Pick your poison - paying your taxes with credit or debit cards

If a taxpayer is paying tax liabilities with a credit card, he probably has not strategically planned for reducing his taxes. Sometimes, however, this method of payment may be the only way to pay the taxes. The companies that process the payment charge the taxpayer a convenience fee of 2.49% of the tax payment for credit card payments. That's a $25 fee on a $1,000 tax bill.

The same service providers process debit card payments of tax liabilities, but for those they charge only a flat fee of $3.95, regardless of the amount of the tax payment.

The time is now to strategically plan to stop wasting money on taxes you are not required to pay. Most changes need to be in place by December 31 to reduce your current year taxes, and sooner implementation results in greater savings, so act now!