Pay taxes via credit card, 2019 edition

Preparing taxes is no fun. No fun at all. But paying taxes doesn’t have to be painful. In fact, it can be quite rewarding to pay taxes via credit card. The key is to earn credit card rewards that more than offset tax payment fees. Here’s what you need to know…

Important due dates for 2019 taxes

  • January 15 2019: 4th quarter estimated taxes for 2018
  • April 15 2019: Final 2018 taxes due
  • April 15 2019: 1st quarter estimated taxes for 2019
  • June 17 2019: 2nd quarter estimated taxes for 2019
  • September 16 2019: 3rd quarter estimated taxes for 2019
  • January 15 2020: 4th quarter estimated taxes for 2019

Pay taxes via credit card: Background

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

Credit card fee 1.87% to 1.99%: The IRS maintains a list of companies that accept credit and debit cards towards tax payments. You can find the current information by clicking here. Currently there are three separate payment processing companies on the list. At the time of this writing, debit card fees range from $2 to $2.58 per transaction and credit card fees range from 1.87% to 1.99%. Alternatively, you can pay taxes via the Plastiq Bill Pay service, but that will cost you more: 2.5%.

Two payment limit (per processor): The IRS maintains a table of frequency limits for paying taxes via credit or debit card (found here). In general, they say you can make up to two payments per tax period per type of tax payment. For example, you can make 2 payments every quarter to your quarterly estimated taxes, and you can make 2 payments every year to your annual taxes. Important: In my experience, these limits are enforced per payment processing company. That means that you can really make up to 6 payments per tax period per type of tax payment (or more if you make Plastiq bill payments as well). An IRS advisor I spoke with several years ago did not think that there would be any problem with making more than 2 payments by using different processors. Since then, I have made more than 2 payments per tax period many times and never had any issues. That is, of course, just my own personal experience. I can’t guarantee that your outcome would be the same.

No cash advance fees: I’m often asked whether credit card companies charge cash advance fees when paying taxes by credit card. The answer is no. All three payment processors agree (via their FAQ pages) that the payment is treated as a purchase not a cash advance. You can find FAQ info here, here, and here.  Plastiq: There is a chance of being charged a cash advance fee if you use a Visa card with the Plastiq bill pay service, but Plastiq will warn you about this before you submit the payment.

Unlimited payments via Plastiq: If you’re willing to incur slightly higher fees, you can make an unlimited number of tax payments via the Plastiq bill pay service. Plastiq usually charges 2.5% to pay bills (including taxes) via credit card, but they occasionally offer lower fees via short term promotions. For details, please see: Plastiq Bill Payment Service.

To pay taxes via Plastiq, use Plastiq’s tax payment screen: plastiq.com/us-taxes.

Fees no longer deductible: Tax preparation fees used to be deductible when itemizing deductions for personal tax returns, but that is no longer the case with the latest tax bill in effect.  That said, businesses can treat processing fees as legitimate business expenses which will, in turn, reduce the tax burden to the extent that these charges reduce overall profits.

View tax payment history: Once you’ve made payments through online processors, you may want to see proof that the IRS received the amount you sent. You can view past payments by signing up here: irs.gov/payments/view-your-tax-account.

Reporting estimated payments: Estimated payments should be reported when filing your annual taxes. In my experience, if you make a mistake and forget to report some of these payments, the IRS will catch the error and refund the difference.

Paying end of year taxes: Tell your tax preparer or tax software that you’ll pay via check. Then, browse to the appropriate tax payment site (e.g. Pay1040.com, OfficialPayments.com, or PayUSAtax.com) to pay your taxes. There is no need to mail in the 1040V payment voucher.

Samsung Pay & Google Pay

Some tax payment websites support mobile wallet payments such as Samsung Pay or Google Pay.  The US Bank Altitude Reserve card earns 3X for mobile wallet payments, so it should be a great match. However, readers have reported that Samsung / Android Pay (Google Pay) are only supported through Visa Checkout and that this does not trigger the Altitude’s 3X rewards.

Amex Express Checkout

Since Amex is strict about not counting manufactured spending towards new credit card welcome bonuses, tax payments are a great alternative.  The nice thing about Amex Express Checkout is that you can use it to make payments even if you don’t have your card.  If you recently signed up for a new Amex card and added it to your online account but haven’t yet received the physical card, you should still be able to pay through Amex Express Checkout.

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

1. Profit

A number of credit cards earn cash rewards greater than 1.87%. The best of the best are two cards that earn 3% cash back in your first year of card membership:

Since you’ll earn 3% cash back on both the base tax payment and the processing fees with the above cards, your profit should be approximately 1.186% of your tax payment.

Example:

  • $10,000 tax payment + 1.87% fee = $10,187
  • Cash back earned at 3% = $305.61
  • Profit = $305.61 – $187 = $118.61 (1.186% of $10K)

For more examples of cards that earn better than 2% rewards, see: Best Rewards for Everyday Spend.

2. Meet minimum spend requirements

If you recently signed up for new credit cards, chances are good that you have to spend thousands of dollars in order to earn the associated signup bonuses. Paying taxes is a cheap and easy way to accomplish that.

Here are some of the most valuable current welcome bonuses (click on a card for details; press “Next” to see more offers):

Card Offer
Chase Ink Business Preferred Card
80K points
80K after $5K spend in 3 months

$95 Annual Fee

This card is known to be subject to Chase's 5/24 rule.

Recent better offer: This is the best public offer we've seen. A 100K offer is sometimes available in-branch through a Business Relationship Manager.

Chase United MileagePlus® Explorer Business
Up to 100K miles
50K after $5K spend in 3 months + 50K after $25K total spend in the first 6 months

No Annual Fee First Year, Then $95

AAdvantage® AviatorTM Business MasterCard®
Up to 75K miles
Up to 75K miles: 65k miles after $1K in purchases within 90 days and 10K miles when a purchase is made on an employee card that is added to the account at the time of application or within 30 days of the account open date

$95 Annual Fee

The Business Platinum® Card from American Express
Up to 100K points
Up to 100K: 50K after $10K spend in the first 3 months + 50K after additional $15K spend in the first 3 months.

$595 Annual Fee

Chase Southwest Airlines Rapid Rewards® Premier Business Card
60K miles
60K after $3K spend in 3 months

$99 Annual Fee

This card is known to be subject to Chase's 5/24 rule.

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

JetBlue Business Card
Up to 60K miles
Up to 60K: 50K after $1K spend in 90 days and earn 10K after a purchase is made on an employee card

$99 Annual Fee

AAdvantage Aviator Red World Elite MasterCard
60K miles + Companion Certificate
60k miles + introductory companion certificate (pay $99 + taxes for the companion) after 1st purchase within 90 days and payment of the $99 AF

$99 Annual Fee

Avianca Vuela Visa Card
60K LifeMiles
40K after first purchase + 20K after $1K spend in first 90 days with promo code SB4060 during application

$149 Annual Fee

Chase British Airways Visa Signature® Card
Up to 100K bonus Avios
Get 50K Avios after $3K spend in first 3 months + 50K more Avios after $20K spend in first year

$95 Annual Fee

Citi AAdvantage Platinum Select World Elite Mastercard
50K miles
50K miles after $2,500 spend in the first 3 months

No Annual Fee First Year, Then $99

Chase World of Hyatt Credit Card
Up to 50K points
50K points: 25,000 points after $3K spend in 3 months + 25,000 points after $6K total spend in 6 months

$95 Annual Fee

Wells Fargo Visa Signature Card
Up to 50K bonus points
5X rewards points on up to $12,500 in gas, grocery, and drugstore purchases for 6 months. (that's 1x normal earnings plus 4x bonus)

$0 Annual Fee

Chase Sapphire Reserve Card
50K points
50K after $4K spend in 3 months

$450 Annual Fee

This card is known to be subject to Chase's 5/24 rule.

Recent better offer: 100K after $4K spend in 3 months, last seen 3/11/2017 in-branch

Lufthansa Miles & More® Premier World MasterCard® issued by Barclays
Up to 75K miles
Up to 75K miles: 50K after $3K spend in 90 days + 25K miles after $20K spend in first year

$89 Annual Fee

Capital One® Venture® Rewards Credit Card
50K "miles"
One time bonus: 50K after $3K spend in 3 months from account opening

No Annual Fee First Year, Then $95

The Platinum Card® from American Express
60K points
60K after $5K spend in 3 months

$550 Annual Fee

Chase United Explorer Card
40K miles
40K after $2K spend in 3 months

No Annual Fee First Year, Then $95

You may be targeted for a better offer. Details here.. This card is known to be subject to Chase's 5/24 rule

Recent better offer: 70K + $100 statement credit (targeted)

50K after $3K spend in 3 months + 5K for adding an authorized user + $100 statement credit after first purchase (Expired 3/15/18)

Capital One® Spark® Miles for Business
50K "miles"
Earn a one time bonus: 50K after $4500 spend in the first 3 months from account opening

No Annual Fee First Year, Then $95

Recent better offer: Expired 1/28/19: Up to 200K miles: 50K after $5K spend in 3 months from account opening. Earn an additional 150K miles when you spend $50K on total purchases within the first 6 months.

Chase Southwest Airlines Rapid Rewards® Plus Card
40K points
40K points after $1K spend in the first 3 months

$69 Annual Fee

This card is known to be subject to Chase's 5/24 rule.

Recent better offer: 60K after $2K spend (expired 6/10/19)

Chase Southwest Airlines Rapid Rewards Priority Credit Card
40K points
40K points after $1K spend in the first 3 months

$149 Annual Fee

This card is known to be subject to Chase's 5/24 rule.

Recent better offer: 60K after $2K spend (expired 6/10/19)

Capital One® Spark® Cash for Business
$500 Cash Back
Earn a one time bonus: $500 after $4500 spend in 3 months from account opening

No Annual Fee First Year, Then $95

Recent better offer: Expired 1/28/19: Up to $2,000 cash back: $500 after $5K spend in 3 months from account opening plus $1500 cash back after $50K total spend within 6 months from account opening.

Chase Southwest Airlines Rapid Rewards Premier Credit Card
40K points
40K points after $1K spend in the first 3 months

$99 Annual Fee

This card is known to be subject to Chase's 5/24 rule.

Recent better offer: 60K after $2K spend (expired 6/10/19)

Avianca Vida Visa Card
40K LifeMiles
20K after first purchase + 20K after $1K spend in first 90 days with promo code SB4060 during application

$59 Annual Fee

American Express® Gold Card
40K points
40K after $2K spend in 3 months

$250 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 50K after $2K spend in 3 months + 20% back as a statement credit at US Restaurants within the first 3 months (up to $100 back). [Expired 1/9/19]

Hilton Honors American Express Surpass Card
130K points
130K after $4K spend in 4 months. Terms apply.

$95 Annual Fee

Recent better offer: 125K after $3K in first 3 months + free weekend night at first anniversary (Expired 6/27/18)

Gold Delta SkyMiles® Business Credit Card from American Express
30K miles + $50 statement credit
30K miles after $1K spend in the first 3 months + $50 statement credit after first Delta purchase in the first 3 months

No Annual Fee First Year, Then $95

American Express® Business Gold Card
50K points
50K points after $5K spend in 3 months

$295 Annual Fee

Wells Fargo Propel American Express® Card
30K bonus points
30K after $3K spend in 3 months

$0 Annual Fee

Choice Privileges® Visa Signature® Card issued by Barclays
50K points
50K after $1K spend in 90 days

$0 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 64K points: 32K after $1K spend in 90 days + 32K after an additional $2K spend within the first 180 days

Hilton Honors American Express Card
90K points
90K after $2K spend in 3 months

$0 Annual Fee

Alternate offer: You may see a better offer that includes a $100 statement credit during the booking process at Hilton.com.

Marriott Bonvoy Business™ American Express® Card
75K Points
75K points after $3K spend in the first 3 months. Terms apply.

$125 Annual Fee

Virgin Atlantic World Elite Mastercard
35K miles
30K after $1K spend in first 90 days + 5K for adding 2 authorized users

$90 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 75K: 20K after first purchase + 50K after $12K in 6 months + 5K for adding 2 authorized users

Platinum Delta SkyMiles® Business Credit Card from American Express
35K miles + 5K MQMs + $100 statement credit
35K miles + 5K MQMs after $1K spend in the first 3 months + $100 statement credit after first Delta purchase in the first 3 months

$195 Annual Fee

The Hawaiian Airlines® World Elite MasterCard® issued by Barclays
Up to 75K miles
50K after $2K spend in 90 days + 25K after $6K total in first 12 months

$99 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Alternate offer: You may be able to get 60K miles after 1st purchase via paper application distributed in-flight.

The Hawaiian Airlines® Business MasterCard® issued by Barclays
Up to 60K miles
50K after $1K in the first 90 days + 10K after a purchase is made on an employee card

$99 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 60K after $1K in the first 90 days + 10K after first purchase on an employee card [Expired 8/19]

Chase Aer Lingus Visa Signature® Card
Up to 90K bonus Avios (advertised as 120K)
Earn 4x everywhere on up to $30K in total purchases during the first year (then 3x on British Airways and 1x everywhere else)

$95 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 100K:
-50K after $3K spend in 3 months
-Additional 25K after $10K total spend in 1st year and a further 25K after $20K total spend in 1st year [Expired 2/19]

Chase Iberia Visa Signature® Card
Up to 90K bonus Avios (advertised as 120K)
Earn 4x everywhere on up to $30K in total purchases during the first year (then 3x on British Airways and 1x everywhere else)

$95 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 100K:
-50K after $3K spend in 3 months
-Additional 25K after $10K total spend in 1st year and a further 25K after $20K total spend in 1st year [Expired 2/19]

PenFed Pathfinder Rewards American Express Card
25K points
25K after $2.5K spend in first 90 days

$0 Annual Fee

Korean Air SKYPASS Visa issued by US Bank
30K miles
30K miles after $3K spend in 90 days

$95 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 40K after $2.5K spend targeted (last reported 2/26/2016)

30K: 15K after first purchase + 15K after $2k spend in 90 days

25K: 15K after first purchase, 10K after $2K spend in first 3 months (expired 1/18)

Capital One® Savor® Cash Rewards Credit Card
$300 Cash Back
Earn a one time bonus: $300 after $3K spend in 3 months from account opening

No Annual Fee First Year, Then $95

Capital One® VentureOne® Rewards Credit Card
20K "miles"
One time bonus: 20K after $1K spend in 3 months from account opening

$0 Annual Fee

Blue Cash Preferred® Card from American Express
$300 Cash Back
$300 cash back after $1K in the first 3 months

$95 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: Up to $350: 10% cash back on purchases at U.S. Restaurants in the first 6 months, up to $200 back. Plus, earn $150 back after $1K spend in 3 months. (Expired 5/3/17)

American Airlines AAdvanage MileUp Card
10K miles + $50
Earn 10K AA miles + $50 statement credit after $500 spend in 3 months

$0 Annual Fee

Chase United MileagePlus® Club Card
50K miles
50K after $3K spend in 3 months

$450 Annual Fee

You may be targeted for a 75K offer on this card. Details here.. This card is known to be subject to Chase's 5/24 rule.

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: It is common to receive a targeted offer with the first year fee waived

Capital One® Spark® Miles Select for Business
20K "miles"
One time bonus: 20K after $3,000 spend in 3 months from account opening

$0 Annual Fee

Capital One® Spark® Cash Select for Business
$200 Cash Back
One time bonus: $200 after $3,000 spend in 3 months from account opening

$0 Annual Fee

The Plum Card® from American Express
Up to $600
Earn a $200 statement credit after each $10,000 you spend on the card, up to $30,000, in the first 3 months of Card Membership

No Annual Fee First Year, Then $250

Amazon Business American Express Card
$150 Amazon Gift Card
Eligible Prime members get a $150 Amazon.com Gift Card upon approval. Those without Prime get a $120 gift card.

$0 Annual Fee

Capital One® Quicksilver® Cash Rewards Credit Card
$150 Cash Back
One time bonus: $150 after $500 spend in 3 months from account opening

$0 Annual Fee

U.S. Bank Cash+
$150
$150 after $500 spend in 90 days

$0 Annual Fee

Capital One® SavorOne® Cash Rewards Credit Card
$150 Cash Back
One time bonus: $150 after $500 spend in 3 months from account opening

$0 Annual Fee

Blue Cash Everyday® Card from American Express
$200 Cash Back
$200 cash back after $1K in the first 3 months

$0 Annual Fee

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: $250 after $1K spend targeted (last reported 10/2015)

Up to $300: 10% cash back on purchases at U.S. Restaurants in the first 6 months, up to $200 back. Plus, earn $100 back after $1K spend in 3 months. (Expired 5/3/17)

Discover it® for Students
$50 + First Year Double + $20/year
Get $50 after first purchase. All cashback earned in first 12 months will be doubled including 5% earned in rotating categories. Plus, get $20 cash back each school year your GPA is 3.0 or higher for up to the next 5 years.

$0 Annual Fee

Fidelity Rewards Visa
$100 Cash Back
$100 after $1K spend in 3 months.

$0 Annual Fee

Business Green Rewards Card from American Express
5K points
5K points after first purchase

No Annual Fee First Year, Then $95

Discover it®
$75 + First Year Double
Get $75 after first Amazon purchase. All cashback earned in first 12 months will be doubled including 5% earned in rotating categories.

$0 Annual Fee

Discover it Miles - Double Miles your first year
$50 + First Year Double
Get $50 after first purchase. All miles earned in first 12 months will be doubled. This makes this a 3% cash back card for the first year.

$0 Annual Fee

Citi Rewards+ Student Card
2.5K points
2.5K after $500 spend in 3 months

$0 Annual Fee

Citi Double Cash Card

Recent better offer: None

Ducks Unlimited Visa from First Bankcard

Currently there is no signup bonus for this card, but the bonus categories might make it attractive nonetheless.

$0 Annual Fee

The Blue Business℠ Plus Credit Card
2X Everywhere
2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter. Terms apply.

$0 Annual Fee

See Rates & Fees

Info about this card has been collected independently by Frequent Miler. The issuer did not provide the details, nor is it responsible for their accuracy.

Recent better offer: 20K after $3K spend in 3 months (Expired 6/21/17)
10K points after $3K in purchases in the first 3 months (Expired 9/26/18)

3. Buy miles cheaply

Several credit cards offer up to 1.5 miles per dollar for spend. In these cases, a 1.87% tax payment fee means that you can essentially buy miles for 1.22 cents per dollar. Even better, the Amex Blue Business Plus credit card earns 2 Membership Rewards points per dollar. In this case you can essentially buy miles for 0.92 cents per dollar.

2X Example:

  • $10,000 tax payment + 1.87% fee = $10,187
  • Miles earned at 2X = 20,374
  • Cost per mile = $187 / 20,374 = 0.92 cents per mile

1.5X Example:

  • $10,000 tax payment + 1.87% fee = $10,187
  • Miles earned at 1.5X = 15,281
  • Cost per mile = $187 / 15,281 = 1.22 cents per mile

Cards that offer 2X airline miles per dollar:

Cards that offer 1.5X airline miles per dollar:

4. Earn valuable big spend bonuses: elite status, free nights, companion pass, etc.

Many credit cards offer bonuses for meeting high spend thresholds. You can find a comprehensive list here: Best big spend bonuses. Here are a few examples:

  • Amex Delta Reserve or Delta Reserve Business: Spend $30,000, get 15,000 bonus miles plus 15,000 Medallion Qualifying Miles (towards elite status). At $60,000 spend, get another 15,000 bonus miles and 15,000 Medallion Qualifying Miles.
  • Amex Delta Platinum or Delta Platinum Business: Spend $25,000, get 10,000 bonus miles plus 10,000 Medallion Qualifying Miles (towards elite status). At $50,000 spend, get another 10,000 bonus miles and 10,000 Medallion Qualifying Miles.
  • Southwest Plus, Southwest Premier, or Southwest Business: With Southwest, when you earn 110,000 points in a calendar year (including points earned from credit card spend) you get a companion pass good for an unlimited number of flights for the rest of that year and all of the next calendar year.
  • Barclaycard JetBlue Plus, or JetBlue Business: Spend $50,000 and get Mosaic status which offers free changes and cancellations; free checked bags; expedited security; early boarding; free drinks; enhanced point earnings; and 15,000 bonus points upon qualifying.

5. Liquidate Visa/MasterCard gift cards cheaply

Visa and MasterCard gift cards are debit cards. As such, they qualify for low flat fees for debit tax payments: $2.25, $2.59, or $2.65 (depending upon the tax processor you use). In other words, your cost to liquidate $500 gift cards will be approximately half a percent (0.5% to 0.54%). That’s pretty cheap.

If you use $500 Visa/MasterCard gift cards, then you can pay the following amounts:

  • PayUSAtax.com ($2.58 fee): Make a $497.42 payment.
  • Pay1040.com ($2.59 fee): Make a $497.41 payment.
  • OfficialPayments.com ($2 fee): Make a $498 payment.

The biggest problem with this is the IRS imposed 2 payments per processor limit. Online, this means that you can liquidate no more than 6 gift cards per type of tax payment. Via phone, though, you may find a tax processor willing to accept multiple debit cards for a single overall payment. Specifically, OfficialPayments is known to accept multiple gift cards via phone. When you make multiple payments over the phone, you do pay the $2.25 fee for each gift card.

Which gift cards work?

Most Visa and Mastercards work.  Here are some examples:

  • Vanilla Visa gift card via Official Payments online
  • MetaBank Visa gift cards via Official Payments
  • Visa gift card issued by Metabank via PayUSAtax online
  • Visa gift card issued by Metabank via Pay1040 online
  • Mastercard gift cards from Giftcards.com work with all three processors

Which gift cards don’t work?

  • Visa gift cards previously didn’t work with OfficialPayments, but that seems to have changed in 2019
  • Some Mastercard gift cards via OfficialPayments have processed as credit cards rather than debit cards in the past (one known example are the US Bank Mastercards typically bought at grocery stores).

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

About Greg The Frequent Miler

Greg is the owner, founder, and primary author of the Frequent Miler. He earns millions of points and miles each year, mostly without flying, and dedicates this blog to teaching others how to do the same.

More articles by Greg The Frequent Miler »

Regarding comments: Comments posted at the bottom of Frequent Miler pages and posts are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

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Eugene
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Eugene

I have a Vanilla VGC, it says it’s issued by Bancorp AND Metabank. Do you know if the Vanilla VGCs are accepted for federal tax payments? Thank you

Charles
Guest
Charles

PayUSA and Pay1040 -> Yes.
Official Payments -> No. But it has been a while since I have tried.
OP has allowed more than 2 payments per quarter in the past but not any longer.

Mary Jane
Guest
Mary Jane

Hi Greg, as usual, great article. Can you pay state property taxes, this way, as well?

CaveDweller
Guest
CaveDweller

In Illinois Yes BUT check on ur local stuff and Learn how to do Before u Do it ..CHEERs

tro
Guest
tro

” If you recently signed up for a new Amex card and added it to your online account but haven’t yet received the physical card”

How do you do this? I tried with the card info I was given on instant approval, but it didn’t work, said not recognized or similar. I assumed because the 4 digit CCV was listed as temporary, I needed to wait. Or was my issue maybe that I was trying to add my first business card to a login with personal accounts?

Ish
Guest
Ish

Maybe a naive question, but if my taxes have already been deducted from my paycheck (and therefore I don’t owe any taxes), can I still make payments using credit card and get a refund of the extra tax payments made using credit card? Any article/link you could point me to where I can read more about this would be helpful too. Thanks.

5150d
Guest
5150d

Excellent and detailed Greg! This is the ONLY method I use for MSR. It’s legit and works. Do it at the end of the calendar year and it’s refunded back in a couple of months when you file taxes. Or, just reduce your fed tax withholding through your employer and make these estimated payments during the year.

Mark
Guest
Mark

The Hilton Honors Ascend card gets a free weekend night for $15,000 spend on the card. A $15,000 tax payment @ 1.87% costs $280. So, $280 for a free weekend night at any Hilton.

Kim
Guest
Kim

I tried VGC from VanilaGiftcom(I bought it at CVS) at OfficialPayments.com today and it worked.

Piles of Miles
Guest
Piles of Miles

Kim is correct, seeing her comment I just used a 500 VGC Vanilla from Walgreens on OfficialPayments (OP). That is a viable option now for visa (at least the vanilla type) using OP from the options. If vanilla works, I would think other types of VGC could as well?

James van
Guest
James van

Just paid nys tax and Federal tax with amex business Platinun and spg because of the high $ amounts The IRS will accept $99,999.00 no more but you can make multiple payments with same credit card 15 times and no problem.

Kenneth Bush
Guest
Kenneth Bush

The 1040A (and the 1040EZ) no longer are used for filing taxes. Everything is on the revised 1040 with appropriate schedules.

As for deductions, the standard deduction for all filing statuses nearly doubled (along with the elimination of the personal exemptions). In order to make itemizing deductions viable for 2018, a single filer would need at lease $12,000 of deductible items, compared to $6,350 in 2017. Fewer people will find itemizing deductions to be of value for 2018 federal income taxes.

Johan
Guest
Johan

Official Payments worked with MetaBank Visa, January 2019. Was able to drain 2X $500 cards (one per transaction)

Janice
Guest
Janice

If you file jointly with someone else, could each person make a payment twice per payment processor? For example, we make two payments under my social security number and two under my husband’s social security number?

Dan
Guest
Dan

Has anyone had trouble recently with VGCs posting on the eftps.gov website? I used pay1040.com over 2 weeks ago to drain a gift card to my 1040 estimated tax. I’ve never had a problem, have used all three processors for several years, it usually takes at most about 4 days to post on eftps. Perhaps the shutdown was having an effect, although eftps website said things were being processed normally.

I called pay1040.com who confirmed my payment.

Any thoughts? Do I need to (shudder) contact the IRS?

thanks

edit: I see Greg mentioned an IRS account, which I created and has the same info as eftps.gov, also not showing my VGC payment on January 12.

Michael
Guest
Michael

If I didn’t prepay estimated taxes for 2018 but I overpay annual tax for 2018 then file will I get back as a refund or does it only work that way if had done it earlier as estimated taxes? For example I should owe $700 And I paid $3,000 minus debit fees towards annual tax. So when I file I should get back $2300?

Tamino
Guest
Tamino

This is a well written post! Thanks for the info!

Sandi Bond
Guest
Sandi Bond

For my property taxes, the county has some company handle online payments that charges 2.35% to process a credit card payment. They do not tell you if it is handled as a purchase or cash advance and the company can not be reached by the phone number provided other than a recording that takes the payment. You can’t talk to a real person or ask any questions. The County does not know if it is processed as a cash advance or purchase, but AMX only gives the spend waiver if it is not processed as cash advance. Is there any way to know which way they handle it?

Vadim
Guest
Vadim

I called officalpayments and they told me they can’t process more then 2 debit cards

QI CHU
Guest
QI CHU

how did you transfer to human operators? I tried several phone numbers and pressing 0s at different times, nothing worked.

longwood
Guest
longwood

Can confirm that the official payments system will no longer allow more than two payments even when calling in. A very nice representative tried all she could to get a third to process.

QI CHU
Guest
QI CHU

I can’t seem to get a human on official payments’ phone system. It just transfers around different automated systems.And the automated system only process one card (I lost one of my opportunities trying that).

QI CHU
Guest
QI CHU

I got a hold of human operator of Official payments by calling 866-964-2552. But the operator also said only 2 cards and one per transaction. Also it’s shared with the online limit. I don’t think there’s a way to do multiple cards now.

Daivd
Guest
Daivd

I haven’t filed my 2018 return, but I know I owe a lot. Is it OK I pay some amount now via one of the 3 processors? If yes, it looks like only form 1040 can be chosen(1040EX is no longer available for 2018 any more). Is it an OK process?
In the 1040 form, do I still put the amount I pay this way as 2018 estimated tax payment estimate?

Thanks.

James
Guest
James

Hi Greg, which one of the processor allows California state tax? I called those numbers it only allow federal tax.

amanofwords
Guest
amanofwords

I don’t think you can pay California taxes via the independent processors anymore. You have to use California’s own system, which does not accept credit cards.
https://www.ftb.ca.gov/online/webpay/index.asp

Steven
Guest
Steven

Not sure if this has been mentioned yet, but if you are draining GCs via PayUSATax, it will not let you make two identical payments – I tried to do it repeatedly to no avail. Solution was to reduce the second payment by a penny and it took.

Steve
Guest
Steve

It also would not accept a Metabank MCGC as a debit card. Womp womp.

Jim
Guest
Jim

Greg, a follow up about this for those of us paying six figure tax bills would be great. This is the only MS I do, although not truly MS. It’s buying almost unlimited cheap points.

I want to use 1-2 cards, not 5. So focus on benefits would help, like buying Delta status, etc…

CopperHog
Guest
CopperHog

I’ve been getting an error on all 3 processors when trying to make payments in Q2. I made 2 online payments on each processors before 4/15. Trying to do 2 more per processor in Q2, but I keep getting a message that says this taxpayer has already made the maximum number of payments allowed.

I thought the velocity limit here was 2 payments per processor per quarter. Am I missing something? TIA.

Justin
Guest
Justin

I think it’s because the limit per quarter is literally “per quarter.” So your payments in April counted towards this quarter.

CopperHog
Guest
CopperHog

I thought of that — but I don’t think that’s the reason.

For 2 of the processors I paid my Q1 payments in early April. But for 1 of the processors, my Q1 payments were made in early March. All 3 processors are giving me the error.

Stumped.

Charles
Guest
Charles

Payments count towards:
QTR 1: 3/1-5/15
QTR 2: 5/15-7/15
QTR 3: 7/15-10/15
QTR 4: 10/15-1/1

Bear
Guest
Bear

@Charles, where does that info come from?

Charles
Guest
Charles

Pay1040.com
Home->Taxpayer Tools->FAQs->Question 2
“Form 1040ES Estimated Tax – Tax Year 2019: 1st Quarter 03/01/19 – 05/15/19, 2nd Quarter 05/15/19 – 07/15/19, 3rd Quarter 07/15/19 – 10/15/19, 4th Quarter 10/15/19 – 01/01/20, 7 AM ET”

LumpyLump76
Guest
LumpyLump76

There has been a number of reports that AmEx has been not counting tax payments as meeting minimum spend. Whether that is part of overall AmEx confusion or explicit action is unclear. If anyone is using AmEx, I would advise that they watch carefully, and at the same time, don’t do other stuff that would cause a manual review to take place.

Pointz
Guest
Pointz

Where have you seen that? Could you provide a source?

LumpyLump76
Guest
LumpyLump76

https://redditsearch.io/?term=AmEx%20tax&dataviz=false&aggs=false&subreddits=churning&searchtype=posts,comments&search=true&start=1560309379&end=1560395779&size=100

We’ve had a few people reporting in on this. Not entirely consistent, but definitely comes up when manual review of SUB happens.

Bear
Guest
Bear

Haven’t ever heard, or experienced, that before.

Charles
Guest
Charles

The only issue I have heard that is a no-no is buying gift cards with an Amex credit card to meet the minimum spend requirement.

Nisky
Guest
Nisky

Is there any issue with using a business card to pay personal state and federal taxes?

Charles
Guest
Charles

No issue that I am aware of.

amanofwords
Guest
amanofwords

For payments of up to $1,500 made July 1 to September 30 this year, you can get 5 percent back by using PayPal and Discover. You have to register for Discover’s third-quarter 5 percent cashback bonus category, which includes PayPal, then pay via PayUSAtax. Make sure your PayPal account is set to charge your Discover card before hitting enter on the transaction!

To account for the fees, you would make a tax payment of $1,471.17, with the fees bringing the Discover/PayPal charge to exactly $1,500.00

Many people used a similar promotion with the Chase Freedom cards during the second quarter of 2018 to get 5 percent back on payments of up to $1,500.

PM1
Guest
PM1

This is a very well researched and helpful post. Thanks so much Greg!

Christine B
Guest
Christine B

The $1K Visa debit card option through Simon Malls right now makes this a good option for those of us without other good MS options. $3.95 fee per card. $2 to liquidate a debit card under $1K (so $998 payment + $2 fees). I can prepay this quarter and next quarters federal taxes, then adjust my federal withholding for the rest of the year. And manufacture a lot of points and miles along the way.

I also really like the idea of Paypal + Discovercard this quarter suggested by another reader.