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Tax question
Posted on 3/7/19 at 10:54 am
Posted on 3/7/19 at 10:54 am
I was listening to this tax writer for WSJ on radio and he was talking about people who owe the govt money after filing and who pay by credit card so they can get rewards.
He said your rewards will be countered by the fee the IRS charges you for using a credit card. But he was never asked why the fee exists.
Does anyone know why the IRS doesn't like getting paid with a CC?
He said your rewards will be countered by the fee the IRS charges you for using a credit card. But he was never asked why the fee exists.
Does anyone know why the IRS doesn't like getting paid with a CC?
5
Posted on 3/7/19 at 10:56 am to Zach
quote:
Does anyone know why the IRS doesn't like getting paid with a CC?
Does any other entity? There are processing fees. They're typically just factored into the price of the product/service that you're purchasing.
Posted on 3/7/19 at 10:56 am to Zach
quote:
Does anyone know why the IRS doesn't like getting paid with a CC?
I assume like everyone else they don't like paying the processing fee.
Posted on 3/7/19 at 11:32 am to John Gotti
Then why would anyone pay their taxes with a CC? This guy on the radio said a lot more people are doing it now. Are they just not realizing there is no benefit in doing so?
Posted on 3/7/19 at 11:35 am to Zach
Some may have no better option? There are some travel and hotel CC's that have good enough rewards to possibly make it worth it. The other factors you have to consider are your credit score, when it will be paid off and the interest payments vs interest/late payment fees and penalties
Posted on 3/7/19 at 11:36 am to Zach
When you use a CC anywhere, the CC provider gets paid. Uncle Sam isn't going to pay them.
Posted on 3/7/19 at 11:48 am to Zach
quote:
Then why would anyone pay their taxes with a CC?
bc they don’t have the cash.
Posted on 3/7/19 at 12:01 pm to Zach
quote:
Then why would anyone pay their taxes with a CC? This guy on the radio said a lot more people are doing it now. Are they just not realizing there is no benefit in doing so?
if you don't have enough money in the checking account - it might be your only option.
Posted on 3/7/19 at 1:26 pm to Zach
quote:
Then why would anyone pay their taxes with a CC? This guy on the radio said a lot more people are doing it now. Are they just not realizing there is no benefit in doing so?
you sure you didnt get that mixed up with a debit card?
debit card is like a certified check, there is no canceling a transaction or taking it back by disputing a charge.
thats the reason the dont allow any sort of official fines or levies to be paid by credit card, once you have a receipt showing you paid your debt you could simply not have to pay it by disputing the charge or claiming your card was stolen, which 100% everyone would be doing if they could.
hell you cant even pay a speeding ticket with CC but paying with a debit card is perfectly ok
they will only accept payment in a form that cannot be revoked, declined, denied, or rescinded
This post was edited on 3/7/19 at 1:28 pm
Posted on 3/7/19 at 2:28 pm to Zach
most government agencies that allow you to pay with a CC, charge a fee to do so.
People aren't paying by CC to get rewards. They are paying with a CC because they don't have the money, and they would rather pay Chase over time than pay the feds over time.
People aren't paying by CC to get rewards. They are paying with a CC because they don't have the money, and they would rather pay Chase over time than pay the feds over time.
Posted on 3/7/19 at 2:29 pm to keakar
quote:
they will only accept payment in a form that cannot be revoked, declined, denied, or rescinded
You can absolutely pay federal individual income taxes with a credit card. LA as well.
Posted on 3/7/19 at 2:31 pm to Zach
quote:
I was listening to this tax writer for WSJ on radio and he was talking about people who owe the govt money after filing and who pay by credit card so they can get rewards.
He said your rewards will be countered by the fee the IRS charges you for using a credit card. But he was never asked why the fee exists.
Does anyone know why the IRS doesn't like getting paid with a CC?
1. Costs money to process cards
2. People may get enough rewards to offset the fee, especially sign up bonuses
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