Consumers unaware of IRS expenses for tax payments
Mar 03, 2011 Brian Bradley
A new survey from Freescore.com reveals that the majority of Americans are unaware that they are taking on more debt by paying their taxes with credit cards. According to the report released on Monday, 68 percent of Americans did not know they face a surcharge of 1.9 percent to 3.9 percent if they pay their taxes with plastic. Additionally, 66 percent of Americans who will use their credit cards to pay their taxes have already amassed a balance, leaving them unaware that they are paying more taxes by using their credit cards. "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. The point is, paying with a credit card in many instances should be a last - not a first - resort," said Carrie Coghill, director of consumer education for FreeScore.com. Among consumers making $35,000 per year or less, 69 percent were unaware of the tax surcharge on credit cards. By comparison, 60 percent of those making $75,000 or more per year were unaware.