Personal Finance; Taxes? Stick with cash over credit

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By Claire Tsosie

A big tax bill is like hay fever . You don’t want it, you try to avoid it — and then April rolls around and it hits you hard. Now you have to figure out how to take care of it.

Taxes have to be paid, and putting them on your credit card might seem a good option. Maybe you need more time to come up with the money, or you’re imagining the rewards you could rack up by putting a big expense on your card. But paying the IRS with plastic probably isn’t a good idea, and here’s why.

PROCESSING FEES

When you buy something with a credit card, the merchant pays processing fees to the financial institutions that handle the transaction. But when you put a tax payment on a credit card, the IRS doesn’t pay those processing fees. You do.

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