Best way to pay the IRS

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Greetings,

I owe the IRS $3150 this year including a $38 underpayment penalty. I was somewhat overzealous on the bank and brokerage bonuses this year and also had more than expected dividends from my index funds. I might have to increase withholding next year or make a couple of extra payments since I'm hitting the bank bonuses pretty hard again this year. Already got $3000 in just 3 months so far.

I'm filing with TaxAct and it is pointing me to https://www.payusatax.com/taxact  to pay the extra taxes. That site charges a 1.98% convenience fee.

Are there any cheaper sites to pay this via credit card? I have a Fidelity 2% cash back card but plan on using a new Barclaycard Arrival which has a $250 bonus after spending $3000. This will be a quick way to finish up the spend on that card.

Thanks for any suggestions.

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pay1040 is cheaper

Use pay1040. A little cheaper. Make sure credit card payment is not considered cash advance.

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

1.87% is cheapest.

Crap, I already used payusatax.com. Oh well, 5 bucks lost.

elfrozo said:   Are there any cheaper sites to pay this via credit card?

WHY? Just print, write a check, mail it on April 18, get 10 extra days of float and all for the price of a stamp.

Chyvan said:   
 
WHY? Just print, write a check, mail it on April 18, get 10 extra days of float and all for the price of a stamp.

  You get more float from a credit card, most of the good rebates slightly exceed the fee, and you can maybe deduct the CC processing fee (it's definitely deductible, but in a way that the deduction may not be worth anything to you). 

Chyvan said:   WHY? Just print, write a check, mail it on April 18, get 10 extra days of float and all for the price of a stamp.
Do the same with credit card. Get 15 days of float (on average, based on your statement date). No stamp required, I would argue it's more convenient.
In addition you get cashback depending on the credit card you use. All processors charge less (or equal) than 2% fee. Everyone has access to 2% cash back credit cards. Some people have access to credit cards that give more than 2%.

A no brainer really.

Paying Taxes same question previous thread 

Your question is more common than you think.  The link above and below show the discussions.  When you get to quarterly estimated payments, consider debit cards, the link includes suggestions if you are seeking minimum spends and better (lower) service fees.

https://www.fatwallet.com/forums/finance/1550987

Also check your email for Fidelity Investments Visa.bonus offer.  Even if you use the Barclay Card, the bonus most of us got covers your first estimated payment time frame.

I see the point, but I'm not so sure the profit on this one justified starting a thread.

It didn't really, but we get one every year around tax time.

If you don't pay, you get free room and board and meals for a few years

I don't earn enough to pay taxes but I apply for my refund on my new iPhone that I just love.



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