Pay Your Taxes With a Reward Credit Card?

Written by admin - One Comment

If you’re anything like me, you’re always on the lookout for new ways to use your reward credit cards. Well, here’s an idea…

Why not pay your taxes with a credit card?

I know what you’re thinking… There’s always a surcharge associated with using a credit card to pay your taxes. Right? Right. But in the case of the Citi CashReturns MasterCard, you’ll still come out ahead.

Here’s the deal:

Edit: The 5% cash back promo that this deal was based on has since expired… Sorry!

At the same time, OfficialPayments.com will allow you to pay your taxes with a credit card in return for a processing fee of 2.49%. That leaves a spread of 2.51% for you to pocket. And the credit card rewards are totally tax free.

Consider this:

If you owe $10,000 in taxes and pay them with this card, you’ll pocket $251 for do nothing more than putting that payment on your credit card instead of sending a check.

Published on January 30th, 2008 - One Comment
Filed under: Credit Card Tips, Reward Cards
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Comments (scroll down to add your own):

Nice idea to lessen the amount you pay in taxes or least get some money back. Timing is the key issue with this card. Other good uses are tuition, holiday purchases, etc.
Comment by PlasticRewards — Jan 31st 2008 @ 6:42 pm