Pay Taxes With a Bonus Card for Quick Points Payout
Tax season is approaching, which means some will have to shell out a hefty sum of money to the government. It’s always frustrating, but you can do it a little less if you have a decently rewarded credit card.
Before we move on, we must point out a very important disclaimer: you should only do this if you are in a situation where you can pay your taxes in full in cash. Don’t charge your credit card taxes and then pay them slowly. It will cost you in the end. However, if you already have money to pay taxes, read on.
As the personal finance site 20 Something Finance explains, the IRS allows credit card payments for a fee. The commission is about 2%. The lowest rate among the sites found was 1.87%. However, if you have a bonus card that offers higher income , you may be able to make a small profit.
If more than 2% cashback is returned from your card, then anything that exceeds the commission charged by the IRS is free money in your pocket. It’s also a decent chunk right off the bat, which means you can get enough to buy good food if you pay enough. Of course, after you’ve paid the tax officer, you should probably schedule a credit card payment to pay off your balance. It’s not a big difference, but it’s at least a nice psychological benefit that can make you less annoyed about paying taxes.
How To Pay Taxes With A Credit Card (And Make A Profit) | 20 Something Finance