The IRS doesn’t accept credit-card payments. That’s too bad, really; if you have a credit card that gives you cash back, frequent-flyer points, or some other reward, you could really enjoy April 16.
Ahhh, but the IRS says that it’s OK for other companies to pay your taxes on your behalf — companies that do accept credit cards. You can pay your taxes through, for example, Pay1040.com or PayUSATax.com.
Of course, there’s a catch: These services charge a fee. For example, it’s 1.87 percent for Pay1040.com.
Still: If you make $150,000 in taxable income this year, and you’re filing your taxes as the head of your household. You’ll owe $32,434.50 in federal taxes.
So if you have a 2-percent cash-back card, your profit, after the Pay1040.com fee, will be $42.
But it gets better: The Pay1040 fee is tax-deductible! That fee lowers your taxable income by $607. When the dust settles, by paying your taxes with your cash-back card, you’ve saved $212.
And there may be other good reasons to pay taxes by credit card. Like maybe you have a card that gives you frequent-flyer points or hotel points for every dollar spent; paying your taxes this way would be a very quick way to earn a couple of free flights.
Note: Do not use your credit card to finance your tax payments; you’ll wind up getting hosed in fees and interest. Use these techniques only if you can pay off the card in full at the end of the month.
More from Pogue:
iOS 10 Hidden Feature: Bedtime-consistency management
Pogue’s Basics: Money – The Amazon card
iOS 10 Hidden Feature: Do Not Disturb Emergency Bypass
Pogue’s Basics: Money – Extended warranties
Pogue’s cheap, unexpected tech gifts #2: ThinOptics glasses
A dozen iOS 10 feature gems that Apple forgot to mention
GoPro’s most exciting mount yet: a drone
Professional-looking blurry backgrounds come to the iPhone 7 Plus
Pogue’s Basics: Turn off Samsung’s Smart Guide
Pogue Basics: Touch and hold Google Maps
The Apple Watch 2 is faster, waterproof—and more overloaded than ever
We sent a balloon into space — and an epic scavenger hunt ensued
The new Fitbits are smarter, better-looking, and more well-rounded
