Tax Filing

• A person who receives income in the United States is generally required to pay some taxes on this income. Generally, the person will have to pay taxes to both the federal government and to local governments, usually including both state taxes and city or county taxes. If the person does not pay these taxes in the form of income withholding during the year, he will generally be allowed to pay with a credit card at the end of the year when he files.
  
  

Tax Payments

• The Internal Revenue Service, the federal agency responsible for assessing and collecting federal income taxes, allows individuals to pay for their taxes with a credit card. In addition, most states allow individuals to pay for their taxes this same way. However, not all cities and counties will accept payment by credit card. Some will require that the individual pay with a personal check, money order or electronic payment from a bank account.
  
  

Charging Taxes

• If a government tax collecting agency accepts payment by credit card, the person will be allowed to charge his taxes as long as he has available credit with a financial institution. This is because even if a person is charging his taxes to a line of credit, the tax collecting agency is still being paid. However, if the person has no available credit, he will not be able to charge his taxes.
  
  

Fees

• According to SmartMoney, although people can charge their federal income tax payments to their credit cards, anyone who does so will be charged a fee. This fee will either be 1.90 percent, 2.29 percent or 2.35 percent. On a $1,000 tax bill, this amounts to $23. The only way this purchase would make financial sense is if the cash back that the person received on the card were greater than 2.35 percent.