Forum Thread

paying tax due using credit card

cheekoo 515 108 February 4, 2016 at 12:22 PM
Deal
Score
0
3,411 Views

Thread Details

I owe some money to IRS for my 2015 taxes. Was wondering if i can pay it using provider from - https://www.irs.gov/uac/Pay-Taxes...Debit-Card

Pay1040.com - charges 1.87% minus 1% cashback, is only .87%. Which sounds good to partly meet spending bonus of a card, I can open.

Wanted to ask community, if others have done something similar in past?

Can I do split payments?

How do I specify this payment in TurboTax or H&RBlock, which I will probably be using to file my taxes?

Can I pay using this website now, before prepping my tax return?

Thanks in advance!

8 Comments

1

Sign up for a Slickdeals account to remove this ad.

Joined Jan 2007
L7: Teacher
2,673 Posts
1,014 Reputation
Pro
#2
Reply Helpful Comment? 0 0
Joined Dec 2008
L10: Grand Master
6,316 Posts
1,470 Reputation
#3
Quote from cheekoo View Post :
I owe some money to IRS for my 2015 taxes. Was wondering if i can pay it using provider from - https://www.irs.gov/uac/Pay-Taxes...Debit-Card

Pay1040.com - charges 1.87% minus 1% cashback, is only .87%. Which sounds good to partly meet spending bonus of a card, I can open.

Wanted to ask community, if others have done something similar in past?

Can I do split payments?

How do I specify this payment in TurboTax or H&RBlock, which I will probably be using to file my taxes?

Can I pay using this website now, before prepping my tax return?

Thanks in advance!
I did my taxes already with turbotax and had to pay federal. I choose the checking option to avoid fees, but it didn't allow to split the payments that i recall. It only let me choose the date of payment.
Reply Helpful Comment? 0 0
#4
check and see what the interest rate and penalties are through the IRS if you're going to carry that balance on a CC
I know at one time it was pretty cheap to just owe them and make payments
Reply Helpful Comment? 0 0
for those that hate spelling mistakes www.walmarts.comCool

bulb save money by checking your insurance every 2 years (and not every 20)
#5
Quote from PiratePenguin View Post :
I did my taxes already with turbotax and had to pay federal. I choose the checking option to avoid fees, but it didn't allow to split the payments that i recall. It only let me choose the date of payment.
Since it's early in the year I suppose you have time to make a late estimated tax payment for 2015 with a check, and then file including that amount, and pay with CC for the balance due.
Reply Helpful Comment? 0 0
#6
Just as a rule of thumb it is not recommended to pay debt (owing the IRS is indeed debt) and keeping it as debt on a credit card.

Everyone and their horse promises they are just doing something smart of whatever reason.

The interest charges for a credit card will be higher than another other debt mechanism. I recommend you pay with a no-fee cash option such as a checking transfer or check.

Making payments to the IRS will be cheaper than eating credit card interest.
Reply Helpful Comment? 0 0
#7
if you need to meet a bonus requirement it probably works out (I have done this on several cards in the past). the other time to use a cc is when you have a flat 2% card such as citi double cash or fia amex and you pay in full monthly.
Reply Helpful Comment? 0 0
Joined Jun 2007
L5: Journeyman
515 Posts
108 Reputation
Original Poster
#8
sorry, i did not provide full info. I am not going to keep the balance on the card, have cash and would immediately pay card bill.
Also, i dont want to delay paying taxes beyond the April 15 (or 18) date.

Quote from eekthecat View Post :
Just as a rule of thumb it is not recommended to pay debt (owing the IRS is indeed debt) and keeping it as debt on a credit card.

Everyone and their horse promises they are just doing something smart of whatever reason.

The interest charges for a credit card will be higher than another other debt mechanism. I recommend you pay with a no-fee cash option such as a checking transfer or check.

Making payments to the IRS will be cheaper than eating credit card interest.
thats is correct. Good info, my OP was little different, i was not clear. added that details

Quote from PiratePenguin View Post :
I did my taxes already with turbotax and had to pay federal. I choose the checking option to avoid fees, but it didn't allow to split the payments that i recall. It only let me choose the date of payment.
Thanks, will give it a shot.
Reply Helpful Comment? 0 0
Last edited by cheekoo February 6, 2016 at 09:46 AM

Sign up for a Slickdeals account to remove this ad.

#9
Quote from cheekoo View Post :
sorry, i did not provide full info. I am not going to keep the balance on the card, have cash and would immediately pay card bill.
Also, i dont want to delay paying taxes beyond the April 15 (or 18) date.



thats is correct. Good info, my OP was little different, i was not clear. added that details


Thanks, will give it a shot.
But even your post says by using a credit card you will be PAYING a fee of 0.87%. If you have the cash, how could this possibly make sense? You also mention you don't have a credit card you could put this on. If you are doing this purely based on a credit card opening bonus, again I advise that is not a wise financial decision and has no real basis for being a good idea.

If you have the cash like you say, pay off the IRS debt with an ACH transfer or check from your checking account and move on. If you want to get a credit card with an opening bonus that is fine but is a completely SEPARATE and distinct decision.
Reply Helpful Comment? 0 0
Page 1 of 1
1
Join the Conversation
Add a Comment
 
Copyright 1999 - 2016. Slickdeals, LLC. All Rights Reserved. Copyright / Infringement Policy  •  Privacy Policy  •  Terms of Service  •  Acceptable Use Policy (Rules)  •  Interest-Based Ads
Link Copied to Clipboard