Tax Payments by Credit Card: The Cheapest Options 1


Sometimes a tax payment is due but putting it on a credit card makes more sense. If you already have a back due debt to the IRS and incur a new balance, it will default your payment plan or currently non collectable status. If you have had an Offer in Compromise accepted in the last five years, owing will default your offer in not paid in full.

Often paying by credit card is lower interest than the IRS’ combined interest and penalty rate.

Pay 1040 is usually the cheapest option to pay by credit card at 1.87%. The IRS loves to recommend Official Payments, but the cost is slightly higher.

For business payments, go to Pay 1040’s business payment section.

Many vendors also charge an increased 2.29% rate for visa.

Add a 2% cashback card to that and you might even be saving a bit on your taxes over paying them the normal way.

 

 


Leave a comment

Your email address will not be published.

One thought on “Tax Payments by Credit Card: The Cheapest Options