Paying taxes online with credit cards through payusatax.com

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They have an app on android called IRS2Go but I plan to use my PC to pay my estimated and income taxes to IRS with credit cards (1.98% fee) through their site payusatax.com. Does anyone have any experience with them and what are the chances of snafus (muck-ups)? Also, if I pay on 15th will it be credited the same day or it takes a few days to be posted and credited to my IRS account?

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DPG (Jan. 13, 2017 @ 5:04p) |

Can I pay with credit cards on this site, and if so, what are fees (compared to payusatax.com and Pay1040.com)?

ToddC (Jan. 13, 2017 @ 9:04p) |

This is the only IRS authorized card payment webpage listing of authorized payers. Pay1040.com is only one of three auth... (more)

JW10 (Jan. 13, 2017 @ 9:17p) |

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This secure service is offered by WorldPay, in agreement with the Internal Revenue Service. All payments are processed immediately, and the payment date and time are equal to the time you complete this transaction and receive a confirmation number. A convenience fee (listed above) is charged by WorldPay's service provider, Value Payment Systems, LLC for using this service. The IRS does not receive any part of this fee. All charges will be listed on your card or bank statement. The convenience fee is tax deductible for qualifying individuals paying personal taxes and tax deductible for all business taxes. If your payment is unable to be processed, your tax liability will remain outstanding and you will be subject to any applicable penalties or interest. These obligations remain your sole responsibility. By providing your telephone number and email address, Value Payment Systems, LLC will attempt to contact you at least three times if the Internal Revenue Service does not accept your payment. Value Payment Systems, LLC cannot issue refunds once your payment is processed and you receive a confirmation number. Please make sure you enter and review all information carefully for accuracy prior to completing your transaction. By selecting the "Accept Terms" button on this page you are agreeing to these Terms and Conditions.

Real-time confirmation of your payment. Your payment date and time are equal to the date and time you complete the transaction and receive your real-time confirmation number. The IRS will give you credit for that payment date and time although it takes approximately 5 - 7 business days to post your payment to your account.
 

I have used pay1040.com  for 2 years - slightly lower fee at 1.87%.

I don't really care about payment being processed on Apr15. To me what is more critical is the credit card billing date. If for example, the billing cycle closes on the 10th, then payment on 11-15 would push the payment in the next credit card billing cycle.

If your card offers 2% rebate (e.g. CITI double pay), you are getting 2% not only on the base payment but also on the 1.87% fee. That overall is like paying 1.81% on tax+fee - so about 0.19% profit.

PrincipalMember said:   I have used pay1040.com  for 2 years - slightly lower fee at 1.87%.

I don't really care about payment being processed on Apr15. To me what is more critical is the credit card billing date. If for example, the billing cycle closes on the 10th, then payment on 11-15 would push the payment in the next credit card billing cycle.

If your card offers 2% rebate (e.g. CITI double pay), you are getting 2% not only on the base payment but also on the 1.87% fee. That overall is like paying 1.81% on tax+fee - so about 0.19% profit.

  What is the problem with if the billing cycle closes on the 10th, then payment on 11-15 would push the payment in the next credit card billing cycle?

PrincipalMember said:   If your card offers 2% rebate (e.g. CITI double pay), you are getting 2% not only on the base payment but also on the 1.87% fee. That overall is like paying 1.81% on tax+fee - so about 0.19% profit.
  Don't forget it's deductible too, at least if you're paying enough to break the 2% misc threshold.

https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card

PrincipalMember said:   I have used pay1040.com  for 2 years - slightly lower fee at 1.87%.

I don't really care about payment being processed on Apr15. To me what is more critical is the credit card billing date. If for example, the billing cycle closes on the 10th, then payment on 11-15 would push the payment in the next credit card billing cycle.

If your card offers 2% rebate (e.g. CITI double pay), you are getting 2% not only on the base payment but also on the 1.87% fee. That overall is like paying 1.81% on tax+fee - so about 0.19% profit.

  Nice point on the fee being 2% as well. This works for 1040ES payments as well

 

One bloggers thoughts on paying IRS by credit card

IRS approved pay by card processors 

I buy debit gift cards > $500.00 + 4.95 at Sam's Club with the Chase Freedom cards = 5% cash back this calendar quarter. Each debit card fee is about a half per cent + the one per cent for the card itself still leaves about 3.5% to the good. I have done this or something close to this for all my estimated 1040ES in 2016. Not all cards were from Sam's Club.  Some $500.00 GCs have a fee up to $6.95 each. You can do two payments per calendar quarter per pay service.

JW10 said:   You can do two payments per calendar quarter per pay service.
This is one of my key questions. If I go to payusatax.com and make 2 payments on 2 credit cards for the same estimated tax and then go to Pay1040 and make another 2 payments for the same estimated tax, all toward the same payment of $2,000 of estimated tax due on Jan. 16, is this still possible (see below)?
My estimated tax payment due on Jan. 16: $2,000
payusatax.com payment on CC1: $500
payusatax.com payment on CC2: $500
Pay1040.com payment on CC3: $500
Pay1040.com payment on CC4: $500

ToddC said:   They have an app on android called IRS2Go but I plan to use my PC to pay my estimated and income taxes to IRS with credit cards (1.98% fee) through their site payusatax.com. Does anyone have any experience with them and what are the chances of snafus (muck-ups)? Also, if I pay on 15th will it be credited the same day or it takes a few days to be posted and credited to my IRS account?
  Your specific questions:
I use my PC, so I cannot comment on any app.
Other services are slightly cheaper.  All three have fairly good track records.  They file a payment form with the IRS and can send you an email confirmation.  SNAFUs are rare with these services unless you do a typo entering your information.  My experience is that you should give the process some time ahead of the scheduled deadline just to be safe.  In less busy times, they usually get it done within a week if not sooner.

ToddC said:   
PrincipalMember said:   I have used pay1040.com  for 2 years - slightly lower fee at 1.87%.

I don't really care about payment being processed on Apr15. To me what is more critical is the credit card billing date. If for example, the billing cycle closes on the 10th, then payment on 11-15 would push the payment in the next credit card billing cycle.

If your card offers 2% rebate (e.g. CITI double pay), you are getting 2% not only on the base payment but also on the 1.87% fee. That overall is like paying 1.81% on tax+fee - so about 0.19% profit.

  What is the problem with if the billing cycle closes on the 10th, then payment on 11-15 would push the payment in the next credit card billing cycle?

No problem - that is what you want to do. You dont want to pay on the 9th - then you get the credit card statement and lose one month of interest (not much but might as well micro-optimize since it doesnt take too much effort).  

ToddC said:   
JW10 said:   You can do two payments per calendar quarter per pay service.
This is one of my key questions. If I go to payusatax.com and make 2 payments on 2 credit cards for the same estimated tax and then go to Pay1040 and make another 2 payments for the same estimated tax, all toward the same payment of $2,000 of estimated tax due on Jan. 16, is this still possible (see below)?
My estimated tax payment due on Jan. 16: $2,000
payusatax.com payment on CC1: $500
payusatax.com payment on CC2: $500
Pay1040.com payment on CC3: $500
Pay1040.com payment on CC4: $500

  I do that with debit gift cards instead of credit cards, but yes that is doable.  I make printouts of each payment before moving on to the next one.  I get email receipts of each payment within minutes.  YOU are responsible for your typing as you enter the information.  I have a registered account at Official Payments.  I log in and the blanks are filled in.  I have seen some people sign up for a new credit card with a bonus if you spend a certain amount of money.  This concept will certainly help with that.

Using your quote for example purposes, you can make each of those payments on different days within the quarterly report period.  That is NOT required, but I add that for those that prefer to spread out the payments over each payment quarter.

After a few weeks, you can contact the IRS for a payment transcript which lists each payment.  Transcripts are available for each year going back a few years.  I just ordered mine for year 2016 because I paid my fourth calendar 1040ES early since I picked up some GCs at a nice discount.  I just attach a copy of that to my 1040 tax filing.
https://www.irs.gov/individuals/get-transcript 

PrincipalMember said:   
ToddC said:   
PrincipalMember said:   I have used pay1040.com  for 2 years - slightly lower fee at 1.87%.

I don't really care about payment being processed on Apr15. To me what is more critical is the credit card billing date. If for example, the billing cycle closes on the 10th, then payment on 11-15 would push the payment in the next credit card billing cycle.

If your card offers 2% rebate (e.g. CITI double pay), you are getting 2% not only on the base payment but also on the 1.87% fee. That overall is like paying 1.81% on tax+fee - so about 0.19% profit.

  What is the problem with if the billing cycle closes on the 10th, then payment on 11-15 would push the payment in the next credit card billing cycle?

No problem - that is what you want to do. You dont want to pay on the 9th - then you get the credit card statement and lose one month of interest (not much but might as well micro-optimize since it doesnt take too much effort).  

  Indeed. ToddC, it's not a bug, it's a feature.

JW10 said:   
ToddC said:   
JW10 said:   You can do two payments per calendar quarter per pay service.
This is one of my key questions. If I go to payusatax.com and make 2 payments on 2 credit cards for the same estimated tax and then go to Pay1040 and make another 2 payments for the same estimated tax, all toward the same payment of $2,000 of estimated tax due on Jan. 16, is this still possible (see below)?
My estimated tax payment due on Jan. 16: $2,000
payusatax.com payment on CC1: $500
payusatax.com payment on CC2: $500
Pay1040.com payment on CC3: $500
Pay1040.com payment on CC4: $500

  I do that with debit gift cards instead of credit cards, but yes that is doable.  I make printouts of each payment before moving on to the next one.  I get email receipts of each payment within minutes.  YOU are responsible for your typing as you enter the information.  I have a registered account at Official Payments.  I log in and the blanks are filled in.  I have seen some people sign up for a new credit card with a bonus if you spend a certain amount of money.  This concept will certainly help with that.

Using your quote for example purposes, you can make each of those payments on different days within the quarterly report period.  That is NOT required, but I add that for those that prefer to spread out the payments over each payment quarter.

After a few weeks, you can contact the IRS for a payment transcript which lists each payment.  Transcripts are available for each year going back a few years.  I just ordered mine for year 2016 because I paid my fourth calendar 1040ES early since I picked up some GCs at a nice discount.  I just attach a copy of that to my 1040 tax filing.
https://www.irs.gov/individuals/get-transcript

I went to the IRS site to get transcript but it only accepts online access with a mobile phone number that is not prepaid (pay-as-you-go plans). Any way to get around this?

JW10 said:   One bloggers thoughts on paying IRS by credit card 

IRS approved pay by card processors 

I buy debit gift cards > $500.00 + 4.95 at Sam's Club with the Chase Freedom cards = 5% cash back this calendar quarter. Each debit card fee is about a half per cent + the one per cent for the card itself still leaves about 3.5% to the good. I have done this or something close to this for all my estimated 1040ES in 2016. Not all cards were from Sam's Club.  Some $500.00 GCs have a fee up to $6.95 each. You can do two payments per calendar quarter per pay service.

  I guess you go to Sam's Club for 5% cash back, but aren't online purchases of gift card cheaper (have lower fees)?

Sam's Club gift card offerings by mail   Occasionally, there is a promo of a Sam's Club $5.00 GC included.

I go to the brick and mortar because on line only offers $100.00 and $200.00 versions which IMO defeats the value of paying by debit card due to the fee structure and number of allowed uses per payment service.

I had a scary experience paying with an AmEx gift card. I tried to pay my cell phone with an AmEx gift card online but they debited from my gift card without crediting the amount to my cell phone account. I had to call the cell phone company and after some back and forth was able to get the credit. Could this also happen with tax payment sites?

Can it happen? Yes with any Gift Card, SNAFUs can happen and have been reported involving a variety of merchants. Some can be resolved fairly quickly. Some reports are reflecting real problems.

The tax payment companies shown have a good track record and a couple of assuring things happen. You get a confirmation ID is on the screen when successful. You can print or screen capture it. You can provide your email addy, open a tab and pull up the email before closing the success screen.

A couple of weeks later, you can contact the IRS for a transcript of successful filings.

JW10 said:   Can it happen? Yes with any Gift Card, SNAFUs can happen and have been reported involving a variety of merchants. Some can be resolved fairly quickly. Some reports are reflecting real problems.

The tax payment companies shown have a good track record and a couple of assuring things happen. You get a confirmation ID is on the screen when successful. You can print or screen capture it. You can provide your email addy, open a tab and pull up the email before closing the success screen.

A couple of weeks later, you can contact the IRS for a transcript of successful filings.
 

  I tried 3 payments today with 2 credit cards with confirmation. Could you explain what you mean by "open a tab and pull up the email before closing the success screen"?

My IE and Chrome has tabs at the top to be able to use more than one website. I use a second tab to get to my email account and review the email sent to my email account. Alternatively, create a new window, pull up your email and review it. Switch windows back and forth between your webpages for the email and the payment site.

Be sure to sign up here to track your payments:

https://www.eftps.gov/

 

DPG said:   Be sure to sign up here to track your payments:

https://www.eftps.gov/ 

 

  Can I pay with credit cards on this site, and if so, what are fees (compared to payusatax.com and Pay1040.com)?

This is the only IRS authorized card payment webpage listing of authorized payers. Pay1040.com is only one of three authorized payers.

https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card



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