Pay Taxes and Earn Frequent Flier Miles - Summer Vacation
For taxpayers that owe Uncle Sam money this tax season, the bite can now be softened a bit, knowing that your payment is getting you one step closer to that Hawaiian vacation you've always dreamed of.
Official Payments Corporation has signed agreements with the IRS and this week announced agreements with a number of states to accept payment for federal and state taxes via American Express, Discover or Mastercard. Official Payments Corporation charges a convenience fee of 2.5 percent of your total tax bill for the service.
If your personal credit card plan provides for frequent flyer miles with charges you make, charging your tax payment may add to the total miles you can earn. Keep in mind that any interest charged by your credit card company on taxes that you place on your credit card account will be in addition to the 2.5 percent fee charged by Official Payments Corporation.
Some tax preparers are recommending the credit card option to their clients. "If I'm paying $10,000 on my credit card for income taxes, it's going to cost me $250. If that $10,000 pushes me to where I can now afford a trip to Hawaii, that's a great investment," says Doug Stives, CPA and tax partner at Wiss & Company, a national accounting firm.
The company's web site indicates relationships with the following governmental entities: