Skymiles from AMEX for paying IRS Taxes
Feb 6, 2011, 5:54 pm
#1
Original Poster
Join Date: Aug 2002
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Programs: DL PM / 1MM "Enhancee" (Frequent Flyer) Since 1990
Posts: 1,156
Skymiles from AMEX for paying IRS Taxes
Behold the true skymile junkies who won't do anything unless you get miles for it.. you can now (and I guess this has been doable for several years) charge any taxes owed to the IRS on your credit card - to include AMEX. At officialpayments.com, who does Turbotax's refunds, they charge 2.35% processing fee for the taxes owed..
So if you were to owe the IRS $9000, you'd pay an additional $211 to be able to charge this to AMEX (and of course then pay it off the same month with cash to avoid added interest).
Just wondered on what the readership though of this subject. Seems like a nice way to get 9000 SMs and 40% of the way to the 10K MQM/$25K AMEX Spend amount - albeit with a fee..
So if you were to owe the IRS $9000, you'd pay an additional $211 to be able to charge this to AMEX (and of course then pay it off the same month with cash to avoid added interest).
Just wondered on what the readership though of this subject. Seems like a nice way to get 9000 SMs and 40% of the way to the 10K MQM/$25K AMEX Spend amount - albeit with a fee..
Feb 6, 2011, 6:08 pm
#2
Join Date: Jun 2010
Programs: Whatever's Cheapest, Accruing Miles, Redeeming for Premium Cabins, Not Chasing Status Unnecessarily
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IMO it's too much of a fee to make it worthwhile...
however, its a bit better if you are trying to hit $4k for the 75K citi promo on AA. ($94 for 75000 miles)
not investment or tax advice
however, its a bit better if you are trying to hit $4k for the 75K citi promo on AA. ($94 for 75000 miles)
not investment or tax advice
Feb 6, 2011, 8:50 pm
#3
Join Date: Oct 2009
Programs: Delta Skymiles Platinum
Posts: 70
I use my Delta Amex card to pay quarterly estimated income taxes. The fee is worth it for me not so much for the miles you get, but for meeting the spending thresholds on my Amex card, which equals MQM's!
Kirby
Kirby
Feb 6, 2011, 9:00 pm
#4
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Feb 6, 2011, 9:20 pm
#5
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Feb 7, 2011, 3:11 am
#6
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Feb 7, 2011, 7:29 am
#7
Join Date: Oct 2004
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There are many factors to consider, including how you value your SkyMiles and how much you can charge to your card. I regularly use 25K SkyMiles for last-minute changeable first-class domestic awards, so my SkyMiles save me a lot. Someone who flies primarily internationally and/or doesn't hold Medallion status with Delta might value SkyMiles much less.
For whatever your assigned value, you want to minimize your acquisition cost. If you can spend $60,000 on the nose (wholly or partially from taxes), consider getting the Amex Delta Reserve card. While you'll pay a $500 fee (plus 2.x% for IRS charges), you'll get 90,000 RDMs, 30,000 MQMs (good enough for Silver Medallion status for two years, if you do it early in the year, like now), a BOGO certificate, SkyClub lounge access, and a few other perks. If you time your charges to coincide with a stackable double-miles offer like the one that ran last far, you could get as many as 150,000 RDMs for that $60,000 in charges (2.5 miles per dollar spent). Can't do that with any other card I know of. If you can spend $120,000, you can get the other "flavor" of the Reserve card (there are two: consumer and business) and do it twice.
For whatever your assigned value, you want to minimize your acquisition cost. If you can spend $60,000 on the nose (wholly or partially from taxes), consider getting the Amex Delta Reserve card. While you'll pay a $500 fee (plus 2.x% for IRS charges), you'll get 90,000 RDMs, 30,000 MQMs (good enough for Silver Medallion status for two years, if you do it early in the year, like now), a BOGO certificate, SkyClub lounge access, and a few other perks. If you time your charges to coincide with a stackable double-miles offer like the one that ran last far, you could get as many as 150,000 RDMs for that $60,000 in charges (2.5 miles per dollar spent). Can't do that with any other card I know of. If you can spend $120,000, you can get the other "flavor" of the Reserve card (there are two: consumer and business) and do it twice.
Feb 7, 2011, 8:00 am
#8
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Feb 7, 2011, 9:12 am
#9
Join Date: Feb 2003
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I've done it for years. The threshold bonuses get me 30k MQMs on my Reserve card and Mr. Marylou 20k on his DL plat card. (We pay a lot of taxes)
When they first started accepting CC payments for taxes DL was offering double miles (not MQMs) for IRS payments so the "convenience fee" was more palatable. I think those promos are now targeted and I have not been targeted in a while.
When they first started accepting CC payments for taxes DL was offering double miles (not MQMs) for IRS payments so the "convenience fee" was more palatable. I think those promos are now targeted and I have not been targeted in a while.
Feb 7, 2011, 9:42 am
#10
Join Date: Dec 2010
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I just can't get over the annual fee for a Reserve card. That, and I think a 60k spend would be mighty difficult for me. So, I got the DL Platinum card... even 50k might be a stretch....
Feb 7, 2011, 12:33 pm
#11
Join Date: Oct 2004
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It's definitely not for everyone, especially if reaching $60K is a stretch. Just don't forget to factor in the lounge access (which you don't get with the Platinum card), the fact that the BOGO cert is valid for first class too., and the extra 10K MQMs and RDMs earned by hitting the top threshold. If those items aren't worth another $200+ to you, then the Platinum certainly might be the way to go.
Feb 7, 2011, 1:26 pm
#12
Join Date: Dec 2010
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It's definitely not for everyone, especially if reaching $60K is a stretch. Just don't forget to factor in the lounge access (which you don't get with the Platinum card), the fact that the BOGO cert is valid for first class too., and the extra 10K MQMs and RDMs earned by hitting the top threshold. If those items aren't worth another $200+ to you, then the Platinum certainly might be the way to go.
- I am a cheap ......., and the company won't pay for it.
- I don't think I'd hit the top threshold... may this year prove me wrong?
- My layovers are never really that long in ATL or DTW for lounge access, usually an hour or less.
In fact, the only thing I think I might get out of it is the BOGO cert. I'm single, so who am I gonna use that on?
Feb 7, 2011, 4:45 pm
#13
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Feb 8, 2011, 1:30 pm
#15
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