Paying income tax with CC

[ps99472]

http://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Cardhttps://www.ftb.ca.gov/online/CCard.shtml

The fed taxes can be paid with the Citi Double Cash 2% card which pretty much offsets the convenience fees and you come out 0.13% ahead.  CA taxes might cost you a few dollars with the convenience fee at 2.3%.  If I pay both with CC, it pretty much cost nothing to kick the can down the road by about 45 days.  Might get a temporary ding on my credit score for credit utilization.  Can buy 4 tacos from the interest income of 45 days

 

[The Motor Court Company]

lol we only owe IRS $600 so 0.13% is 78 cents. if you want to game the system you should plan your tax withholding to be 90% so you don't get penalty. Let's say you need to pay $100k in Federal taxes, with 10% owed to IRS, at 0.13% it is only $130. probably not worth it unless you consider the interest for 45 days.

But as long as there is no credit card convenience fee, yes you should use the double cash card wherever possible for your monthly utility bills - Netflix, Verizon Wireless, Cox Cable, Sling TV....etc

County prop tax, gas, water and electricity all charge convenience fees so it is not worth it. Not sure about HOA bills.

 

[irvinehomeowner]

@ps9:

Are you sure about your math this time? Last year you were making Common Core mistakes all over the place.

 

[ps99472]

Hey I said 4 tacos, not 40

 

[yaliu07]

I think i am going to get couple grand back..

 

[eyephone]

I think i am going to get couple grand back..

You think?