JCWCVG

With all the changes next year, looking for guidance from the community. As a 2MM I will now have complimentary Platinum. After being Diamond for about 7 years, I dropped in 2023 since I could not hit MQD due to lack of business travel post Covid. Trying to see if I can manufacture Diamond for 2 more years with the following approach:
Currently at ~$125K Reserve AMEX spend against Diamond Waiver
250K in MQMs
Is it possible to overpay estimated federal taxes in December $125K to hit the MQM threshold for Diamond. Yes I would pay 1.87% fee.
File taxes in February, get quick refund....my personal quick calculation of fed income tax due will be $25K, so I will get $100K refund. That would come directly back to me from IRS.

Assuming the approach above works, I will deduct 125K MQMs to make Diamond in 2023 for 2024. Then use 100K MQM in 2024 to maintain Diamond for 2025. After that, either my travel for business picks up or I stay complimentary Platinum as long as Delta still provides the benefit.

Will this work and is my logic for 2025 extenstion valid?

findark

Yes.

I would stress the importance of having cash to fund that $125k outlay, as unduly rushing tax filing and expecting the IRS to be timely is not a guarantee. Your costs would be the 2%+ opportunity cost of that CC spend, less the miles earned from it, plus the cost of capital to fund the payment.

sydneyracquelle

I would just keep the 125k MQMs and take DM for one year and try to make DM the second year organically. Or convert the 125k MQMs to 12,500 MQDs plus your 2,500 MQDs from Amex so you only need to hit 13,000 MQDs to get DM until 1/31/26.

JCWCVG

Thinking more about this. Does the payment of taxes count as a a cash advance from Amex?

sydneyracquelle

No. It is treated as a purchase from a merchant as you are paying the additional 1.85% fee.

metalblaze

Question: if one is already DM for 2024 + earns DM for 2025 organically (i.e., via MQD spend only) + has 100k MQM in their account by 12/31/2024, can they ask for "extended" DM status for 2026 (instead of 2025)?

sydneyracquelle

No. But if you have 200k in your account (after the 75k for PM DL will take on 1/1/24) you can extend for both 2025 and 2026.

busdriver11

Here is a much cheaper way to get DM for both 2024 and 2025.

Earn DM in early 2024, and then you have the status for both 2024 and 2025. You get 2.5K MQD credit for your Reserve card, and since you only earned PM status for 2024, they’ll only deduct 75MQMs from your balance, leaving you with 175K rollover MQMs, that you can convert to 17.5K MQDs.

So that totals 20K MQMs, now you need 8K to make DM. Put your regular spend on your Reserve card, add any flight spend to your MQD total, and worse case you have none of that and put 80K of your taxes early next year onto your Reserve card.

You delay the tax payment till next year, so it goes onto next year’s MQD total, and you have to put far less on your credit card. Only potential negative I see is that I’m unsure if you would get DM Choice benefits for both 2024 and 2025 if you did it this way? But you would definitely save money. So I guess it would be worth figuring out whether those Choice benefits are worth the extra money, that is, if you wouldn’t get them for the 2024 year.

busdriver11

Now it has got me wondering…..if one earns DM in 2024, I know that will last through Feb 1, 2026. However, will they get DM Choice benefits for 2024 and 2025? I don’t see why not. In fact, under their new rules, I could see it might be very beneficial for some to not qualify this year, but do it early next year.

sydneyracquelle

IRS hack only works at the end of a calendar year. If you do it any other time you have to finance the entire amount for many months until you can claim a tax refund.

onebobobo

You only earn one set of choice benefits. When you are earning status in early 2024, you are earning 2025 status but Delta makes it official for you immediately upon crossing the MQD threshold.

drminn

Not quite correct. You can pay your estimated taxes for 2023 until Jan 15 2024.

SuperG1955

The 'tax hack' ends this year and the tax hack gets MQM not MQD. Starting Jan 1, 2024 you only earn MQM and MQD via BIS. No more AMEX MQM bump for spend and no more MQD waiver. You also need the cash to pay of the credit card and carry the 'Loan' to the IRS for 4 months.

You'll still get RDM for AMEX spend but that doesn't do anything for Status - only MQD matters starting on 1/1/2024.

SuperG1955

Yes you can, but the MQM for Reserve spend ends on 12/31/2023.

busdriver11

That is what we are intending to do next year. Both me and my husband are going to have DM status earned and extended for a couple of years), so we figured, why not put the taxes on our son’s Reserve card and give him a year or more of DM? Now if only we could talk him into paying that tax bill, too.😁