Should You Use a Credit Card to Pay Taxes?

Should You Use a Credit Card to Pay Taxes?

By Miranda Marquit

“Generally speaking, you should not use a credit card for expenses like paying taxes,” says Bennie Waller, a professor of finance and real estate at Longwood University. “However, there may be situations in which it makes financial sense.”

When to consider using a credit card to pay taxes

Waller suggests that using a credit card can be reasonable in a pinch. “If there is a 10% penalty for not paying your property taxes by a certain date, but you can use a credit card and will be able to pay off the credit card within a couple of months, it probably makes sense,” he says.

Being able to quickly resolve the problem, as long as you can repay the debt quickly, is the key. “This assumes that you will not allow these charges to be carried on the card for longer than two or three months,” Waller says.

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