Paying Tax Bill With Credit Card a Bad Idea - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Paying Tax Bill With Credit Card a Bad Idea

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SALISBURY, Md.- These days it seems we pay just about everything with credit cards. But experts say it is not a good idea to use credit cards for paying your income taxes.

Frank Salman, a Certified Public Accountant practicing in Salisbury, said customers need to read the fine print from their credit card company in order to protect their pockets.

Salman said paying with plastic could mean paying big fees.

"The tax issue is different," Salman said. "They (credit card companies) treat it as the moment you charge that, they are going to charge you with a 3 or 4 percent charge for using the card."

Salman said it is easy to buy into the credit card offers because of the lucrative perks the offers come with.

"Let's say you owe a tax bill of $10,000 and there is a 3 or 4 percent fee, it's going to cost you $300 or $400 to get 10,000 miles of points," he explained. "Then it takes 25,000 points to redeem for a free airline ticket…you are better off to just use that money to buy a ticket."

Vincent Palmer of Salisbury said he would use a credit card to pay taxes as a last resort.

"If it came down to it, then yes, I would," Palmer said.

Many people around Wicomico County said they would not even think about paying their taxes on their credit card.

"It's another added expense on your credit card," Wallace Mitchell said. " The interest rates would be very high and it's another expense you have to pay sooner or later."

Credit card holder Tara O'Barsky said, "I think there is enough problems with debt in this country right now with the economy the way it is and I think you need to plan better."

Federal and state taxes are due April 17. The IRS has a monthly payment plan through an installment agreement.

The information can be found by visiting, http://www.irs.gov/taxpros/article/0,,id=99090,00.html

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