Using a Credit Card to Pay Your Taxes: A Good or Bad Idea?
As tax season looms, it is important that you know how you are going to pay your taxes on time. You want to make sure that you can avoid the late fees or trouble with the law that come with not getting your taxes filed and submitted on time, but it is also important that you have money left over to live. Many people do not realize that they can fix this problem by paying their taxes on their credit card.
Before you file with your credit card, be sure that you do your research. You want to make sure that you are making the best financial decision for yourself and that you know what the repercussions of your decision will be. Here are some things to consider as you decided whether or not you will pay with your credit card…
• The late fees or legal repercussions that you will avoid by paying your taxes on time
• To pay the IRS with a credit card, you are required to go through a third party. You should have a comprehensive understanding of the fees that the third party will charge you
• The interest rate that you will be charged on your credit card and the length of time that it will take you to pay off the balance on your credit card
• If you have any rewards for using your credit card, you may want to consider them as well
Getting your taxes paid on time is a great way to avoid tax problems in the future. No matter what decision you can make, you should be sure that you make your decision early and get your taxes taken care of.