credit cards

6 ways credit card rewards work for you

Using rewards to pay taxes
Next
4 of 8
Back
Using rewards to pay taxes

Credit card rewards can now be used to complete other transactions.

American Express allows cardholders to use rewards points to pay federal, state and local income taxes. But there are catches. Using rewards to pay taxes eats up a lot of points quickly. And payments are made by filing taxes via a tax-paying website such as Official Payments, which charges service fees.

Look at redemption rates, says Davidson. They might not be the best use of your rewards points.

On the plus side, some credit cards award points when you use them to pay taxes.


 

 

advertisement

Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.

Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
Balance Transfer Cards 16.35%  0.01 16.36%
Cash Back Cards 16.69% --0.00 16.69%
Low Interest Cards 12.02% --0.00 12.02%
 
Search
advertisement
advertisement
advertisement

Credit Card Blog

Mike Cetera

Leak exposes Social Security numbers of DNC donors

WikiLeaks published donor names, Social Security numbers and credit card information when it released 19,000 hacked internal Democratic emails on Friday.  ... Read more


Connect with us