Are you aware of the secret perks that credit cards offer these days? While most credit card users are familiar with rewards programs and welcome offers, there’s another hidden gem that you might not know about: paying your taxes or tax-preparation services with a credit card. Not only can this potentially save you money, but it also comes with additional attractive benefits. Let’s dive into the details and discover how you can maximize your savings.
Credit Cards Offering Tax Filing Discounts in 2024
Did you know that some of the most popular credit cards provide discounts on tax-filing services? Issuers like American Express, Capital One, and Chase often have offers that include savings on tax services. However, these discounts are usually limited to specific software or services. Therefore, if you are using a particular tax service, it’s worth checking if they offer a credit card discount.
Blue Cash Preferred® Card from American Express
One standout option for filing your taxes is the Blue Cash Preferred® Card from American Express. This card offers a substantial 30% statement credit on TaxAct services through Amex Offers. It’s one of the most significant discounts available, particularly if you opt for TaxAct’s higher-priced services. Additionally, this card has a $250 welcome offer and 0% introductory APR, making it even more appealing. Just remember to pay off the card at the end of the month to avoid interest charges that could negate your savings. Personal Finances Blog
Capital One Venture X Rewards Credit Card
Another excellent choice is the Capital One Venture X Rewards Credit Card. Cardholders can enjoy a 10% statement credit on H&R Block tax filing services through Capital One Offers, providing significant savings when filing taxes. Besides tax benefits, this card is a premium travel card with a reasonable annual fee. It includes a $300 travel credit, 10x miles on select bookings, and 5x miles on flights, making it an excellent choice for frequent travelers.
Chase Sapphire Preferred® Card
If you use TurboTax for your tax filings, the Chase Sapphire Preferred® Card is worth considering. With Chase Offers, cardmembers can save $5 to $15 on various TurboTax services. While these discounts may seem modest, they are immediate, meaning you receive the discount upfront rather than a statement credit. Moreover, the Chase Sapphire Preferred® Card is one of the best credit cards from Chase, offering generous rewards and travel perks that can offset the annual fee.
Capital One VentureOne Rewards Credit Card
With the Capital One VentureOne Rewards Credit Card, you can benefit from a 6% statement credit on TaxSlayer services, in addition to the 8% credit on TurboTax mentioned earlier. This card has no annual fee, making it an easy way to save on tax filing. Additionally, it comes with a 20,000-point welcome offer and opportunities to earn miles on every purchase.
Benefits of Paying Taxes with a Credit Card
Paying your taxes with a credit card can unlock several benefits, including immediate discounts, rewards such as cash back, points, and miles, and the opportunity to improve your credit score through on-time payments. Credit cards often offer various other perks like travel discounts, fraud protection, and even cellphone insurance. However, it’s crucial to remember that these advantages only apply if you pay your credit card bill in full every month. So, proceed with this strategy only if your finances are in order.
Disadvantages of Paying Taxes with a Credit Card
While paying taxes with a credit card has its advantages, there are also a few disadvantages to consider. If you fail to pay your credit card bill on time, the interest, penalties, and fees can outweigh any benefits gained from paying taxes with a credit card. Additionally, some credit card issuers charge convenience fees, which can diminish the discounts you receive. Lastly, paying with a credit card may delay the receipt of your tax refund.
TIME Stamp: Credit Card Offers During Tax Season May Be Beneficial, But Know the Downsides
Paying your taxes with a credit card can lead to savings through discounts or cash back offers. Many popular credit card issuers provide these benefits during tax season, along with their other rewards. However, it’s crucial to be aware of potential fees and the consequences of not paying your credit card bill on time. Make sure to carefully read your card issuer’s terms and conditions before deciding to use this strategy.
Remember, these tips are brought to you by Personal Finances Blog, independently created to help you make the most of your money.