{"id":2621,"date":"2020-01-21T16:54:33","date_gmt":"2020-01-21T16:54:33","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/travel\/?p=2621"},"modified":"2020-01-21T16:54:45","modified_gmt":"2020-01-21T16:54:45","slug":"making-money-paying-taxes-credit-card","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/travel\/making-money-paying-taxes-credit-card\/","title":{"rendered":"Making Money By Paying Taxes With A Credit Card"},"content":{"rendered":"\n

Affiliate Disclosure: To answer your first question, yes, some of these links do pay us referral fees. But please keep two things in mind: First, we will never post a card simply because of the opportunity to earn money. In fact, we own most of the cards personally that show up on the \u201cour favorite cards\u201d page. And second, if we see a better offer for the same card that we can give you, we will direct you to it. We promise. <\/strong>The content on this page is all ours. The companies that we discuss do not review or endorse it. All opinions are ours. You can\u2019t have them. <\/strong><\/em>Please view our advertising disclosure page<\/a> for additional details about our partners.

Our “must read” on credit cards: The Pros and Cons of Credit Cards<\/a><\/p>\n\n\n\n

Why Americans Should Love Paying Taxes<\/h3>\n\n\n\n

Please note: <\/strong>I am not a tax advisor. I have never been a tax advisor and will likely never be a tax advisor. Nothing in this post should be taken as tax advice and you should consult a professional with tax questions, not some guy on the internet.<\/em><\/p>\n\n\n\n

In a few months, spring will begin, at least according to the\ncalendar if not Mother Nature. And, as Lord Tennyson wrote, in the spring, a\nyoung man\u2019s fancy lightly turns to thoughts of that special moment: paying\ntaxes.<\/p>\n\n\n\n

Okay, I\u2019m not sure that His Lordship had an April 15 deadline\nbut, if he did, he would have been well-advised to pay his taxes with a credit\ncard.<\/p>\n\n\n\n

Making Money By Paying The IRS<\/h3>\n\n\n\n

Nobody likes doing their taxes and, certainly, nobody likes\u00a0paying<\/em>\u00a0taxes. But if you have to pay, you might as well make a bit of money while doing so.<\/p>\n\n\n\n

You may not know this, but you can actually\u00a0pay your federal taxes, including estimates, with a credit card<\/strong><\/a>.*<\/strong> The catch is that credit card processors charge a fee, which they pass along to you. But if you have a credit card whose rewards are greater than the fee (See below for two options.), you\u2019ll come out ahead. <\/p>\n\n\n\n

There are three major companies that the IRS partners with to process secure payments: <\/p>\n\n\n\n

\"Paying<\/figure>\n\n\n\n

I\u2019ve used all three and they are virtually the same, so you\nmight as well go with the cheapest one. The sites are simple to use and\nself-guided. You\u2019ll input your personal information, choose what kind of taxes\nyou are paying and they\u2019ll charge you instantly<\/p>\n\n\n\n

You\u2019re not going to make a lot of money paying taxes. It\u2019s kind of a good-news-bad-news situation: The more you owe, the more you can take advantage of credit card rewards when paying. It\u2019s about the psychic joy of getting a little something back when you get to April 15. <\/strong><\/em><\/p>\n\n\n\n

Two Credit Cards To Use To Pay Your Taxes<\/h3>\n\n\n\n

If you have a credit card that pays you 1-1.5% back, you need to get rid of it<\/strong>, or at least stick it in a block of ice. It\u2019s not the best card to use for everyday purchases, never mind taxes. Here are two options for you. The first is more straightforward, but the second has a much better profitability profile.<\/p>\n\n\n\n

Citi Double Cash Card<\/h4>\n\n\n\n

This is the perfect card for people who want one card that pays a decent rebate on all purchases. Double Cash<\/a> pays, as you might have guessed, 2% cash back on every purchase you make, regardless of size, category or any other limiting criteria that you can think of. It\u2019s a \u201cno-muss-no-fuss\u201d solution. The card comes with no annual fee, has no added benefits and no sign-up bonus. <\/p>\n\n\n\n

Your profit:<\/strong> You\u2019ll make 0.13% back on (2% reward minus the 1.87% fee) on the transaction. It\u2019s not great, but that and your tax bill will get you a cup of coffee. Seriously. A $3,000 bill is worth almost a $4 profit, more than enough to pick up a coffee at Starbucks. But not the good stuff.<\/p>\n\n\n\n

Capital One Venture Card<\/h4>\n\n\n\n

The Capital One Venture Card<\/a> is the first one that I got when I began looking for a 2% card. It’s got a few more bells and whistles and, with a $500 sign-up bonus, is one of the most profitable cards out there.*<\/strong> (Also, please be sure to check out our<\/strong> Credit Card with a Travel Bonus<\/a> page!)<\/p>\n\n\n\n

The advertisements say that you\u2019ll get double \u201cmiles\u201d on each purchase (two miles per dollar spent), but those miles can also be used to pay for a wide range of travel expenses (Points never expire.), making it a 2% card (Keep reading for a potentially more lucrative use.). This card\u2019s strengths, though, are in the benefits that come with it. They include:<\/p>\n\n\n\n