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If you pay taxes with a card the processor charges a fee. You won’t come out ahead

• pb7 3y ago
  The credit card fee is around 1.9% (e.g. Pay1040), most credit cards will fall somewhere between 1-2% cash back which will make up for the fee alone without even considering the sign up bonus. Example: Chase Ink Unlimited[0] has a 75K points ($750 at minimum, more if you have a Preferred or Reserve to transfer to; was a 90K/$900 offer up until tax time this year) bonus and 1.5% cash back. It's free (untaxed!) money to pay your taxes. https://creditcards.chase.com/business-credit-cards/ink/unlimited https://creditcards.chase.com/business-credit-cards/ink/unli...
  • jimbob45 3y ago
    PSA: There are helpful websites[0] that can enable you to quickly compare credit cards to determine which fits your lifestyle best. [0]https://www.nerdwallet.com/best/credit-cards/cash-back https://www.nerdwallet.com/best/credit-cards/cash-back
• dheera 3y ago
  Nope, not so fast. Do your research before making claims, please. For example, if you have to pay $15K in taxes, you can sign up for a Chase Ink Business Preferred card, pay the $15K+1.85% = $15277, get the 100K bonus + 1X points on the $15277, which puts you at 115277 points, which is worth 1.25x in travel, which puts you at $1440 worth of air tickets or $1152 worth of cashback. Subtract the $277 extra you paid, subtract the $95 annual fee for one year (before which you'll cancel the card of course), and that leaves you with a net return of $1068 in air tickets or $780 in cash. There are quite a few other cards that you can come out ahead in as well, depending on how much tax you owe. And yes, I did this.