It is hard to beat the convenience of a credit card for purchases, but does that same convenience make it worth paying your taxes by credit card? It might, but that depends on several factors involving money and time. The major ones are listed below.
- Fees – By law, the IRS cannot pay credit card transaction fees. As a result, credit card payments to the IRS are handled through secure third parties approved by the agency. See http://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card for a list of the approved payment processors and their fees.
Credit card fees are percentage-based with a minimum “convenience fee” for smaller bills ranging from $2.50 to $2.69. Percentages range from 1.87% to 2.00% of the total tax bill depending on the vendor and the type of card used.
You will also find debit card information for each listed vendor. Debit card t...
from MoneyTips https://www.moneytips.com/paying-taxes-with-a-credit-card
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