Do You Earn Rewards on Tax Prep and Accountants?
How tax services code
Tax software and preparation services ring up under a tax-preparation or accounting category code, outside the usual bonus buckets, so most cards earn their base rate. A business card may reward it as a professional or business service if the return is for a business, which keeps it clean for your records too.
Watch for surcharges and IRS fees
Some accountants and preparers pass along a card processing surcharge, often around 2 to 3 percent, which can exceed what a card earns, so weigh the fee first. Separately, paying your actual tax bill to the IRS by card carries a processor fee of roughly 2 percent, worthwhile mainly to hit a welcome bonus, not for everyday rewards.
The best card for tax prep
Since tax prep has no bonus category, a strong flat-rate card earns the most, or a business card if the work is for a business. Run your spending through the rewards calculator to find the best base-return card, and compare options in best cash back cards.
Frequently asked questions
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