Author Topic: Should I pay my quarterly federal tax with credit card?  (Read 1711 times)

DavidAnnArbor

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Should I pay my quarterly federal tax with credit card?
« on: September 12, 2016, 09:53:33 AM »
I have a $2,000 quarterly federal tax payment to make and I notice on the IRS website that you can use a credit card, and one of the processors charges 1.87% for the privilege of using a credit card. But I have a credit card that gives a 2% cashback, either Fidelity Rewards, or Citi DoubleCash back credit cards. So I should be ahead by a little bit if I use either of these credit cards. Should I go this route? Especially since doing this will facilitate a minimum spend to gain a bonus.

NoStacheOhio

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Re: Should I pay my quarterly federal tax with credit card?
« Reply #1 on: September 12, 2016, 09:56:46 AM »
I don't see why not, assuming you're going to pay it off when the cc bill comes?

MDM

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Re: Should I pay my quarterly federal tax with credit card?
« Reply #2 on: September 12, 2016, 11:08:08 AM »
So I should be ahead by a little bit if I use either of these credit cards. Should I go this route? Especially since doing this will facilitate a minimum spend to gain a bonus.
You will "earn" all of $2.60 by doing this - assuming there is no fine print about the 2% not applying to tax payments - plus whatever bonus you get that you would not get otherwise. 

DavidAnnArbor

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Re: Should I pay my quarterly federal tax with credit card?
« Reply #3 on: September 12, 2016, 11:33:52 AM »
Yes thanks I always pay these balances off in full each month.

Miss Piggy

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Re: Should I pay my quarterly federal tax with credit card?
« Reply #4 on: September 12, 2016, 11:36:28 AM »
I had no idea that was even an option. Interesting.

Mother Fussbudget

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Re: Should I pay my quarterly federal tax with credit card?
« Reply #5 on: September 12, 2016, 11:54:22 AM »
The Fidelity Rewards card (2%) might be worth it.  $40 per quarter.  You can't actually transfer points back to your Fidelity account until you've amassed $50 worth of rewards, BUT you can set that account up to automatically transfer points once you've reached $50 worth.   Over a year, you're looking at an additional $160 in your investment account.  Not a bad idea.

MDM

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Re: Should I pay my quarterly federal tax with credit card?
« Reply #6 on: September 12, 2016, 12:25:09 PM »
Over a year, you're looking at an additional $160 in your investment account.

At a cost of $149.60, so $10.40 to the good.