Facing a hefty tax bill? The right credit card can make it manageable and even rewarding. Here are the top options for 2024-2025, detailed for their latest updates and relevant benefits.
The Chase Freedom Unlimited® offers a compelling 1.5% cash back on everything you buy, up to $20,000 spent in the first year. This translates to up to $300 cash back. It also provides a 0% intro APR for 15 months on purchases, giving you some breathing room to pay off your tax bill. The card’s flexibility and rewards make it a strong contender for this financial task.
For those who prefer points over cash back, the Platinum Card® from American Express might be a good fit. It offers 80,000 Membership Rewards points after spending $8,000 on eligible purchases in the first 6 months. These points can be redeemed for various rewards, including statement credits, travel, and gift cards. This card can also provide significant perks for frequent travelers.
If you’re looking for a card with a substantial welcome offer, the Business Platinum Card® from American Express is worth considering. It provides a generous welcome bonus and is particularly beneficial if you have a business that can also benefit from the card’s perks. The extensive travel and purchase protections offered by this card can add value far beyond the immediate rewards.
A noteworthy mention is the Discover it® Cash Back, which offers a cashback match for the first year. Essentially, it doubles all the cash back you’ve earned at the end of your first year. With no annual fee, it’s a straightforward and valuable choice for those looking to maximize their rewards without any added cost.
In addition to these options, the Capital One VentureOne Rewards Credit Card earns flat-rate rewards on all eligible purchases, including tax payments. It has no annual fee and offers flexible redemption options, making it another excellent choice for managing a large tax bill.
It’s essential to consider any potential fees associated with paying taxes with a credit card. Some states and local governments may charge additional fees for credit card payments, so it’s worth checking the specifics for your area.
In summary, the best credit card to pay a $10,000 tax bill with would be one that offers a generous welcome bonus, substantial rewards, and a 0% intro APR period to help manage the payment over time.
Sources:
https://www.nerdwallet.com/best-credit-cards
https://www.creditkarma.com/reviews/credit-card
https://www.thebalance.com/best-credit-cards-for-taxes-5186303