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Credit cards and your taxes

How credit cards can help -- or hurt -- you at tax time

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The deadline to file your taxes is just around the corner. To help you navigate through your paperwork, the CreditCards.com staff has assembled a series of articles to help explain your tax payment options, to offer advice on the best ways to handle a refund and to look at how the IRS treats settled credit card debt and credit card rewards.

PAYMENT OPTIONS


Pros and cons of paying the IRS with a credit card

IRS payment optionsIf you're one of those who owe and don't have the cash to pay up, you may be tempted to pull out a credit card. Before you do, make sure you understand all the ways it will cost you ... (more) 

 


Don't use 401(k) to pay back taxes

Don't use 401(k) to pay back taxesYou should consider all the tax and penalty implications before tapping 401(k) funds to pay back taxes. Experts say paying taxes by drawing down from a  401(k) is one of the worst financial choices you can make ... (more)

 


IRS: You can deduct fee for paying taxes by credit card

IRS: You can deduct fee for paying taxesThe Internal Revenue Service has decided that taxpayers who use their credit or debit cards to pay federal tax bills need a break, but it is only available to those filers who itemize their deductions ... (more)

 


Paying small business taxes with plastic

Paying small business taxes with plastic Paying taxes with a business credit card can help businesses that are limited by cash flow problems due to a significant number of accounts receivable ... (more) 

 

REFUNDS


Got a tax refund? Then get out of debt

Cut credit card debtIf you're getting a tax refund this year, it may be tempting to take that cash to the track or the mall. Financial experts have another suggestion: Stop and examine your credit card debt situation ... (more)

 


So long, refund anticipation loans

Refund anticipation loansPitched as "fast cash," "refund now" or "instant cash," those high-fee refund anticipation loans are being driven out of the market -- and banking regulators and consumer advocates say "good riddance" ... (more)

 


Pros and cons of getting your tax refund on a prepaid card

Tax refund prepaid cardsLoading your tax refund on a prepaid card has its benefits, especially if you don't have a bank account, but watch out for fees as they may take a big bite out of your payback ... (more) 

 

CANCELED DEBT, 1099-Cs, TAXABLE REWARDS


Beware of IRS tax bite that may follow canceled debt

IRS tax bite on canceled debtConsumers who thought they'd ended their financial problems when they negotiated to settle their debts for less than the full amount are finding their money woes may be far from over ... (more)

 


Many who qualify fail to take canceled debt tax exemption

Canceled debt tax exemption little usedBaffled by the complexity of the form and still mired in debt, many people do not take advantage of their right to reduce or eliminate taxes on forgiven debt ... (more)

 


Canceled debt tax notices riddled with problems

Debt notices riddled with problemsThe rules under which creditors report forgiven debts as income are so confusing and problem-prone that taxpayers are both burdened and frustrated ... (more)

 


6 exceptions to paying tax on forgiven debt

Forgiven debtThe IRS considers forgiven debt to be taxable income -- usually. There are, however, six exceptions to paying tax on that debt you didn't have to pay. Do you qualify? ... (more) 

 


Reward point 'gifts' may be taxable, says the IRS

Credit card rewards and taxesAs sign-up bonuses for bank accounts and rewards cards have become more generous, someone new has taken interest -- Uncle Sam. Those sign-up bonus points may be taxable, he says. ... (more) 

Updated: February 23, 2012



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