Primer on Paying Taxes With a Credit Card
Re: Paying Fed Tax Due with Credit Card
What do you mean by using 2%?
I don’t have that double cash citi card, should I go ahead and apply? Does it offer a 0% apr?
Thank you for sharing the thread.
I don’t have that double cash citi card, should I go ahead and apply? Does it offer a 0% apr?
Thank you for sharing the thread.
Re: Paying Fed Tax Due with Credit Card
I see what you mean now. You net 0.13% I think.fareastwarriors wrote: ↑Fri Apr 15, 2022 11:40 pm This is a huge long thread on it:
viewtopic.php?p=6614188&hilit=tax+credit+card#p6614188
Personally I just use my 2% with Citi Doublecash. You can get fancy with giftcards and play that game but I'm too lazy for that. The cheapest credit card option is 1.87% so I net 0.03% by using my credit card.
https://www.irs.gov/payments/pay-your-t ... redit-card
Re: Paying Fed Tax Due with Credit Card
I just review this double cash citi credit card. It offers a 0% apr for 15 months only for balance transfer. I wonder if they will award me with the 2%.
Just thinking. What do you think?
Just thinking. What do you think?
Re: Primer on Paying Taxes With a Credit Card
I'm going to e-file our 2021 tax return. We have $6K due on our 2021 Fed tax but a refund of $1K from 2021 CA tax. We will e-file on 4/18/2022.
Is it too risky to pay the Fed tax due via credit card? I read from the above posters that the IRS will take 10 days to process any credit card payment. Maybe it's better to just send in a check. What do you think?
Please let me know.
TIA!
-joelly
Is it too risky to pay the Fed tax due via credit card? I read from the above posters that the IRS will take 10 days to process any credit card payment. Maybe it's better to just send in a check. What do you think?
Please let me know.
TIA!
-joelly
Re: Primer on Paying Taxes With a Credit Card
Last year, I paid the tax due with an extension to file at pay1040.com and entered it into TurboTax and e-filed unbeknownst to me before it had posted. The e-file was accepted but I received a notice from the IRS that I still owed the amount I paid with the extension. I snail Mailed a response becsuse of course I could not reach them by telephone. I included a screenshot of my irs.gov account showing the payment with the date that I paid at pay1040.com. After about a year, they sent me a letter saying that I did not owe anything.joelly wrote: ↑Sat Apr 16, 2022 12:47 am I'm going to e-file our 2021 tax return. We have $6K due on our 2021 Fed tax but a refund of $1K from 2021 CA tax. We will e-file on 4/18/2022.
Is it too risky to pay the Fed tax due via credit card? I read from the above posters that the IRS will take 10 days to process any credit card payment. Maybe it's better to just send in a check. What do you think?
Please let me know.
TIA!
-joelly
So my conclusion is that it’s better to wait until the payment posts but you can eventually straighten things out.
Re: Primer on Paying Taxes With a Credit Card
During the year of waiting for their response, did they send you bills charging you the interests and penalties of the unpaid amount? This is what I'm nervous about. They may bill me interest and penalties even though I have made the payment which hasn't reach them at the time.dual wrote: ↑Sat Apr 16, 2022 1:41 amLast year, I paid the tax due with an extension to file at pay1040.com and entered it into TurboTax and e-filed unbeknownst to me before it had posted. The e-file was accepted but I received a notice from the IRS that I still owed the amount I paid with the extension. I snail Mailed a response becsuse of course I could not reach them by telephone. I included a screenshot of my irs.gov account showing the payment with the date that I paid at pay1040.com. After about a year, they sent me a letter saying that I did not owe anything.joelly wrote: ↑Sat Apr 16, 2022 12:47 am I'm going to e-file our 2021 tax return. We have $6K due on our 2021 Fed tax but a refund of $1K from 2021 CA tax. We will e-file on 4/18/2022.
Is it too risky to pay the Fed tax due via credit card? I read from the above posters that the IRS will take 10 days to process any credit card payment. Maybe it's better to just send in a check. What do you think?
Please let me know.
TIA!
-joelly
So my conclusion is that it’s better to wait until the payment posts but you can eventually straighten things out.
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Re: Paying Fed Tax Due with Credit Card
I use my 1.0 % debit card (up to $3k) and only pay the ~$2 debit convenience fee.
For higher amounts, I just use a 2.5% cash back card and net a small amount, but the real value is ensure payment is on time and I have nearly 60 days to pay the bill at my leisure from the account of my choice, without tying that directly to an IRS payment. But I may pay an extra $5000 and take refund in two weeks in the form of an I bond with a nice return.
For higher amounts, I just use a 2.5% cash back card and net a small amount, but the real value is ensure payment is on time and I have nearly 60 days to pay the bill at my leisure from the account of my choice, without tying that directly to an IRS payment. But I may pay an extra $5000 and take refund in two weeks in the form of an I bond with a nice return.
Re: Paying Fed Tax Due with Credit Card
1% cash back debit card? Huh? Tell me more.criticalmass wrote: ↑Sat Apr 16, 2022 2:14 am I use my 1.0 % debit card (up to $3k) and only pay the ~$2 debit convenience fee.
For higher amounts, I just use a 2.5% cash back card and net a small amount, but the real value is ensure payment is on time and I have nearly 60 days to pay the bill at my leisure from the account of my choice, without tying that directly to an IRS payment. But I may pay an extra $5000 and take refund in two weeks in the form of an I bond with a nice return.
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Re: Paying Fed Tax Due with Credit Card
Discovet cashback. $3000 cap per month earns 1%.Leesbro63 wrote: ↑Sat Apr 16, 2022 7:32 am1% cash back debit card? Huh? Tell me more.criticalmass wrote: ↑Sat Apr 16, 2022 2:14 am I use my 1.0 % debit card (up to $3k) and only pay the ~$2 debit convenience fee.
For higher amounts, I just use a 2.5% cash back card and net a small amount, but the real value is ensure payment is on time and I have nearly 60 days to pay the bill at my leisure from the account of my choice, without tying that directly to an IRS payment. But I may pay an extra $5000 and take refund in two weeks in the form of an I bond with a nice return.
Re: Primer on Paying Taxes With a Credit Card
Does anyone know If I can pay taxes using CC and file extension and pay rest later?
Due to lot of stock gains in 2021 my rough fed taxes are like 40k , I am looking to make 30k using 2 cc and pay the rest later but file extension. My question is can we only pay online using cc after we efile or can we make rough payments? Trying to pay 90% of my tax liability by CC and rest using ACH a month later.
If 10k is paid later I understand filing extension doesn't allow late payment. But the penalty would only be applied to the 10k payment right?
Thanks.
Due to lot of stock gains in 2021 my rough fed taxes are like 40k , I am looking to make 30k using 2 cc and pay the rest later but file extension. My question is can we only pay online using cc after we efile or can we make rough payments? Trying to pay 90% of my tax liability by CC and rest using ACH a month later.
If 10k is paid later I understand filing extension doesn't allow late payment. But the penalty would only be applied to the 10k payment right?
Thanks.
no. They would occasionally send me a letter saying they were still working on it.During the year of waiting for their response, did they send you bills charging you the interests and penalties of the unpaid amount? This is what I'm nervous about. They may bill me interest and penalties even though I have made the payment which hasn't reach them at the time.
you can do both of these at the same time by paying taxes with an extension to file at an online credit card site like pay1040.com. you get to choose how much you pay. The IRS accept this as an extension to file request without having to send in form 4868. Many states will also accept it as an extension to file.elderwise wrote: ↑Sat Apr 16, 2022 10:04 am Does anyone know If I can pay taxes using CC and file extension and pay rest later?
Due to lot of stock gains in 2021 my rough fed taxes are like 40k , I am looking to make 30k using 2 cc and pay the rest later but file extension. My question is can we only pay online using cc after we efile or can we make rough payments? Trying to pay 90% of my tax liability by CC and rest using ACH a month later.
If 10k is paid later I understand filing extension doesn't allow late payment. But the penalty would only be applied to the 10k payment right?
Thanks.
i'm not sure about the rest that you wrote. The rule is that you have to pay all your taxes due by April 18 even if you file an extension request.
Re: Primer on Paying Taxes With a Credit Card
So far I have been receiving 4% cash back with Coinbase credit card on my estimated tax payments. Have paid $8k this quarter and received $320.
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Re: Primer on Paying Taxes With a Credit Card
It is a debit card and it has worked for me as well paying taxes. Only annoying part is the long time period for funds to become available to spend after depositing to coinbase and the $2,500 daily spend limit.
Re: Primer on Paying Taxes With a Credit Card
Yes. It’s a debit card.
For me it worked only at paytaxusa. Paytaxusa limits only two estimated tax payment per quarter per ssn. Daily limit is $2500 for the cars. So I paid twice for myself and twice for my spouse using the card.
Re: Primer on Paying Taxes With a Credit Card
Can you not pay $997.50 + 2.50 processing fee? So that you have $0.00 on the card? Instead of having $0.50 left to put on amazon? Just curious.spammagnet wrote: ↑Tue Mar 15, 2022 11:10 am I have to make multiple payments because the gift cards available to me have a maximum value of $1K, so I can pay only $997 per transaction. I put the remaining 50¢ on my Amazon gift card account. (You have to add the GC to Amazon as a payment type, first.)
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Re: Primer on Paying Taxes With a Credit Card
Are you talking about making estimated payments? If so, how about just your normal 1040, due at tax time in April? I just e-filed. Later today, I am planning on making multiple payments of $497.8 (on $500 VGC) on acipayonline.com ... is that possible?spammagnet wrote: ↑Sat Apr 16, 2022 11:38 pmNo. As with many (not all) dollar amounts on IRS forms, it's rounded to a dollar.
Re:
Perfect! Thank you so much for letting me know.dual wrote: ↑Sat Apr 16, 2022 11:06 amno. They would occasionally send me a letter saying they were still working on it.During the year of waiting for their response, did they send you bills charging you the interests and penalties of the unpaid amount? This is what I'm nervous about. They may bill me interest and penalties even though I have made the payment which hasn't reach them at the time.
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Re: Primer on Paying Taxes With a Credit Card
I made 2021 tax due payments in February and March using VGC. I made payments in the exact amount of the VGC ($500) minus the processing fee. I don’t know whether or how those payments get rounded by the IRS. I’ve heard the estimated payments get rounded up, but I don’t think regular payments or withholdings do. YMMV.dlong wrote: ↑Sun Apr 17, 2022 12:38 amAre you talking about making estimated payments? If so, how about just your normal 1040, due at tax time in April? I just e-filed. Later today, I am planning on making multiple payments of $497.8 (on $500 VGC) on acipayonline.com ... is that possible?spammagnet wrote: ↑Sat Apr 16, 2022 11:38 pmNo. As with many (not all) dollar amounts on IRS forms, it's rounded to a dollar.
So you’ve already e-filed your 2021 return but haven’t finished making payments?
Re: Primer on Paying Taxes With a Credit Card
So, okay, I was able to pay without leaving money on the VGC. The problem and I didn't know was that I was limited to two transaction. Is there a way around this? Can I use another processor?tashnewbie wrote: ↑Sun Apr 17, 2022 11:15 amI made 2021 tax due payments in February and March using VGC. I made payments in the exact amount of the VGC ($500) minus the processing fee. I don’t know whether or how those payments get rounded by the IRS. I’ve heard the estimated payments get rounded up, but I don’t think regular payments or withholdings do. YMMV.dlong wrote: ↑Sun Apr 17, 2022 12:38 amAre you talking about making estimated payments? If so, how about just your normal 1040, due at tax time in April? I just e-filed. Later today, I am planning on making multiple payments of $497.8 (on $500 VGC) on acipayonline.com ... is that possible?spammagnet wrote: ↑Sat Apr 16, 2022 11:38 pmNo. As with many (not all) dollar amounts on IRS forms, it's rounded to a dollar.
So you’ve already e-filed your 2021 return but haven’t finished making payments?
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Re: Primer on Paying Taxes With a Credit Card
You can make 1040 payments of 2/processor/year. The number of transactions allowed depends on the type of payment. There’s a chart on the IRS pay by credit/debit card website. Make sure you get all the payments done by end of day tomorrow!dlong wrote: ↑Sun Apr 17, 2022 4:33 pmSo, okay, I was able to pay without leaving money on the VGC. The problem and I didn't know was that I was limited to two transaction. Is there a way around this? Can I use another processor?tashnewbie wrote: ↑Sun Apr 17, 2022 11:15 amI made 2021 tax due payments in February and March using VGC. I made payments in the exact amount of the VGC ($500) minus the processing fee. I don’t know whether or how those payments get rounded by the IRS. I’ve heard the estimated payments get rounded up, but I don’t think regular payments or withholdings do. YMMV.dlong wrote: ↑Sun Apr 17, 2022 12:38 amAre you talking about making estimated payments? If so, how about just your normal 1040, due at tax time in April? I just e-filed. Later today, I am planning on making multiple payments of $497.8 (on $500 VGC) on acipayonline.com ... is that possible?spammagnet wrote: ↑Sat Apr 16, 2022 11:38 pmNo. As with many (not all) dollar amounts on IRS forms, it's rounded to a dollar.
So you’ve already e-filed your 2021 return but haven’t finished making payments?
Re: Primer on Paying Taxes With a Credit Card
- ACI - You can do duplicate payments.
PayUSA - You can't do duplicate payments, so I left .50 for Amazon reload on second payment.
Pay1040 - Had issue with second payment with CAPTCHA. Had to restart browser. Also make sure to opt out of of sharing of data to 3rd party for marketing by themselves AND opt out of sharing of data to 3rd party for marketing by 3rd parties. Don't know if duplicate payment is possible. Maybe, next year, I do these guys first and PayUSA last.
Slightly off topic: Could I of overpay by $5000 on my last payment with my normal 1040 (not estimated payments) for I-Bonds? I noticed that one of the articles said $5000/person. So, if filing jointly, can you over pay by $10k or is it $5k per filing?
Re: Primer on Paying Taxes With a Credit Card
My understanding is $5k/max - for either individual or MFJ.
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Re: Primer on Paying Taxes With a Credit Card
That's correct, the $5k in paper I bonds on Form 8888 is per tax return filed: so you only get one chance to buy per tax year filing. If you are married: you do not get two Form 8888 and you do not get two opportunities to have $5k refunded in paper I bonds...unless you file as Married Filing Separately. However, that would almost assuredly be financial suicide.
This is on the first page already if using the default forum view: for every type of estimated tax payment with each payment processor you can pay only two times, including estimated taxes paid in lieu of filing Form 4868. The OP could certainly have clarified this in the original post by now, though. This does not apply to the final tax payment of any tax yet due, and overpaying the final tax payment to fund paper I bonds (as opposed to overpaying an estimated tax payment and then filing with no further amount due) has been frequently flagged by the IRS in the past for "suspicious" activity. Note that being flagged for "suspicious" activity can result in your refund payment being held up to one year before being eventually paid back to you at the IRS prevailing interest rates over that year period.dlong wrote: ↑Sun Apr 17, 2022 10:59 pmMaybe @whodidntante can update the first page to include limits (2/processor/year or /quarter for estimated payments) and duplicate payments.
- ACI - You can do duplicate payments.
PayUSA - You can't do duplicate payments, so I left .50 for Amazon reload on second payment.
Pay1040 - Had issue with second payment with CAPTCHA. Had to restart browser. Also make sure to opt out of of sharing of data to 3rd party for marketing by themselves AND opt out of sharing of data to 3rd party for marketing by 3rd parties. Don't know if duplicate payment is possible. Maybe, next year, I do these guys first and PayUSA last.
Slightly off topic: Could I of overpay by $5000 on my last payment with my normal 1040 (not estimated payments) for I-Bonds? I noticed that one of the articles said $5000/person. So, if filing jointly, can you over pay by $10k or is it $5k per filing?
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Re: Primer on Paying Taxes With a Credit Card
I was able to get each processor to accept duplicate payments. It may have been initially flagged as "odd" but there was some way for me to proceed with the payment. YMMV.dlong wrote: ↑Sun Apr 17, 2022 10:59 pm
- ACI - You can do duplicate payments.
PayUSA - You can't do duplicate payments, so I left .50 for Amazon reload on second payment.
Pay1040 - Had issue with second payment with CAPTCHA. Had to restart browser. Also make sure to opt out of of sharing of data to 3rd party for marketing by themselves AND opt out of sharing of data to 3rd party for marketing by 3rd parties. Don't know if duplicate payment is possible. Maybe, next year, I do these guys first and PayUSA last.
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Re: Primer on Paying Taxes With a Credit Card
You don't have to pay through TurboTax. You can choose to pay outside of their site/software. I forgot the exact phrasing but they let you choose.Wannaretireearly wrote: ↑Mon Mar 14, 2022 11:01 pmThanks. Sorry for the tone. Just typing fast between errands, I apologize if this came across harsh.spammagnet wrote: ↑Mon Mar 14, 2022 10:24 pmPlease elaborate on what you mean by "thru turbo tax".Wannaretireearly wrote: ↑Mon Mar 14, 2022 10:05 pm... Help me figure out the best way to do this thru turbo tax. ...
You may find you get more suggestions if you change the tone of request. It sounds like you expect others to plan it for you..
I’ve done my taxes thru TurboTax online. That’s not going to change at this point. So I’ll be using payment options, credit card etc, thru TurboTax.
I’ve signed up for credit card rewards many times, but have never contemplated paying taxes on credit card.
I just tried applying for a chase card and it seems I’ve reached their limit. I may look for hotel points/cards. Given how much I will charge I wonder if there are cards where charging the full 20k on one card would give extra benefits. Like the southwest companion benefit. Thank you
As for Chase cards, they allow only 5 new cards in 24 months period (any new credit cards, not just Chase cards). https://www.cnbc.com/select/how-chase-524-rule-works/
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Re: Paying federal taxes with Vanilla gift card (pay1040)
Just went through the process of buying a Vanilla Visa card and using it on my taxes. There is no registration process required. However, you do need to allow an hour between the time that you bought it and when you try to use it. Had my card rejected at ACI and Payusatax before calling Vanilla and being told that it was not fully funded yet. Tried again while I was on the phone and the payment went through.tashnewbie wrote: ↑Fri Apr 08, 2022 12:13 pm
I don't know how or if it's necessary to register a Vanilla gift card. My understanding with the specific type of gift card I had is that it had to be registered to link my name and address to the card so that it could be used for online payments.
Did 1040 completely reject your Vanilla card? Assuming you have a $500 gift card, try entering "$497.50" as the payment amount and see if that works.
Also, https://fed.acipayonline.com/index.jsp is cheapest for debit cards, only $2.20. Not a big deal but no reason to pay any more than necessary.
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Re: Paying federal taxes with Vanilla gift card (pay1040)
Unfortunately ACI treats Discover DEBIT cards as if they are credit cards for the purpose of applying the much higher fee. This seems like false advertising, but I don't know a simple way to dispute that. I just used another service that applied the proper fee.MisterBill wrote: ↑Mon Apr 18, 2022 5:04 pmJust went through the process of buying a Vanilla Visa card and using it on my taxes. There is no registration process required. However, you do need to allow an hour between the time that you bought it and when you try to use it. Had my card rejected at ACI and Payusatax before calling Vanilla and being told that it was not fully funded yet. Tried again while I was on the phone and the payment went through.tashnewbie wrote: ↑Fri Apr 08, 2022 12:13 pm
I don't know how or if it's necessary to register a Vanilla gift card. My understanding with the specific type of gift card I had is that it had to be registered to link my name and address to the card so that it could be used for online payments.
Did 1040 completely reject your Vanilla card? Assuming you have a $500 gift card, try entering "$497.50" as the payment amount and see if that works.
Also, https://fed.acipayonline.com/index.jsp is cheapest for debit cards, only $2.20. Not a big deal but no reason to pay any more than necessary.
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Re: Primer on Paying Taxes With a Credit Card
For anyone who made a recent tax payment using the USAA Limitless 2.5% cash back card, did you still get the full 2.5% cash back?Figuring_it_out wrote: ↑Sun Mar 24, 2019 5:45 pm I have the USAA 2.5% silver card and had a sudden influx of cash last year that resulted in me owing ~14K federal. I paid that on the card and got the 2.5% rate. I was worried when I read (I think in here) that USAA does not allow tax payments but it worked for me. It also paid my local property municipal and school district taxes as well. all got the extra 1.5% "bonus".
In previous years, it did receive the full 2.5% for tax payments, but with the recent letter announcing changes are coming, I am curious about recent experiences. If I read the letter right, nothing should change until 4/26/2022.
Re: Paying federal taxes with Vanilla gift card (pay1040)
Right. But be careful. I tried to use acipayonline using my Discover Debit Card and it treated it like a credit card instead of a Debit card, charging me 1.98% instead of $2.20. I probably could have contacted them and gotten it straightened out, but I just cancelled the transaction before submission and paid an extra 30 cents at Pay1040 to avoid the hassle.MisterBill wrote: ↑Mon Apr 18, 2022 5:04 pmJust went through the process of buying a Vanilla Visa card and using it on my taxes. There is no registration process required. However, you do need to allow an hour between the time that you bought it and when you try to use it. Had my card rejected at ACI and Payusatax before calling Vanilla and being told that it was not fully funded yet. Tried again while I was on the phone and the payment went through.tashnewbie wrote: ↑Fri Apr 08, 2022 12:13 pm
I don't know how or if it's necessary to register a Vanilla gift card. My understanding with the specific type of gift card I had is that it had to be registered to link my name and address to the card so that it could be used for online payments.
Did 1040 completely reject your Vanilla card? Assuming you have a $500 gift card, try entering "$497.50" as the payment amount and see if that works.
Also, https://fed.acipayonline.com/index.jsp is cheapest for debit cards, only $2.20. Not a big deal but no reason to pay any more than necessary.
Wrench
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Re: Paying federal taxes with Vanilla gift card (pay1040)
Yes, good point. In my case, since I only had $500 on the debit card, I had to calculate the exact amount I could pay including the fee, so if it counted it as credit and was charged the higher fee, it would not have worked.Wrench wrote: ↑Mon Apr 18, 2022 5:53 pm Right. But be careful. I tried to use acipayonline using my Discover Debit Card and it treated it like a credit card instead of a Debit card, charging me 1.98% instead of $2.20. I probably could have contacted them and gotten it straightened out, but I just cancelled the transaction before submission and paid an extra 30 cents at Pay1040 to avoid the hassle.
Wrench
Also, I've never looked at using the Discover checking account to pay taxes. I always use my BofA Premium Rewards that gets 2.625% back. But I'm thinking that Discover might be a little better since the fee is less when you get the debit card rate, and since you're making less than 1% after the credit card fee with the PR card. Of course, I won't get the almost two-month float, since I have my statement closing date timed for tax payments.
Update -- did the math and it's a couple of dollars cheaper using Discover when paying $2k or more.
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Re: Paying federal taxes with Vanilla gift card (pay1040)
That's dedicated planning.MisterBill wrote: ↑Mon Apr 18, 2022 6:23 pm... I have my statement closing date timed for tax payments. ...
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Re: Paying federal taxes with Vanilla gift card (pay1040)
I did it a few years ago after getting the PR card. My statement closing date was the 18th, and I was always getting statements with tax charges that hit days earlier. I asked to have it moved up, and it now closes on the 12th. So I get close to two months of float on my tax payments.spammagnet wrote: ↑Mon Apr 18, 2022 9:47 pmThat's dedicated planning.MisterBill wrote: ↑Mon Apr 18, 2022 6:23 pm... I have my statement closing date timed for tax payments. ...
Re: Primer on Paying Taxes With a Credit Card
For the record, for those who are trying to use up their 5% categories like I am to unload on taxes, here are the periods where eligible payments may be made for Pay 1040 and Official Payments. PayUSA Tax has not published this info but I expect it to be similar.Halfvolley wrote: ↑Fri Apr 15, 2022 1:11 pm When will we be able to make estimated payments via credit card for Q2? After April 18? I attempted to make a payment today at pay1040.com and was greeted with the error about being over the allotment of (2) payments.
https://www.pay1040.com/TaxPayerTools/F ... dQuestions
Form 4868 Automatic Extension of Time to File - Tax Year 2021: 01/01/22 - 04/19/22, 7 AM ET
Form 1040ES Estimated Tax - Tax Year 2021: 01/01/22 - 02/01/22, 7 AM ET
Form 1040ES Estimated Tax - Tax Year 2022: 1st Quarter 03/01/22 - 05/15/22, 2nd Quarter 05/15/22 - 07/15/22, 3rd Quarter 07/15/22 - 10/15/22, 4th Quarter 10/15/22 - 01/01/23, 7 AM ET
https://fed.acipayonline.com/hp_faq_irs_mp_p.jsp
Official Payments:
For Form 4868 - Tax Year 2021, taxpayers can begin making payments on January 1, 2022, 9am Eastern Time. The program ends at April 16, 2022, 7am Eastern Time for resident U.S. taxpayers. Overseas qualifiers, non-resident U.S. taxpayers living abroad, can begin making payments April 16, 2022, 7am Eastern Time. The overseas qualifier program ends on June 16, 2022, 7am Eastern Time.
For U.S. Taxpayers, you may qualify for special tax treatment if one of the following criteria is met:
1) You live outside the United States and Puerto Rico and your main place of work is outside the United States and Puerto Rico or
2) You are in the military or naval service stationed outside the United States and Puerto Rico.
For 1040-ES - Estimated Tax - Tax Year 2021, you can begin making payments on January 1, 2022, 12am Eastern Time. The program ends on February 1, 2022, 7am Eastern Time.
For 1040-ES - Estimated Tax - Tax Year 2022, you can begin making quarterly payments on the following dates:
● March 1, 2022, 9am Eastern Time through May 15, 2022, 7am Eastern Time.
● May 15, 2022, 7am Eastern Time through July 15, 2022, 7am Eastern Time.
● July 15, 2022, 7am Eastern Time through October 15, 2022, 7am Eastern Time
● October 15, 2022, 7am Eastern Time through January 1, 2023, 7am Eastern Time
This means that, you have 36 opportunities (six periods times two card times three processors) to unload gift debit cards. I know I have doubled up on Q4 for a tax year by making payments prior to the end of the calendar year and payments the next year. If Federal income tax is the most convenient way for you to unload gift cards, that is about $17,900 in tax payments which can go this way to the IRS, assuming you only use $500 cards. Assuming 5% on $500 cards and a $5.95 cost per card, that is roughly a $600 gain through this strategy. More gains if you can find quirks like the now closed double dip on Safeway points and gift card purchases, or can somehow get more than 5% on your grocery or drug store purchases through redemption of Chase or Discover points or higher percentage cards like the Amex Blue Cash Preferred.
Re: Primer on Paying Taxes With a Credit Card
On Sunday, I just paid the highest income tax in my life so far. I paid it with a credit card which will be balance transferred later to a 0% apr credit card.
Feeling relief but also anxious to balance transfer to a 0% interest credit card with 18-21 months to pay. I will pay it off at the end of the year though.
Thank you for everyone's recommendation and totally feeling enable by this community. Thank you all for being here.
Feeling relief but also anxious to balance transfer to a 0% interest credit card with 18-21 months to pay. I will pay it off at the end of the year though.
Thank you for everyone's recommendation and totally feeling enable by this community. Thank you all for being here.
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Re: Primer on Paying Taxes With a Credit Card
Do you also have a 0% balance transfer fee? I paid a large tax bill a couple of years in a row that conveniently corresponded to a 0% APR/0% BT fee offer on my BJ's Wholesale Visa card from Comenity. I charged it on my BofA PR card that got me 2.62% back and then transferred the balance. They have wised up since then, and my 0% APR offers come with 4-5% BT fees. No, thanks!joelly wrote: ↑Tue Apr 19, 2022 10:23 pm On Sunday, I just paid the highest income tax in my life so far. I paid it with a credit card which will be balance transferred later to a 0% apr credit card.
Feeling relief but also anxious to balance transfer to a 0% interest credit card with 18-21 months to pay. I will pay it off at the end of the year though.
Thank you for everyone's recommendation and totally feeling enable by this community. Thank you all for being here.
Re: Primer on Paying Taxes With a Credit Card
Not sure yet. We’re still shopping around for credit card. We found one with 18-21 0% apr but it charges 3% BT fees.MisterBill wrote: ↑Tue Apr 19, 2022 11:37 pmDo you also have a 0% balance transfer fee? I paid a large tax bill a couple of years in a row that conveniently corresponded to a 0% APR/0% BT fee offer on my BJ's Wholesale Visa card from Comenity. I charged it on my BofA PR card that got me 2.62% back and then transferred the balance. They have wised up since then, and my 0% APR offers come with 4-5% BT fees. No, thanks!joelly wrote: ↑Tue Apr 19, 2022 10:23 pm On Sunday, I just paid the highest income tax in my life so far. I paid it with a credit card which will be balance transferred later to a 0% apr credit card.
Feeling relief but also anxious to balance transfer to a 0% interest credit card with 18-21 months to pay. I will pay it off at the end of the year though.
Thank you for everyone's recommendation and totally feeling enable by this community. Thank you all for being here.
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- Joined: Thu Dec 24, 2015 2:21 pm
Re: Primer on Paying Taxes With a Credit Card
Yikes, I thought you had one ready to transfer to as soon as your statement closed. Wallethub lists three cards with 0% BT fee offers. Hopefully your current statement doesn't close soon and you get approved with a high enough credit limit to be able to transfer the full amount.
https://wallethub.com/d/union-bank-plat ... -card-480c
Re: Primer on Paying Taxes With a Credit Card
Wow thank you so much. I really appreciate it. Our card closed at the end of next week.MisterBill wrote: ↑Wed Apr 20, 2022 3:30 pmYikes, I thought you had one ready to transfer to as soon as your statement closed. Wallethub lists three cards with 0% BT fee offers. Hopefully your current statement doesn't close soon and you get approved with a high enough credit limit to be able to transfer the full amount.
https://wallethub.com/d/union-bank-plat ... -card-480c
There’s only one card from your link though but you said three cards.
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Re: Primer on Paying Taxes With a Credit Card
Oops, I posted the wrong link. But that's the best card, I believe. The others are Navy Federal, which you may not qualify for, and Edward Jones Business Card, which I would avoid simply because it's EJ, never mind it being a business card.
https://wallethub.com/credit-cards/no-b ... nsfer-fee/
Re: Primer on Paying Taxes With a Credit Card
You are awesome. This is great! Thank you so much!!! Yes, I think US Bank is best applied for me. I'll apply tomorrow morning online.MisterBill wrote: ↑Thu Apr 21, 2022 12:36 amOops, I posted the wrong link. But that's the best card, I believe. The others are Navy Federal, which you may not qualify for, and Edward Jones Business Card, which I would avoid simply because it's EJ, never mind it being a business card.
https://wallethub.com/credit-cards/no-b ... nsfer-fee/
It's been quite a year for us and it's only April.
Our HVAC broke completely down. We live in the middle of a dessert with a toddler so we need it to work. It cost us $15K to repair. The vendor got us a credit card with 8.99% apr but they won't bill us for 90 days. So we are applying for Heloc, we're approved and will be funded any day now (been a long 3 weeks). Once funded, I'll pay that high interest off then start paying down Heloc.
Then we found out our 2021 income tax due is $6K (the highest I've ever owe). We have the cash for it but hoping to hang on to cash a bit longer by doing this balance transfer.
Hopefully it will go smooth.
Thank you so much for your help. I really appreciate it.
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Re: Primer on Paying Taxes With a Credit Card
Just be sure to make the monthly minimum payment and pay in full when the 0% period ends so you won't pay any interest.joelly wrote: ↑Thu Apr 21, 2022 12:49 am You are awesome. This is great! Thank you so much!!! Yes, I think US Bank is best applied for me. I'll apply tomorrow morning online.
It's been quite a year for us and it's only April.
Our HVAC broke completely down. We live in the middle of a dessert with a toddler so we need it to work. It cost us $15K to repair. The vendor got us a credit card with 8.99% apr but they won't bill us for 90 days. So we are applying for Heloc, we're approved and will be funded any day now (been a long 3 weeks). Once funded, I'll pay that high interest off then start paying down Heloc.
Then we found out our 2021 income tax due is $6K (the highest I've ever owe). We have the cash for it but hoping to hang on to cash a bit longer by doing this balance transfer.
Hopefully it will go smooth.
Thank you so much for your help. I really appreciate it.
I am not familiar with Union Bank, and don't know how believable the ratings are on that site. But it seems like it's the only choice at the moment. Sadly, the card seems to have no value beyond the free BT, not even a rebate card. Good luck, and hopefully you get a large enough credit line to move your balances over.
Re: Primer on Paying Taxes With a Credit Card
My hope also. I also plan to do the auto payment until it’s done. Thank you SO much again!!!!MisterBill wrote: ↑Thu Apr 21, 2022 8:32 pmJust be sure to make the monthly minimum payment and pay in full when the 0% period ends so you won't pay any interest.joelly wrote: ↑Thu Apr 21, 2022 12:49 am You are awesome. This is great! Thank you so much!!! Yes, I think US Bank is best applied for me. I'll apply tomorrow morning online.
It's been quite a year for us and it's only April.
Our HVAC broke completely down. We live in the middle of a dessert with a toddler so we need it to work. It cost us $15K to repair. The vendor got us a credit card with 8.99% apr but they won't bill us for 90 days. So we are applying for Heloc, we're approved and will be funded any day now (been a long 3 weeks). Once funded, I'll pay that high interest off then start paying down Heloc.
Then we found out our 2021 income tax due is $6K (the highest I've ever owe). We have the cash for it but hoping to hang on to cash a bit longer by doing this balance transfer.
Hopefully it will go smooth.
Thank you so much for your help. I really appreciate it.
I am not familiar with Union Bank, and don't know how believable the ratings are on that site. But it seems like it's the only choice at the moment. Sadly, the card seems to have no value beyond the free BT, not even a rebate card. Good luck, and hopefully you get a large enough credit line to move your balances over.
-joelly
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Re: Primer on Paying Taxes With a Credit Card
Yes
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Re: Primer on Paying Taxes With a Credit Card
For those who made estimated payments for TY2021 with the three CC payment providers, have your payments shown up on your IRS payment activity page?
Re: Primer on Paying Taxes With a Credit Card
Yesmoneyflowin wrote: ↑Fri Apr 29, 2022 10:10 pm For those who made estimated payments for TY2021 with the three CC payment providers, have your payments shown up on your IRS payment activity page?