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Infographic: More taxpayers reaching for credit cards

Summary

Most Americans will use checking or savings accounts to pay their taxes this year. But more are reaching for credit cards.

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Almost three-quarters of Americans who owe taxes are planning to use checking accounts or their savings to pay taxes this year, according to the latest American Express Spending & Saving Tracker survey — but a growing number will be reaching for their credit cards. Fourteen percent say they’ll pay taxes with plastic this year, compared with 7 percent in 2012 and 10 percent in 2011. Meanwhile, 7 percent will use credit card reward points to pay down at least some of what they owe to Uncle Sam, compared with 1 percent in 2012 and 3 percent in 2011.

AmEx surveyed 1,518 adults between Feb. 27 and March 1, 2013. It also asked consumers receiving refunds how they will spend that extra cash. Many plan to use their refunds to improve their financial picture, either by paying down debts (37 percent) or padding their savings (26 percent). However, 28 percent plan to spend  their refunds on travel, their families, home improvements or a big-ticket item.

The chart below shows survey participants’ planned payment methods for the taxes they owe in 2013.

Tax payment methods
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 <center><a href=”https://www.creditcards.com/credit-card-news/infographic-tax-payment-methods-1701/”><img alt=”CreditCards.com infographic: How Americans plan to pay their taxes” border=”0″ src=”https://www.creditcards.com/credit-card-news/images/infographic-plans-pay-taxes.jpg” /></a> </center>

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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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Credit Card Rate Report Updated: November 25th, 2020
Business
13.91%
Airline
15.50%
Cash Back
15.85%
Reward
15.75%
Student
16.12%

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