For car purchases and home remodeling expenses, the answer is "it depends." Some merchants do not accept credit card payments because the merchant fee that they are required to pay (a percentage of the amount that is charged) to the credit card issuer would greatly decrease their profit margin. This is especially true for car dealers and small home remodeling contractors who prefer to accept cash payments or checks.
With regard to federal income taxes, it is possible to pay your tax bill with a credit card, but you will have to pay a service fee to do so. The service fee covers the credit card issuer's fee and profit to companies that the IRS contracts to provide this service. If paying for large ticket items to earn cash-back rewards, it is also important to check on your card's annual reward limits. Some card issuers cap the total amount that you can earn each year.
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