5 thoughts on “Should You Pay Your Taxes With A Credit Card?”

  1. The argument that it DOES make sense to pay your taxes with a 1.87% fee to reach a minimum spend signup bonus is only true if you have no other way or will not otherwise be achieving that minimum spend. Otherwise, you cannot count your purchase and 1.87% fee as earning all those bonus miles which you would have gotten otherwise.

    What about paying your taxes with an AMEX biz platinum that offers 1.5x MR for purchases above $5K?

    On a $10,000 tax bill you’d get 15,000 MR. Your cost for those would be $189.59. That is ~1.2 cents per MR which makes sense for most.

    1. Thanks for the info. For the signup bonus, I was trying to make a point that you could sign up for an additional card and use the tax bill to reach that spending.
      For the AMEX Biz Plat, that’s a great idea which I often overlook since 1) I don’t have a Biz Plat anymore and 2) My personal tax bill hopefully isn’t over $5K.
      For those that are, generating MR for 1.2 cents makes sense.

      1. For a business with a $50K+ tax bill, this is HUGE!
        Would be even better on the Chase Freedom which offers 3X UR on first $60K.
        Is there a limit to the amount you can pay through these sites to the IRS?

      2. Are you referring to the current Chase Freedom Unlimited sign up bonus? I thought that was 3X UR on the first $20,000.
        There are limits for payments through these providers.
        High-dollar payments must be coordinated with the service provider.

        To make a payment of $100,000 or greater through the Link2Gov Corporation, call
        1-866-734-8212.
        To make a payment of $10,000,000 or greater through WorldPay US, Inc., call
        1-855-508-0159.
        To make a payment of $1,000,000 or greater through Official Payments,
        call 1-888-889-7228.

  2. Paid 50k of business taxes on Jan 1 ’19 (taxes due on end of year payroll). Used JetBlue business card. Got 50k bonus 50K for spend, and Mosaic for ’19 and ’20. Well worth it. Fee was deductible for business. Been paying taxes w/ cc for years.

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