Can you pay taxes with a credit card?Published:
With most bills these days, the easiest way to pay them is with a credit card. It seems like the entire world is set up to take your plastic. If you’re thinking of doing this for your taxes, then you’re in luck. The IRS has set up a system where you can use your favorite credit card to pay anything you owe.
How can you pay taxes with a credit card?
There are a number of places you can go to pay your taxes with a card. Some, like RBS WorldPay, are endorsed directly by the IRS. Some of these companies are partnered up with major tax preparation companies, so if you already use one, inquire with them.
There are other websites or stores to visit, but consider doing extra research on them to make sure they are legit. You don’t want to hand out your credit card to just anyone, especially if it’s supposed to go to paying your taxes.
Things to Consider
Before you even ask yourself ‘can I pay my taxes with a credit card?’ you should take into consideration if it’s something you should do. There are some potential consequences to paying your taxes with a card instead of setting up a payment plan.
The main issue is if you don’t pay what’s due on time, then you may face major interest due on the card. While the IRS also charges interest per year, the interest on the card may end up being way more. Also, you could face further fees if you miss a payment, plus this could cause the interest to kick in even earlier!
Remember that the IRS will often make a payment plan with taxpayers who do not currently have the liquid funds to pay their taxes due. Before you ask whether you can pay your taxes with a credit card, weigh the consequences of each decision. Sure, paying with a credit card will get the IRS off your case, but credit card companies – who can charge exceedingly high interest rates – might end up being an even heavier monkey on your back!