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Author Topic: Paying Taxes On A CC?  (Read 3344 times)

Offline Dan

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Paying Taxes On A CC?
« on: January 17, 2012, 01:18:25 PM »
1.89% for MC: www.payUSAtax.com

Definitely can make sense to hit a threshold on the CO OPP(10K for 25K spend) or the old Ink Bold (25K/50K/100K thresholds)

And I think you should be able to deduct the 1.89% processing expense for AGI on your schedule c if your income is from your own business?  Any tax accountants out there?
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Offline HelpMe

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Re: Paying Taxes On A CC?
« Reply #1 on: January 17, 2012, 02:55:15 PM »
Remember you can use a different card for each payment service. Also if it is not too late you can also make the last estimated payment with each service.
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Offline Dan

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Re: Paying Taxes On A CC?
« Reply #2 on: January 17, 2012, 03:50:14 PM »
Quote from: HelpMe on January 17, 2012, 02:55:15 PM
Remember you can use a different card for each payment service. Also if it is not too late you can also make the last estimated payment with each service.
Estimated payments are due today.
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Offline HelpMe

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Re: Paying Taxes On A CC?
« Reply #3 on: January 17, 2012, 04:01:42 PM »
Quote from: Dan on January 17, 2012, 03:50:14 PM
Estimated payments are due today.
Better hurry then!  ;D
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Offline MarkS

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Re: Paying Taxes On A CC?
« Reply #4 on: January 17, 2012, 08:36:57 PM »
Quote from: Dan on January 17, 2012, 01:18:25 PM
1.89% for MC: www.payUSAtax.com

Definitely can make sense to hit a threshold on the CO OPP(10K for 25K spend) or the old Ink Bold (25K/50K/100K thresholds)

And I think you should be able to deduct the 1.89% processing expense for AGI on your schedule c if your income is from your own business?  Any tax accountants out there?
The expense isn't really a business expense per say? A typical person pays by check, and you choose to incur an expense to earn miles. Would that be considered an 'ordinary and necessary business expense' as the IRC requires? Possibly, possibly not. You are welcome to toftt by getting a private letter ruling! lol 
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Offline elikay

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Re: Paying Taxes On A CC?
« Reply #5 on: January 17, 2012, 08:55:01 PM »
No need for that, its befeirush mutar 
Quote
Credit or Debit Card Convenience Fees  You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. The fees are deductible in the year paid.


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Offline MarkS

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Re: Paying Taxes On A CC?
« Reply #6 on: January 17, 2012, 08:59:19 PM »
Quote from: elikay on January 17, 2012, 08:55:01 PM
No need for that, its befeirush mutar 

I guess you can then!
Keep in mind that it will be a misc. deduction FROM AGI (below agi) subject to 2% of AGI limitation.
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Offline Dan

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Re: Paying Taxes On A CC?
« Reply #7 on: January 17, 2012, 09:08:31 PM »
Right the question is if all your income is business related if you can take it as a For AGI business deduction.

Or if that argument doesn't hold water you can also use the miles earned for business travel, making the 1.89% deductible For AGI, no?
« Last Edit: January 17, 2012, 09:14:40 PM by Dan »
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Offline interested

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Re: Paying Taxes On A CC?
« Reply #8 on: January 18, 2012, 07:00:22 PM »
with only a flat rate for a debit card, what Debit card would i receive the best mileage with?
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Online AsherO

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Re: Paying Taxes On A CC?
« Reply #9 on: January 18, 2012, 09:07:23 PM »
Quote from: interested on January 18, 2012, 07:00:22 PM
with only a flat rate for a debit card, what Debit card would i receive the best mileage with?

PerkStreet Debit will give you 2% cashback.
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Offline Dan

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Re: Paying Taxes On A CC?
« Reply #10 on: January 18, 2012, 09:12:53 PM »
Quote from: AsherO on January 18, 2012, 09:07:23 PM
PerkStreet Debit will give you 2% cashback.
I'm assuming you need to charge it as credit to get the 2%.
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Offline Saver2000

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Re: Paying Taxes On A CC?
« Reply #11 on: January 18, 2012, 09:15:30 PM »
Quote from: Dan on January 18, 2012, 09:12:53 PM
I'm assuming you need to charge it as credit to get the 2%.

Yup. T&c says "non-pin based transactions".
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Offline HelpMe

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Re: Paying Taxes On A CC?
« Reply #12 on: January 19, 2012, 12:26:45 AM »
Quote from: Saver2000 on January 18, 2012, 09:15:30 PM
Yup. T&c says "non-pin based transactions".
That is why I don't have this card!   ;)
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Offline DevoiriS

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Re: Paying Taxes On A CC?
« Reply #13 on: April 02, 2012, 04:08:52 PM »
So I have a $1,927.00 tax bill to pay. Any advice on how to pay with a credit card or best to mail a check?
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Offline MarkS

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Re: Paying Taxes On A CC?
« Reply #14 on: April 10, 2012, 10:50:35 PM »
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