besides the fact that what works and what doesn’t work keeps changing!) is the IRS imposed 2 payments per processor limit. This means that you can liquidate no more than 6 gift cards per type of tax payment.  In the past, Official Payments allowed more payments via phone.  Recent reports, though, indicate that this is no longer the case.

See also: Best options for buying Visa and MasterCard gift cards.

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sa13doc

what is the correct form to use? current tax year 2021 or estimated tax 2021?

Mike

Just tried 8 different Simon Metabank GCs on PayUSATax, 4 of mine, 4 of my wife’s, all declined, stating zip code didn’t match card on file. However I used those same cards on Pay1040 and ACIPay and all went through fine. This is as of Jan 14 2022. What’s up with PayUSATax?

[…] Paying Taxes With Your Credit Card:  It’s everyone’s favorite time of year again…. Yes it’s officially tax season.  If you have to pay your taxes, you might as well earn some points while doing so.  Here’s a great guide for you to follow. […]

Rob

A Simon/Metabank GC worked for me today at PayUSATax as debit for $2.55 fee.

JN2

I had the opposite experience with PayUSATax today; two Simon mall Metabank issued Visa GCs (card #s beginning with 4088) did not work. The website returned a message indicating the card is not a debit card. But, a Metabank issued VGC (card # beginning with 4358) purchased at a supermarket processed as debit.

Ryan K

I currently have zero debt with the IRS, but will have a large bill due when I file my 2021 taxes. If I process payments prior to the Q4 estimated tax deadline (Jan 18), can that payment be applied towards my 2021 taxes (due in April 2022)?

Kari

yes, a payment made now will apply to your 2021 taxes and should be reported on your 2021 return

James

Just my experience with the online federal tax payment services.

1st quarter 2021 I made 6 payments (2 each thru the services) since I had an Amex offer to spend $500 get $50 back 10 times. When it came time to make the 2nd quarter payments, none of the services would let me pay. Just to double check I did it again in the 3rd qtr at one site and it was still a no-go. Finally, end of December I decided to try again and it went through.

So, in my case, by using all 3 services twice, it’s possible that the system basically credited my 2 per quarter payments for the first 3 quarters in the first quarter. I don’t know if this was WAI or not.

Ian

Dumb question, I need to make $5K in payments to CA, and the service charge is 2.3%. I would be paying with Freedom Unlimited 1.5X spend. I am not working towards any bonuses, etc. My principal goal is to redeem UR for Southwest flights, since I need to visit family very frequently.

Does it still make sense pay the 2.3% service charge? Thanks,

Ian

Hi fellow, Ian!

It would only be worth it if your Southwest flights offer a really good redemption value. At a 1.3¢ per point average redemption value, 1.5 pt/$* 1.3¢/pt == 1.95¢/$. You would need to redeem at 2.3 / 1.5 == 1.53¢/pt. in order to break even, and even then remember that you wouldn’t earn tier qualifying points nor redeemable points on award tickets.

If you can, you should jump on a new cc welcome bonus, perhaps for one of the Chase Ink cards since they have higher minimum spend requirements that the $5k tax payment could cut far into.

DaninMCI

Great post on this topic. I’m going to use this current payment period to finish up a new Amex Platinum spend but this takes me back to my recent question on your podcast regarding the CRO crypto cards with up to 8% back and I assume function as a debit card in this case. However, I then realized that the earnings (% back) can be taxed by the IRS as crypto income if the price is higher than acquired. Freaking taxes, so complicated. Can’t we just go to a flat tax?

Biggie F

I suggest updating to suggest two inter-related advantages to over-paying taxes:

  1. Up to $5,000 in overpayment can be used to purchase a U.S. Series I Savings Bond. These are inflation-adjusted and are currently paying a minimum of 7%. An important point here is that each individual can only uy $10,000 of such bonds annually from Treasury Direct, so this is a way of making an additional $5,000 investment. Very useful for savings-account-type monies that one will not need for the next year.
  2. As per comments, other overpayments that are not returned within 45 days will earn interest of 3%. Good luck getting that on your savings accounts.
Dave

2021 Tax Year Due Dates

  • January 17 2022: 4th quarter 2021 estimated taxes due.

SHOULD SAY JANUARY 18 as in the update box at the beginning of the post

Frank Wilson

Can the Point Debit card be used for paying taxes with one of the IRS vendors, and if so, does it code as a “debit card” with the lower $2.00 fee per transaction?

Frank

Besides the 4 quarters of estimated federal taxes there is also the final tax for the year. So, right now you can make up to 6 payments (2 per processor) for 2021 (not estimates). Then you can also make estimated taxes for each quarter for 2022.

That comes to 30 payments per year, and if you are married and desperate (surely that could never be the case?) and are willing to risk some potential hassle you can do the trick of each spouse paying separately for twice as many payments – but make sure you can handle the cash flow in case this drags out a refund for months. And this is not even taking into account filing an extension or an amended return …

As always, don’t be too greedy.

popomama

Anyone tried to use Vanilla VGC (sutton bank) or Vanilla MGC to pay tax via PayUSA recently? Any success stories? Thanks.

Terry

No, but I used Vanilla VGC (metabank) today with no problems at PayUSA Tax.

popomama

Thanks. I am not able to find Metabank version Vanilla GC here in bay area safeways. I appreciate if someone can share which grocery store in bay area carries Metabank version Vanilla GC.

Jim

Huge F***ing caveat! I set myself up for some spends and needed to manufacturer to cover them. “Loaned” the Government $7,200 by overpaying my taxes on my credit cards in February 2021. It is now 01/07/2022 and my return is still being processed and my refund in on hold. My return is a generic W2 scenario with no creative deductions.

satellite

At least you’re earning 3.13% on that money annually. There are no savings account/CDs with a better rate right now.

Jim

Seriously? That actually makes me feel better! My only concern is the if/when I get reimbursed.

Lee

Still waiting too, but for way less ($500). Glad to know I’m not alone.

John

Same here! I paid 11000 get get the chase ink bonus points. Still haven’t received it back. I have called several times and talked to them on phone but they just say due to covid it hasn’t been reviewed. Now I can see that negative amount in 2021 transcript, not in 2022 trascript.
It’s starting to make me nervous, looking back I wouldn’t do it. Too much headache and uncertainty.

Trizzler

I went to make some payments today and found that the ACI Payments debit card fee has raised to $2.20 from $2.00

Greg The Frequent Miler

Thanks. Updated.

Kimbray

Pay1040.com has decreased their CC transaction fee to 1.87%

Greg The Frequent Miler

Thanks. Updated.

freqflyercoll

I haven’t actually tried using it, but it looks like ACI Payments now offers a PayPal payment option as well. Hopefully there’s more PayPal category bonuses in the future!

sa13doc

delete

Last edited 24 days ago by sa13doc
Karen

Is PayUsaTax.com down?

Frank Wilson

Sorry if this has been answered already (I couldn’t find it), but can the Point Debit card be used for paying taxes on any of these websites and, if so, does it code and charge as a debit card for the lesser fee?

Taxpayer

Here is how to work around the PayPal payment bug on payUSAtax when you’ve already made a previous payment for that tax type/year combo.

Sign up for an account and use the “schedule future payments” feature.

  1. Click Login at the top.
  2. Under New Users, click Schedule Future Payments.
  3. Fill in your info.
  4. You should be directed to the flow to add future scheduled payments. If you already had an account that you registered this year, start here but first Login with your credentials, then click My Account again at the top and scroll down to the link under Scheduled Payments.
  5. Select your payment category.
  6. Fill in your info (for personal payments, that’s SSN/ITIN and birth date). Address, etc. should be prepopulated from step 3.
  7. Before clicking on anything else, go to the bottom of the form and put in the payment amount (before fees) and select a date to schedule payment (before 12/31, most likely). Do NOT click on Add.
  8. Now click on the PayPal button to log in and select your payment profile/card.
  9. You should be back on the same form as before (steps 6-7). Click Add next to the payment entry, and you should be able to add/remove any additional payments as necessary.
  10. Now schedule the payment and be on your way! It will charge your PayPal.
jodie

THANK YOU!!!!

Piles of Miles

Big thanks taxpayer! Can confirm I set this up as you outline yesterday and it went through early today. I did P1’s Marriott Amex card a month ago but was stuck for P2 until coming upon this.

Kevin

thanks!

Kevin

Put in valid credit card information first (for any credit card) and then press the PayPal button. When doing it this way, I got the PayPal screen to successfully load.”
This trick is not working for me. I noticed this is happening to me because i am trying to make a PayPal payment for a second time on the same day (to use a different Freedom card). If I change my SSN slightly then the PayPal popup works.
I will wait a day or two and see if this issue goes away by itself.

geoff

w2 – want to pay towards 2021 taxes. Looks like I can’t even make 2021 payments? So I can wait until 2022 to make a payment? Just want to make sure that I am not screwing thing up these last few days of the year

Morepoints

Pay 2021 estimate

Yuan

Does paying tax with Paypal trigger 5X category on Freedom card? Thanks in advance.

Morepoints

Yes (didn’t you read the post?)

Ed.C

I have the AmEx Biz Platinum with the 4X bonus and have until February 16 to complete the bonus spend of $25,000. I am going to owe some capital gains tax due to selling a property this year. I don’t believe, even with my MS with buying groups, that I will be able to hit the $25,000 threshold and am considering prepaying $10,000 towards my tax bill. Is it advisable to do it all at once or should I break up the payments, making a payment each month or maybe 2 payments of $5,000 each to get the 1.5X points on spend of $5,000 or more?

Greg The Frequent Miler

I can’t think of any reason why you should break up the payments.

Yue

Vanilla Mastercard gc currently not working PayUSAtax

popomama

By reading the issues of paying via PAYPAL, I was wondering if there is anyone that had luck to pay successfully via PPL in the last several days.

Kevin

worked for me a first time earlier today. Can’t get the popup to stick a 2nd time because the system knows I already paid via Paypal once. Will wait a day or two.

Mikey

Thanks for the tip on the Paypal issue. I was pulling my hair out and trying to see if I did something that made it think I had more than 2 payments in this quarter or if they had a different definition of a quarter (since I had only made one so far and not with Paypal). I will try it out and report back this evening.

Amazing that you even thought of trying this out – I thought I had tried everything before giving up and waiting for December 15 in case their quarterly calendar reset on that date (they do have some weirdness in how they figure quarters for the 2 max estimated quarterly payments).

Mikey

Sorry to report, this Paypal bug “workaround” did not work for me.

Greg The Frequent Miler

Strange: it worked for others. What happens when you try it?

Frank

Didn’t work for me either at about 2am this morning. Got a brief popup which quickly vanished. The workaround didn’t seem to matter; same behavior. Tried two browsers on a Mac with same results.

Last edited 1 month ago by Frank
Greg The Frequent Miler

Unfortunately, I can’t reproduce the problem anymore. Now, I don’t even have to put in cc info for Paypal to work fine. I’ve tried both from the original browser window, and from an incognito window in Chrome on my Windows laptop, and from the Microsoft Edge browser.

EastsideBK

Greg, I too was pleasantly surprised to see your workaround as well for PayUSATax. Like Mikey, I’ve been struggling with this issue for months. In fact, it hasn’t been since Q1 this year I could make 2 PayPal payments in one quarter via PayUSATax.

Unfortunately, your workaround did NOT work for me either. And I tried every single browser out there. I hadn’t thought of Mikey’s idea that trying after 12/15 could “fix” the issue, though I tried periodically throughout Q2 and Q3 with no success.

It is clearly SSN-related. If I put in my spouse’s SSN, the PayPal screen pops up fine. I can reproduce this every time; I’m surprised that you cannot after you made your first quarterly PayPal payment.

I also am not sure if your comment that you can pay with two different taxpayers (if you file jointly) is a risk worth taking with PayUSATax either? I think Nick mentioned that he simply flipped the primary and secondary person’s SSN on other sites and that idea makes a lot of sense. Unfortunately, with PayUSATax they don’t give an option for a secondary person.

Is it worth $75 (5%) to have to wait on hold for at least an hour and have the IRS rep manually transfer the money over from one spouse’s account to the other? Another reader reported getting the “underpayment” letter from IRS….which also sounds like a less-than-ideal outcome.

Any other thoughts/ideas you have are much appreciated. Like Mikey said, I’ve been tearing my hair out for months on this one!

Mikey

ha ha – we have at least 2 soon-to-be-bald Frequent Milers now in pursuit of this miles and points hobby 😀

On a serious note, @EastsideBK, I agree with you on the spouse SSN. I have done that once a few years ago, and I can’t remember exactly what I had to do to fix it (I definitely didn’t call the IRS) – I think my accountant had them fix it electronically somehow. Probably cost me more than whatever benefit I derived, though the amounts were larger in my case (not the $1500 paypal 5% limit) since it was in pursuit of some large spending bonus then. But still not worth it, at least for me, to have to deal with the bureaucracy, so I have just tried to use my 2 per payment processor per quarter limit more strategically since then.

Mikey

As others have helpfully replied on this point before I could get to it, it did behave exactly the same way with and without CC info. Tried different browsers, different credit cards even (Visa/MC) all with the same unsuccessful result. The popup flashes briefly and goes away. Oh well!

Greg The Frequent Miler

Can you try a different SSN just to get the Paypal box to come up successfully, pick your credit card through PayPal and then go back and change the SSN? I haven’t tested to see if it allows that… just wondering.

Mikey

Already tried a different SSN yesterday and yes that made the paypal box come up. But it appeared from the button text (not sure) in Paypal that hitting submit would complete the transaction (not go back) so I didn’t risk it at that point.

EastsideBK

Mikey, I’m 100% with you on everything you’ve said. Greg’s idea is interesting (re: trying a different SSN and then going back) but I don’t know what happens when you hit “Submit” either. In other news, your idea that PayUSATax’s calendar may reset after 12/15 did not work either for me tonight.

This is totally strange if you think about it…..their website must be hard-coded to only allow 1 PayPal payment per quarter even though their website clearly says that you can make 2 per quarter:
Tax Type: Quarterly
Maximum Payments: 2 Per Quarter

  • Form 1040ES Estimated Tax Payments
  • Trust Fund Recovery Penalty Tax Payments
  • Form 941 Current Quarter Balance Due Payments
  • Form 941 Prior Quarter Balance Due Payments
  • Form 941 Amended or Adjusted Return Payments

https://payusatax.com/IRS/Home/LoadStaticPage?pageName=FAQ#14

I’m fresh out of ideas…..

Mikey

Yes, very strange. Just a minor correction – I have done one NON-paypal payment (on 9/15) with payUSATax, so its also not that I used up the one quarterly paypal payment as you indicated. And I definitely know 2 credit card payments per quarter do work for many years.

Yeah, that 12/15 reset theory didn’t pan out 🙂

Greg The Frequent Miler

I’ve gone through the Paypal Popup window and selected a credit card and can confirm that pressing OK (or whatever the button is on the Paypal popup) does not cause the transaction to complete. You get taken back to PayUSATax to finish up.

Kevin

yes, but when you go back and change your SSN and name then you at at the beginning of the loop again.

BML

I also confirmed it is SSN related. I switched to my name and my SSN (even though my spouse is primary and has made 1 PayUSA payment this quarter). I was able to bring up the PayPal popup and complete it in my name. Hope it is okay!

popomama

This is a good idea. Anyone tried?

popomama

Mikey, is this your 1st payment on PayUSATax for this quarter?

Mikey

Yes, either first or second depending on how they define “quarter”. I had a payment on 9/15 by credit card, not paypal. I wasn’t sure if their quarter was based on tax deadlines which is the 15th of the month or actual calendar quarter. I actually have zero prior payUSAtax payments in calendar Q4 and this is the 1st one in that case.

worldtraveler303

Any data points whether a EIN for a LLC is considered separate on the 2 payment limit? I already maxed out with my SSN for my quarterly payments.

FLMom

Does anyone have any concern about giving your SSN out to another company to pay taxes?

Has anyone had any trouble with the payments posting when using the primary SSN?

Thank you!

wjsecond

Never a good feeling when you are required to give your SSN out but have not had any problems so far with the 3 online tax payment processors authorized by the IRS.

No trouble yet with tax payments posting when using the primary’s SSN. Primary is spouse, me second. I use a credit card only in my name, and everything has alway recorded properly. I created an IRS online account to view receipt of payments for peace of mind.

Mikey

Its a legitimate concern, and one that I had initially as well. But these payment processors (at least the 3 authorized ones) are linked to, directly from the IRS website (google IRS payment by credit card) and seem to be blessed by them, So I think its a lot less risky than other places where we give out SSNs to private companies (not just banks and employers but no-name employment background check companies, new wireless phone service, even individuals such as a landlord or leasing company) as a condition of obtaining services. Plus logically, there is no other way for them to apply it to your taxes other than using your SSN as your “account number” with the IRS. The worry of course, is the risk of not just intentional abuse but inadvertently being affected if their servers get hacked. However, after companies like the large credit bureaus, Target and T-mobile – among others – compromising our SSN data with lame security processes, I just assume there is no more or less risk of that, than in other legitimate places you have to share your SSN. Just my 2 cents.

Also, never any trouble in years of using it multiple times each year with all 3 processors, as long as I used the primary SSN and matched the names and addresses exactly as my previous tax returns (though not even sure if that matters).

Ken

Seems clear to me that the best cash back card to use routinely for this if you pay 6 figures in tax estimates is the B OF A platinum/diamond level rewards cards with the 2.625 everyday spend rebate. Not everyone has this situation of course and actually only saves 625 buck per 100k, but better than nothing.

popomama

My spouse and I filed tax return jointly and I am the primary person. We made some estimated tax payments via credit card online. Question is if we put my spouse’s SSN when submitting the payment online, will it cause any issue? Is IRS smart enough to figure out I am the primary person though my spouse’s SSN is entered in the payment? Thanks.

whocares

thanks for this post. Didn’t think / know about the PayUSATax/Paypal angle. Just had a $5k tax payment required come up…so this could be useful. Put spend on Marriott card or go for the $8k Hilton free night offer. decisions decisions.

NK3

A potential stack with the Marriott Amex Paypal offer–there are spend offers for 7500 points with $7500 spend on the Marriott Amex cards (which came out at the beginning of the year). By itself this is not compelling, but I plan to max out the Paypal offer with a tax payment, which will get me close to this additional bonus.

L K

Estimated taxes for 2nd quarter are usually due June 15 (except for one exception in 2020). Please double check the date you have posted.

Greg The Frequent Miler

Good catch! Thanks. Fixed.

Biggie F

One other opportunity is that in overpaying up to $5,000, you set yourself up for the ability to buy more U.S. Series I Savings Bonds than the normal $10,000 per year per person. E.g., with an employee card on the Amex Business card, that’s 27,500 MR points for the $5,000 spend, plus 20,000 points for hitting the $4,000 on the employee card, plus the best savings rate available, for about $99.

I cut the following from the IRS website:

Buy U.S. Series I Savings Bonds with a portion or all of your tax refund for yourself or anyone. Issued by the Department of the Treasury, Series I bonds are low-risk bonds that grow in value for up to 30 years. While you own them they earn interest and protect you from inflation.
Buying savings bonds with your tax refund is simple and easyJust tell your tax preparer you want to buy savings bonds with part or all of your refund! If you prepare your own return using tax software, the computer program will guide you. If you file a paper return, use Form 888, Allocation of Refund (including Bond Purchases). The instructions explain what you need to do.

In any single calendar year, you can purchase up to $5,000 of I bonds under this program. If you purchase bonds with your tax refund, the amount you request must be divisible by $50. If you don’t buy I bonds with 100 percent of your refund, you can elect to have the remaining amount not used to purchase bonds be deposited into a bank account, your TreasuryDirect account, or mailed to you as a check. For example, if your refund is $280, you can direct $250 to I bonds and the $30 balance to your savings account or request a check by mail. The choice is yours!

Greg The Frequent Miler

Interesting angle, thanks for sharing!

DSK

Are you absolutely sure you can’t pay estimated taxes using a credit card in early January? If you are basing your answer on the faqs of some providers, I think they update them in January to push the dates forward a year (ie, they will accept 4th Q 2021 payments in January 2022). This concerned me a lot a few years ago until I “broke the code”. I have made 4th quarter payments using credit cards in January many times. The reason this matters is it is a great way to kill annual spend requirements (for example, $25k on Delta, $15k on Hilton Surpass, and now on a calendar year $15k on Hyatt). If something changed this year, this is big news, but if not, this has never been a problem for me.

Greg The Frequent Miler

No, I’m not at all sure about that at all. Thanks for pointing it out. An end date of 1/1 doesn’t make any sense given that Q4 payments aren’t due until mid month. I took out the end dates for the January payments.
(Yes, I got the dates from the payment processor: https://www.pay1040.com/TaxPayerTools/FrequentlyAskedQuestions#question02)

Kevin

The option for Estimated tax goes away sometime in mid-January (1/15?) In it’s place a new option shows up “extension payment”. I tried to do an Estimated Payment in the 2H of January and that wasn’t an option with any of the payment providers.

slaven

excellent article. for the 1st time was thinking of overpaying on my AmEx by $20k, but was wondering how long is usually the turnaround time for overpayment refund? any way to expedite such an overpayment once you realize its taking too long?

Greg The Frequent Miler

Thanks. The turnaround time is completely unpredictable these days. I added a section about how to request your refund if it doesn’t come automatically: https://frequentmiler.com/pay-taxes-via-credit-card/#How_to_request_a_refund_if_it_doesnt_come_automatically

Kevin

i did an overpayment for tax year 2020. Still waiting for my refund.
Was on a call with IRS in November – they said it’s resolved and I should be getting the refund any day now. We will see.

Not worth it!

Yue

Vanilla Mastercard gc works on pay1040 today

Jerry

How long does it take for a $498 Metabank VGC Payment thru ACI to show up on my IRS account page? It doesn’t seem to be immediately.

Rajadat

last year, i had to email ACI to get my two payments to reflect. they replied within one business day and fixed the issue. hope this helps!

Raghu N

I tried paying with a Vanilla VGC purchased from CVS (in California). when I tried paying on PayUSATAx, it says it is not a debit card. It has been activated and shows a balance of $500. It works on official payments and Pay1040

Any idea what is going on, any workaround

Thanks
Raghu

Greg The Frequent Miler

We have had this note in the post for a while:
NOTE: Vanilla Visa gift cards are not recognized as debit cards at PayUSAtax.com.

wjsecond

Thanks for that link noting January 1. Marked my calendar to pay taxes January 1, 2022, to meet a CC min spend. I assume that the last day is through January 1 and not “up until January 1”.

Last edited 1 month ago by wjsecond
RyanB

I am planning ahead for 2022 and will need to make $1.7M in estimated payments.

I am thinking of using the Bank of America Premium Rewards card with Platinum Honors Preferred Rewards to gross 2.625% cash back (a bit more since you also earn rewards on the fee).

Does anybody see any problems with this? I am planning on a credit limit >$70k to make it happen.

Does BoA code these as cash advances?

Are other recommendations for cards? I am not looking at chasing sign-up bonuses or limited cash back (up to $X).

Greg The Frequent Miler

That sounds like a good idea to me. Make sure that you qualify for BOA’s Platinum Honors before starting that spend. Also, in order to get more capacity, consider getting all three of these cards:

All three of the above cards will earn 2.625% back. You won’t incur cash advance fees for paying taxes.

RyanB

I opened a checking account at BoA with $105k last week. I am hoping I “qualify” for Platinum Honors next statement cycle. There is some language about a 3 month average, but that is waived for new accounts.

Unfortunately, I am limited to 2×3=6 transactions per quarter. Therefore, opening other cards won’t help. I can payoff the cards as soon as the transaction posts.

I requested a $100k limit from Citi a couple of months ago. It was initially denied, but when I submitted documentation they approved it. I am not sure if that will help or hurt my case with BoA.

Kevin

if you put in $300K you can get Platinum status after 1 month. They look at the average of the last 3 months. It would just use $0 balance for the first 2 months then $300K for the last.

RyanB

There is some verbiage about qualifying if you mee the minimum within the first 30 days, for 1 day. I was not enrolled very quickly. I did reach out and they were unable to enroll me, but did submit a ticket. A few days later I received Platinum Honors. Not sure if it was my call or if it was automatic.

It didn’t appear to be based on the 3 month average, since $125k/3 would have still qualified for something.

Rajadat

Do one vanilla Mastercards still work?

Vince

Simon gift cards do not appear to be working on all 3 sites.

freqflyercoll

is this still the case?

Vince

Not sure as I liquidated another way

Rosco

Metabank Visa working at ACI as debit. Not working at PayUSATax or Pay1040.

Rosco

Metabank Visa stopped working at ACI. Sunrise Visa working as debit at PayUSATax (and PayMNTax) and Pay1040.

Terry

Which stores carry Sunrise Visa cards?

Rosco

Metabank Visa worked at ACI as debit today.

Rosco

Vanilla Visa working as debit at ACI and PayUSATax (did get to try them at Pay1040)

Rosco

Metabank Visa working as debit at Pay1040.

Rosco

Metabank Visa worked as debit at all three IRS payment processors today.

Greg The Frequent Miler

Thanks for your updates! I’ve updated the post.

Kay

Hey Greg,
My spouse needs to pay EST tax for our jt filing. The amt is not large like some on this thread. Just for the amt of $1250. I have just gotten a new CSP for the 100k points. Can my card be used to pay the taxes even tho I am not the primary filer on the return?
Many thanks!

Greg The Frequent Miler

Yes definitely. There’s no problem with doing that.

Raghu N

I just tried to pay Q3 estimated taxes. Vanilla Visa GC does not code as debit card with PayUSATax. First time using Vanilla Visa as the local grocery store switched to Vanilla Visa(5.95 fee vs 6.95 for MetaBank for a $500 GC) from MetaBank

When I pick Debit, PayUSATax says this is NOT a debit card.
I even reset the PIN for the GC, still no luck

Any ideas

Raghu

Terry

That’s strange. I just used a Vanilla Visa GC yesterday at Pay1040.com with no problems and at PayUSATax.com on Aug 7 with no prolbems.

freqflyercoll

Is anyone able to use PayPal on PayUSATax currently? When I click the PayPal link, it appears to attempt to load a Paypal window, but then it closes immediately. Was hoping to pay via PayPal for the 5% on Discover this quarter

For what it’s worth, I see some errors in the browser developer console. I’ve also tried 3 different browsers on a Mac.

Tim

same, i hope they fix this soon

freqflyercoll

still not working…

freqflyercoll

Apparently, there’s a number of others who have this issue, in this PayPal thread: https://www.paypal-community.com/t5/Payments/PayPal-payment-pop-up-window-closes/td-p/1583440

Greg The Frequent Miler

Thanks for this update. I haven’t tried to pay with Paypal so I haven’t personally encountered the problem.

Greg The Frequent Miler

I believe I’ve found a work-around to the issue of trying to pay taxes via PayPal on PayUSATax:

Put in valid credit card information first (for any credit card) and then press the PayPal button. When doing it this way, I got the PayPal screen to successfully load.

Please let me know if this works for you!

freqflyercoll

That worked for me!

freqflyercoll

so this workaround did work a couple days ago, but I’m trying to make another payment, and the workaround no longer works

freqflyercoll

I just checked the PayPal discussion forum, and there’s a message indicating this feature is tied to your SSN: https://www.paypal-community.com/t5/Transactions/PayPal-payment-pop-up-window-closes/m-p/2822418/highlight/true#M51062

So I was able to make a payment via PayPal successfully using both mine and My spouse’s SSN, but unable to get PayPal to show up for a 2nd payment. however, if I change the SSN, PayPal does appear. So it looks like you basically have one shot for PayPal per SSN per quarter?

Jason Smith

To help with the Data Points, here are the payments I made so far this year:

ACI – Vanilla Visa, MetaBank Mastercard, Walmart Visa

Pay1040 – Vanilla Visa, Walmart Visa, MetaBank Mastercard

PayUSA – MetaBank Visa

Last edited 6 months ago by Jason Smith
Dokus

Metabank variable MC declined as debit on PayTaxUSA, accepted as debit on ACI

katie

I files my tax via Turbo Tax software. How can I make 2 separate payments with 2 credit cards? Thanks.

Greg The Frequent Miler

Yes, within Turbo Tax simply indicate that you are separately mailing a check to the IRS. Then go through the payment processors to pay by credit card. You don’t need to send it a payment stub even though Turbo Tax will tell you to.

Dan

Hey Greg,
“June 15 2021: 2nd quarter 2021 estimated taxes due
(Payable online from 05/15/21 to 07/15/21)”

So.. you can pay the estimated tax after the due date? Thanks

Greg The Frequent Miler

I found that strange too. That came from a payment processor’s website.

Rfclub

i think you can still pay after the due date, but you may need to pay penalty and/or late fee if after the due date.

Last edited 7 months ago by Rfclub
Randy Ly

Simon GCs are working again today on pay1040.com

Greg The Frequent Miler

Awesome. Thanks for letting us know!

Dokus

Metabank MC: Success on Pay1040, “not a debit card” on payUSATax

Kevin

When does the IRS refund the overpayment? My 2020 IRS account shows I have a $2000 credit from the overpayment. I filed my taxes in early April. Still waiting for them to refund it. Tax refund status tracker still says in process, refund timing unknown.