Pay taxes via credit card, 2023 edition

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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.

Welcome Wall Street Journal readers! If you found us thanks to our recent quote in the Journal article about paying taxes with a credit card, we’re glad you’re here. This is our complete guide to paying taxes with a credit card. If you’re new to miles and points, see our Start Here page or consider subscribing to email alerts.

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

Pay taxes via credit card

Important due dates

2023 Tax Year Due Dates

  • January 16, 2023: 4th quarter 2022 estimated taxes due.
    (Payable online from 10/15/22 – 2/1/2023)
  • April 17, 2023: End of year taxes due for 2022.
  • April 18th, 2023: 1st Quarter 2023 estimated taxes due.
    (Payable online from 3/1/2023 – 5/15/2023)
  • June 15th, 2023: 2nd Quarter 2023 estimated taxes due.
    (Payable online from 5/15/2023 – 7/15/2023)
  • September 15th, 2023: 3rd Quarter 2023 estimated taxes due.
    (Payable online from 7/15/2023 – 10/15/2023)
  • January 16th, 2024: 4th Quarter 2023 estimated taxes due.
    (Payable online from 10/15/23 – 2/1/24)

Deals

Current Deals

Future Deals

  • TBD

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

1. Profit w/ a 3% Cash Back card

A number of credit cards earn cash rewards greater than 2%. Some even earn 3% cash back:

  • The new/updated Paypal Mastercard will earn 3% cash back on all PayPal purchases.  Details here.  This approach will work only with the services that allow payment through PayPal.
  • The Discover It Miles card earns 3% for the first year of card membership (you earn 1.5% and then at the end of the year all cash back earned is doubled).

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
150K points + $200 in statement credits
150K after $6K spend in 6 months + $200 in statement credits for purchases in the first 3 months. Terms apply.
(Offer Expires 6/7/2023)

$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.

Alternate offer: Resy Offer: 100K after $6K spend in 6 months plus 10x dining for 6 months on up to $25K spend. Terms apply.

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]

American Express® Gold Card
90K points + $200 in statement credits
90K points after $4K in purchases in the first 6 months + $200 statement credit for purchases in the first 3 months. Terms apply. (Rates & Fees)
(Offer Expires 6/7/2023)

$250 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: 90K after $4K in the first 6 months + 20% back at restaurants for the first 12 months up to $250 back [Expired 6/8/22]

Capital One Venture Rewards Credit Card
75K Miles + up to $200 in statement credits
Earn 75,000 bonus miles after $4K spend in 3 months + up to $200 in statement credits when you make an Avelo purchase in your first year + priority boarding on Avelo flights for the first year.

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

Chase IHG® Rewards Premier Credit Card
175K Points
175K points after $3K spend in 3 months

$99 Annual Fee

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

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

Capital One Venture X Rewards Credit Card
75K Miles
Earn 75,000 bonus miles after $4K spend in 3 months

$395 Annual Fee

Recent better offer: Expired 3/14/22: 100K after $10K spend in 6 months + $200 credit for vacation rental spend in first year

Chase Freedom Unlimited
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 on grocery purchases for 1st year (on up to $12K in purchases). 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.24% - 27.999%.

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.

Alternate offer: Referral Offer: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 gas purchases for 1st year (on up to $6K in purchases)

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 on grocery purchases for 1st year (on up to $12K in purchases). 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.24% - 27.99%.

No Annual Fee

Be sure to select the card you want after clicking through. 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.

Alternate offer: Referral Offer: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 gas purchases for 1st year (on up to $6K in purchases)

Recent better offer: 20K points + 5x grocery stores for the first year on up to $12K in qualifying purchases

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

Alaska Airlines Visa Signature
72K miles + Companion Fare
72K miles + Companion Fare ($99 fare + taxes) after $3K spend in 3 months

$95 Annual Fee

Leave "Employee ID" blank or fill-in with any 6-digit number

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]

Chase United℠ Explorer Card
60K miles
60K miles after $3K spend in 3 months.

$0 introductory annual fee for the first year, then $95

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

Recent better offer: Expired 8/11/22: 70K after $3K spend

Chase IHG® Rewards Traveler Credit Card
80K Points
120K 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: 120K after $2K spend (expired 7/4/22)

Citi Premier Card
60K points
60K points after $4K spend in the first 3 months

$95 Annual Fee

Marriott Bonvoy Boundless® Credit Card
75K points and a $300 Marriott eGift Certificate
Earn 75K points and $300 Marriott eCertificate after $3K spend in 3 months

$95 Annual Fee

Barclays JetBlue Plus Mastercard
60K Miles
60K miles after $1K spend and payment of the annual fee in 90 days

$99 Annual Fee

Chase Southwest Airlines Rapid Rewards® Plus Card
50K points
50K points after $1K spend in the first 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 Aer Lingus Visa Signature® Card
Up to 100K Avios
75K Avios after $5K spend in 3 months + 25K Avios after total of $20K spend in 12 months

$95 Annual Fee

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

Recent better offer: Expired 7/4/22: 100K after $5K spend

Chase British Airways Visa Signature® Card
Up to 100K Avios
75K Avios after $5K spend in 3 months + 25K Avios after total of $20K spend in 12 months

$95 Annual Fee

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

Recent better offer: Expired 7/4/22: 100K after $5K spend

Chase Iberia Visa Signature® Card
Up to 100K Avios
75K Avios after $5K spend in 3 months + 25K Avios after total of $20K spend in 12 months

$95 Annual Fee

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

Recent better offer: Expired 7/4/22: 100K after $5K spend

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

$400 Annual Fee

Southwest Rapid Rewards® Premier Credit Card
50K points
50K points after $1K spend in the first 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)

Capital One VentureOne Rewards Credit Card
40K miles
Earn 40,000 bonus miles once you spend $1,000 on purchases within the first 3 months from account opening

No Annual Fee

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

$550 Annual Fee

Recent better offer: Expired 12/1/22: 80K after $4K spend

Chase United Quest Card
60K Miles + 500 PQP
60k miles and 500 PQP after $4K spend in the 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

Air France KLM World Elite Mastercard
50K miles + 60XP points
50K miles after $2K in the first 90 days + 60XP points upon approval

$89 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: Going through the steps to make a dummy booking at the Air France website may result in an offer that also includes a $100 statement credit.

Southwest Rapid Rewards® Priority Credit Card
50K points
50K points after $1K spend in the first 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)

Delta SkyMiles® Reserve American Express Card
90K Miles
90K Miles after $6K spend in first 6 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]

Hotels.com Rewards Visa Credit Card
Up to $375 in reward nights
Get two reward nights worth $125 each when you spend $1,000 on purchases in the first 3 months. Get another reward night after $4K spend in 6 months. Excludes taxes and fees. If your reward night costs less than $125, you won't get the difference.

No Annual Fee

Marriott Bonvoy Brilliant® American Express® Card
95K Points
95K points after $5K in the first 3 months. Terms apply. (Rates & Fees)

$650 Annual Fee

Recent better offer: 150K after $5K spend in 3 months [Expired 1/12/23]

Blue Cash Preferred® Card from American Express
$350 back
$250 cash back as a statement credit after $3K in the first 6 months plus $100 cash back as after $1K in first 3 months Terms Apply. (Rates & Fees)

No Annual Fee First Year, Then $95

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)

Citi Custom Cash Card
20K Points
20K points after $1500 spend in the first 6 months

No Annual Fee

Recent better offer: Expired 9/13/22 - 20,000 points after $750 spend in first 3 months

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

No Annual Fee

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

Recent better offer: Expired 8/11/22: 30K after $1K spend

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

The Amex EveryDay® Preferred Credit Card from American Express
15K Points
15K after $1K spend in 3 months. Terms apply.

$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.

Alternate offer: Some people click through and find that they are targeted for an offer of 30K points after $2K spend in 3 months.

Recent better offer: 30K after $2K in first 3 months

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 American Express Card
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

Chase Slate Edge
$100 Cash Back
Earn $100 statement credit after $500 in purchases in first 6 months. 0% Intro APR for 18 months from account opening on purchases and balance transfers. A variable APR of 19.24% - 27.99% on balance transfers and purchases after the introductory period ends.

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

Bilt Mastercard
None
This card features no welcome bonus, but it offers the chance to earn 1x points when paying rent (on up to $50K per year in rent payments) with no annual fee.

No Annual Fee

Citi Double Cash Card
None
This card does not currently feature an introductory bonus.

No Annual Fee

Recent better offer: 20K points after $1.5K in the first 3 months

SoFi Credit Card
3% cash back + $50-$250 bonus
$50-250 + 3% cash back on up to $12,000 for one year after being approved for a credit card and setting up a direct deposit within the first 25 days ($50 bonus for deposits under $5,000; $250 for direct deposits of $5000+)

No Annual Fee

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
    None
    This card does not currently feature an introductory bonus.

    No Annual Fee

    Recent better offer: 20K points after $1.5K in the first 3 months

    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

    See also: Citi ThankYou Rewards Complete Guide

  • 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 75K 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
    75K Miles + up to $200 in statement credits
    Earn 75,000 bonus miles after $4K spend in 3 months + up to $200 in statement credits when you make an Avelo purchase in your first year + priority boarding on Avelo flights for the first year.

    $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: 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
    Travel
    Other

    Earning rate: 2X everywhere ⚬ 5X on hotels and rental cars booked via Capital One Travel

    Noteworthy perks: Receive up to $100 application fee credit for Global Entry or TSA PreCheck® ⚬ Redeem miles for travel at value of 1 cent per mile ⚬ Convert "miles" to airline miles & hotel points ⚬ No foreign transaction fees ⚬ 2 complimentary visits per year to Capital One or Plaza Premium Lounges

    Capital One Venture X Rewards Credit Card
    75K Miles
    Earn 75,000 bonus miles after $4K spend in 3 months

    $395 Annual Fee

    Recent better offer: Expired 3/14/22: 100K after $10K spend in 6 months + $200 credit for vacation rental spend in first year

    FM Mini Review: This card offers annual rebates that easily mitigate the fee for those who travel often. Authorized users are free and also get access to perks like Priority Pass, Capital One Lounges, Plaza Premium lounges, and more. 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 huge advantage over cash back: Capital One allows transfering their "miles" to airline miles & hotel points.


    Card Type: Visa Infinite

    Base
    Travel
    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 PreCheck® ⚬ Priority Pass membership (Lounges only) with unlimited guests ⚬ Plaza Premium lounge access ⚬ Premier Collection Hotel bookings ($100 experience credit, daily breakfast for 2 and other premium benefits) ⚬ 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 (For Capital One products listed on this page, some of the above benefits are provided by Visa(R) or Mastercard(R) and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply)

    Capital One Spark Miles for Business
    50K Miles
    Earn a one-time bonus of 50,000 miles once you spend $4,500 on purchases within the first 3 months from account opening

    No Annual Fee First Year, Then $95

    Note: Most Capital One Business credit cards (including this one) DO count against Chase's 5/24 Rule

    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 similar to the Spark Cash Plus card, but it has the advantage that "miles" earned with this card can be transferred to a large number of airline & hotel programs.


    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.

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

How to pay taxes via credit card: Key Information

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

Credit card fee 1.85% 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 $2.50 per transaction and credit card fees range from 1.85% 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.

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.

Pay with Paypal

Both ACI Payments and PayUSATax allow 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.  Here is a work-around that has worked for some people, but not all: 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.

Frequently Asked Questions

Will I be charged a cash advance fee when paying taxes with a credit card?

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.

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.

How can I see my tax payment history 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.

When should I report estimated tax 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 should I 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 I over-pay my 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 do I 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 I 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.

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mayukita

I just paid my individual federal tax through pay USA using my consumer amex platinum and chase ink business cash card but they don’t accept chase business card. I am wondering because I do have small business and card is associated with TIN/EIN with my business. GA DOL does not accept it either (through ACI). I was hoping to be able to use business card for paying my individual tax but …however I have not tried paying my payrol tax through my business. Just wondering if anyone else experienced this or is it common knowkedge this would happen?

GemGal

The section “Liquidate Visa/MasterCard gift cards cheaply” has data points that are from 2021…probably time to update those

Cavedweller

My new chase INK will work $6k it’s property Tax time 5/1..ALOHA

Andrew

So I pay quarterly estimated taxes, but I did not use a credit card for that. I am currently working on my personal tax return, and I am estimated to receive a refund and not owe anything. Two questions related to this:

1) Can I still pay money towards my taxes as a part of my tax return even though I am estimated to get a refund?

2) If I overpay now, would it be counted towards my 2023 tax payment (and thus not receive the refund/have to float the cash) until next year? Or would it count towards 2022 and I would just receive the refund once my tax return is processed?

Thanks.

Cavedweller

1) Yes
2) Yes …MAKE SURE u pay the Right Slot to get ur Refund for 2022 Fed or State..TELL ur CPA too.
2A) Tell ur CPA what amount u want Back and or What u want put forward for 2023 before he Files it..
C) or Pay for First 1/4 2023 and get it Next year..

SAVE EVERYTHING FOREVER !!!
Done All of the above many Times !!!
V. Bernie

See

Do the processors give you a form to include when filing your taxes that states how much you paid? Or do you just need to keep track of it yourself and check the IRS website that your payment posted?

Lee

I’ve read that Paceline is shutting down.

Travis

Vanilla visa gc from metabank stopped working at both pay1040 and officialpayments today. It worked a week ago.

Kent

Just had a Vanilla Visa work at ACI (Official Payments) for 1040ES.

anthonyjh21

Hoping the community can verify if I have my facts correct.

Wife and I are MFJ and owe federal taxes for 2022. There’s currently a giftcards.com deal for 6 $250 gc which I would like to use for both P1 and P2 (so 12 total gift cards to max out the 5% discount).

My understanding is if I can pay twice with the three payment processors per person that would be 6 payments each, 12 in total between wife and I if we make payments under our own name (and should go to the same 2022 return for MFJ.

Am I understanding this correctly? TIA

rfclub

Vanilla MCGC does not work in Payusatax today. It says that the billing zip code is not correct. But there is no way to set the zip code in Vanilla’s website or phone. I remember that it worked In Jan. I use the same card in ACI successfully.

whocares

ditto experience yesterday…except Vanilla VISA card (Sutton Bank) – same zip code issue.

Used ACI instead – works. $500 gift card. FIrst time paying with gift cards.

Nice to read about Greg’s experience with 2 per payment processor, not 2 per year. Saw also on The Frugal Tourist article.

How long does it take for payments to show up on the IRS website?

Says CHECK or MONEY ORDER – up to 3 weeks….but payments by DEBIT card?

Grace

Vanilla VGC doesn’t work either, same zip code issue.

Clement

Is there still issue to pay estimated tax with Chase Ink if not going through PayPal? Is there any recent DP of using Amex to pay estimated tax to satisfy Amex SUB? Thanks!

rfclub

my dp:  success using Amex to pay estimated tax to satisfy Amex SUB

Clement

Thank you for the dp. Can you share which vendor did you choose? Pay1040? ACI? PayUSAtax? Did you pay directly or link to PayPal first? Thanks

rfclub

Payusatax. Pay directly. Amex biz platinum.

Steve

How are people able to make payments after Jan 17 (i.e. when Q4 estimated taxes are due) and then claim 1-2 months later.
I don’t quite understand the maneuvering re: Form 4868 payments

Frank

PayUSAtax still allows you to pay 2022 taxes via credit card I just did it today. It does not seem to accept any of my Chase VISA cards now, but my AMEX Bus Plat was fine.

Bob

Has anyone tried using the American Express Business Checking debit card? Pays .5 points per dollar spent, seems too easy? The daily limit is $5,000 but you could break that up across all the processors over a week or so.

Last edited 2 months ago by Bob
Scot

The more expensive ACI payments worked, obviously.

Scot

Getting this error on payUSATax with two different Ink cards:

  • This card type is not currently accepted. To attempt your payment with an alternative method, please use a different card type or select another payment option under the Payment Information section below.

Anyone know what’s going on? Seems like a glitch but it’s strange nonetheless.

Also had similar error on the Pay 1040 website. No issue with my cards to my knowledge. Tried on Firefox and Safari.

May just try again tomorrow?

tulikettu

I ran into the same issue on payUSAtax with my Chase Ink Business Unlimited. I got it to work by paying via PayPal (same credit card).

Steve

Great tip, thank you. I was also getting the error multiple times. PayPal all good!

Ashley

Thanks for the tip! I am having the same issue

Frank

Seems not only the Ink cards but my Hyatt Business card as well today.

Bill

Just wanted to confirm that this will trigger the Chase SUB

Tdot

Two questions relating to the 6 x Form 4868 payments that can now be made:

Can someone confirm that I don’t actually need to file Form 4868, and that I just need to make a payment via one of the 3 processors?If yes to the above, do I just enter any rough estimate of my total tax liability for 2022 (Line 4)?Thanks!

Last edited 2 months ago by Tdot
HPack

Yes to both. paying = filing the form and just need a rough estimate

James

Under the tax due dates at the top, it says that the taxes due January 16, 2023 are payable online from 10/15/22 – 12/31/22. Is this an error, or why would this be the case? This is unlike the other due dates. Why can’t you pay the taxes due January 16th in January by the 16th? If you make an online payment in early January, is the payment late? Or is it simply not possible?

David

I’m having trouble with the logistical details.

Hypothetically, let’s say my federal withholding is around $110k per year. (22.5k per quarter).

So if i stop the withholding and pay the IRS with my credit card. Each quarter i’d have to pay around (22.5/6 = ) $3.75k per payment or $7.5k per processor per quarter.

But the maximum each gift card could be is ~$500. That means I would have to eat the 2% fee with high spend bonus cards like amex biz plat NLL to pay my taxes.

At that payment rate ($22k per quarter). I’m concerned that I can’t get enough NLL amex biz plats to cover my taxes for the year… Is that a legit concern?

Frank

I think you are confusing credit cards and debit/gift cards.

When you make a payment to a processor, it can be for any amount. The reason people make multiple debit card payments is because they are using gift cards with limited amounts on them.

So, if I want to pay $6,000 using Simon Gift cards, I have to make six separate payments of $1,000 each (since you can’t get a Simon gift card with more than $1,000 on it).

On the other hand, if I’m using a credit card, I could make a single, one-time, $6,000 payment on any credit card and that’s all I would need to do.

FEES USING DEBIT CARDS TO PAY $6,000: If you made six $1,000 payments with Simon gift cards, the fees would be: (1) the cost of buying the cards from Simon, maybe $30 with a discount code or $50 without, plus (2) the cost of paying your taxes with a debit card, which is $2.20 per payment, in this case 6x$2.20 or about $13. So, $30 + $13 = $43.

FEE USING CREDIT CARDS TO PAY $6,000: In this case, you would simply pay just under 2%, or $120.

So, in your case, if you have a credit card that has a $22,000 credit limit, you could pay your quarterly taxes with one payment on that card and pay a fee of about $440.

If you wanted your fees to be lower, you could go through the hassle of buying $1,000 gift cards, but you could only make six payments per quarter up to $1,000 each, as two payments at each of the three payment processors, or $6,000 total. If you have a spouse, you could each pay $6,000. Either way, you couldn’t use this method to pay the full $22,000 each quarter. But you would save a lot on fees for whatever you paid with a debit card (vs. a credit card).

Hope that helps. I suggest going back and re-reading this entire article in full, as they do a great job of laying it all out.

Last edited 2 months ago by Frank
David

Thank you so much for the reply. I think we are on the same page. I just didn’t know that the max per gift card is $1k.

Let me rephrase my questions:

1. Since one person can have 6 payments per quarter, that gives me the ability to pay $12k in gift cards. But I would need to pay $23k. So the most fee-optimal way would be to pay $11k in gift cards (fee of about ~$100) and pay the last $12k with a credit card. But I would have to eat the 2% fee on the $12k, which is $240. I believe I understood this correctly? No?

2. To optimize the points return on the $23k tax bill per quarter, I would have to get around 2-3/3 credit card sign up bonuses. (Otherwise I’m losing money as most cards only give you 1 point per dollar spent). Assuming I’m not buying gift cards with Amex, the easiest way would be have 2 chase inks to buy the gift cards and have 1 NLL Amex plat biz for the rest of the $12k. That’s 3 big credit cards just to cover my taxes alone per quarter or 12 credit cards just to cover taxes. I’m worried about the velocity of getting 20 credit cards (additional cards with SUBs for daily spend) with big SUBs, specially as I’d have to be targeted for the NLL amex plat biz. I have never had such high velocity in getting this many credit cards. Is this not a big concern?

Also I’d be kinda concerned about chase shutting me down because I’m buying so many gift cards with inks. Is this not another concern at this scale?

Last edited 2 months ago by David
Frank

The max per gift card is $1,000 only because you can’t obtain a gift card with more funds on it than that (as far as I know). In fact, you can pay as much as you want with a debit/gift card. For example, if you have a debit card tied to a checking account, you could make as large a tax payment as you wanted and pay only the $2.20 fee. But doing that doesn’t help you in the points-and-miles game. (I so wish that Simon would sell $10K gift cards, or allow one to combine balances on multiple cards, as that would make all of this easier and lower fees dramatically)

Regarding your questions:

  1. Assuming you are married, which would allow you to do $12K per quarter, what you are saying is correct. I think $100 in fees for that may be a bit high; I routinely buy the max of ten $1,000 gift cards from Simon to pay taxes (higher volume helps with fees, as do the discount codes) and pay $50-60 in fees combined to Simon and the payment processors. But the rest of what you are saying is correct.
  2. I break-even on this game (actually, I made a small profit) by buying gift cards from Simon (close to $100K per year) and paying taxes. Included in my calculations are the value of the points I earn on all that spend, and also the cost of interest that I forgo by having a bunch of money sitting with the IRS rather than a money market account. The big value for me — and the only reason I started doing this — is I also obtain airline status with that spend (using an airline credit card). If I used credit cards instead of debit cards, my life would be easier but the higher fees would result in a loss and probably wouldn’t be worth it. Yes, using SUBs will help these calculations a LOT, and SUBs can be a reason to do this in the first place, but as you noted you can do only so much of that.
David

Yeah unfortunately the 2% fee is a high hurdle to get through. I might start withholding again, this just feels like a lot of time for not enough return on time and investment.

Frank

Forgot to mention: another approach is to reduce rather than eliminate your withholding. So, if you reduce your withholding by just $12K per quarter, you could do the gift card thing on that amount. Might make your task more manageable.

Another point: I like loading up a lot of this into the first quarter, for several reasons. First, you can make triple the number of payments with each processor (another Q4 payment, which I just learned about via someone on these comments; 4868 payments; and regular 2022 payments). Second, I get that money back fairly quickly via my refund, which means that I’m not losing much interest by locking up money with the IRS.

Terry

I assume that there is no problem in filing for an extension with a Form 4868 even though you will file before April 15? By regular 2022 payment, is this the amount that is due with the return? How will these payments be shown on the Form 1040 if there is no amount due but rather an overpayment?

Frank

Correct, no problem asking for an extension and then not using it.

Yes, the amount due with the return.

Just enter the payments you’ve made; don’t worry about whether or not they are “overpayments” because you really won’t know until you calculate what your tax bill is for the year. There are places on the 1040 (or TurboTax or wherever) where you specify your payments (via withholding, credit card, with form 4868, or various other payment options).

Once you’ve calculated your taxes on the 1040 and entered all your various payments, you will then calculate either how much tax is still owed (if payments made < tax) or your refund (if payments made > tax).

Terry

Thanks. Have you previously filed returns making all of these different payment types? I am still unclear where the regular 2022 payments go on the 1040. I don’t see any line that is appropriate. I believe that these are actually intended to be used for payments made after the return has been prepared and the tax due is determined. So if you make these payments earlier, I see no place to put them. I do see the appropriate lines for all of the other payment types that you mention.

Frank

OK, I see your point of confusion. I went back and looked at my 2021 forms, and TurboTax lumped those regular 2021 payments together with my estimated (1040-ES) payments. I have no idea if I did it right, but my refund came surprisingly quickly last year.

I guess the “right” way to do it is to not make those regular 1040 payments UNTIL you’ve calculated how much you owe, and using that to guide you in how much to pay via credit/debit card (which is the point you are making). In that approach, you aren’t recording that payment at all on your return, but the amount due on the return is what you end up paying. Similar to sending in a check with your return, but paying the amount due via credit/debit instead.

Last edited 2 months ago by Frank
David

This is an awesome tip! Thank you!

Yul

ISn’t INK card linked to PayPal zero fees?
works with county taxes no fees not sure about ˆRS.

I ran into the same issue on payUSAtax with my Chase Ink Business Unlimited. I got it to work by paying via PayPal (same credit card).”

Peter

Having problems with Pay1040 and PayUSATax, two services I’ve used before with no issues. Here’s the relevant info:

  • My wife and I file Married, Jointly.
  • Trying to make a 4Q22 ES payment, for tax year 2022, which I thought should be allowed until January 15th.
  • Made a payment using my wife’ personal Southwest Visa. Joy.
  • Tried using my wife’s Southwest Business Visa. Unsuccessful.
  • Tried using my own United Business Visa. Unsuccessful.

So are there are there new limitations on paying personal taxes with a business credit card?

Alan

I’m seeing the same issue trying to pay estimate tax on Pay1040 and PayUSATax using the Chase Ink Unlimited (business) card. Haven’t tried using a personal card.

Trueblue

Were you able to successfully pay using your Chase Ink card? Thank you.

Sherry

Same issue, tried to pay personal taxes with Chase ink cash business card, Unsuccessful.

Last edited 2 months ago by Sherry
Biggie F

Ugh. Same. And was counting on this toward SUB. Pay1040.com and payUSAtax

Also not working for Chase World of Hyatt Business.

Lee

Just tried with my Business Ink Unlimited and it didn’t work. Says, error due to technical difficulties.

John

I’m also getting this same issue on both pay1040 and payusatax

Peter

Update: Successfully made a payment with a business American Express card.
So perhaps it’s only an issue with Chase business cards.

John

I was also able to use a business AMEX on payusatax without issues but the Chase Ink Business Unlimited seems to not work. I called and spoke to pay1040 and they weren’t aware of any issues with specific cards so they couldn’t help. I did find a workaround though, I used Paypal instead and was able to pay through Paypal with the Chase Business Unlimited.

Jake M

Both pay1040 and payusatax are blocking Chase business cards. I was able work around payUSAtax by going through Paypal. That is a recent development since they worked as recently as Q3 for me.

Trueblue

Can you please elaborate how to pay the estimated taxes via paypal? Thank you.

John

Paypal is one of the payment method choices. I just choose Paypal and added my Business Unlimited to my Paypal and selected that card. It’s pretty straight forward unless you haven’t used Paypal prior

ZinCO

I had a $497.80 Vanilla payment on ACI fail on 12/31. Same combination had worked earlier in December. Now the card shows a pending charge so I’m hoping to just run it again once the pending charge drops off, but would be interested in hearing any other recent DP’s for that combination.

IQ0

In order to take advantage of the %5 bonus for PayPal with my chase Freedom cards in 4th quarter 2022, I made estimated tax payments with both ACI and payUSAtax in December and had no issues with either.

DSK

Greg–think I made this comment in past years, but do you have any data points that you can’t pay estimated federal taxes from January 1-15 using a credit card? You wrote: “January 16, 2023: 4th quarter 2022 estimated taxes due. (Payable online from 10/15/22 – 12/31/22). I have been doing this every year for many years. Just for fun , I tried making a payment using Pay1040 just now (I choose that service because of Rocco’s comment below that he didn’t think it would work) and it went through just fine. Also, it was my third payment of 4Q estimated taxes using a credit card, which is also another data point validating two payments per processor and not two per quarter. Hope these data points help1

James

“you can really make up to 6 payments per tax period per type of tax payment” I need to add a warning to this.
I made 6 payments (2 each processor) a couple of years ago in the first quarter. After that, I was unable to make any payments using all three companies (they all said I was over the limit of payments) until the 4th quarter. It was if I pulled the 2nd & 3rd quarter payment allotments forward. So, the 2 online payment company limit was exactly how it worked for me. As Greg says in the article, it could be highly YMMV.
(note that I am only talking about myself and not using an EIN or a spouse to get a higher payment allotment.)

Last edited 2 months ago by James
Rosco

Metabank MC gift card debit work for a 2022 1040-ES payment today on PayUSATax with a $2.20 fee.

ACI and PayUSATax usually allow 2 additional 1040-ES payments for the prior year (2022 in this case), even after maxing out ES payments in Q4. My attempt today work on PayUSATax but was rejected at ACI (and Pay1040). I will have to try ACI again in a few days.

Rosco

Metabank Visa gift card debit also worked for a 2022 1040-ES payment today on PayUSATax with a $2.20 fee.

Frank

Interesting to know that additional Q4 ES payments might be possible. I guess I missed that tidbit!

Something weird might be going on with ACI today because I made two 4898 payments, followed by an attempt at a regular 2022 tax payment. The latter was rejected with an error message that I had already made two of those regular 2022 tax payments, which wasn’t true. I should be able to make two 4898 and two regular 2022 payments, but at the moment ACI isn’t allowing that. I assume it’s a beginning-of-the-year glitch.

Rosco

I copied the following information on personal federal tax credit/debit card payments from a website (not this one?) into my notes. I’ve found it to be accurate (with slight date changes) in prior years – we’ll see if it continues to hold for the “bonus” 2022 ES payments at ACI this year.

You can make a total of 40 online payments per tax year:
1) 28 payments using the Form 1040-ES for 5 periods:
– 03/01/20 – 05/14/20
– 05/15/20 – 07/14/20
– 07/15/20 – 10/14/20
– 10/15/20 – 12/31/20
– 01/01/21 – 01/31/21 (available on PayUSAtax and ACI Payments only)
2) 6 payments using the Form 1040 before the deadline 04/15/21.
3) 6 payments using the Form 4868 before the deadline 04/15/21.

DSK

Rosco–just tried using Pay1040.com today for 4Q2022 taxes and no issue.

Rosco

Interesting data point @DSK – I was unable to replicate it. I tried to make my third Q4/2022 ES payment (two prior payments made 10/15/22) at Pay1040 yesterday and today – both failed with a Maximum Payments Exceeded message on each attempt. My third and fourth Q4/2022 ES payments succeeded at PayUSATax on Jan. 1 and at ACI on Jan. 2 (attempts failed @ ACI on Jan. 1).

DSK

Not sure how large your payment was, but I put $14,725 on Surpass which, with the fee, was just enough to get my annual Hilton free night certificate–went through with no problem (actually, it failed the first time because I probably typed my credit card information in incorrectly, but worked a minute later). Now, I can safely return Surpass to its rightful place in the sock drawer. Perhaps there is some maximum payment amount with Pay1040.com that you aren’t allowed to exceed which isn’t published. Several years ago, I think several of the processors had a $10K limit online (they would take a higher amount over the phone), but I’m pretty sure that has been lifted.

Rosco

Metabank MC and Metabank Visa debit gift cards both worked today for 2022 1040-ES payments on ACI with a $2.20 fee.

Rosco

On January 1 & 2, 2023, Metabank Visa and Metabank MC debit gift cards worked for me at each of PayUSATax, ACI, and Pay1040. I used them to make either 1040-ES or 4868 payments (9 in total). I didn’t use any Vanilla debit gift cards this time around.

Sorry for the multiple posts, but I like to keep my records and public ones current on the prepaid debit card payment methods that work at the federal payment processors.

Frank

In case it matters to anyone, I just noticed that PayUSATax dropped their fees to 1.85% for credit cards (minimum $2.69) and $2.20 for debit (was $2.55). This makes them the lowest price for credit cards and tied for the lowest for debit cards.

Also, options to pay 2022 taxes via two other methods are now available: (1) Regular 2022 tax payments (not 1040-ES), and (2) 4868 (extension to file). Payments for 1040-ES for 2022 are still available but probably not for long.

satellite

How much overpayment is too much compared to total taxes due?

Satellite

I’m mostly worried about getting audited if my refund is in the tens of thousands. Nothing to hide but it would be a hassle.

Tdot

PayUSAtax won’t accept a SecureSpend prepaid Visa, issued by Metabank – says that the zipcode doesn’t match. Anyone else having this problem? I’m sure I’ve used these before and not had a problem.

Frank

You probably have to register it first. I have a detailed posting on that (related to cards from Simon, but it likely applies to other cards as well) in this thread.

Tdot

I don’t think there’s a way to register these specific prepaid cards. There’s nowhere on the page to do so.

I’ve been buying these SecureSpend prepaid Visa cards and using them on all three sites – payUSAtax, pay1040 and ACI and don’t think I’ve ever had an issue before yesterday/today. I’ve already used up my 2 quarterly instalments on the other sites so can’t try those.

Pat N

I was hit with the $10 Cash Advance fee for my September payment. I had never used ACI before but i decided to try it for the slightly lower fee. I saw the $10 extra charge when I got my statement and I was annoyed, but it was to small for me to worry about, I thought it was just their policy and I wouldn’t use them again.

Today I got an e-mail from Paypal apologizing for the erroneous charge (even though it wasn’t they who charged it). and they said they will credit the $10 back to my account.

Wil

Anyone tried to pay tax through Paypal on ACI or PayUSA in the last week or so? Did you get charged the cash advance fee? Thanks.

jeph36

I just used Chase Freedom via Paypal on Sunday Dec 18 to pay $1500 ($1471.17 toward tax and the rest for fees) at PayUSA and was not charged a cash-advance fee.

Unfortunately when I try to do a 2nd payment with my other Freedom, it is erroring out and not letting me pay. I am going to try to figure it out, but I can always switch to ACI if needed (and just pay a bit more in fees).

jeph36

Nevermind on that 2nd comment. Apparently I made a different payment on Oct 08 via PayUSA so I hit my limit of 2/quarter.

Ryan

Anyone else not have their payment code 5x for Chase Freedom family but the separate fee did code with 5x?

Mike

BofA offering 2x extra points on Nov 5th this year. 3x Alaska miles is a good deal here.

milesonmiles

I have property taxes coming up in a few days. If I were to put them on a credit card with welcome bonus (say chase ink cash or personal Amex platinum), will they count as part of the minimum spend? I saw some individuals discussing here that some did not have success with paying federal taxes, so curious what everyone’s experiences are with property taxes for those two cards?

Cavedweller

Works Perfect for Me on Min spend or debit my checking so I Don’t have to Go ..Just got the WH discount @ 65 last year then 6% for this year..Debit is no fee CC I THINK 2%..

Cavedweller

Perfect way to meet the Min spend on any new card. Prepay any bill then put every spend on the card. After 2.5 months pay some Taxes as Done u get the points $$$$.
A Zillion times as in Simple to do…
CHEERs

Last edited 4 months ago by Cavedweller
Cavedweller

I filed late like a month ago and I got Fed in 3 weeks just like when I filed on time. No state refund yet but usually 4 weeks+..
CHEERs

Jerry Love

Greg, I have tried, with no success, to ascertain why the two processors charge their credit-card rate on business debit cards (Nearside is a business debit card).
I would like to understand the argument of the two processors as to why they feel justified in doing this. Do merchants get charged a higher interchange fee for business debit cards versus consumer debit cards? If so that would be a somewhat acceptable answer.
In any case, these three processors struck a contractual deal with the IRS to collect and remit these payments. If that deal calls for the processors to accept all debit cards at their advertised rate they are in violation. Obviously none of us knows the terms of the deal, and good luck getting anyone at the IRS to explain or even appreciate this issue.
I’ve complained to the National Consumer Affairs Department and received no response

It is maybe more important than most people appreciate. For those who need to make large payments, each $20,000 payment results in >$400 savings when using a 2%+ card such as Nearside. Thats’s $3,200+ of potential cashback each quarter (8 payments for a married couple) that is not able to be utilized due to the restriction by the two processors.

Do you have any ideas as to who to contact? You have more of a voice than most of us. Please, lead the charge in finding out if the processors are justified in treating these debit cards differently. Many of us would be grateful.

Thank you

DSK

Two other ideas not mentioned by Greg that I haven’t tried yet so no idea if or how well they will work:

(1) If I pay up to $5000 of estimated taxes (including fees) on the first of each month (other than February) on Bilt, I will earn 2x Hyatt points (which beats 1x on the Hyatt card and 1.5x on Freedom Unlimited).

(2) I think the new AMEX debit card will earn 0.5 Membership Rewards points per dollar and the maximum transaction can be up to $5000. So, I would earn 2500 MR points at a cost of $2.20 per transaction, as opposed to 7500 Ultimate Rewards points (or 10,000 Cap One points or 10,000 Thank You points) at a cost of $93.50 per transaction. Depending on how you value points vs. cash or the different currencies, the debit card could come out ahead.

DSK

Data point–used ACI with Paypal on my Freedom card on October 19. No cash advance fee–everything posted as normal. Read over DofC after I saw this post, and it sounds like it is kind of a mess out there as far as whether payments will be treated as a cash advance or not (some had the same experience as I did–others were coded as a cash advance). Also I did receive 5x points. However, now that I’ve done it once, having seen other people’s experiences, I’m not sure I’d do it again.

rj123456

If you pay via Paypal on PayUSATax with the Paypal MC do you get 3% back?

rj123456

Strike that, meant to say 1%, and to see if it made sense to pay taxes with it. On a 10K tax payment the rewards are $100 less the flat debit card fee. Better than the $0 I get for eCheck payment. Or am I missing something.

Sa ar

Has anyone tried making two estimated tax payments for processor, total 6 payments, for Q4 2022? For some reason Pay1040 and ACI are telling me I have exceeded the number of payments allowed by IRS even though I haven’t done any Q4 payments yet.