It is hard to beat the convenience of a credit card for purchases, but does that same convenience make it worth paying your taxes by credit card? It might, but that depends on several factors involving money and time. The major ones are listed below.
Many people paying by credit card do so automatically as part of the e-filing process, but you can pay with your credit card by phone if you prefer.
In summary, credit cards are usually the best option whenever you can avoid carrying a balance and receive rewards that surpass the fees, or if you do not have the money in hand now but expect the income to be able to pay the bill off relatively soon and avoid excessive interest charges from your credit card issuer. Make your assumptions on future income and short-term bills, and then break out the calculator (or spreadsheet, if you prefer) to find out which path makes the most economic sense for you.
If you want more credit, check out MoneyTips’ list of credit card offers.
Originally Posted at: http://www.moneytips.com/paying-taxes-with-a-credit-card
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