Owe Uncle Sam on taxes? Paying with your credit card might help you rack up perks — if you do it right.
"Paying your taxes with a credit card is not free," said certified financial planner David Mendels, director of planning at Creative Financial Concepts in New York. Consumers who have just applied for a card may be in line for bonuses in the form of points, miles or cash back. Some of these cards won't charge interest for up to 21 months on balance transfers or 18 months on new purchases.Here's the catch: In order to maximize your benefit from these cards, you'll need to pay off the balance before the allotted time expires, he said.If you're short on cash and you want to avoid going into debt, consider working with the IRS to pay in installments.
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