Thursday, April 18, 2013

Should You Pay Your Taxes With a Credit Card?


While the majority of American will expect a tax refund this year, there are still a sizable fraction of us who will have to scrounge up their savings to pay Uncle Sam what they owe.
And while some are vaguely aware that there are ways to pay taxes with their credit cards, few really understand the benefits and drawbacks of these options.
Here are the basics.
How to pay taxes with a credit card
The IRS is happy to receive payment in the form of a check, but they do not directly accept credit cards. Instead, they have authorized a handful of private companies to accept payment on their behalf. And while this service is convenient, it comes at a cost. Authorized processors charge a fee of between 1.88% and 2.35% of the amount remitted to the IRS. In addition, some state and local governments will also accept taxes paid with a credit card.
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