7. Your Taxes
While it’s possible — and perfectly legal — to pay your debt to Uncle Sam with a credit card, there is an excellent reason why you shouldn’t: Your tax processor will likely charge you a convenience fee of around 2 percent for using a card. If you’re only on the hook for a tax payment of several hundred dollars, that fee won’t amount to much. On the other hand, if you owe Uncle Sam thousands of dollars, that 2 percent fee can really add up.
The IRS currently lists fees that are valid through Dec. 31, 2016; they vary depending on your payment processor. If you use a debit card to pay your taxes via Pay1040.com, the IRS states you’ll be charged a $2.59 flat fee. But if you use a credit card, the fee jumps to 1.87 percent, with a minimum fee of $2.59. Meanwhile, paying with a debit credit via PayUSAtax.com requires a $2.69 flat fee; using a credit card will incur a 1.99 percent fee, with a minimum fee of $2.69.
