Pay1040: Federal Taxes with Credit Cards

Paying federal taxes is never fun, but if you have to make a payment to Uncle Sam, you may as well earn a bunch of points in the process. Enter pay1040.com. Their platform allows you to make your federal tax payments, using most major credit cards, at a reasonable fee (1.87%).

The math pencils out very easily to justify the processing fee. Even a simple 2% cash would come out ahead. But when you utilize the multiplier on a Default credit card, your upside becomes even greater.

And this is direct from the Pay1040 website (we don’t give tax advice, but we’re happy to quote them): “As an added benefit, the convenience fee is tax deductible on business tax payments and on qualified personal tax payments - just one more advantage to managing your tax payments electronically!”

Keep in mind that Pay1040 only allows a certain number of payments to be made depending on the type of taxes you are paying, so you need to be strategic about when and how you make the payments. You can get more information on the limits in their FAQs.

At the moment, our favorite credit cards to pay taxes are any of the Capital One Default Cards (Venture, Venture X, Venture X for Business, Spark Miles, etc.)

For a list of eligible federal tax payments, CLICK HERE.

For additional information or to strategize on your tax payment strategy, contact us at Wealth@TravelWealth.com