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Credit cards have all kinds of perks these days, but one that not all credit card users are aware of is paying your taxes—or paying for tax-preparation services or software—with a credit card. Specifically, several credit card issuers offer savings on tax services when you pay with one of their cards.
If you prepare your own taxes to save money, paying with a credit card may help you save even more. Plus, credit cards come with attractive benefits, such as welcome offers and 0% introductory APRs, sweetening the deal even more. You just have to make sure to pay the card off at the end of the month so that interest charges don’t wipe out the potential savings you might realize by paying with a credit card.
| Card name | For tax software | Offer | Regular APR | Annual fee | Minimum credit score |
|---|---|---|---|---|---|
30% back (statement credit) | reg_apr,reg_apr_type (Rates & Fees) | annual_fees (Rates & Fees) | credit_score_needed | ||
9% back (statement credit) | reg_apr,reg_apr_type | annual_fees | credit_score_needed | ||
$5 to $15 off | reg_apr,reg_apr_type | annual_fees | credit_score_needed | ||
Get 6% back (statement credit) | reg_apr,reg_apr_type | annual_fees | credit_score_needed |
Credit cards offering tax filing discounts in 2024
Some of the most popular credit cards come with an offers program that may include discounts on tax-filing services. American Express, Capital One, and Chase are just a few examples of card issuers that may have these discounts. However, these offers typically have an expiration date, so check with your card issuer to see if there are any active offers for tax services.
In addition, discounts are only available for specific software or services. So, if you are using a particular service, it’s worth checking to see if it offers a credit card discount.
Blue Cash Preferred® Card from American Express
Blue Cash Preferred® Card from American Express
- Offer: Get 30% back (statement credit)
- For tax software: TaxAct
- Annual fee: annual_fees (Rates & Fees)
The card_name is among the best choices for filing your taxes, thanks in part to the 30% statement credit on TaxAct from Amex Offers. This is one of the biggest discounts on tax filing available, especially if you opt for TaxAct’s costlier services.
This card includes a $250 welcome offer, but it requires you to spend $3,000 in the first six months. Still, six months is plenty of time to meet your spending requirement, and it may not take long if you have a large tax bill coming due. There’s no annual fee for the first year, but it has a annual_fees annual fee thereafter (Rates & Fees).
The card_name is also a great credit card overall. Despite the annual fee, it earns 6% cash back on up to $6,000 in groceries per year, 6% back on streaming, and 3% back on gas and transit. The card also includes a $7 monthly statement credit when you spend $12.99 per month on Disney streaming services, for a total of $84 in statement credits per year.
card_nameCapital One Venture X Rewards Credit Card
Capital One Venture X Rewards Credit Card
- Offer: 10% back (statement credit)
- For tax software: H&R Block
- Annual fee: annual_fees
Capital One cardholders can get a 10% statement credit on H&R Block tax filing services through Capital One Offers. That’s one of the better discounts available and can help you save a significant amount when you file.
The card_name is also a premium travel card, and its annual_fees annual fee reflects that. However, that is much lower than the fee you’ll pay for competing cards, such as the card_name (annual_fees). It includes a $300 travel credit, which nearly pays for the annual fee on its own. In addition, it earns 10x miles on hotels and rental cars booked through Capital One Travel and 5x miles on flights booked through the portal. It earns 2x miles on all other purchases. If you’re a frequent traveler, this is a great choice for paying your taxes.
Chase Sapphire Preferred® Card
Chase Sapphire Preferred® Card
Why we like it:
Product details:
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.
- Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel℠. For example, 60,000 points are worth $750 toward travel.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
- Member FDIC
- Offer: $5 to $15 off
- For tax software: TurboTax
- Annual fee: annual_fees
card_name cardmembers can get $5 to $15 off TurboTax through Chase Offers. Specifically, you get $5 off Deluxe, $10 off Premier, and $15 off Self-Employed tax filing services from TurboTax. While these are modest discounts, it’s nice that the discount is immediate and not a statement credit.
The card_name also happens to be one of the best credit cards available from Chase. Although it has a annual_fees annual fee, you can offset that with $50 in statement credits on hotel stays booked through Chase Ultimate Rewards. Plus, the card earns 5x points on travel booked through Chase Ultimate Rewards. It also earns 3x points on dining, 3x on groceries, 3x on streaming, and 2x on all other travel purchases.
Capital One VentureOne Rewards Credit Card
Capital One VentureOne Rewards Credit Card
- Offer: 6% back (statement credit)
- For tax software: TaxSlayer
- Annual fee: annual_fees
Capital One cardmembers can get 6% back as a statement credit on TaxSlayer services, in addition to the 8% credit on TurboTax mentioned earlier. With no annual fee, this card could be an easy way to save on tax filing.
This card also includes extra benefits, such as a 20,000-point welcome offer after you spend $500 within the first three months of opening your account. The low spending requirement makes this a relatively easy goal to reach.
In addition to this benefit, card_name earns 1.25 miles on every purchase and you can earn five miles per dollar on hotels and rental cars booked through Capital One.
Benefits of paying taxes with a credit card
You can reap the benefits of paying your taxes with a credit card in several different ways. Here is a quick overview:
- During tax season several card issuers offer discounts on tax software and/or discounts for paying your taxes with one of their credit cards.
- You can earn rewards, including cash back, points, and miles.
- You may have more time to pay your taxes, as most credit cards offer a grace period before you must pay your balance in full.
- You can improve your credit score by making on-time payments.
- Credit cards may offer a variety of other benefits and perks, such as discounts and credits toward travel, fraud protection, and cellphone insurance.
Again, keep in mind that this assumes you will pay your credit card bill in full every month. Only pursue this strategy if your finances are in order.
Disadvantages of paying taxes with a credit card
While there are many benefits to paying taxes with a credit card, there can also be disadvantages. Here’s a quick look at some of the biggest potential drawbacks:
- If you can’t pay your bill on time, the interest, penalties, and fees can negate any benefits you might otherwise gain by paying taxes with a credit card.
- The credit card issuer may charge a convenience fee or other fees when you pay with a credit card, which can cut into the discounts you receive. In 2023 these fees range from 1.85% to 1.98%, depending on the payment processor, according to the IRS. On a tax bill of $2,500 the fee could be $46.25 to $49.50.
- If you pay with a credit card, you may have to wait longer to receive your tax refund.
TIME Stamp: Credit card offers during tax season may be beneficial, but know the downsides
If you pay your taxes with a credit card, you could save money in the form of a discount on services or cash back. Some of the most popular card issuers offer these benefits during tax season. Depending on the offer, this can help you save money on your taxes. Credit cards also have many other benefits, including welcome offers, cash back, and travel discounts.
However, there may be a fee if you pay your taxes with a credit card. And if you don’t pay your bill on time, there may be interest, penalties, and fees that can wipe out your discount entirely. Be sure to read your card issuer’s fine print so you know what to expect before deciding to move ahead with this strategy.
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