Paying Taxes With Your Credit Card

The IRS allows you to pay your federal taxes with a credit card. The IRS has relationships with the three processors below. TurboTax allows you to pay with a credit card as well, but they charge higher fees. 

With the right card, the 1.87% fee is worth it. I would recommend: (1) any card you need to hit a minimum spend, (2) the American Express Blue Business (2x) points, or 2+% cashback card. For state and local taxes, you can pay using Plastiq for a 2.5% fee.

Steps

  1.  File your taxes through whatever software or form you use
  2. Select that you will pay the taxes via a mailed check
  3. After the IRS accepts your returns, pay with one of the providers below.

Limits: Each processor limits you to two transactions per tax period (if you would like to use different cards). The IRS technically only accepts a maximum of 2 payments per tax year, but I have yet to see the IRS refuse money, so you should be able to do a maximum of 6 transactions (3 processors times 2). 

Overpayment: You can overpay your taxes, but you won’t get a refund until your return is processed. So make sure you can afford to float the money you spent until you get refunded.

Estimated Taxes: You can use the processors below to pay your estimated taxes. The IRS allows two payments per quarter for estimated taxes. 

 

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