Credit card rewards are appealing! If you are enthusiastic about that, you might consider pay your tax by credit card.
Paying tax by credit card is just like making other payments, which could provide customers a lot of benefits, discounts, and cash-back.
The most convenient way to pay tax by credit card is to use your mobile credit card apps. You just need to click “pay tax” button in your billing pages, enter your tax form number as well as the amount of the taxes that you have to pay.
When you use a credit card to pay your taxes, the fee is calculated as a percentage of the amount paid. Those fees often range from 1.87% to 1.99%, and those fees vary with different credit card issuers.
Compared with paying tax by debit card or check, paying tax by credit card is a little bit expensive.
If you use a debit card to pay for your federal tax, you have to pay for a flat fee which is usually ranged from 2 dollars to 3 dollars but no higher than 4 dollars.
The flat fee of debit card is much lower than the credit card’s fee, since credit card’s fee is a rate that based on the amount paid. That’s to say, more tax, more fees. Generally it’s higher than paying with debit cards.
However, no debit card would offer any kind of cash-back or benefits about tax payment and any other transactions.
If you make your tax payment by check, there is no fee, but you need to mail your check through post-office, and the federal government receive your check in an extremely slow way. It’s also possible that your check might be lost in the mailing process.
Thus, compared with paying tax by check, it would be better to pay them by cards. And if you are interested in credit card’s cash-back and other benefits, it would be better to pay your tax by credit card rather than debit card.