? about paying state income tax by credit card

[Tink3815]

Has anyone paid their state income taxes using a credit card? We owe 500.00 and would like to get the
Southwest points. Looking for a reputable site to use.

Thanks

 

[Luvchefmic]

Has anyone paid their state income taxes using a credit card? We owe 500.00 and would like to get the
Southwest points. Looking for a reputable site to use.

Thanks

Wouldn't the IRS website be the one, or is that only for Federal taxes owed ?
http://www.irs.gov/uac/Pay-Taxes-by-Credit-or-Debit-Card

 

[scrapquitler]

Has anyone paid their state income taxes using a credit card? We owe 500.00 and would like to get the
Southwest points. Looking for a reputable site to use.

Thanks

Be aware that most of the time if you pay a bill with your credit card to any government agency, you will be charged a 'convenience fee' (in other words YOU pay the merchant fees instead of them) That % might make it not worthwhile to do pay with the credit card if you are going to end up paying as much in fees as you will earn in points.

 

[MillauFr]

Don't they charge a huge convenience fee to pay by credit card?

 

[supersnoop]

Generally speaking, they're going to charge you 3% for the privilege of paying with a credit card. It's not worth it for the points, unless you're trying to qualify for a sign-up bonus.

 

[laceyinwonderland]

Mom was able to pay hers (south carolina) with a credit card, and there was no fee.

 

[Luvchefmic]

From the IRS link I posted the site has listed several ways to pay with a credit or debit card. The highest fee was just under $4

 

[lost*in*cyberspace]

Don't they charge a huge convenience fee to pay by credit card?

In MD, it's 2.49%.

 

[lost*in*cyberspace]

From the IRS link I posted the site has listed several ways to pay with a credit or debit card. The highest fee was just under $4

The OP is asking about paying state income tax, not federal tax.

 

[amcnj]

From the IRS link I posted the site has listed several ways to pay with a credit or debit card. The highest fee was just under $4

It looks to me that there are flat fees for debit card payments, but credit card payments are a percentage of the amount charged. The lowest is 1.87%. So on $500 that fee would be $9.35. Also note that some show a higher rate for specific types of credit cards.

 

[AlohaNow]

I believe you would have to go through the website of your state's tax department, department of revenue, whatever they may call it, in order to see which providers they utilize for credit card payments. Random strangers from the internet who live in states other than yours cannot recommended providers that they have used in the past. We had to go that route last year and I believe we had two or three companies from which to choose. Each of them charged a small percentage of the total amount due as a convenience fee. So do the math on the benefit of paying the fee vs. the value of the miles overall.

Additionally, if you itemize on a Schedule A, save your printout because the convenience fee is deductible on next year's taxes as a 'tax preparation fee', if you meet the burden of that specific category. Regardless, save your printout from payment and stick it in this year's tax file!

 

[amcnj]

My state income tax instructions have a vague statement saying a usage fee will be added to any credit card payments. So I have no idea how much that might be!