Best credit cards to pay your taxes

Best credit cards to pay your taxes -

Tax time can be stressful for most, especially if you are anticipating a hefty bill from the Internal Revenue Service. If you do not have the ability to pay your IRS bill, panic may set. But you have options. For many, working with the IRS to come with a payment plan will be the best option. But for others, using a credit card can save a lot of interest and be well worth paying the credit card of 1.87% processing fee cheaper than the payment processing costs.

When paying taxes with a credit card may be worth

1. Avoid IRS interest: If you are unable to pay the total amount owed to the IRS, but will be able to pay the balance in 18 months, then it may be better to pay the balance with a credit card. While you can set up a payment plan with the IRS, you can expect to pay 3% a year in interest, which can easily reach 10% per year when including penalties and fees you must pay to set up the payment plan.

Best Introductory APR: Citi Simplicity Card | Apply

With the best 0% APR credit cards such as Citi Simplicity Card, you can get a 0% APR for the first 18 months of being a cardholder, which can allow you avoid paying any interest on your taxes if you pay your balance in 18 months.

Many credit cards even combine the 0% APR with great rewards, such as freedom of Chase, which allows you to earn money on every purchase. That said, if you're going to need several years to pay off the IRS debt, and work directly with the agency to set up a payment plan can be the best option for you because the IRS could provide you some long rates of long-term interest.

2. Earn rewards while you pay: If you have a premium rewards credit card and be redeeming your rewards soon, so you might want to consider paying the IRS with a rewards credit card. Most rewards cards will not give you the equivalent of 1.88% cash back on your purchases but some.

Best awards: Barclay arrival more World Elite MasterCard | Apply

For example, the Barclay Arrival World Elite MasterCard longer gives you 2% on all purchases, equivalent to 2.2% cash back with its 10% buyback bonuses that you provides an additional 10% point bonus when you redeem your rewards for travel. It also provides you the equivalent of an introductory bonus of $ 440 after you spend $ 3,000 in the first three months of the membership card.

Another reward credit card that also gives generous rewards is the rewards card Capital One Venture, which earns you 2% on every purchase and gives you the equivalent of an introductory bonus of 400 $ when you spend $ 3,000 on purchases in the first three months of being a cardholder. Our analysis of travel rewards you can earn the equivalent of more than 2.5% back when you redeem your points Starwood hotel stays with credit card Starwood Preferred Guard, allowing you to exit the 'before using this card. It also has an introductory bonus 25.000 points -. 10,000 after your first purchase and another 15,000 after you spend $ 5,000 in the first six months of membership card

Pay the IRS with a credit card may not seem an option ideal, but there are cases where it makes the most sense. Read our full reviews of credit cards to learn more about the variety of cards available and find the best credit card to pay your IRS debt. Has not yet filed your taxes? Use the best tax preparation service to ensure you get the most out of your tax return.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author's alone, not those of the credit card issuer, and has not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but the terms and conditions of card can change at any time. This site may be compensated by the sending credit card affiliate program.