Turn Your Tax Bill Into Profit

Yes, absolutely. The IRS officially accepts credit card payments through approved third-party processors like payUSAtax and Pay1040. This has been an option for over 20 years. There's nothing tricky or sketchy about this strategy—it's simply smart use of credit card rewards programs.

Yes! Tax payments count as regular purchases for meeting credit card minimum spend requirements. Card issuers cannot distinguish between a tax payment and any other purchase. The payment will post to your account just like buying groceries or gas.

If your tax payment doesn't fully meet the minimum spend requirement, you can make up the difference with regular purchases. Most cards give you 3-6 months to meet the spend requirement. Just make sure you can comfortably spend the remaining amount through normal purchases.

Yes, but with limitations. Most credit card sign-up bonuses have restrictions like "not available if you've had this card in the past 48 months" (Chase) or lifetime language (Amex). You can rotate between different cards and issuers each year to keep earning bonuses. See our Year-Over-Year Strategy guide for details.

Applying for a new credit card will cause a temporary dip in your credit score (typically 5-10 points) due to the hard inquiry. Your score will recover within a few months. Don't apply if you're about to get a mortgage or car loan in the next 3-6 months.

You must pay your credit card balance in full before the due date. This strategy only works if you avoid interest charges. Credit card interest rates (20-30% APR) will wipe out any profit. Only use this strategy if you already have the cash to pay your taxes.