[Final Day To Pay Q4 Estimates] 2023 Is The Best Year Ever To Pay Your Taxes With A Credit Card! Here Is A Breakdown Of Earnings By Card And Benefit; Paying Taxes To Earn Elite Status!

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DansDeals will receive compensation if you are approved for a credit card via a link in this post. Terms apply to American Express benefits and offers, visit americanexpress.com to learn more.

Update, 1/17: Q4 estimated payments are due today. Which card will you use?

Update, 1/10: Some people are getting an error paying with some card types, but if you pay with PayPal you should be able to use those cards.


Originally posted on 1/3/23:

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Paying taxes on a credit card:

Credit card processing fees are updated annually on January 1st.

In 2020 it cost 1.87% to to pay your federal income taxes with a credit card. That went up to 1.96% in 2021 and back down to 1.87% in 2022.

Luckily not everything is subject to inflation. You can now pay just 1.85% to process your tax payment via credit card! You can make estimated payments at any time. 2022 Q4 estimates are due 1/17/23.

Here is a history of what credit card processing fees for taxes have cost:

  • 2003-2009: 2.49%
  • 2010: 1.95%
  • 2011: 1.9%
  • 2012: 1.89%
  • 2013: 1.88%
  • 2014-2020: 1.87%
  • 2021: 1.96%
  • 2022: 1.87%
  • 2023: 1.85%

You can make 2 payments per credit card processor for each quarterly estimate (1040-ES) and for your year end bill (1040). You can make another 2 payments each time by using a spouse’s information to pay, though you will want to call the IRS to confirm that they link that payment to your joint return as that doesn’t always happen automatically.

You can also make 2 payments each for an extension of time to file (4868) and you can make payments for past amended returns (1040X).

The tax payment fee may be considered a business expense, which will significantly change the math below based on your marginal tax rate. Be sure to speak to a tax professional about that.

Tax payments are considered a regular purchase, not a cash advance.

You can also request a refund for any overpayment and the IRS will cut you a check or a direct deposit into your checking account. You may even wind up getting paid interest by the IRS if the refund check is delayed.

You can also request that up to $5,000 of overpayments per return be converted into I Bonds. That’s on top of the regular $10,000 per person limit for I Bonds purchases.

Big welcome bonuses:

It can definitely make sense to pay your taxes via credit card if you are signing up for a card and are trying to reach a spend threshold to earn a signup bonus that you won’t be able to reach without some help. The 1.85% fee pales in comparison to earning a mega signup bonus as well as the regular miles for the purchase.

Chase:

AMEX:

Capital One:

Citi:


Best Cards To Pay Taxes With:

Even if you don’t have a new card, it can still make sense to pay your taxes with a credit card for the rewards and the extra time to pay.

In order to determine if it’s worth earning miles at a 1.85% rate, you’ll need to assign a value to each currency. Values are highly subjective and will vary based on what you use the miles for, so YVMV (Your valuation may vary!).

  • The Chase Ink Premier Card earns 2.5% cash back on $5,000+ purchases and 2% cash back on small purchases, so you’ll come out .65% ahead of the 1.85% tax processing fee on $5,000+ payments. There are no limits on the 2.5% cash back. Note that this card doesn’t earn transferable points like other Chase Ink cards.
    • A $5,000 tax payment will cost $92.50, but you will earn $126.85 cash back.
    • A $10,000 tax payment will cost $185, but you will earn $253.70 cash back.
    • A $100,000 tax payment will cost $1,850, but you will earn $2,537 cash back.

  • The Blue Business℠ Plus Credit Card from American Express offers 2 points per dollar spent everywhere. If you open this card now you would also earn 15K points for spending $3,000 in 3 months. No annual fee.
    • A $10,000 tax payment will cost $185, but you will earn 20,370 points. If you value your AMEX points at 1.4 cents each, that a value of $285.18 worth of points. You can transfer those points into miles with airlines like Avianca, British Airways, Delta, Singapore, Virgin Atlantic, and more.
    • Note that you only earn 2 points per dollar on $50,000 of annual spending, though if you have multiple primary cards they would get 2 points per dollar on $50,000 of annual spending on each card.

  • The Chase Ink Business Unlimited Card earns 1.5 Chase Ultimate Rewards points per dollar spent everywhere. If you open this card now you would also earn $900 in the form of 90K points for spending $6,000 in 3 months. No annual fee.
    • A $10,000 tax payment will cost $185, but you will earn 15,278 points. If you value your Chase points at 1.5 cents each, that a value of $229.16 worth of points. If you or someone in your household has a Sapphire ReserveSapphire Preferred, or Ink Preferred card then you can transfer points to one of those cards and from there to airlines like United and hotel programs like Hyatt. Alternatively if you have a Sapphire Reserve you can also redeem those points for 1.5 cents each towards travel, while having the Sapphire Preferred or Ink Preferred card would also you to redeem those points for 1.25 cents each towards travel.

  • The Chase Freedom Unlimited card earns 1.5 Chase Ultimate Rewards points per dollar spent everywhere and 3 points per dollar on up to $20,000 spent during the first year of cardmembership via this link. No annual fee.
    • A $10,000 tax payment will cost $185, but you will earn 15,278 points. If you value your Chase points at 1.5 cents each, that’s a value of $229.16 worth of points. If you get this card with an offer to earn 3 points per dollar, you would earn 30,555 points. If you value your Chase points at 1.5 cents each, that’s a value of $458.33 worth of points. If you or someone in your household has a Sapphire ReserveSapphire Preferred, or Ink Preferred card then you can transfer points to one of those cards and from there to airlines like United and hotel programs like Hyatt. Alternatively if you have a Sapphire Reserve you can also redeem those points for 1.5 cents each towards travel, while having the Sapphire Preferred or Ink Preferred card would also you to redeem those points for 1.25 cents each towards travel.

  • The Business Platinum Card® from American Express offers 1.5 points per dollar spent everywhere on transactions that are $5,000 or more.
    • A $10,000 tax payment will cost $185, but you will earn 15,278 points. If you value your Business Platinum AMEX points at 1.5 cents each, that a value of $229.16 worth of points. You can transfer those points into miles with airlines like Avianca, British Airways, Delta, Singapore, Virgin Atlantic, and more.
    • You can earn 1.5 points per dollar on up to $2,000,000 of annual spending.
    • Having this card allows you to get 35% of your AMEX points rebated on all business/first paid airfare and on coach airfare with the airline of your choice, up to 1,000,000 bonus points per calendar year.


  • The Citi Double Cash card earns 2% cash back, so you’ll come out .15% ahead of the 1.85% tax processing fee. Even if you don’t want to deal with the miles aspect of this, the 2% cash back makes it a no brainer to use.
    • You can also transfer points from this card to a Citi Premier Card, from where you can transfer points to airlines like JetBlue, Turkish, Qantas, and more. A $10,000 tax payment will cost $185, but you will earn 20,370 Citi ThankYou points. If you value your Citi ThankYou points at 1.4 cents each, that a value of $285.18 worth of points. If you also have a Citi Rewards+ Card you’ll get a 10% rebate on point redemptions and transfers, making the points even more valuable.

Earn Status And More!

Earn AA elite status and companion certificates:

  • The Citi Business AA Platinum card offers a free domestic companion certificate for spending $30K/year and earns 1 loyalty point per dollar spent to earn AA status.
  • The Citi AA Executive card earns 1 loyalty point per dollar spent to earn AA status plus earns a bonus 10K loyalty points for spending $40K/year.
  • The Citi AA Platinum Consumer card earns 1 loyalty point per dollar spent to earn AA status, plus offers a $125 AA flight discount if you spend $20K/year.
  • The Citi AAdvantage MileUp Consumer Mastercard earn 1 loyalty point per dollar spent to earn AA status.
  • You’ll need to earn 40K loyalty points for Gold, 75K for Platinum, 125K for Platinum Pro, and 200K for Executive Platinum status. Starting 3/1/23 at 175K loyalty points you can choose 25K bonus miles or 2 systemwide upgrades. Starting 3/1/23 at 250K loyalty points you can choose 60K bonus miles or 4 systemwide upgrades.
    • I value AA miles at about 1.4 cents each, so if you’re paying taxes at a cost of 1.85 cents each, that would be valuing each loyalty point at roughly 0.45 cents each, but at 175K and 250K that cost goes down if you select 25K miles or 60K miles. That would put the cost of Gold status at $180, Platinum at $337.50, Platinum Pro at $562.50, or Executive Platinum 200K at $437.50 after backing out the 25K bonus miles or Executive Platinum 250K at negative $65 after backing out the 85K bonus miles. Status earned starting 3/1/23 would be valid through 3/31/24. You can read more about loyalty points here and here and about the 2023 program here.

Earn Southwest elite status and Companion Pass:

  • The Chase Southwest Business Premier card, The Chase Southwest Performance Business Credit Card, The Chase Southwest Priority card, and The Chase Southwest Premier card gives companion pass status with unlimited free uses until the end of the next calendar year if you earn 125K points in a year across all Southwest cards if you hold a card by 1/3/23, otherwise you’ll need 135K points. The cards also offer 1.5K tier points towards A-List status for every $10K spent, with no cap on earnings.
  • The Chase Southwest Plus card gives companion pass status with unlimited free uses until the end of the next calendar year if you earn 125K points in a year across all Southwest cards if you hold a card by 1/3/23, otherwise you’ll need 135K points.
    • Southwest points are a fixed value currency, so there are no aspirational aspects to this program as points will typically be worth between 1.3-1.6 cents each. You’ll need to determine how to value having Companion Pass and A-List status to see if its worth putting tax payments on this card.

Earn Hyatt elite status, upgrades, and bonus free nights:

  • The Chase World Of Hyatt Consumer Credit Card offers a 2nd annual anniversary night if you spend $15K in a calendar year. If you open a new card you can also earn up to 60K bonus points with $15,000 of spending within 6 months.
  • This card also offers 5 elite qualifying night credits every year and you’ll earn an additional 2 night credits towards elite status with every $5,000 that you spend.
  • The Chase World Of Hyatt Business Credit Card earns 5 night credits towards elite status with every $10,000 that you spend. If you open a new card you can also earn 60K bonus points with $5,000 of spending within 3 months.
  • It also offers a 10% rebate on award stays, up to 20K rebated points, after you spend $50,000 on the card in a calendar year.

I value Hyatt points at about 1.5 cents each, so depending on how many additional free nights and elite status benefits you can rack up and how you value those free nights and benefits, it can make sense to put tax payments on this card.

Here is what you can earn with Hyatt elite status nights:

  • Free anniversary night at category 1-4 hotels without any spending required.
  • Spend $15,000 on the consumer card and you’ll get a 2nd free anniversary night at category 1-4 hotels.
  • Earn 20 night credits and you’ll get 2 club lounge awards that are valid for club access for the duration of your Hyatt stay.
  • Earn 30 night credits and you’ll get Explorist status, 2 more club lounge awards, and another free night at category 1-4 hotels.
  • Earn 40 night credits and you’ll get a $100 Hyatt gift card or 5,000 bonus points.
  • Earn 50 night credits and you’ll get 2 confirmed suite upgrades that are each valid on paid or award stays of up to 7 nights.
  • Earn 60 night credits and you’ll get Globalist status, 2 more confirmed suite upgrades on paid or award stays, and a free night at category 1-7 hotels.
  • For every additional 10 night credits you’ll get another confirmed suite upgrade or 10,000 Hyatt points.

Earn Marriott elite status and bonus free nights:

  • The Marriott Bonvoy Business® American Express® Card offers a 2nd annual free night for spending $60K in a calendar year.
  • The Chase Marriott Boundless Consumer Card (and the discontinued Bonvoy Consumer AMEX) offers Marriott Gold status for spending $35K in a calendar year. You can also earn 1 elite night credit with every $5,000 spent.
  • The Marriott Bonvoy Brilliant Consumer AMEX offers a 2nd 85K award night for spending $60K in a calendar year.
  • The discontinued Ritz-Carlton card) offers Platinum status for spending $75K in a calendar year. You’ll need to determine how to value having Platinum status to see if its worth putting tax payments on this card.
    • I value Marriott points at about 0.6 cents each, so depending on how many additional free nights and elite status benefits you can rack up and how you value those free nights and benefits, it can make sense to put tax payments on this card.

Earn JetBlue elite status:

  • JetBlue cards offer 1 (Mosaic qualifying) tile for every $1,000 spent. Spend $50K for Mosaic Tier 1, $100K for Tier 2, $150K for Tier 3, or $200K for Tier 4.
    • JetBlue points are a fixed value currency, so there are no aspirational aspects to this program as points will typically be worth between 0.9-1.3 cents each. You’ll need to determine how to value having Mosaic status to see if its worth putting tax payments on this card.

Earn Delta elite status:

  • The Delta Platinum Consumer and Delta Platinum Business cards offers 10K Medallion Qualifying Miles for spending $25K and 20K Medallion Qualifying Miles for spending $50K. If you spend $25K/year you’ll also waive the requirement to spend a minimum amount on Delta flights in addition to flown miles to earn Silver, Gold, or Platinum elite status. If you spend $250K/year you’ll also waive the requirement to spend a minimum amount on Delta flights in addition to flown miles to earn Diamond status.
  • The Delta Reserve Consumer and Delta Reserve Business cards offers 15K Medallion Qualifying Miles for spending $30K, $60K, $90K, and $120K.If you spend $25K/year you’ll also waive the requirement to spend a minimum amount on Delta flights in addition to flown miles to earn Silver, Gold, or Platinum elite status. If you spend $250K/year you’ll also waive the requirement to spend a minimum amount on Delta flights in addition to flown miles to earn Diamond status.

Earn United elite status:


Earn Air Canada Aeroplan status or a companion pass:

  • The Chase Aeroplan Card offers 25K status for spending $15K/year through the following calendar year.
  • If you spend $50K in a calendar year you will gain a level of status.
  • Upon spending $100,000, $250,000, $500,000 and $750,000 in a calendar year you’ll earn a 50% off Priority Rewards redemption certificate.
  • If you spend a whopping $1,000,000 in a year you’ll get a companion pass that allows unlimited free companion award travel systemwide in any class of service. That pass will be valid for the rest of the calendar year in which you spend the million bucks and for the following calendar year.
    • I value Aeroplan miles at about 1.3 cents each. You’ll need to determine how to value earning qualifying miles and the flight spending requirement waiver to see if its worth putting tax payments on this card.

Earn a British Airways companion pass:

  • The Chase British Airways Card offers a free one-time use companion pass for spending $30K/year. If you open a new card you can also earn 75K bonus Avios for spending $5,000 in 3 months and another 25K bonus Avios for spending another $15,000 in 12 months.
  • The free companion pass is valid on BA award tickets worldwide, though fuel surcharges will apply. You can now also get 50% off an award for 1 person if you don’t have a companion.
    • I value BA Avios at about 1 cent each. You’ll need to determine how to value the companion pass to see if its worth putting tax payments on this card.

Earn an Aer Lingus companion pass:

  • The Chase Aer Lingus offers a companion ticket good when booking a paid economy Aer Lingus ticket if you spend $30,000 in a calendar year. If you open a new card you can also earn 100K bonus Avios for spending $5,000 in 3 months.

Earn a $1,000 Iberia voucher:

  • The Chase Iberia: offers a $1,000 discount voucher off 2 tickets on the same Iberia flight if you spend $30,000 in a calendar year. If you open a new card you can also earn 100K bonus Avios for spending $5,000 in 3 months.

Earn Hilton elite status and bonus free nights:

  • The AMEX Hilton Honors Business card offers a free annual night for spending $15K/year, another annual night for spending another $45K/year, and Diamond status for spending $40K/year.
  • The AMEX Hilton Honors Surpass card offers a free annual night for spending $15K/year and Diamond status for spending $40K/year.
  • The AMEX Hilton Honors Aspire card offers a 2nd free annual night for spending $60K/year.
  • Spending on all Hilton cards count towards Elite tier qualification and Lifetime Diamond Status. Learn more about elite status here and lifetime diamond status here.
    • I value Hilton points at about 0.45 cents each. You’ll need to determine how you value the free night and status benefits to determine if it’s worth putting tax payments on this card.

Is it worth it?

It all depends on what you do with your miles. This isn’t the cheapest way to earn miles, but it’s painless. The ability to overpay your taxes to reach a threshold is also helpful.

The value of airline miles is huge if you fly last-minute, one-way, or in business or first class internationally.

  • If I need a last minute short-haul flight like Cleveland-NYC that can cost $500 each way, I can instantly transfer 6K miles to Air Canada, 6.5K points to Avianca Lifemiles for travel on United or 7.5K points to British Airways to book a short-haul on American with no last minute booking fees. That’s a value of up to 7 cents per point.
  • With 7.5K Turkish miles I can book a one-way flight on United to anywhere in the US, even Hawaii or Alaska. In business class it’s just 12.5K miles each way!
  • With 32K Turkish miles I can book a one-way flight on United to Israel, even Hawaii or Alaska. In business class it’s just 47K miles each way!
  • 86K points transferred to Singapore is enough for a ticket in a private couples suite on an A380 one-way from JFK to Frankfurt with no fuel surcharges.
  • If I want to fly in a $25,000 ANA First Class Suite round-trip from the US to Tokyo, I can instantly transfer 110K or 120K points to Virgin Atlantic. That’s a value of up to 23 cents per point.
  • 120K Marriott points transfer into 50K Alaska miles, enough for a one-way business class flight on Cathay Pacific from the US to Hong Kong. With 62.5K Alaska miles you can even fly in business class from JFK to Tel Aviv or Johannesburg with a free stopover in Hong Kong for as long as you want.
  • If I want to stay in a 5 star Park Hyatt in the Maldives, Melbourne, NYC, ParisSydney, or Tokyo that would cost over $1,200/night, I can instantly transfer 20K-40K points to Hyatt to do that, a value of up to 6 cents per point.
  • Learn more about which points transfer to which airlines and how long those transfers will take here.

Which card do you use to you pay your taxes? Or is it too pricey of a method to get miles? Sound off in the comments!

Leave a Reply

78 Comments On "[Final Day To Pay Q4 Estimates] 2023 Is The Best Year Ever To Pay Your Taxes With A Credit Card! Here Is A Breakdown Of Earnings By Card And Benefit; Paying Taxes To Earn Elite Status!"

All opinions expressed below are user generated and the opinions aren’t provided, reviewed or endorsed by any advertiser or DansDeals.

CLE

Does the IRS not realize that some people will overpay using CC to meet minimum spends?

shyh

So, they charge you, it does not cost them processing fee. Till you get it back or put it for next year they earn interest.

Y

You previously said to pay by 2022 it seemed was better to wait..

shyh

What do you mean by “You can make 2 payments per credit card processor for each quarterly estimate (1040-ES) and for your year end bill (1040)”? I can make 2 payment for the same quarter? They would not let me more, lets say I want to use 3 credit cards?

AE

No, you can only make 2 payments per quarterly estimate per processor, regardless of amount or credit cards used.

Aa

What about New Jersey State Taxes?

AE

2.3% + 0.50¢.

NY charges 2.25%.

paron

How long does an overpayment take to get refunded on average?

AE

YMMV. Anywhere from ~2 weeks to 2 years+. Especially since COVID.

The IRS has 45 days from receipt of your return to process your refund, after which it has to pay interest.

nsx at FlyerTalk

Be aware that payusatax does not answer their phone. Or, in my early 2022 experience, email. I held on their phone line for a full hour today but no human picked up.

If something goes wrong with payusatax you will have to resolve it without their assistance. I welcome any fresh reports of the non-death of their customer service.

HelpMe

ACI is no better. If you get a confirmation number, then that means your payment was sent. Call the IRS and stop bothering us!!!

Allen

Can one have the 3 Chase Ink Business credit cards at the same time under the same SSN?

Allen

Same business name with multiple same ink cards?

Allen

Thanks. I can be approved of the maximum 2 chase (business) cards within 30 days?

IW

I tried paying with my chase business unlimited and was told it’s not a valid payment type. Anyone else have similar issues?

$15K Hyatt Free Night

“The Chase World Of Hyatt Consumer Credit Card offers a 2nd annual anniversary night if you spend $15K in a cardmembership year.”

Per Hyatt website, it is $15K per calendar year.

Chaim

Why would they limit the amount of of transactions per processor?

Is the year end allowance besides the the q4 estimate allowance ?

Hashem Yerachem

As a CPA I will tell you this is lunacy. Dont go into debt to overpay taxes and give the government an interest free loan. Tax Refunds take weeks (after taxes are filed) if not months to receive.

English reader

As a person who reads English it is lunacy to deduce from this post that someone should go into debt for any reason…

Hashem Yerachem

Thanks for enlightening me, credit cards aren’t debt?

what % of people do you think actually pay their card balance in full each month and dont pay 20%+ APR?
In fact the credit card companies have a nickname for people that pay in full each month ‘deadbeats’ (google it) .

P.S. Look up the dunning kruger effect.

English reader

Just trying to understand where in the article you saw it say to pay 20% on a $5,000 overpayment to the IRS?

You are straw manning this argument. The post never suggested that, in fact Dan tells people to not get credit cards in the first place if they won’t pay it in full each month.

Hashem Yerachem

Go find someone else to argue with on internet forums and dont forget to look up Dunning Kruger Effect! hameivin yavin

yy

I suspect (or at least hope) that Dan’s readers are sophisticated credit card users who never pay credit card interest. They either pay off in full every month or use 0% APR cards.

Sam

Is it an issue to open multiple those ink cards on a social and closing them? Not closing all but some

Jack out of the box

“you will want to call the IRS”
It’s become nearly impossible to get an IRS rep on the phone.

DaninMCI

Not the best option, but anyone with a Barclay Silver Aviator could also meet Loyalty Point and Companion ticket levels this way.

Joseph

I tried paying with my chase world of hyatt business card and was told it’s not a valid payment type. i also tried pay1040.com and that also gave a similar message.

i can’t connect by phone to either of them. any one have any clue?

moisher

Dan, can u get us an answer why are we all getting the same message that the card is not accepted?

Plat

Amex plat count this for spending?
I dont see the + for doing it for offsetting fees with points (chase) unless u have a new card and need the spend to meet BM

Tayar

I tried paying with my new chase business unlimited and was told it’s not a valid payment type. Why?

IW

I had the same issue with the 1.85% and 1.87% processors, but the 1.98% processor worked.

shyh

What a shame should be using PayPal.

IW

On $6000 payment, it’s a difference of $7.

shyh

Agree

Shim

Dan, do you know (or anyone) know if the issue of paying estimate tax with the Ink card is a Chase issue? Should we call Chase?

Shim

Paid thru Paypal and worked. (PayUSATax)

Mike

When you make an overpayment, is there any action that can be taken to get the refund back sooner?

yy

File early. File electronically.

HelpMe

I have made the 6 payments each quarter (2×3). How many payments do I get to make when paying my taxes? 2 total or two per processor? Asking per SS#.

DH7

There are many horror stories online and in the news about PayUSATax (payments not making it to IRS and processor not helping). I have used pay1040 succesfully for the last few years and confirmed receipt on the IRS website (though today I seem to be locked out). Would recommend everyone set up an account on IRS.gov to check payment status.

Shim

I made my payment past Sunday, it is showing on my IRS account. (Paid thru PayUSATax)

Yitz

PayPal Cashback Mastercard gives 3% back on all PayPal purchases and 2% for all others
You can pay with PayPal almost everything online plus a lot of gift cards and some brick and motor stores are also accepting PayPal payments

Allen

Having issue processing Card. Is there a restriction on using the Ink card to pay taxes since its a business card? Chase said there are no flags on account for fraud.

“This card type is not currently accepted. To attempt your payment with an alternative method, please use a different card type or select another payment option under the Payment Information section below.”

Allen

Thanks!

JJ1

I dont see why I would spend 1.85% fees to earn credit card miles after already met bonus requirements. it can be even exchange, but pay fees now, and earn points that hopefully will use in the future. i dont see benefit. (have ink, amex consumer platnium). if u have complessing reasons, happy to cosider a large tax bill on credit card.

Joe

1) If I reach 200K loyalty points before 3/1/23 and get EP, the meter starts again on 3/1/23 to get the special benefits at 175k/250, correct? So I might as well wait until 3/1/23?

2) I have about 29000 loyalty points now. Any benefit in getting to 30000 and making gold before 3/1/23 if I’m going to go for the 250k after 3/1/23 [assuming I won’t fly AA between now and 3/1/23]?

3) which card is the “best” if I’m planning to put 250k spend to get EP in 2023?

Yehuda

My credit limit on one ink card is only $3k. Any issues overpaying $3k so I can swipe $6k with the IRS in one transaction?

APS

I dont think you can do that- it wont go through

paron

Is it better to pay an estimate with a credit card then once the taxes are due?

shyh

Thanks for reminding me, just paid my State estimated tax.

APS

I made a tax payment using my business card last night using paypal- but my mistake it was over the limit and i didnt realize. The charge said it went through, but on my chase card activity it only showed the the charge for the fee but not the actual charge so thats when i realized its bec it was over the limit. And the card showed that there was still 2850 credit left on the card.
So today I went and made a new payment for 2750 which totaled about 2800 and my card said it had 2850 credit left, so that looked great. Again it went though but i saw no charge at all on my business card.
I get an email from amex that they approved a charge for 2750- I was so confused how amex got involved in this.
I look on paypal and see that both tax charges they somehow put on my amex bonvoid card- and the charge for the cc fee- one ended up my bank account and one ended up on the business card.
Anyone have any experience with paypal deciding to put a charge on a different card that wasnt authorized when the card you choose did not have enough credit left?

Moe

If you live in Florida and in most counties especially in South Florida you have until March 15, 2023 to pay 2022 ES payments as well as for filing 2021 tax returns!!!

google IRS hurricane Nicole to see the notice

contact me at Brighthilladvisors.com for more amazing tax advice!!!!

Thingy

“You can make 2 payments per credit card processor for each quarterly estimate (1040-ES) and for your year end bill (1040).”

Is prepaying by CC limited to those filing a 1040-ES, i.e., they have income not subject to withholding? Can the same be done if I file a W-4?

If it can, I assume I would just add any prepayment to line 3?

I am not familiar with the non-withholding tax scheme, but it seems like you only pay every quarter. Because those subject to withholding usually pay with every paycheck, does that mean that CC payments would need to have been made before each payment was due? (I assume the are also limited by the two payments per quarter and would have to made sure that payment or prepayment was made before each salary period?)

Thingy

To clarify, by line 3, I mean line 3 of the W-4 form.

Thingy

There are two ways to pay tax:
– Withholding from your pay, your pension or certain government payments, such as Social Security.
– Making quarterly estimated tax payments during the year.
(Source:https://www.irs.gov/payments/pay-as-you-go-so-you-wont-owe-a-guide-to-withholding-estimated-taxes-and-ways-to-avoid-the-estimated-tax-penalty)

It seems that paying the IRS directly on a quarterly basis is NOT limited to those who are NOT subject to withholding. Meaning even if you ARE an employee, it should be an option. @Dan I assume most readers are employed, and it is worth making it clear in the post that this can apply to them as well.

Note: if you have complicated taxes and are concerned about underpaying, I believe that by deducting the standard withholding, you may have a safe harbor against any late fees or fines.

Mendy m

Stam to mention, I asked my accountant about overpaying my taxes, and he said being that I got back money last year when filing, the IRS would be “extremely suspicious” if I over paid a significant sum. So don’t know if it a good idea for everyone to do.

Max

How much money would you need to spend to earn Delta Highest Statues? Which Statues would you get?
Do not fully understand the MQM/MQD?

yanki

Hey, I missed the Jan 17 deadline, I wanted to meet a CC spending threshold.
Am I still able to pay an estimate now?

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