Paying on your plastic card

Paying taxes, not very enjoyable, some help could soon be at hand.

Several credit card issuers hope to lessen the pain by offering double reward points or airline miles for cardholders who pay their income tax with plastic credit cards.

If you hold an American Express Delta SkyMiles, Starwood Preferred Guest card, a Visa United Mileage Plus Signature card issued through Chase or United Airlines, you can earn 2 reward points, or miles for every dollar you pay the Internal Revenue Service on your 2005 tax return.

Credit/debit card payments to the IRS have grown steadily since plastic cards were first being accepted by the IRS in 1999 and now outnumber electronic funds transfers.

The number is expected to grow considerably in 2006 when businesses will be allowed to pay by plastic card as well. The advent of electronic filing and the proliferation of tax software programs, many of which offer their own rebate incentives for paying online, are driving the trend. There's also the simple convenience of telling the taxman to charge it, and knowing its paid and not lost in the post or within the system.