Important due dates
Tax Payment Due Dates
- January 16, 2024: 4th quarter 2023 estimated taxes due.
- April 15, 2024: End of year taxes due for 2023.
- April 15, 2024: 1st Quarter 2024 estimated taxes due.
- June 17, 2024: 2nd Quarter 2024 estimated taxes due.
- September 16, 2024: 3rd Quarter 2024 estimated taxes due.
- January 15, 2025: 4th Quarter 2024 estimated taxes due.
Pay taxes via credit card: Key Info
Credit card fee 1.82% to 1.98%
Here is some key information you’ll need to know about paying taxes with credit or debit cards:
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 $2.20 to $2.55 per transaction and credit card fees range from 1.85% to 1.98%. Alternatively, you can pay taxes via the Plastiq Bill Pay service, but that will cost you more: 2.9% plus a transaction fee.
Additional Info Direct from the IRS
The IRS page that lists options for paying by credit or debit card also lists the following “Additional Information”:
- No part of the card service fee goes to the IRS.
- You don’t need to send in a voucher if you pay by card.
- Card processing fees are tax deductible for business taxes.
- You must contact the card processor to cancel a card payment.
- IRS will refund any overpayment unless you owe a debt on your account.
- Your card statement will list your payment as “United States Treasury Tax Payment” and your fee as “Tax Payment Convenience Fee” or something similar.
- Federal tax lien releases can take up to 30 days after we receive full payment; liens may remain for other individuals who haven’t fully paid their portion.
- When you pay while filing your taxes through online software, different card fees apply.
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 will be the same.
Twice as many potential payments when filing jointly
If you file jointly with a partner, you can make payments in each person’s name, separately. These payments will still apply to the one overall tax return, but not always automatically. According to reader reports, in some cases, the IRS matches these payments to the combined return automatically. In other cases, people have reported the need to call the IRS to ask them to combine the payments. I recommend calling shortly after filing your annual taxes to ensure that the IRS has correctly applied both sets of payments to the same return.
Obviously, if you are filing separately, you can each make your own payments without any issues.
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 official IRS 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.
Unlimited payments via Plastiq
If you’re willing to incur higher fees, you can make an unlimited number of tax payments via the Plastiq bill pay service. Plastiq usually charges 2.9% plus a transaction fee 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.
Pay with Paypal
Both ACI Payments and PayUSATax allow payments via PayPal. Sometimes cards like the Discover It, Discover It Student, and Chase Freedom offer 5% rewards for Paypal purchases (up to $1500 combined spend per quarter). Tax payments during these times should count!
NOTE: There can be a weird issue with selecting to pay with PayPal on the PayUSATax website. When clicking the PayPal button, a screen flashes up and disappears. Here is a workaround that has worked for some people, but not all: Put in valid credit card information first (for any credit card) and then press the PayPal button. When doing it this way, I got the PayPal screen to load successfully.
Are tax payment fees deductible?
Fees are no longer deductible for personal taxes: Tax preparation fees used to be deductible when itemizing deductions for personal tax returns, but that is no longer the case.
Card processing fees are tax deductible for business taxes: This can substantially reduce your net cost of using payment services.
Tax payment history (how to see your info online)
Once you’ve made payments through online processors, Plastiq, or other means, 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.
How to pay 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, PayUSAtax.com, or Plastiq.com/us-taxes) to pay your taxes. There is no need to mail in the 1040V payment voucher.
What happens if you over-pay your taxes?
Overpayments will be refunded: The IRS will refund any overpayment unless you owe a debt on your account, but this can take a long time.
Do you need to mail in payment vouchers?
No. No payment voucher is required. You don’t need to send in a voucher if you pay by card.
Top reason to pay federal taxes with a credit card
1. 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.
Go to our Best Monthly Offers page to view the most valuable welcome bonuses.
2. 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, some cards earn 2 miles per dollar. The Amex Blue Business Plus credit card earns 2 Membership Rewards points per dollar on up to $50K spend per year. And the Citi Double Cash® Card earns 2 cents per dollar uncapped. Those cash rewards can be converted to Citi ThankYou® Points and then to airline miles. With these 2X everywhere cards, 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:
- Citi Double Cash: Earns 2 cents per dollar, uncapped. Cash rewards can be converted to ThankYou points and when paired with a Citi Premier® Card or Citi Prestige card, those points can be transferred to a large selection of airline programs.
Now with a signup bonus! A great complement to the Citi Premier card.
- Amex Blue Business Plus: Earns 2 Membership Rewards points per dollar on up to $50K spend per calendar year. Points can be transferred to a large selection of airline programs or to a few hotel programs.
One of the best Amex business cards with no annual fee. It has transfer partners and offers 2x points on everyday business purchases such as office supplies or client dinners. Earn 2x on the first $50,000 of eligible purchases per year, 1 point per dollar thereafter. Eligible purchases are for goods and services minus returns and other credits. Terms apply.
Cards that offer 1.5X airline miles per dollar:
- Chase Ultimate Rewards. Two no-fee cards in Chase’s lineup earn 1.5 Ultimate Rewards points per dollar for all spend. Pair either one with a premium card (e.g. Chase Sapphire Reserve®, Chase Sapphire Preferred® Card, Ink Business Preferred® Credit Card, etc.) to transfer points to several airline or hotel programs:
With the current offer, you'll now earn a total of 4.5x on dining (including takeout and eligible delivery services), 4.5x on drugstores, 6.5x on travel purchased through Chase Travel℠, and 3x on everything else for the first year, up to $20,000. This special offer is best for those who have a healthy amount of monthly spending on dining and general expenses.
Great offer for a no annual fee card! A no-brainer, great business card. Your choice to receive 1.5% cash back or 1.5x points.
- Amex Membership Rewards. Amex points can be transferred to a large selection of airline programs or to a few hotel programs.
This is a card with a huge welcome offer and loaded with benefits for frequent travelers. However, the very large annual fee needs to be weighed versus the benefits. Terms apply.
Terms apply.
- Capital One Miles. Capital One offers two cards that earn 2X rewards miles everywhere. These “miles” can be transferred to real airline miles, usually at a rate of 1 to 1. This means that the following cards are capable of earning 2X airline miles everywhere:
Great "ultra-premium" card. Despite the big annual fee, the overall first year value is worth it for most people. This is due to the large signup bonus, extra benefits like Priority Pass, up to $300 annual travel credit and Global Entry/TSA PreCheck credit.
Best "easy to use" starter card (or complement to the Chase Sapphire Preferred) for those who don't want to think when it comes to earning and redeeming miles.
Another good business card for those who like Capital One. Similar to the Spark Cash, but instead of cash, it allows you to earn and redeem miles as statement credits for travel purchases.
4. Earn valuable big spend bonuses: elite status, free nights, companion pass, etc.
Many credit cards offer bonuses for meeting high spend thresholds. Here are a few examples:
- Amex Delta Reserve or Delta Reserve Business: May include elite status earning through extra spending thresholds.
- Amex Delta Platinum or Delta Platinum Business: May include elite status earning through extra spending thresholds.
- Southwest Plus, Southwest Premier, or Southwest Business: With Southwest, you can earn a companion pass good for an unlimited number of flights for the rest of that year and all of the next calendar year. Read more.
- Barclaycard JetBlue Plus, or JetBlue Business: May include elite status earning through extra spending thresholds.
Last-minute options for instant numbers to pay taxes
Cutting it close to the tax payment deadline but still want to snag a credit card signup bonus? Don’t worry! A few credit cards offer instant card numbers upon approval, but there are some important details to keep in mind. Check out these top picks for your situation.
When you’re down to the wire with only 1-2 weeks left before taxes are due, remember:
- Instant approval is a must.
- The issuer needs to be able to verify your identity during the application process, or you might not get that instant card number.
- No instant approval or card number? Reach out to the issuer right away and request expedited shipping. They might be able to get the card to you within 1-2 days.
Key point: Instant approval and instant card number access are two different things. While instant approval is fairly common, not all issuers provide immediate access to your credit line post-approval.
American Express
Your eligibility for an instant card number hinges on AmEx’s ability to verify your identity on the spot. Keep in mind that instant numbers are only available through online applications, not phone applications.
For AmEx consumer cards (excluding business cards), you’ll typically receive an instant card number that’s ready to use almost anywhere, provided the issuer can verify your identity immediately.
Capital One
Most new Capital One cardholders can expect a virtual card number upon approval, which can be found in the Capital One app. This virtual number allows you to shop online while your physical card makes its way to you.
To access your new card in your existing online portal, you’ll need to have a Capital One account beforehand.
After approval, head to the Capital One app to find your virtual card number.
Chase
Chase consumer Visa cards, such as the Chase Sapphire Preferred and Chase Sapphire Reserve can be added to digital wallets (Apple Pay, Google Pay, Samsung Pay) immediately after approval for in-person or online purchases. This applies to many Chase co-branded airline and hotel cards too. However, Chase Mastercard cards like Chase Freedom Flex℠, and certain Visa cards (like the IHG One Rewards Premier, IHG One Rewards Traveler, Aeroplan® Credit Card, Amazon Visa, Prime Visa, Disney® Visa® Card, and Disney® Premier Visa® Card), and business credit cards are excluded.
Important note on Chase: Paying taxes through a digital wallet isn’t an option. So, even if you can add your new Chase card to your digital wallet, using it to pay taxes through IRS-approved portals likely won’t work.
Your best bet for using a Chase card would be to request expedited shipping after approval.
Citi
There aren’t any Citi cards with instant card numbers that we recommend in a last-minute scenario to get a large signup bonus. The top-rated Citi Premier® Card is your best option, but you would not get an instant number upon instant approval. You would need to call and get the card expedited.
In Summary
Paying taxes with a credit card can be a smart way to earn valuable rewards and meet spending requirements for big signup bonuses. While it might seem daunting at first, understanding the key details and choosing the right card can make the process simple and rewarding. By taking advantage of instant card numbers, expedited shipping, and strategic card selections, you can maximize your rewards even when pressed for time. So, as tax deadlines approach, don’t panic – instead, consider how paying your taxes with a credit card could help you travel freely!
