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Tax payment methods important to consider

12:51 PM, Apr 15, 2011   |    comments
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St. Louis (KSDK) -- With the tax filing deadline fast approaching, the pressure is on for the estimated 8-million Americans who owe the IRS.

There are a lot of payment options available, but it's important to take action before the April 18th deadline.  Selecting the wrong payment method could cost you thousands of dollars,  and some options can have a lasting impact on your credit score.

Using your credit card to pay the IRS may seem like an easy fix, but some of the related costs may be an unpleasant surprise.
The credit card transaction fee for paying the IRS is between 2-3% of the debt. This is in addition to the interest that the credit card company charges.

If a cash advance on a credit card is used to pay the IRS, the interest rate is likely to be even higher, as high as 30%, compounding the problem.

Thomas Nitzche from Clear Point Credit Counseling joined NewsChannel 5's Art Holliday to discuss what you should consider.

KSDK

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