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Paying USA income, property or other taxes with CC. [2010-2012]

Paying USA income, property or other taxes with CC. [2010-2012]

Old Mar 1, 2011, 3:42 pm
  #61  
 
Join Date: Dec 2010
Location: Raleigh
Programs: DL silver, AA, Hilton gold, SPG
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Ok, so I have read through all of the postings on paying income taxes with a CC. It looks like the cheapest way is with a debit card but: 1) I don't have a mileage debit card yet and 2) since there are no big specials out right now to obtain a debit card and the posting of the miles is hit or miss then this is probably not the best option.

So on to the big crumbs idea. With a tax bill of 8K it looks like I would need 3 AMEX gift cards but then I run into the 2 payment limit with the IRS. Is there any way to increase from 3K to 4K using AMEX gift cards? I could buy one 3K and pay the rest on a credit card paying the fee, this would bring total fee down....but is it enough?!?

Thoughts on my situation are appreciated.
angela24c is offline  
Old Mar 1, 2011, 7:03 pm
  #62  
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Two payment limit?

A couple of years ago, I made at least 3 payments using SkyMiles Plat Amex because my tax bill was over twice the credit limit on the card.

So I paid in big chunks, paid it off online before the statement period was over, letting the credit limit go back up as the payment was registered and then kept paying until the bill was complete.
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Old Mar 4, 2011, 11:53 am
  #63  
 
Join Date: Dec 2009
Location: DCA
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Are Amex gift cards the only ones that can be purchased with a rewards card and then used to pay taxes with the $4 debit card fee? Are there any Visa/MC gift cards that would work for the $4 fee and not be subject to low limits?
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Old Mar 4, 2011, 12:00 pm
  #64  
 
Join Date: Jan 2000
Location: Northern California
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Amex Gift Cards

Amex gift cards are regular credit cards and can't be used for debit transactions (unless somebody has a workaround)? That would be a great deal if so.
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Old Apr 5, 2011, 7:44 pm
  #65  
 
Join Date: Dec 2007
Location: San Francisco, CA
Programs: AA Exec Plat, Hyatt LT Global Elitist, Bonvyoed LT Titanium, Hilton Gold, UA Silver
Posts: 481
Tax Payments?

I have a couple fairly large tax payments that I need to make this year (totaling around 26k)

I would like to put it on one of my cards to earn the points/miles (I do have the cash); but having a little trouble justifying the convenience fees (even though they are tax deductible)

Options I was considering:

-I was considering putting in on a regular Amex to get MR points; than transferring to skymiles since they are running a bonus + MQMs

-Capital One Venture Card; 2 pts per dollar (more hyatt gift certs!)

-BA Visa for the 2-for-1 certificate; but I earned one last year good till Oct 2012 so don't really need another oner.

-SPG Amex

Thoughts? Any bonus offers or specials out there that I don't know about?
roder is offline  
Old Apr 5, 2011, 7:45 pm
  #66  
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Originally Posted by roder
Thoughts?
Not worth it.
mahasamatman is offline  
Old Apr 5, 2011, 8:22 pm
  #67  
formerly known as RK7
 
Join Date: Aug 1999
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Originally Posted by mahasamatman
Not worth it.
Ditto here. Amex used to make paying taxes (with no fees)
a pleasure. There was no math required. Now it's different..
Red '74 TR6 is offline  
Old Apr 5, 2011, 8:49 pm
  #68  
 
Join Date: Jun 2010
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Buy AmEx gift cards via bigcrumbs.com to add 1.6% to your reward rate. AmEx gift cards have a max size of $3k and a reputed limit of $5k total purchases/2 weeks. Buy the "personalized" version of the gift card to avoid the requirement that only you can sign for the UPS delivery. You're usually limited to 2 credit card payment per federal income tax form, but you probably can spread this out over two or three forms: automatic extension, the actual tax return, and possibly one quarterly estimated tax payments.

Alternatively, there have been reports of a couple of Visa debit cards earning miles using just the flat ~$4 fee that the IRS payment processors offer for some debit cards. There was a report of an old SunTrust Delta Debit Visa card working for this (not the new SunTrust Delta Debit MasterCard ), and I once got points for doing a payment with the United Mileage Plus personal debit Visa (I also tried the personal Continental Debit MasterCard, and it didn't work, even though both cards were from Chase).

There may be similar opportunities for state income tax, depending on where you live.

Last edited by skynerd; Apr 5, 2011 at 11:07 pm Reason: typo
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Old Apr 5, 2011, 10:52 pm
  #69  
 
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The best option I could find was paying a 2.25% fee to pay my federal taxes via amex, so it's just not worth it IMO. If I was getting double points, I would definitely take it, but the only other way I would consider doing this would be if I got a 1.5% rate and had over a month until my Amex payment would be due to accrue some extra interest.
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Old Apr 6, 2011, 9:00 am
  #70  
 
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Originally Posted by bschaff1
The best option I could find was paying a 2.25% fee to pay my federal taxes via amex, so it's just not worth it IMO. If I was getting double points, I would definitely take it, but the only other way I would consider doing this would be if I got a 1.5% rate and had over a month until my Amex payment would be due to accrue some extra interest.
If this was still the days of 5-6% APY savings rates, it would at least help out on the fees a bit - ah well...
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Old Apr 6, 2011, 9:02 am
  #71  
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I used my Platinum SkyMiles Amex a couple of years ago and it got me the 10K MQM boost and a big chunk of the way towards a second 10K MQM boost.

The commission was about $1000.

For the price of a coach ticket to Europe, I got about 40k miles including 10K MQM and most of the way towards a second 10K MQM.

An actual coach ticket to Europe from the West Coast would have yielded about 25K miles for a GM and 12-13k MQM.
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Old Apr 6, 2011, 9:07 am
  #72  
 
Join Date: Feb 2003
Location: Reston, Virginia, USA
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There is a thread on PayUSATax.com at: http://www.flyertalk.com/forum/miles...satax-com.html
that might be worthwhile.

I had intended to try it this year, but did a better job on my taxes instead. Didn't owe enough to make it worth the work.
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Old Apr 6, 2011, 9:22 am
  #73  
BSL
 
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Chase UA VISA Debit Card

If they are still issuing them, get the Chase UA VISA Debit card. Visa rules cap the fee at ~$4 per transaction and Chase limits the amounts that can be paid to $25K per day. (so $4 per 25K in points).

Time is running out since Chase stops giving miles in July. I can confirm that it works on www.officialpayments.com.

BSL
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Old Apr 6, 2011, 9:46 am
  #74  
 
Join Date: Dec 2007
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Originally Posted by BSL
If they are still issuing them, get the Chase UA VISA Debit card. Visa rules cap the fee at ~$4 per transaction and Chase limits the amounts that can be paid to $25K per day. (so $4 per 25K in points).

Time is running out since Chase stops giving miles in July. I can confirm that it works on www.officialpayments.com.

BSL
I thought the fees are only capped for debit cards when using it with a PIN; and that PIN transactions do not earn miles. Is there something special about this card? I do have a Chase Checking so could get this card pretty easily.
roder is offline  
Old Apr 6, 2011, 1:10 pm
  #75  
 
Join Date: Feb 2009
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Originally Posted by roder
I thought the fees are only capped for debit cards when using it with a PIN; and that PIN transactions do not earn miles. Is there something special about this card? I do have a Chase Checking so could get this card pretty easily.
They stopped offering this card in Dec I belive.
davef139 is offline  

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