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Research and Statistics

Credit cards and your taxes


Are credit card rewards taxable? When should and shouldn’t you put taxes on a card? Our tax package answers these questions and more

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The deadline to file your taxes is just around the corner. To help you navigate through your paperwork, the 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.



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)


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)




Getting a tax refund? Apply it to that credit card 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)


Don’t take the refund anticipation check bait

Refund anticipation loansAs RALs went away, tax refund anticipation checks (RACs) took their place, which offer a way to delay payment of tax prep fees, but also come with a hefty fees and surcharges … (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)


Best way to apply tax refund to multiple card balances

Apply tax refundWith a mortgage on the horizon and several maxed-out cards, what’s the best way to apply a tax refund to the balances to maximize credit score? … (more)



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)


1099-C frequently asked questions

1099-C FAQsWonder why you received a 1099-C in the mail? Most taxpayers don’t realize forgiven debt is considered income, and questions abound … (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)


Valuing frequent flier miles on your tax return

Credit card rewards and taxesThe IRS treats reward miles like coupons or rebates, not like income or expenses … (more)


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The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

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