Published: April 05, 2011
68% of Americans Don't Know the IRS Charges a Processing Fee for Paying Taxes With a Credit Card
NORWALK, Conn. - (BUSINESS WIRE) - More than two-thirds of Americans -- 68 percent -- are unaware that the
Internal Revenue Service (IRS) charges a processing fee of 1.90
percent to 3.93 percent for people who pay their taxes with a credit
card. This revelation comes from the FreeScore.com Consumer Credit
Awareness Survey* of 1,000 Americans, age 18 and older, conducted during
the first quarter of 2011.
Further, 66% of Americans who are planning to pay their taxes with a
credit card already have a balance on the card. Adding a processing fee
to an existing credit card balance can easily increase the total amount
paid for taxes.
According to Carrie Coghill, director of consumer education for
FreeScore.com, "If you don't have the cash to pay your taxes and are
thinking about using a credit card, take some time to consider all of
your options first. For example, I recommend comparing the interest rate
that the IRS will charge you for late payments versus the interest rate
on your credit card. Or see if you have a relative who'd be willing to
loan you the money interest-free if you paid it back within a reasonable
amount of time. The point is, paying with a credit card in many
instances should be a last -- not a first -- resort."
Coghill continued, "Filing on time is key - whether you pay the full
amount of taxes you owe at that time or not, to avoid larger late
payment penalties. Of course, if you have the cash to pay off your
credit card bill in full and on time the month after paying your taxes
with a credit card - you may gain some extra credit card points and
rewards that could end up saving you some money in the long run. It's
all about what makes the most sense for you - the main point is - don't
avoid managing your taxes; look into what the best option is for you and
your wallet."
Respondents were asked: "Are you aware of the processing fee for tax
payments made with a credit card?" The results, segmented by age,
gender, education, and income, are as follows:
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Age
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Percent Unaware
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18-34
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71%
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35-54
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68%
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55+
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63%
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Gender
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Percent Unaware
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Male
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60%
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Female
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74%
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Education
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Percent Unaware
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High school or less
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74%
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Some college
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71%
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College and higher
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61%
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Household Income
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Percent Unaware
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$35K
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69%
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$35K-$49.9K
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73%
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$50K-$74.9K
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66%
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$75K+
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60%
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Survey results also revealed that 49% of Americans are unaware that the
deadline for filing their tax returns in 2011 has been extended three
days, from April 15 to April 18.
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About FreeScore.com
FreeScore.com is the leading online consumer credit service, providing
members with affordable, unlimited access to all three credit
scores and their complete credit profile. For more information, go
to FreeScore.com.
For FreeScore.com
Caitlin Senior, 267-980-8855
caitlin@mediafirstpr.com
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