Paying your taxes with a credit card that has a 0% APR might work to your advantage — especially if you earn rewards for money spent using your credit card. My Account. Benzinga Edge.

The downsides of paying your taxes with a credit card. John Thompson, vice president at Spruce, H&R Block’s mobile banking app, doesn’t mince words about the downsides.

For those paying taxes via credit card through a third-party processor, you'll pay the following convenience fees: Pay1040: 1.75% fee with a $2.50 minimum fee; ...

So if you pay your taxes with your credit card at the beginning of your 30-day statement period and have a 25-day grace period, then you could get up to 55 days to pay your balance interest-free.

If you file and pay using tax software such as TurboTax, your fees might be even higher. The TurboTax credit card fee, for example, is 2.49% if you pay income tax via credit card through its website.

Earn credit card rewards. If you use a rewards credit card to pay your taxes, you can earn cash back, points or miles.. For instance, if you owe $1,000 to the IRS and pay it with a credit card ...