• Sun, March 9, 2025

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Godongwana reveals the budget item causing VAT hike chaos in South Africa

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by: Newsweek

GOP's Rick Scott Confronted on 'Disturbance' From Trump Economic Policies

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Trump and Elon Musk's D.O.G.E find $333M in federal loans to 110+ year olds

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David Sacks says the US may have lost over $16 billion in early liquidation of bitcoins

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Mark Cuban Reveals the Thing He Respects Most About Elon Musk: 'What He's Been Able To Accomplish Is Insane, It's Incredible'

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  • Mon, March 10, 2025

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When You Should (and Shouldn't) Pay Your Taxes With a Credit Card

I've used credit cards to pay my taxes in the past — but there are some risks and costs that come with this strategy.
The article from MSN Money discusses the considerations of paying taxes with a credit card. It outlines that while using a credit card to pay taxes can offer benefits like earning rewards or cash back, there are significant drawbacks to consider. The primary advantage is the potential to accumulate rewards, especially if the card offers a high reward rate for government payments. However, this benefit is often offset by the fees charged by payment processors, which can range from 1.85% to 1.98% of the tax amount, plus a flat fee. These fees can make the transaction more expensive than the rewards earned. Additionally, if you carry a balance on your credit card, the interest rates, which can be as high as 20% or more, will likely exceed any rewards gained. The article advises against using a credit card for tax payments if you can't pay off the balance immediately due to these high interest costs. It also mentions that if you're looking to extend the payment deadline, there are other IRS payment plans that might be more cost-effective. The piece concludes by suggesting that paying taxes with a credit card should only be considered if you can pay off the card right away and if the rewards significantly outweigh the fees.

Read the Full CNET Article at:
https://www.msn.com/en-us/money/personalfinance/when-you-should-and-shouldnt-pay-your-taxes-with-a-credit-card/ar-AA1AyimY

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