Can I get credit card rewards for paying taxes with a credit card?
While some taxpayers choose to pay taxes with a credit card to try avoid interest or other reasons, some simply do it to try and earn rewards. However, you may be wondering if this is possible before you attempt it.
The fact is you actually can earn rewards if you pay taxes with a credit card. Awards like airline miles, cash back or other goodies can be earned if you play your cards right. Let’s look at a few of the programs.
When you spend something around $500 within 3 months, some cards card give you $100 cash back. It’s safe to say your taxes are a little higher than $500 since you need to set up some sort of payment plan. So getting $100 cash back simply when you pay taxes with a credit card may be an incentive for you.
Looking for airline miles instead of cash? You certainly could get quite a few if you pay taxes with a credit card. In fact, some programs even offer special bonuses for charging that much at once, which can equal even more travel time for you. Often, these programs are reserved for the ‘higher end’ cards, but you can check with your credit card company and see what they offer.
Some other credit cards let you rack up other things if you pay taxes with a credit card. Instead of just spending airline points, you can instead rack up points to get merchandise or even gift cards. This may be helpful if after spending all that dough on paying your taxes ‘ now you have a way to buy the stuff you want and need!
Keep in mind that while credit card rewards are just that – a reward for valuable customers – the credit card companies are no dummies. If you are looking to pay your taxes with a credit card because you are having financial trouble, wracking up more credit card debt might not be the right solution. If this is the case, look into IRS payment plans before putting your taxes on the plastic.