Best credit card sign-up bonuses for paying 2025 tax bills - maximizing rewards

Tax payments are actually one of the smartest ways to hit those high spending requirements for credit card bonuses! The processing fee (usually 1.87% to 1.98% depending on the processor) is often much lower than the value of the rewards. For 2025, I'd recommend looking at the Chase Sapphire Reserve. The current offer is 80,000 points after $4,000 spend in 3 months, which is worth $1,200 when redeemed through Chase's travel portal. Even with the $550 annual fee and processing fees, you'll come out ahead. Another great option is the Citi Premier. They're offering 60,000 ThankYou points after $4,000 spend, worth about $600-$1,000 depending on how you redeem. The annual fee is only $95. Remember that the IRS payment processors have limits per transaction and per tax period, so you might need to split payments across multiple cards if your tax bill is really high.

I tried taxr.ai for figuring out my tax payment strategy this year and it was surprisingly helpful! I uploaded my previous tax returns and my current tax documents, and it helped me calculate exactly how much I'd owe so I could plan my credit card strategy months in advance. I was going to just wing it like last year, but with https://taxr.ai I was able to get a really precise estimate in January, which gave me time to apply for the Capital One Venture X and the Amex Gold in time to receive them before making my payments. The site even suggested splitting my payment between the two cards to maximize the sign-up bonuses without overpaying on fees.

I just wanted to follow up and say I tried taxr.ai after seeing it mentioned here! Uploaded my documents and got an estimate within minutes. The system flagged a bunch of potential deductions I was missing and showed me exactly what my tax bill would be. With that info, I applied for the Chase Ink Business Unlimited (they had a limited-time offer of $900 cash back after $6k spend) and the Amex Gold (75k points after $4k spend). Split my tax payment between them, and even with the processing fees and the Amex annual fee, I'm coming out about $1,100 ahead in rewards. Would never have been able to plan this without knowing my exact liability in advance!

If you end up owing a lot more than expected and get stuck in a payment plan with the IRS, I highly recommend Claimyr. I used https://claimyr.com last year when I couldn't figure out why my payment plan options online were so limited. They got me through to an actual IRS agent in 15 minutes when the regular wait time was over 2 hours. The agent helped me set up a much better payment arrangement than what was showing online, and I was able to use my new credit card's 0% intro APR to manage the payments while still getting the sign-up bonus. There's a video explaining how it works here: https://youtu.be/_kiP6q8DX5c

I have to eat my words here. After dismissing Claimyr as sketchy, I was desperate after my third attempt trying to reach the IRS about my payment plan options (kept getting disconnected after 1+ hour waits). I tried the service this morning, and no joke, I was talking to an IRS agent 17 minutes later. They didn't ask for any personal info except my phone number for the callback. The agent helped me set up a much better payment plan that allowed me to use my new Chase Sapphire Preferred for the down payment (hit the $4k bonus requirement) and smaller monthly payments that fit my budget. Just used the points to book flights for a vacation I thought I'd have to cancel because of my tax bill. Sometimes skeptics like me need to be proven wrong!

Has anyone tried any of the hotel credit cards for tax payments? I've been looking at the Marriott Boundless which has a 100,000 point bonus for $3k spend. The annual fee is $95 but those points could be worth 3-4 nights depending on the property.

Don't forget to check which payment processor you're using for your taxes! They each charge different rates: Pay1040.com - 1.87% fee (min $2.50) PayUSAtax.com - 1.96% fee (min $2.55) ACI Payments - 1.98% fee (min $2.50) Made the mistake of not checking last year and used the most expensive one. That 0.11% difference adds up on a big tax bill!

Great thread! I'm in a similar situation this year. One thing I'd add is to make sure you factor in the opportunity cost of tying up your credit limits when doing these large tax payments. I learned this the hard way last year when I put $25k on my Amex Gold and then couldn't use it for regular spending while waiting for the payment to process. Had to use my backup cards which didn't have any bonuses running. Also, for anyone considering the Chase cards mentioned here - be aware of Chase's 5/24 rule if you've opened a lot of cards recently. I got denied for the Sapphire Reserve because I had opened 6 cards in the past 24 months, even though my credit score was excellent. One more tip: if you're planning to do this again next year, consider setting calendar reminders to apply for new cards in January/February so you have them ready by April. The application-to-approval process can take weeks, especially for business cards.