Originally Posted by
2travelfar
Does paying the 2.49% 'convenience fee' for federal taxes thru the credit card really make earning the miles/points worth it (assuming there are no 2x offers from credit card)? Again, you all are far more experienced calculating miles values than I am...say your tax payment is $1,000 (keeping it simple) - you pay $1024.90 for the 1,000 miles/points. And, if I understand it correctly, you cannot 'deduct' that 2.49% amount from next year's taxes as 'tax prep' fees, or 'interest paid'...it's just a fee. So is this really a good method of getting miles/points...or is it just a way to get miles/points that you would not otherwise get and are willing to pay a 'premium' to obtain. (All on the basis that there are no 'bonus miles/points offers, of course.) Thanks for your insights.
Well...
Just to keep it simple, lets say your tax bill was $100,000 and you charged it to a SPG Amex. Because you're way over the former 5K limit let's just say that basically you do not get your 2X points.
So 100K SPG= 125K Air Miles = 1 Award F ticket = $2500
So tell me if you think it's worth it to pay $2500 K for transoceanic F. And if it were double points...?
Of course it goes back to the old I'd never pay that much for a flight argument if it were an out of pocket expense but it's F right...
Scho