Some of the best credit card welcome bonuses require a large amount of spending. But if you’re not naturally spending thousands of dollars a month on credit cards, the best bonuses can seem out of reach. However, many people have periodic large payments such as homeowners insurance, car insurance and tax payments. If you plan ahead, many of these large purchases can be put on a credit card, putting these large sign-up bonuses in reach.
Federal tax payments by credit card usually incur a fee around 2% of your payment. But if you are trying to meet a minimum spending threshold for a welcome bonus, it can make sense to pay the fee. Or if your card offers greater than 2% rewards, you can also come out ahead.
When I tried to pay my estimated taxes using PayUSATax with my Ink Business Unlimited card today, I received an error message. “This type of card is not currently accepted. To attempt your payment with an alternative method, please use a different card type or select another payment option under the Payment Information section below.”
Apparently I’m not the only one to have this problem. Paying with a different card worked fine.
If you’re planning on using your tax payment to meet a welcome bonus threshold on an Ink card, be aware that this might not work.