USA Tax Payments with Amex [Consolidated]
Mar 6, 2022, 9:08 pm
#106
Join Date: May 2000
Location: Houston, TX, USA
Programs: UA 1K, AA Lifetime Platinum, DL Platinum, Honors Diamond, Bonvoy Titanium, Hertz Platinum
Posts: 7,969
You didn't ask me, but here's my theory: IRS doesn't want to have to account for a large number of transactions. In the absence of a limit, there would be someone out there that would try to pay a $10,000 tax liability with a $300-a-day limit debit card over 34 consecutive days.
Mar 7, 2022, 9:19 am
#107
FlyerTalk Evangelist
Join Date: Nov 2014
Location: MSP
Programs: DL PM, UA Gold, WN, Global Entry; +others wherever miles/points are found
Posts: 14,404
Not to mention the stupid CU accounts with activity requirements, where people could be making dozens of $0.10 estimated payments 
Mar 7, 2022, 9:53 am
#108
Join Date: Mar 2005
Programs: Continental Onepass, Hilton, Marriott, USAir and now UA
Posts: 6,431
Can't you make a large "pre-deposit" to your Amex account before making the tax payment, so you have a big debit balance, and then you don't even actually have to use any of your credit line.
That said, does someone with that large of a tax bill really have that difficult of a time meeting the $25k annual spend naturally to make it worth paying the processing fee on this type of transaction?
That said, does someone with that large of a tax bill really have that difficult of a time meeting the $25k annual spend naturally to make it worth paying the processing fee on this type of transaction?
To your second point, if one is itemizing deductions, the fee is tax deductible, so one does get back some of the cost of using the service.
Mar 7, 2022, 11:32 am
#109
FlyerTalk Evangelist
Join Date: Nov 2014
Location: MSP
Programs: DL PM, UA Gold, WN, Global Entry; +others wherever miles/points are found
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Mar 7, 2022, 7:16 pm
#110
Join Date: Mar 2005
Programs: Continental Onepass, Hilton, Marriott, USAir and now UA
Posts: 6,431
Mar 8, 2022, 4:42 pm
#111
FlyerTalk Evangelist
Join Date: Nov 2014
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I called Amex and got a very cheerful but supremely unhelpful CSR who said prefunding "might" work but recommended against it, and otherwise suggested putting in for a CLI. I guess I have nothing to lose trying to 3x it, but I'm not the most optimistic.
Otherwise I might just go most of the way with 2x 4868 payments plus some regular payments... should be enough for me.
Otherwise I might just go most of the way with 2x 4868 payments plus some regular payments... should be enough for me.
Mar 9, 2022, 6:46 am
#112
Join Date: Mar 2006
Location: Hotlanta.
Programs: I've gone underground!
Posts: 4,601
My net fee is 1.87% less roughly 1% value for the miles = 0.87%. Say i charge $50k in taxes, this is equal to $435 in net cost for essentially unlimited upgrades to comfort plus at the time of booking that I currently pay for on almost every flight (I’m at Atl captive and upgrade lists are INSANE).
Mar 13, 2022, 2:05 pm
#113
Join Date: Mar 2009
Location: PHX
Programs: HHonors Lifetime Diamond, UA Million Miler Gold, Marriott Platinum
Posts: 1,142
In my case, I want the DL MQM bonus to move up to Platinum status.
My net fee is 1.87% less roughly 1% value for the miles = 0.87%. Say i charge $50k in taxes, this is equal to $435 in net cost for essentially unlimited upgrades to comfort plus at the time of booking that I currently pay for on almost every flight (I’m at Atl captive and upgrade lists are INSANE).
My net fee is 1.87% less roughly 1% value for the miles = 0.87%. Say i charge $50k in taxes, this is equal to $435 in net cost for essentially unlimited upgrades to comfort plus at the time of booking that I currently pay for on almost every flight (I’m at Atl captive and upgrade lists are INSANE).
Mar 13, 2022, 2:40 pm
#114
FlyerTalk Evangelist
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Location: MSP
Programs: DL PM, UA Gold, WN, Global Entry; +others wherever miles/points are found
Posts: 14,404
IMO this is flawed logic. "Normal charges" bear the opportunity cost of not tendering a better-earning card, which is a minimum of 2% and often quite a bit higher if categorizing spend opportunities arise. As long as the card fee is less than your straight-cash, no-category card the question isn't really "should I pay by card" but rather which card you should tender.
Mar 13, 2022, 11:47 pm
#115
Join Date: Mar 2009
Location: PHX
Programs: HHonors Lifetime Diamond, UA Million Miler Gold, Marriott Platinum
Posts: 1,142
IMO this is flawed logic. "Normal charges" bear the opportunity cost of not tendering a better-earning card, which is a minimum of 2% and often quite a bit higher if categorizing spend opportunities arise. As long as the card fee is less than your straight-cash, no-category card the question isn't really "should I pay by card" but rather which card you should tender.
Mar 14, 2022, 4:34 pm
#116
Join Date: Mar 2006
Location: Hotlanta.
Programs: I've gone underground!
Posts: 4,601
Again, makes total sense to me since I will get unlimited upgrades to Comfort Plus, a cabin I pay for now out of pocket, for an extra 5 months. I will pay $1000 for $500 worth of miles + $500 worth of Comfort Plus over the next 5 months... which I would normally have paid $500+ for.
This math is specific for me... and doesn't mean it has to make sense for your situation.
Apr 5, 2022, 8:39 am
#117
FlyerTalk Evangelist
Join Date: Nov 2014
Location: MSP
Programs: DL PM, UA Gold, WN, Global Entry; +others wherever miles/points are found
Posts: 14,404
To close the loop with a half-useful data point: to my surprise I was able to successfully do a 3x CLI (new limit is over $50k) which I wasn't expecting Amex to go for, but that should provide a decent workaround even if not directly addressing the original point.
Apr 17, 2022, 9:14 pm
#118
Join Date: Oct 2021
Location: TX
Programs: Alaska, AA, Marriott
Posts: 943
Did the math, paid the taxes on Amex Plat
Finally had a tax bill worth doing the math on this year. Looked at the 1.85% fee to pay taxes on the Amex Business Platinum, and the 1.85% fee to do it as well as getting 1.5x points (>$5000) and 40% transfer bonus to Avios (which I have a use for). All in all, paying via Amex vs cash got me the Avios at less than a cent per point (.88 cpp) in exchange for paying the cc fee.
I'll remember this for the quarterlies this year!
I'll remember this for the quarterlies this year!
Last edited by thatmikereed; Apr 17, 2022 at 9:28 pm Reason: I can't math tonight.