Primer on Paying Taxes With a Credit Card

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calwatch
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Re: Primer on Paying Taxes With a Credit Card

Post by calwatch »

tj wrote: Sat Apr 13, 2024 8:35 pm Did you quit your job or just turn off withholding to pay taxes by CC for profit? :D
I actually severely underwithhold my day job income, never have been challenged. I strive to pay about $10,000 a year through estimated taxes, sometimes I pay more in order to take advantage of the $5,000 in I Bonds available through the tax refund. It used to be that when they used allowances, any number above 9 would require it to be sent to the IRS, so I would write 9 down. I think paying taxes is a pretty good and low risk way to manufacture spending.
terran wrote: Sat Apr 13, 2024 8:39 pm Great, thanks! Which processor was this?
You can do these on all of them, although the only one I can recognize immediately based on the amount of change left over is PayUSATax. One of the vendors changed their price on January 1.
terran
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Re: Primer on Paying Taxes With a Credit Card

Post by terran »

calwatch wrote: Sat Apr 13, 2024 8:48 pm You can do these on all of them, although the only one I can recognize immediately based on the amount of change left over is PayUSATax. One of the vendors changed their price on January 1.
Perfect, PayUSATax is the one I'm trying to optimize since they have the lowest fees and I need to make some large Q4 payments.
international001
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Re: Problems paying taxes with Vanilla Gift Cards

Post by international001 »

This year ACI gave me problems with Vanilla card and I was not able to use them
So it looks I can only use Pay1040 with Vanilla cards
international001
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Re: Primer on Paying Taxes With a Credit Card

Post by international001 »

calwatch wrote: Fri Mar 08, 2024 8:41 pm
I use both. The Vanillas don't really work on anything but Pay1040, I normally use Blackhawks purchased at a grocery store for ACI and PayUSATax. Doctor Of Credit recently had a deal advertised for electronic $500's, no fee, so I used some of my online shopping allowance on Bank of America CCR for two $500s on ACI.
Vanilla's use to work 3 payers
So this problem with ACI/PayUStax is something specific to Vanilla, Visa card, ZIP code?

Which other gift cards I can use?
calwatch
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Re: Primer on Paying Taxes With a Credit Card

Post by calwatch »

Blackhawk are cards that you might find at the grocery store, I used them for ACI. They are the brands which are sold at the office stores when they have the periodic deals. Lowe’s/Home Depot also stock them, the “golf” ones are not restricted to golf and come in $500 denominations which is handy when those stores are bonused.
Vanillas do work on PayUSATax, you should use Visa Checkout instead of the regular payment mechanism.
tj
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Re: Primer on Paying Taxes With a Credit Card

Post by tj »

calwatch wrote: Sun Apr 14, 2024 10:58 am Blackhawk are cards that you might find at the grocery store, I used them for ACI. They are the brands which are sold at the office stores when they have the periodic deals. Lowe’s/Home Depot also stock them, the “golf” ones are not restricted to golf and come in $500 denominations which is handy when those stores are bonused.
Vanillas do work on PayUSATax, you should use Visa Checkout instead of the regular payment mechanism.
Have you utilized this type of deal,too?

https://www.doctorofcredit.com/office-d ... -19-12-25/
calwatch
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Re: Primer on Paying Taxes With a Credit Card

Post by calwatch »

tj wrote: Sun Apr 14, 2024 11:24 am
Have you utilized this type of deal,too?

https://www.doctorofcredit.com/office-d ... -19-12-25/
Since they are $200’s I use them on state and local taxes, tolls, utility bills, etc. Even with a 2.2-2.4% fee the math works out. I rarely use them on federal income tax.
international001
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Re: Primer on Paying Taxes With a Credit Card

Post by international001 »

tj wrote: Sun Apr 14, 2024 11:24 am

Have you utilized this type of deal,too?

https://www.doctorofcredit.com/office-d ... -19-12-25/
It's not a big amount to pay taxes. Anyway, which category does Office Depot falls in?
international001
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Re: Primer on Paying Taxes With a Credit Card

Post by international001 »

calwatch wrote: Sun Apr 14, 2024 10:58 am Blackhawk are cards that you might find at the grocery store, I used them for ACI. They are the brands which are sold at the office stores when they have the periodic deals. Lowe’s/Home Depot also stock them, the “golf” ones are not restricted to golf and come in $500 denominations which is handy when those stores are bonused.
Vanillas do work on PayUSATax, you should use Visa Checkout instead of the regular payment mechanism.
You mean credit vs debit? Then it becomes too expensive. I calculated a 2.24% return fee for BoA cash rewards. It's better to use BoA Travel Rewards.
tj
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Re: Primer on Paying Taxes With a Credit Card

Post by tj »

international001 wrote: Mon Apr 15, 2024 10:45 am
tj wrote: Sun Apr 14, 2024 11:24 am

Have you utilized this type of deal,too?

https://www.doctorofcredit.com/office-d ... -19-12-25/
It's not a big amount to pay taxes. Anyway, which category does Office Depot falls in?
I would assume that it's an office supply store like Staples.
andyandyandy
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Nying tax by credit card

Post by andyandyandy »

[Thread merged into here --admin LadyGeek]

All,

Need som guidance!
1) Just wanted to check if https://www.payusatax.com/ is legit to pay by credit card for Federal tax?

2) And I need to check 1040 Option there for 2023 for this year's payment, correct?
3)Can I use 2 credit cards to pay?

4)And to double check they charge 1.82% (and my casb back is 2.62% by BOFA) So it should be good,right?
5) WIll the payment reflect on my online IRS account although it's not paid directly from there?


Appreciate! Juts in case if I am missing anything?

Or if I mail check today I should be okay - correct?

Thanks
Last edited by andyandyandy on Mon Apr 15, 2024 11:41 am, edited 1 time in total.
chassis
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Re: Nying tax by credit card

Post by chassis »

andyandyandy wrote: Mon Apr 15, 2024 11:35 am All,

Need som guidance!
1) Just wanted to check if https://www.payusatax.com/ is legit to pay by credit card for Federal tax?

2) And I need to check 1040 Option there for 2023 for this year's payment, correct?
3)Can I use 2 credit cards to pay?

4)And to double check they charge 1.82% (and my casb back is 2.62% by BOFA) So it should be good,right?

Appreciate! Juts in case if I am missing anything?

Or if I mail check today I should be okay - correct?

Thanks
Credit card questions listed above = all OK. Did this yesterday.
andyandyandy
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Re: Nying tax by credit card

Post by andyandyandy »

chassis wrote: Mon Apr 15, 2024 11:41 am
andyandyandy wrote: Mon Apr 15, 2024 11:35 am All,

Need som guidance!
1) Just wanted to check if https://www.payusatax.com/ is legit to pay by credit card for Federal tax?

2) And I need to check 1040 Option there for 2023 for this year's payment, correct?
3)Can I use 2 credit cards to pay?

4)And to double check they charge 1.82% (and my casb back is 2.62% by BOFA) So it should be good,right?

Appreciate! Juts in case if I am missing anything?

Or if I mail check today I should be okay - correct?

Thanks
Thanks a lot! Just on more question :

WIll the payment reflect on my online IRS account although it's not paid directly from there?

Credit card questions listed above = all OK. Did this yesterday.
calwatch
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Re: Primer on Paying Taxes With a Credit Card

Post by calwatch »

international001 wrote: Mon Apr 15, 2024 10:49 am
calwatch wrote: Sun Apr 14, 2024 10:58 am Blackhawk are cards that you might find at the grocery store, I used them for ACI. They are the brands which are sold at the office stores when they have the periodic deals. Lowe’s/Home Depot also stock them, the “golf” ones are not restricted to golf and come in $500 denominations which is handy when those stores are bonused.
Vanillas do work on PayUSATax, you should use Visa Checkout instead of the regular payment mechanism.
You mean credit vs debit? Then it becomes too expensive. I calculated a 2.24% return fee for BoA cash rewards. It's better to use BoA Travel Rewards.
If you pay on PayUSATax using Visa Checkout on a Vanilla debit card, it will correctly show as a Visa Prepaid and charge you the debit fee. I have a UFan Mastercard which works on ACI and Pay1040 but not PayUSATax that I will have to sit on for another month until the Q2 2024 payment period opens, unless I decide to burn it on state income taxes and pay the 2.3% fee (which in my state applies to both debit and credit cards equally).
andyandyandy
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Re: Nying tax by credit card

Post by andyandyandy »

chassis wrote: Mon Apr 15, 2024 11:41 am
andyandyandy wrote: Mon Apr 15, 2024 11:35 am All,

Need som guidance!
1) Just wanted to check if https://www.payusatax.com/ is legit to pay by credit card for Federal tax?

2) And I need to check 1040 Option there for 2023 for this year's payment, correct?
3)Can I use 2 credit cards to pay?

4)And to double check they charge 1.82% (and my casb back is 2.62% by BOFA) So it should be good,right?

Appreciate! Juts in case if I am missing anything?

Or if I mail check today I should be okay - correct?

Thanks
Thanks a lot! Just on more question :

WIll the payment reflect on my online IRS account although it's not paid directly from there?

Credit card questions listed above = all OK. Did this yesterday.
terran
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Re: Nying tax by credit card

Post by terran »

1. I would feel comfortable paying at any processor linked from https://www.irs.gov/payments/pay-your-t ... redit-card since it's a trusted site. I only click through from that page so as to avoid mistyping or clicking a non-trusted link (including one posted on bogleheads).

2. Yes, if you're paying your 2023 taxes you would select "Form 1040 Current Tax Return 2023" although you could also make an extension payment if you want.

3. Yes, but they'll need to be separate transactions as you can only pay with one card per transaction. You can also only make two transactions per processor per payment type for a given social security/tac ID number. See https://www.payusatax.com/IRS/Home/Load ... ame=FAQ#14 for what counts as a transaction type (mostly two annual types per year and two quarterly per quarter.

4. Yes, my experience earlier this month was that payUSAtax charges 1.82% and BoFA cash back is equal to what it is on all other purchases. Note the $2.69 minimum fee which would apply if you pay under $148.

The payment should show up on your IRS account within 5-7 business business according the FAQ, so don't expect to see it immediately, but if you give it some time you should see it, which matches my experience.
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LadyGeek
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Re: Primer on Paying Taxes With a Credit Card

Post by LadyGeek »

I merged andyandyandy's thread into the ongoing discussion.

(Thanks to the member who reported the post and provided a link to this thread.)
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deltaneutral83
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Re: Primer on Paying Taxes With a Credit Card

Post by deltaneutral83 »

tj wrote: Sat Apr 13, 2024 8:35 pm
calwatch wrote: Sat Apr 13, 2024 8:28 pm
terran wrote: Sat Apr 13, 2024 7:32 pm
calwatch wrote: Sat Apr 13, 2024 3:34 pm It's two per quarter per processor but you can double dip the fourth quarter by scheduling a payment in the current year and one in the following year, before January 15, and also the tax filing extension for a total of 12 opportunities per processor, or 36 in total. The $200 gift cards I usually use on state and local taxes, which have a flat fee of 2.2-2.4% but work fine when getting 5% cash back at the office store.
Are you saying you can make 2 4th quarter payments in December and 2 4th quarter payments in January at the same processor and with the same SSN?
Yes, I have done so the last few years.
Did you quit your job or just turn off withholding to pay taxes by CC for profit? :D
I would assume just update your w4 if you're an employee.
tj
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Re: Primer on Paying Taxes With a Credit Card

Post by tj »

deltaneutral83 wrote: Mon Apr 15, 2024 3:36 pm
tj wrote: Sat Apr 13, 2024 8:35 pm
calwatch wrote: Sat Apr 13, 2024 8:28 pm
terran wrote: Sat Apr 13, 2024 7:32 pm
calwatch wrote: Sat Apr 13, 2024 3:34 pm It's two per quarter per processor but you can double dip the fourth quarter by scheduling a payment in the current year and one in the following year, before January 15, and also the tax filing extension for a total of 12 opportunities per processor, or 36 in total. The $200 gift cards I usually use on state and local taxes, which have a flat fee of 2.2-2.4% but work fine when getting 5% cash back at the office store.
Are you saying you can make 2 4th quarter payments in December and 2 4th quarter payments in January at the same processor and with the same SSN?
Yes, I have done so the last few years.
Did you quit your job or just turn off withholding to pay taxes by CC for profit? :D
I would assume just update your w4 if you're an employee.
I just maintain the withholding personally, maybe I could squeeze a few hundred in profit, but I'd have to go through the hassle of going to stores to et the card etc. I prefer to pick up my dollars from the comfort of my home in the form of CC, bank, and brokerage bonuses. :D
WhiteMaxima
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Re: Primer on Paying Taxes With a Credit Card

Post by WhiteMaxima »

Why pay tax with CC? Don't you have money to pay taxes?
ZinCO
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Re: Primer on Paying Taxes With a Credit Card

Post by ZinCO »

WhiteMaxima wrote: Mon Apr 15, 2024 4:21 pm Why pay tax with CC? Don't you have money to pay taxes?
I fail to see the connection between using a CC and not having money.
calwatch
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Re: Primer on Paying Taxes With a Credit Card

Post by calwatch »

tj wrote: Mon Apr 15, 2024 3:38 pm I just maintain the withholding personally, maybe I could squeeze a few hundred in profit, but I'd have to go through the hassle of going to stores to et the card etc. I prefer to pick up my dollars from the comfort of my home in the form of CC, bank, and brokerage bonuses. :D
If I am in the drug or grocery store already it is not that big a deal to pick up a $500 Visa gift card and cash it out when I get home.
tj
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Re: Primer on Paying Taxes With a Credit Card

Post by tj »

calwatch wrote: Mon Apr 15, 2024 4:29 pm
tj wrote: Mon Apr 15, 2024 3:38 pm I just maintain the withholding personally, maybe I could squeeze a few hundred in profit, but I'd have to go through the hassle of going to stores to et the card etc. I prefer to pick up my dollars from the comfort of my home in the form of CC, bank, and brokerage bonuses. :D
If I am in the drug or grocery store already it is not that big a deal to pick up a $500 Visa gift card and cash it out when I get home.
I do have to go to a drug store every few months for prescription (I should look into mail order?!), but I can't remember the last time i went inside a grocery store. :D
terran
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Re: Primer on Paying Taxes With a Credit Card

Post by terran »

WhiteMaxima wrote: Mon Apr 15, 2024 4:21 pm Why pay tax with CC? Don't you have money to pay taxes?
From the OP on this thread, way back in 2019:
whodidntante wrote: Sun Mar 24, 2019 4:50 pm Why pay taxes with a credit card?
It can be a good way to complete the spending requirement needed for a new card bonus. Otherwise, you can earn a spread between the fee you are charged and the value of points earned. You also get float for the payment, which is at least as long as the grace period if you pay in full each month, or as long as 15 months if you pay with a card that also has an introductory purchase APR of 0% in addition to a new card bonus.
MisterBill
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Re: Primer on Paying Taxes With a Credit Card

Post by MisterBill »

ZinCO wrote: Mon Apr 15, 2024 4:26 pm
WhiteMaxima wrote: Mon Apr 15, 2024 4:21 pm Why pay tax with CC? Don't you have money to pay taxes?
I fail to see the connection between using a CC and not having money.
Clearly the poster only sees credit cards as a tool to spend money that they don't have, not a way to make money on your purchases.
criticalmass
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Re: Primer on Paying Taxes With a Credit Card

Post by criticalmass »

WhiteMaxima wrote: Mon Apr 15, 2024 4:21 pm Why pay tax with CC? Don't you have money to pay taxes?
Umm, what does using a credit card have to do with "having money?" The bill gets paid in full on the due date at the end of the next month.
WhiteMaxima
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Re: Primer on Paying Taxes With a Credit Card

Post by WhiteMaxima »

criticalmass wrote: Mon Apr 15, 2024 10:05 pm
WhiteMaxima wrote: Mon Apr 15, 2024 4:21 pm Why pay tax with CC? Don't you have money to pay taxes?
Umm, what does using a credit card have to do with "having money?" The bill gets paid in full on the due date at the end of the next month.
Cash advance fee using CC to pay taxes?
tj
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Re: Primer on Paying Taxes With a Credit Card

Post by tj »

WhiteMaxima wrote: Tue Apr 16, 2024 12:19 pm
criticalmass wrote: Mon Apr 15, 2024 10:05 pm
WhiteMaxima wrote: Mon Apr 15, 2024 4:21 pm Why pay tax with CC? Don't you have money to pay taxes?
Umm, what does using a credit card have to do with "having money?" The bill gets paid in full on the due date at the end of the next month.
Cash advance fee using CC to pay taxes?
Of course not. Why would anyone do that if there was?
terran
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Re: Primer on Paying Taxes With a Credit Card

Post by terran »

WhiteMaxima wrote: Tue Apr 16, 2024 12:19 pm
criticalmass wrote: Mon Apr 15, 2024 10:05 pm
WhiteMaxima wrote: Mon Apr 15, 2024 4:21 pm Why pay tax with CC? Don't you have money to pay taxes?
Umm, what does using a credit card have to do with "having money?" The bill gets paid in full on the due date at the end of the next month.
Cash advance fee using CC to pay taxes?
I would again refer you to the original post on this thread. It answers lots of questions.
whodidntante wrote: Sun Mar 24, 2019 4:50 pm Is paying taxes with a credit card considered a cash advance?
No, it is considered a purchase.
criticalmass
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Re: Primer on Paying Taxes With a Credit Card

Post by criticalmass »

WhiteMaxima wrote: Tue Apr 16, 2024 12:19 pm
criticalmass wrote: Mon Apr 15, 2024 10:05 pm
WhiteMaxima wrote: Mon Apr 15, 2024 4:21 pm Why pay tax with CC? Don't you have money to pay taxes?
Umm, what does using a credit card have to do with "having money?" The bill gets paid in full on the due date at the end of the next month.
Cash advance fee using CC to pay taxes?
Not sure what are you talking about. I did Not say anything about cash advances. I wrote about using a credit card to pay taxes, which can be quite lucrative if you know what you are doing. Why would anyone pay a cash advance fee to pay taxes? There is no cash or cash advance.
Read the thread from page 1 if this isn’t clear.
calwatch
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Re: Primer on Paying Taxes With a Credit Card

Post by calwatch »

Well, doing my June 15 installment and it turns out that only PayUSATax is working, via Visa Checkout, on Vanilla gift cards purchased at Safeway and CVS. I tried Click to Pay on both ACI and Pay1040 and they seemed like they processed but then gave the error message. I'm sure they will work on state taxes, if I feel the need to unload them now, and I may try again tomorrow, but bad news if true. I also haven't tried the office store cards, Staples now sells $500's for $8.95 which is viable with the 5% cash back on Ink, although that is $3 more than the $5.95 charged at the grocery store (also in a 5% period).
Optimizer7
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Re: Primer on Paying Taxes With a Credit Card

Post by Optimizer7 »

The Elan Max Cash Preferred and the US Bank Cash+ cards code as utilities when paying via ACI Payments and PayPal. It works with this payee only, when using PayPal and the credit card. 5% cash back minus 1.98% fee nets 3.02% cash back on charges up to $2,000 per card per quarter. The processor fee only nets 1% cash back. Of course, you have to select the utility category for that quarter in advance of the start of the quarter. This is discussed in the Doctor of Credit forum thread for paying taxes with a credit card.
Last edited by Optimizer7 on Tue Jun 04, 2024 9:40 am, edited 1 time in total.
bbrock
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Re: Primer on Paying Taxes With a Credit Card

Post by bbrock »

We just use the BofA UCR for 2.625%. With the CCR, despite the 3% category being set to online shopping, tax payments are excluded. I don’t know of any workaround to be able to use the CCR instead.
bbrock
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Re: Primer on Paying Taxes With a Credit Card

Post by Leesbro63 »

bbrock wrote: Tue Jun 04, 2024 9:33 am We just use the BofA UCR for 2.625%. With the CCR, despite the 3% category being set to online shopping, tax payments are excluded. I don’t know of any workaround to be able to use the CCR instead.
I also use that BofA 2.625% card. Hoping the pending Robinhood 3% card will work for this in the near future.
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heartwood
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Re: Primer on Paying Taxes With a Credit Card

Post by heartwood »

Optimizer7 wrote: Tue Jun 04, 2024 4:00 am ...
This is discussed in the Doctor of Credit forum thread for paying taxes with a credit card.
https://www.doctorofcredit.com/a-comple ... edit-card/
calwatch
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Re: Primer on Paying Taxes With a Credit Card

Post by calwatch »

bbrock wrote: Tue Jun 04, 2024 9:33 am We just use the BofA UCR for 2.625%. With the CCR, despite the 3% category being set to online shopping, tax payments are excluded. I don’t know of any workaround to be able to use the CCR instead.
You have to switch to the drugstore category and buy gift cards there, or buy Visa/MC gift cards electronically, and then unload one card at a time. That is subject to the caveats that they won't take your card, as shown above. BTW, it turns out that the UFanGiftCard Mastercard still works on ACI Payments, at least, so I will use that for the next one.
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Re: Primer on Paying Taxes With a Credit Card

Post by bbrock »

heartwood wrote: Tue Jun 04, 2024 10:11 am
Optimizer7 wrote: Tue Jun 04, 2024 4:00 am ...
This is discussed in the Doctor of Credit forum thread for paying taxes with a credit card.
https://www.doctorofcredit.com/a-comple ... edit-card/
Sounds like the verdict at DoC is that it is not worth it unless you have a massive tax bill. IMO, I still do it even for the low profit as it is simple. Not to mention, it feels kinda like I'm "sticking it to da man."
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Re: Primer on Paying Taxes With a Credit Card

Post by bbrock »

calwatch wrote: Tue Jun 04, 2024 10:41 am
bbrock wrote: Tue Jun 04, 2024 9:33 am We just use the BofA UCR for 2.625%. With the CCR, despite the 3% category being set to online shopping, tax payments are excluded. I don’t know of any workaround to be able to use the CCR instead.
You have to switch to the drugstore category and buy gift cards there, or buy Visa/MC gift cards electronically, and then unload one card at a time. That is subject to the caveats that they won't take your card, as shown above. BTW, it turns out that the UFanGiftCard Mastercard still works on ACI Payments, at least, so I will use that for the next one.
Thx for that heads up. However, that is where I'll draw the line. For me, that is too much work for the small profit back. I'll just take the smaller amount while using the BofA UCR.
bbrock
czaj
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Re: Primer on Paying Taxes With a Credit Card

Post by czaj »

Optimizer7 wrote: Tue Jun 04, 2024 4:00 am The Elan Max Cash Preferred and the US Bank Cash+ cards code as utilities when paying via ACI Payments and PayPal. It works with this payee only, when using PayPal and the credit card. 5% cash back minus 1.98% fee nets 3.02% cash back on charges up to $2,000 per card per quarter. The processor fee only nets 1% cash back. Of course, you have to select the utility category for that quarter in advance of the start of the quarter. This is discussed in the Doctor of Credit forum thread for paying taxes with a credit card.
Wow, that is news to me!
Last edited by czaj on Tue Jun 04, 2024 3:51 pm, edited 2 times in total.
czaj
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Re: Primer on Paying Taxes With a Credit Card

Post by czaj »

calwatch wrote: Mon Jun 03, 2024 10:56 pm Well, doing my June 15 installment and it turns out that only PayUSATax is working, via Visa Checkout, on Vanilla gift cards purchased at Safeway and CVS. I tried Click to Pay on both ACI and Pay1040 and they seemed like they processed but then gave the error message. I'm sure they will work on state taxes, if I feel the need to unload them now, and I may try again tomorrow, but bad news if true. I also haven't tried the office store cards, Staples now sells $500's for $8.95 which is viable with the 5% cash back on Ink, although that is $3 more than the $5.95 charged at the grocery store (also in a 5% period).
Does Click to Pay process as debit for lower transaction fee (when it works)?
Tg1228
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Re: Primer on Paying Taxes With a Credit Card

Post by Tg1228 »

calwatch wrote: Mon Jun 03, 2024 10:56 pm Well, doing my June 15 installment and it turns out that only PayUSATax is working, via Visa Checkout, on Vanilla gift cards purchased at Safeway and CVS. I tried Click to Pay on both ACI and Pay1040 and they seemed like they processed but then gave the error message. I'm sure they will work on state taxes, if I feel the need to unload them now, and I may try again tomorrow, but bad news if true. I also haven't tried the office store cards, Staples now sells $500's for $8.95 which is viable with the 5% cash back on Ink, although that is $3 more than the $5.95 charged at the grocery store (also in a 5% period).
Staples $500 is at stores? Online, I only see $300.
calwatch
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Re: Primer on Paying Taxes With a Credit Card

Post by calwatch »

czaj wrote: Tue Jun 04, 2024 3:07 pm Does Click to Pay process as debit for lower transaction fee (when it works)?
Yes, it does. By the way, it turns out UFanGift also works for Pay1040 as well, so I am good on grocery stores if I avoid Vanilla. (I ended up dumping the Vanilla cards on state income tax for a 2.3% fee, rather than hold them to the next period.)
Tg1228 wrote: Tue Jun 04, 2024 5:54 pm Staples $500 is at stores? Online, I only see $300.
Yes, they have $10-500 variable load gift cards for a $8.95 fee. They are normally readily available since they are never on sale. Some people may feel that, with Ink, the value is closer to 7.5% cash back due to the ability to use 1.5 cents per point on travel or transferring points elsewhere, so the extra $3 (or 0.6% on $500) is worthwhile. I generally purchase the no fee ones at Office Depot or Staples and use them on state taxes when I have to, or pay property taxes $200-ish at a time with multiple cards, and net 2.7% back on them. In the grand scheme of things, it is not much, but it is free money.
Tg1228
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Re: Primer on Paying Taxes With a Credit Card

Post by Tg1228 »

calwatch wrote: Tue Jun 04, 2024 6:22 pm
czaj wrote: Tue Jun 04, 2024 3:07 pm Does Click to Pay process as debit for lower transaction fee (when it works)?
Yes, it does. By the way, it turns out UFanGift also works for Pay1040 as well, so I am good on grocery stores if I avoid Vanilla. (I ended up dumping the Vanilla cards on state income tax for a 2.3% fee, rather than hold them to the next period.)
Tg1228 wrote: Tue Jun 04, 2024 5:54 pm Staples $500 is at stores? Online, I only see $300.
Yes, they have $10-500 variable load gift cards for a $8.95 fee. They are normally readily available since they are never on sale. Some people may feel that, with Ink, the value is closer to 7.5% cash back due to the ability to use 1.5 cents per point on travel or transferring points elsewhere, so the extra $3 (or 0.6% on $500) is worthwhile. I generally purchase the no fee ones at Office Depot or Staples and use them on state taxes when I have to, or pay property taxes $200-ish at a time with multiple cards, and net 2.7% back on them. In the grand scheme of things, it is not much, but it is free money.
Thanks for info!!
ZinCO
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Re: Primer on Paying Taxes With a Credit Card

Post by ZinCO »

calwatch wrote: Tue Jun 04, 2024 6:22 pm
Yes, they have $10-500 variable load gift cards for a $8.95 fee. They are normally readily available since they are never on sale.
My stores still have plenty of stock of the $5.95 fee cards, so don't assume that $8.95 is the new cost everywhere.
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Raraculus
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Re: Primer on Paying Taxes With a Credit Card

Post by Raraculus »

I anticipate having at least $10k in bond income, and as well as at least $5K in eBay income.

It'll be my first time in making quarterly tax payments.

I understand that I can use a tax payment processor (Pay1040, PayUSATax, or ACI Payments) and use a Fidelity CC (w/ 2% cash back).

But, do I need an IRS account? EFTPS? Does the tax payment processor verify payments with the IRS anyway, making this step redundant?

I realize that this thread is about using CC's to pay quarterly estimated taxes. But, any help is appreciated. How do I calculate the estimated tax payment? I'm in the marginal 12% tax bracket.

So, it's just a matter of multiplying the last three months of bond interest income by 12%?

What about the eBay income? It's lumpy. I could get $2K this month, and then nothing until November for another $3K. There's also the SE taxes to factor in. Do I use a multiplier of say, 27.3% (12% marginal and 15.3% SE Tax)? So I would multiply the last three months of eBay income by 27.3%?

Thank you.
SnowBog
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Re: Primer on Paying Taxes With a Credit Card

Post by SnowBog »

Raraculus wrote: Sun Jun 09, 2024 9:51 am I anticipate having at least $10k in bond income, and as well as at least $5K in eBay income.

It'll be my first time in making quarterly tax payments.

I understand that I can use a tax payment processor (Pay1040, PayUSATax, or ACI Payments) and use a Fidelity CC (w/ 2% cash back).

But, do I need an IRS account? EFTPS? Does the tax payment processor verify payments with the IRS anyway, making this step redundant?

I realize that this thread is about using CC's to pay quarterly estimated taxes. But, any help is appreciated. How do I calculate the estimated tax payment? I'm in the marginal 12% tax bracket.

So, it's just a matter of multiplying the last three months of bond interest income by 12%?

What about the eBay income? It's lumpy. I could get $2K this month, and then nothing until November for another $3K. There's also the SE taxes to factor in. Do I use a multiplier of say, 27.3% (12% marginal and 15.3% SE Tax)? So I would multiply the last three months of eBay income by 27.3%?

Thank you.
No account needed, and no estimates/projections needed.

Instead, at the end of each "quarter" you simply look at how much was earned, multiply that by your marginal tax rate, and that's your "estimated payment".

So if you get $3k from bonds/ebay/etc. between 6/1 and 8/31, and your marginal tax rate is 24%, you'd make an "estimated" of $720 by 9/15.

If you have state taxes, you'd do the same with them (at your state marginal rate).
vaylie
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Re: Primer on Paying Taxes With a Credit Card

Post by vaylie »

Raraculus wrote: Sun Jun 09, 2024 9:51 amI understand that I can use a tax payment processor (Pay1040, PayUSATax, or ACI Payments) and use a Fidelity CC (w/ 2% cash back).

But, do I need an IRS account? EFTPS? Does the tax payment processor verify payments with the IRS anyway, making this step redundant?

I realize that this thread is about using CC's to pay quarterly estimated taxes. But, any help is appreciated. How do I calculate the estimated tax payment? I'm in the marginal 12% tax bracket.
You don't need an IRS account but it might be nice to have it so you can confirm that your payment was processed. It's why I have mine!

I also have lumpy/unpredictable income. So instead of stressing over estimating, I just pay the safe harbor amount - which is 100% or 110% (if you earn $150k+) of last year's taxes owed. It's a much easier calculation since you just need the total amount and subtract the amount your W2 will withhold over the year, then divide by 4.

The downside is that you can owe a big bill if your income has increased a lot (or overpay of your income drops).
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dual
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Re: Primer on Paying Taxes With a Credit Card

Post by dual »

A reminder
IRS reminder: June 17 estimated tax payment deadline fast approaching

https://www.irs.gov/newsroom/irs-remi ... roaching

Pay with your BofA preferred rewards card and make a few $$
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