The Best Rewards Credit Cards for Paying Taxes. When it comes to paying taxes, using a rewards credit card can be a savvy financial move if you manage your payments responsibly. Not only can you potentially earn valuable rewards, but you may also benefit from the card’s features, such as extended warranties or purchase protection. However, it’s essential to be aware that credit card processing fees may apply when paying taxes, and these fees can outweigh the rewards earned in some cases. Always calculate the cost-effectiveness of paying taxes with a credit card and consider the following options for the best rewards credit cards:
The Best Rewards Credit Cards for Paying Taxes
- Chase Sapphire Preferred® Card:
- Rewards: This card offers valuable Chase Ultimate Rewards points, which can be redeemed for travel or cash back.
- Bonus: You can earn a significant sign-up bonus by spending a certain amount in the first few months.
- Other perks: Travel insurance, purchase protection, and no foreign transaction fees.
- American Express® Gold Card:
- Rewards: Earn Membership Rewards points, which can be redeemed for travel, gift cards, or statement credits.
- Bonus: Receive bonus points on dining and groceries.
- Other perks: $100 annual airline fee credit, no foreign transaction fees.
- Citi® Double Cash Card:
- Rewards: This card offers a simple and generous cashback structure with 2% cashback on all purchases (1% when you make a purchase, and 1% when you pay it off).
- No annual fee: This card doesn’t have an annual fee, making it a cost-effective choice for paying taxes.
- Capital One Venture Rewards Credit Card:
- Rewards: Earn miles that can be used for travel expenses, including flights and hotels.
- Bonus: Enjoy a substantial sign-up bonus when you meet the spending requirement.
- Other perks: No foreign transaction fees and a Global Entry or TSA PreCheck application fee credit.
- Discover it® Cash Back:
- Rewards: Offers 5% cashback on rotating quarterly categories and 1% cashback on all other purchases.
- Bonus: Discover matches all the cashback earned in the first year for new cardholders.
- No annual fee: This card doesn’t have an annual fee, and the rewards can be particularly beneficial during certain quarters.
- Blue Cash Preferred® Card from American Express:
- Rewards: Earn cashback, with a focus on groceries and gas purchases.
- Bonus: Receive a welcome bonus after meeting the spending requirement.
- Other perks: 0% introductory APR on purchases and balance transfers for a limited time.
- Bank of America® Premium Rewards® Credit Card:
- Rewards: Earn points that can be redeemed for travel, cash back, or statement credits.
- Bonus: Enjoy a generous sign-up bonus.
- Other perks: $100 annual airline incidental statement credit, up to $100 in statement credits for TSA PreCheck or Global Entry, and no foreign transaction fees.
Before using a credit card to pay taxes, make sure to calculate the processing fees and compare them to the rewards earned. Additionally, ensure you can pay off the credit card balance in full to avoid high-interest charges, as interest can quickly outweigh any rewards earned. Finally, consult with a tax professional or financial advisor to understand the implications of paying taxes with a credit card in your specific financial situation.
Also Checkout: How to Receive a Refund on Prepaid Credit Cards