For those of you who love racking up airline miles or earning cash back, paying your taxes on a credit card might be too appealing to pass up. For others, this may be a great way to stealthily increase your cost of taxation, or worse, letting taxes spiral your debt out of control.
Let me just say this may be a case of do as I say, not as I do. I pay my taxes with a credit card. I do it for convenience, and more importantly, to rack up airline miles. But this convenience and miles does come at a cost in processing fees. Because I always pay the total statement balance on my credit card each month the cost stops there. This strategy will NEVER work if you are going to end up carrying a credit card balance.