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ZinCO wrote: ↑Wed Jan 01, 2025 10:49 am
Lots of changes in this space as of today. Pay1040 is now 1.75% for consumer CC's (2.89% for Corporate CC's, but some debate about exactly what that means), PayUSATax appears to be dead (although perhaps retooling to come back later?), and ACI is now 1.85% for Consumer, and 2.95% for Commercial CC (whatever they mean by that TBD).
The important thing to recognize is that if you needed 6 slots per quarter in the past, you may only have 4 available to you going forward (depending on what happens to PayUSATax).
The IRS website is giving erroneous information as of today 1/1/25.
ZinCO wrote: ↑Wed Jan 01, 2025 10:49 am
Lots of changes in this space as of today. Pay1040 is now 1.75% for consumer CC's (2.89% for Corporate CC's, but some debate about exactly what that means), PayUSATax appears to be dead (although perhaps retooling to come back later?), and ACI is now 1.85% for Consumer, and 2.95% for Commercial CC (whatever they mean by that TBD).
The important thing to recognize is that if you needed 6 slots per quarter in the past, you may only have 4 available to you going forward (depending on what happens to PayUSATax).
How many payments per quarter for each Pay1040 and ACI? Can you double that for a couple filing jointly?
ZinCO wrote: ↑Wed Jan 01, 2025 10:49 am
Lots of changes in this space as of today. Pay1040 is now 1.75% for consumer CC's (2.89% for Corporate CC's, but some debate about exactly what that means), PayUSATax appears to be dead (although perhaps retooling to come back later?), and ACI is now 1.85% for Consumer, and 2.95% for Commercial CC (whatever they mean by that TBD).
The important thing to recognize is that if you needed 6 slots per quarter in the past, you may only have 4 available to you going forward (depending on what happens to PayUSATax).
How many payments per quarter for each Pay1040 and ACI? Can you double that for a couple filing jointly?
You're asking for problems if you make payments under two SSNs.
As was implied in the comment you quoted, 2 payments per issuer per quarter.
$1500 cap per quarter makes this not so interesting
I get 3.15% back on the difference of 5% rewards - 1.85% fee charge. Worth it to me. I rarely spend enough to get to the Chase cap. Works for me.
When you get into 5-figure estimated taxes, the difference between 1.75% (the new Pay1040 fee) and BoA Platinum Status cards at 2.625% becomes more interesting... But with 4 slots per quarter to play with, why not do both.
Just keep good records of your payments and there should be no issue. At the minimum make sure to save the email with the payment receipt and/or PDF the payment confirmation screen and check with the IRS web site a few weeks later to make sure it is there.
I stopped using them after reading stories posted in this thread of people trying to chase down a missing payment. Sounded like a nightmare and not sure they ever got their money back. Not even the confirmation code seemed to help because both sides just pointed the finger to the other side.
I was one who had a payment applied to the wrong year (most likely due to my own fat fingering). It was hair-pulling, IF you wanted it solved in the first 4 weeks. Because the IRS computer is very slow. After 4 weeks, they miraculously could solve it in a single phone call. I (personally) believe all the people tearing their hair out with no solution are trying to move faster than the IRS computer can move.
The IRS phone lady told me that they get all the info from the credit card processor digitally (of course), but then at one point the records must literally be printed onto paper, hand-carried down to a different computer, and typed by hand into the mainframe (which is what actually holds your IRS "account record").
Again, after my record made it into the mainframe it was a super quick fix, but before that nobody could figure out what was wrong and why it wasn't working. They could see my record, but couldn't touch it. The UI the IRS reps use doesn't change throughout this process, just the back-end. I have no hesitation using the online cc processors after getting a little glimpse into how it works on the IRS end, and how/when they can fix problems.
TL;DR, wait long enough and it's an easy fix. (redditors seem to like to run around with their hair on fire)
I get 3.15% back on the difference of 5% rewards - 1.85% fee charge. Worth it to me. I rarely spend enough to get to the Chase cap. Works for me.
When you get into 5-figure estimated taxes, the difference between 1.75% (the new Pay1040 fee) and BoA Platinum Status cards at 2.625% becomes more interesting... But with 4 slots per quarter to play with, why not do both.
Was unaware of the changes until now, now a new subscriber to this thread
For the Q4 estimated payment I already used my 2x estimated payments for each of the two remaining processors - I was planning to use PayUSATax for the balance but that's no longer an option. To make my final estimated payment is there any option for using a credit card or do I have to go use IRS Direct Pay?
leland wrote: ↑Wed Jan 01, 2025 4:27 pm
Was unaware of the changes until now, now a new subscriber to this thread
For the Q4 estimated payment I already used my 2x estimated payments for each of the two remaining processors - I was planning to use PayUSATax for the balance but that's no longer an option. To make my final estimated payment is there any option for using a credit card or do I have to go use IRS Direct Pay?
When did you make the payments? I've read elsewhere (in this thread, I think) that they'll let you make two Q4 payments in the previous year and two in the new year.
leland wrote: ↑Wed Jan 01, 2025 4:27 pm
Was unaware of the changes until now, now a new subscriber to this thread
For the Q4 estimated payment I already used my 2x estimated payments for each of the two remaining processors - I was planning to use PayUSATax for the balance but that's no longer an option. To make my final estimated payment is there any option for using a credit card or do I have to go use IRS Direct Pay?
When did you make the payments? I've read elsewhere (in this thread, I think) that they'll let you make two Q4 payments in the previous year and two in the new year.
November. Admittedly have read the entire thread but hopefully this is true. Does the wisdom of the thread know if I should rely on the processor to accept / reject a payment as the sign as to whether I can do it? Assuming based on @terran's statement I can rely on the processor to enforce things and the IRS will be happy with however the money shows up.
leland wrote: ↑Wed Jan 01, 2025 4:27 pm
Was unaware of the changes until now, now a new subscriber to this thread
For the Q4 estimated payment I already used my 2x estimated payments for each of the two remaining processors - I was planning to use PayUSATax for the balance but that's no longer an option. To make my final estimated payment is there any option for using a credit card or do I have to go use IRS Direct Pay?
When did you make the payments? I've read elsewhere (in this thread, I think) that they'll let you make two Q4 payments in the previous year and two in the new year.
Yes, I have done this many times. If you have exceeded the number of card payments possible the system will just reject you. At that point, you can use Direct Pay or send in a check.
So what's the story with any payments made to payusatax in the last week or so now that it's dead and all you have is their receipt showing the amount? (Say for a 1040ES for tax year 2024.) What to do? What if it never shows up on irs.gov?
Did anyone know if using Bank of America Elite to pay property tax counts towards sign up bonus? And how to check the progress of the sign up bonus anyway? .
ChanE639 wrote: ↑Thu Jan 02, 2025 3:30 pm[Thread merged into here --admin LadyGeek]
Did anyone know if using Bank of America Elite to pay property tax counts towards sign up bonus? And how to check the progress of the sign up bonus anyway? .
No reason that it wouldn't. BofA doesn't code such transactions as cash advances.
I've used bofa numerous times to "purchase" bank account deposits and various types of taxes.
I just went to pay on Pay1040.com and it is showing 2.89% fee on even personal cards! Debating whether to use the other provider which is 1.85% or wait to see if Pay1040.com reverts to 1.75%. The IRS page shows 1.75% for Pay1040.com
edit: When you actually go through the process, the fee charged is the 1.75%.
Last edited by Cloak8104 on Fri Jan 03, 2025 10:22 am, edited 1 time in total.
Cloak8104 wrote: ↑Fri Jan 03, 2025 10:18 am
I just went to pay on Pay1040.com and it is showing 2.89% fee on even personal cards! Debating whether to use the other provider which is 1.85% or wait to see if Pay1040.com reverts to 1.75%. The IRS page shows 1.75% for Pay1040.com
edit: When you actually go through the process, the fee charged is the 1.75%.
You went through the entire process even though it showed 2.89% ? Or, at what point did it show the correct fee?
Cloak8104 wrote: ↑Fri Jan 03, 2025 10:18 am
I just went to pay on Pay1040.com and it is showing 2.89% fee on even personal cards! Debating whether to use the other provider which is 1.85% or wait to see if Pay1040.com reverts to 1.75%. The IRS page shows 1.75% for Pay1040.com
edit: When you actually go through the process, the fee charged is the 1.75%.
So you fully went through the process and paid, even though it showed the fee being 2.89%, but after processing, it showed a different amount? I don't think I would go through the process if it was reflecting 2.89%, unless it was a negligible amount of money.
Here is what I'm seeing. I think the higher fee of 2.89% is attached to Amex cards, both business and personal. When I put in business or personal Amex cards, that's what I get. When I put in a Visa card, I get the lower rate of 1.75%. It looks to me like Amex is the problem, not business cards. Is anyone showing something different? Wondering if the same deal will happen if I go through PayPal.
Cloak8104 wrote: ↑Fri Jan 03, 2025 10:18 am
I just went to pay on Pay1040.com and it is showing 2.89% fee on even personal cards! Debating whether to use the other provider which is 1.85% or wait to see if Pay1040.com reverts to 1.75%. The IRS page shows 1.75% for Pay1040.com
edit: When you actually go through the process, the fee charged is the 1.75%.
So you fully went through the process and paid, even though it showed the fee being 2.89%, but after processing, it showed a different amount? I don't think I would go through the process if it was reflecting 2.89%, unless it was a negligible amount of money.
Here is what I'm seeing. I think the higher fee of 2.89% is attached to Amex cards, both business and personal. When I put in business or personal Amex cards, that's what I get. When I put in a Visa card, I get the lower rate of 1.75%. It looks to me like Amex is the problem, not business cards. Is anyone showing something different? Wondering if the same deal will happen if I go through PayPal.
I don't need to make a payment, so I'm not going through the rigamarole, but I'd be curious if your theory applies equivalently to personal and business visa cards. It wouldn't surprise me.
Just that fact that the 2.89% came up on my personal Amex also, made me think this was an Amex issue, not a specific business charge, because really, it doesn't cost the processor extra to run your business card, but probably more to run your Amex card. I don't have a business Visa to test my theory.
Cloak8104 wrote: ↑Fri Jan 03, 2025 10:18 am
I just went to pay on Pay1040.com and it is showing 2.89% fee on even personal cards! Debating whether to use the other provider which is 1.85% or wait to see if Pay1040.com reverts to 1.75%. The IRS page shows 1.75% for Pay1040.com
edit: When you actually go through the process, the fee charged is the 1.75%.
You went through the entire process even though it showed 2.89% ? Or, at what point did it show the correct fee?
On the final screen, before you press submit, it shows you the payment and amount of the convenience fee. I just paid via VISA and it was 1.75%
You went through the entire process even though it showed 2.89% ? Or, at what point did it show the correct fee?
On the final screen, before you press submit, it shows you the payment and amount of the convenience fee. I just paid via VISA and it was 1.75%
Was your Visa a business or personal card? The problem appears to be a surcharge on Amex. But the initial screen that one sees, they show that the convenience fee for both personal and corporate cards is 2.89% (which is completely different than the IRS page shows, of 1.75%). Nobody would choose that over the other lower processor, though as you mention on the final screen it shows the lower amount for Visa.
Either this is a bait and switch with Pay1040 thinking people won't notice, or a number of screwups on both the IRS and the Pay1040 website.
And on the other processor's website, when I input my business Amex, I get a message saying you can't use your business card to pay personal taxes. But......what business is it of theirs what card you use? I submit a 1040 that covers both personal and business expenses. It is none of their concern whether I'm using a business or personal card.
I just tried paying thru the IRS website and Pay1040 shows 1.75% but once you fill in all the data the convenience fee shows as 2.89%
Was using Fidelity Visa
bearwithbear wrote: ↑Sun Jan 05, 2025 12:00 pm
I just tried paying thru the IRS website and Pay1040 shows 1.75% but once you fill in all the data the convenience fee shows as 2.89%
Was using Fidelity Visa
Bear
And you clicked individual taxes rather than corporate taxes? Crazy!
bearwithbear wrote: ↑Sun Jan 05, 2025 12:00 pm
I just tried paying thru the IRS website and Pay1040 shows 1.75% but once you fill in all the data the convenience fee shows as 2.89%
Was using Fidelity Visa
Bear
Weird. On Sunday I paid Q4 estimated tax using Fidelity visa via Pay 1040 and was charged 1.75% convenience fee.
My situation was reversed. I just made the 4th quarterly estimated payment (today is Jan 6, 2025). The Pay1040 site showed a 2.89% fee on the entry page. From reading these posts, I assumed it was an error, publishing the commercial tax fee with the personal tax fee. So I went the process the final fee showing, before pulling the trigger, showed as 1.75%. So I pulled the trigger and it appears that the fee charged was 1.75%.
Ok i just paid through pay1040.com and it charged my boa visa 1.75%. Im was kind of reluctant to use them since i had been using paytaxusa.
1.75% pay1040 vs 1.82% for paytaxusa.
I just made an estimated payment on Pay1040.com using the Bank of America Unlimited Rewards card. The IRS website is still showing a 1.75% fee, the "Make a Payment" section of the Pay1040.com website is still showing a 2.89% fee. Once I got to "Step 4: Review" after entering all my information, including credit card, the amount of tax, the fee, and the total amount to be paid was shown. The fee shown was 1.75% of the amount of tax and promised fee is what was shown on the payment confirmation page and currently pending on the credit card. I think it's pretty safe to say that they are charging 1.75% on the Bank of America Unlimited Rewards card, but you should do the math on the amounts shown on the Step 4: Review to confirm before submitting the payment.
I made two estimates tax payments late last year, and was planning on overpaying my taxes via an estimated tax payment this year too (sign up bonus for two cards worth 300K Amex points total). I saw somewhere that you can’t pay or even select 2024 taxe estimated payments after Jan 15… is that correct? I was hoping to prepay the taxes (I’d probably overpay by like $10K to $15K) in like March, then immediatly file my taxes to get my refund asap.
If I have to pay before or by Jan 15, then I’ll have to factor paying the CC amount in cash (which is fine) and losing interest for a few months.
jazzneel wrote: ↑Wed Jan 08, 2025 10:35 pm
I made two estimates tax payments late last year, and was planning on overpaying my taxes via an estimated tax payment this year too (sign up bonus for two cards worth 300K Amex points total). I saw somewhere that you can’t pay or even select 2024 taxe estimated payments after Jan 15… is that correct? I was hoping to prepay the taxes (I’d probably overpay by like $10K to $15K) in like March, then immediatly file my taxes to get my refund asap.
If I have to pay before or by Jan 15, then I’ll have to factor paying the CC amount in cash (which is fine) and losing interest for a few months.
I seem to recall that you can make additional payments for tax year 2024, but they call it "balance" or something like that.
I was about to make a personal estimated tax payment on Pay1040 using PayPal and it did look like it was going to charge me the 2.89% at the confirmation screen.
tech_iceman wrote: ↑Thu Jan 09, 2025 4:23 pm
Does anyone have tips on a 7-figure tax bill? Had a large windfall in 2024, so researching paying a portion of that.
I'm sure there are rich people with 7 figure credit card limits who would just charge it.
If you don't have a credit card large enough to do that, charge what you can, DirectPay the rest.
Paying by a Visa / MC will be charged with 1.75% fee, but many cards would give back 2%。So a tax payer can pocket .25%. My curiosity is how would that credit card make money?
AQ wrote: ↑Thu Jan 09, 2025 7:39 pm
Paying by a Visa / MC will be charged with 1.75% fee, but many cards would give back 2%。So a tax payer can pocket .25%. My curiosity is how would that credit card make money?
People paying credit card interest?
You're question could be about literally any credit card charge. Nothing special about taxes.
jazzneel wrote: ↑Wed Jan 08, 2025 10:35 pm
I made two estimates tax payments late last year, and was planning on overpaying my taxes via an estimated tax payment this year too (sign up bonus for two cards worth 300K Amex points total). I saw somewhere that you can’t pay or even select 2024 taxe estimated payments after Jan 15… is that correct? I was hoping to prepay the taxes (I’d probably overpay by like $10K to $15K) in like March, then immediatly file my taxes to get my refund asap.
If I have to pay before or by Jan 15, then I’ll have to factor paying the CC amount in cash (which is fine) and losing interest for a few months.
I think you actually have until Jan 31 to make 4th quarter payments, but that doesn’t materially change your situation. My experience is that you cannot use your credit card to pay prior year estimated taxes in March.
However, you definitely can make payments for Form 4868: Extension of Time to File as late as the tax deadline (usually April 15.) And for purposes of getting rewards for credit card payments, that’s just as good.
jazzneel wrote: ↑Wed Jan 08, 2025 10:35 pm
I made two estimates tax payments late last year, and was planning on overpaying my taxes via an estimated tax payment this year too (sign up bonus for two cards worth 300K Amex points total). I saw somewhere that you can’t pay or even select 2024 taxe estimated payments after Jan 15… is that correct? I was hoping to prepay the taxes (I’d probably overpay by like $10K to $15K) in like March, then immediatly file my taxes to get my refund asap.
If I have to pay before or by Jan 15, then I’ll have to factor paying the CC amount in cash (which is fine) and losing interest for a few months.
I think you actually have until Jan 31 to make 4th quarter payments, but that doesn’t materially change your situation. My experience is that you cannot use your credit card to pay prior year estimated taxes in March.
However, you definitely can make payments for Form 4868: Extension of Time to File as late as the tax deadline (usually April 15.) And for purposes of getting rewards for credit card payments, that’s just as good.
The 2024 fourth quarter federal estimated tax payment is due January 15, 2025
tech_iceman wrote: ↑Thu Jan 09, 2025 4:23 pm
Does anyone have tips on a 7-figure tax bill? Had a large windfall in 2024, so researching paying a portion of that.
I'm sure there are rich people with 7 figure credit card limits who would just charge it.
If you don't have a credit card large enough to do that, charge what you can, DirectPay the rest.
The top Amex card 'Centurion' is a charge card ie. no limit, just no borrowing feature, has to be paid in full each month. But besides many people here never carrying CC interest balances (I never do) it's not relevant to rewards gaming. That card isn't practical for at least 2 reasons ($5k+ annual fees and they have to invite you to apply) but a charge card would Iin theory allow the est tax/card game on $1mil+. I haven't heard of actual CC's with limits more than several $100k (other very high fee 'exclusive' ones, eg. Citi 'Chairman' is said to come with $300k, annual fee 'only' $500). I realize that doesn't mean there aren't any. Corporate cards with multi-$100k limits aren't that unusual.
Lacking credit card line, DirectPay might make most people feel most comfortable overall. But if willing to physically registered mail a check from VMFXX on the 15th you'd get a week or perhaps 2 of float before they deposit it, ~$800-$1600 pre tax on $1mil.
I think you actually have until Jan 31 to make 4th quarter payments, but that doesn’t materially change your situation. My experience is that you cannot use your credit card to pay prior year estimated taxes in March.
However, you definitely can make payments for Form 4868: Extension of Time to File as late as the tax deadline (usually April 15.) And for purposes of getting rewards for credit card payments, that’s just as good.
The 2024 fourth quarter federal estimated tax payment is due January 15, 2025
The due date is correct, but people are allowed to make late payments.
The 2024 fourth quarter federal estimated tax payment is due January 15, 2025
The due date is correct, but people are allowed to make late payments.
I'm not sure what this means. OK, so what if someone wants to make a late payment on March 1, 2025 for tax year 2024. I think the credit card payment sites have an option for balance due for tax year 2024 and you can make multiple payments. The IRS doesn't distinguish between balance due and late estimated payment. Either way it gets applied to your account for that tax year and if you don't have enough paid in on time as per your own situation, you get assessed a penalty.
I guess I'm questioning your focus on the Jan 31, 2025 date and not the Jan 15, 2025 date, which, I believe, is the key date here.
The due date is correct, but people are allowed to make late payments.
I'm not sure what this means. OK, so what if someone wants to make a late payment on March 1, 2025 for tax year 2024. I think the credit card payment sites have an option for balance due for tax year 2024 and you can make multiple payments. The IRS doesn't distinguish between balance due and late estimated payment. Either way it gets applied to your account for that tax year and if you don't have enough paid in on time as per your own situation, you get assessed a penalty.
I guess I'm questioning your focus on the Jan 31, 2025 date and not the Jan 15, 2025 date, which, I believe, is the key date here.
The poster I was replying to (jazzneel) asked “I saw somewhere that you can’t pay or even select 2024 taxe estimated payments after Jan 15… is that correct?” I replied that the actual cutoff for making estimated payments for 2024 by credit card online not Jan 15, but Jan 31. Since jazzneel’s intention is to make payments in order to get credit card rewards and has presumably already made the necessary timely estimated payments, then the key date is not when the payments are due, but when the websites will allow them. For 2024 estimated payments, that date is Jan 31, 2025.
Despite that, Jan 31 is still earlier than jazzneel would like. However, as we have both pointed out, there are other types of payments that can be made that will be applied to your 2024 tax liability after Jan 31, 2025 that will result in a refund being sent back to you.
I'm researching methods of paying estimated taxes, and found this thread. Having read everything yet. A few quick questions now:
1. To use a credit card, do we need to sign up an account like for EFTPS? I read some threads about signing up for id.me / login.gov but heard it's quite challenging to get in?
2. My credit card limit likely not high enough for my tax payments. Can I use 2 cards to split the payments? Better yet, can I use a different card each quarter, or paying tax with credit in one quarter, and doing it with a different method in another quarter?
3. How can I prove to IRS I have made the payments? Do I get some receipts, or forms prior to tax filing?
4. EFTPS enrollment requires a code from snail mail, so I need to plan it in advance. If using credit cards, I guess I can wait until the last hour to do it assuming no sign-up, no code or PIN required?
AQ wrote: ↑Sat Jan 11, 2025 1:33 pm
I'm researching methods of paying estimated taxes, and found this thread. Having read everything yet. A few quick questions now:
1. To use a credit card, do we need to sign up an account like for EFTPS? I read some threads about signing up for id.me / login.gov but heard it's quite challenging to get in?
2. My credit card limit likely not high enough for my tax payments. Can I use 2 cards to split the payments? Better yet, can I use a different card each quarter, or paying tax with credit in one quarter, and doing it with a different method in another quarter?
3. How can I prove to IRS I have made the payments? Do I get some receipts, or forms prior to tax filing?
4. EFTPS enrollment requires a code from snail mail, so I need to plan it in advance. If using credit cards, I guess I can wait until the last hour to do it assuming no sign-up, no code or PIN required?
#1. No
#2. Yes, any combination up to 4 per quarter
#3. Yes
#4. N/A
AQ wrote: ↑Sat Jan 11, 2025 1:33 pm
I'm researching methods of paying estimated taxes, and found this thread. Having read everything yet. A few quick questions now:
1. To use a credit card, do we need to sign up an account like for EFTPS? I read some threads about signing up for id.me / login.gov but heard it's quite challenging to get in?
2. My credit card limit likely not high enough for my tax payments. Can I use 2 cards to split the payments? Better yet, can I use a different card each quarter, or paying tax with credit in one quarter, and doing it with a different method in another quarter?
3. How can I prove to IRS I have made the payments? Do I get some receipts, or forms prior to tax filing?
4. EFTPS enrollment requires a code from snail mail, so I need to plan it in advance. If using credit cards, I guess I can wait until the last hour to do it assuming no sign-up, no code or PIN required?
And how to check the progress of the sign up bonus anyway? 
.