Originally Posted by DCBob
Even if you have a refund for 2005, you can make an estimated tax payment for 2006 (whether you need to or not). This can really pay off:
Example: Charge $5,000 and pay a fee of $124.50. Receive 10,000 SPG points, which can buy 1 night at the Sheraton Park Lane in London. Cheapest rate at the Park Lane is around 149 pounds = $260.
Net gain = $135.50, or more than a 50% discount on the room.
Does the processing fee fold in, so that one would wind up with a total of 10,124 SPG points (or 10,249?) for paying $5K in taxes with the card? Are such payments treated like a purchase of goods rather than something like a cash advance, starting an immediate accrual of additional interest charges? (I am interested in doing this, but want to be sure there are no kickers, only the upfront fee for charging the tax payment to the card.) One gets the usual one-month or so float on the money?