Every year we focus on ways to pay taxes with credit cards to earn cash back .
If you have to meet the minimum spend for a Free Money  sign up bonus, it’s easy to make money.
Earn Cash Back Paying Your Taxes with a Credit Card
This year, there’s a new option using 5% quarterly cash rewards  to maximize your cash back on tax payments.
After fees, you’ll clear 3-4% cash back!
It’s our Free Money  offer this week for anyone working on your tax return this weekend!
How to Earn 3%-4% Cash Back Paying Your Taxes with a Credit Card
- Pay Your Taxes with Pay USA Tax .
- Use the Paypal payment option.
- Pay with your Chase Freedom card .
- Earn 3.1%-4.4% on your tax payment after fees.
Do The Math
Here’s how the math breaks down for each Chase Freedom card you have. The Pay USA Tax fee is 1.97%.
- Tax Payments: $1471
- Pay USA Tax Fees: $28.98
- Chase UR points: 7500
7500 Chase points are redeemable for $75 in cash (or $93.75 in travel). You are $46.02-$64.77 ahead on your $1471 tax payment.
Total Profit: 3.1%-4.4% on your tax payment.
More on Credit Card Tax Payments
Registration Required. You must register  for the category bonus on the Chase Freedom card first.
Opportunity Cost. You’ll give up the ability to earn 5% Rotating Cash Rewards  on the other Chase categories this quarter including grocery stores. However, don’t forget that Discover  5% this quarter also covers grocery stores.
Paypal Fees. I haven’t made my payments yet to confirm no Paypal fees are charged. While researching this option, I found data points on Doctor of Credit  that states no additional fees are charged from Paypal.
Tax Deductible Fees. The convenience fee is tax deductible  on business tax payments and on qualified personal tax payments.
Quarterly Payments. This isn’t just an option for the upcoming tax deadline . You can also make estimated payments this quarter for your taxes next year.
Multiple Chase Freedom Cards. You can make 2 credit card payments per year for your previous tax return and 2 per quarter for estimated taxes to maximize this offer.
Taxes on Rewards. You do not have to report or pay taxes on cash back rewards for using credit or debit cards. For more see credit card rewards aren’t taxable .
If you were working on earning the Chase Freedom card $150 Sign Up Bonus  anyway, it actually becomes much more lucrative!