like we said before, you can use your credit card to pay your federal tax. though it might be expensive, due to the additional fee that the card chagrges you, it still offers lots of advantages.
Earn Credit Card Reward
Just like other payments and purchases, paying federal tax by credit card could earn credit card reward as well.
You might receive some cash-back or other discounts via paying federal taxes when using your credit card. It’s worth to mention that the cash-back method is different from cash advance that might charges you a much higher fees when you take out the cash, cash-back allows you to buy commodities in a usual rate as long as you don’t take the cash out.
Meet Credit Card Spending Thresholds
Lots of credit card companies offer a significant amount of bonus if you meet credit card spending thresholds.
For example, if you meet the spending thresholds for credit cards that are issued by Hilton, Hilton Hotel would provide you a free weekend night in their hotels. These thresholds might be based on a calendar year, and paying taxes by using credit card would offer you a chance to reach these thresholds.
Split your federal tax payment among multiple cards
Using several credit cards, you are able to split your federal tax payment among multiple cards. This is extremely useful if you receive a huge amount of tax bills. In this way, you can earn lots of welcome bonus and rewards in several credit cards by paying tax in the same tax period. If you plan this splitting process deliberately and wisely, sometimes you would receive much more benefits and cash-back by paying tax than paying tax in other methods.
The drawback about paying tax by credit cards is easy to realize: if you receive a huge amount of tax that exceeds your total credit limit, you’d better not to use your credit card to pay tax. Also, if you are unable to pay your statement balance after making tax payment by credit card, you’d better not to do it.