Tax Payment Bonus Thread
Feb 17, 2006 | 9:16 am
#16
Suspended
Join Date: Dec 2005
Location: HY
Programs: AA-EXP (3.3MM), AAirpass, SQ-PPS Solitaire, DL-PM (.777MM), SPG-Plat, HH-D
Posts: 2,307
Originally Posted by itsme
How do you figure "an extra 3.5k"? I thought the fees worked out to just a bit more than 2.5% (2.6?), which wouldn't be very appealing were it not for the double miles. And I believe the double miles deal is out there for payment of any taxes, personal or business, estimated or annual.
I guess y'all r right... I will get some good miles at a decent cost. However I use Starwood Amex and the double points is up to 5k... Don't have UA and usually use NW/DL/AA... does it make sense to load the expense all on starwood amex? If you had to charge around 150k of taxes to your credit card how would you do it??
I HATE MILES AND POINTS! they drive you to do things you otherwise wont!
Feb 17, 2006 | 10:41 am
#17
A FlyerTalk Posting Legend
Join Date: Feb 2001
Location: Berkeley, CA USA
Programs: Piggly Wiggly "Shop the Pig!" Preferred Shopper
Posts: 60,663
IMPORTANT: (I don't put that on too many of my posts): Check the details of the double miles offer as well as the mileage limits (if any) on your card. You might be in for a nasty surprise if you've charged more than either of those limits.
Feb 17, 2006 | 11:11 am
#18
Join Date: Sep 2001
Location: Washington, DC
Programs: UA Plat MM, AA Gold, Hyatt Explorist, Hilton Gold, IHG Plat, Marriott Titanium Elite
Posts: 5,015
The reason I used $5,000 in the SPG example is because that is the MAXIMUM amount for which you can get double points. So don't do it above 5K!!
Feb 17, 2006 | 12:56 pm
#19
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 53,010
Originally Posted by psyflyer
If you had to charge around 150k of taxes to your credit card how would you do it??
I HATE MILES AND POINTS! they drive you to do things you otherwise wont!
I HATE MILES AND POINTS! they drive you to do things you otherwise wont!
Honestly, I'd run $5k on my SPG Amex and cut a check for the other $145k unless your situation absolutely requires those miles ASAP for a "perfect" redemption opportunity.
Feb 17, 2006 | 1:19 pm
#20
A FlyerTalk Posting Legend
Join Date: Feb 2001
Location: Berkeley, CA USA
Programs: Piggly Wiggly "Shop the Pig!" Preferred Shopper
Posts: 60,663
Originally Posted by pinniped
...Honestly, I'd run $5k on my SPG Amex and cut a check for the other $145k unless your situation absolutely requires those miles ASAP for a "perfect" redemption opportunity.
Feb 17, 2006 | 5:01 pm
#21
In memoriam
Join Date: Jan 2006
Posts: 4,020
Citibank AAdvantage reduced fee tax payments
Just saw an offer from Citibank Aadvantage MasterCard offering a reduced "convenience" fee of 1.99% on FEDERAL tax payments (reduced from the "standard" (wonder who set the "standard") fee of 2.49%. Valid to April 17, 2006 for payments made through www.officialpayments.com/caoffer.jsp. User must be primary cardholder or authorized user (darn it, I wanted to pay my taxes with someone else's card). Offer doesn't say you have to have received the offer, i.e., apparently not targeted.
Personally, I wonder about the value of paying 2% extra in taxes just to get some miles. I guess a month or so of float is worth something, maybe, to be generous, 0.3%.
I try to maintain a rule to pay nothing extra to get miles.
Personally, I wonder about the value of paying 2% extra in taxes just to get some miles. I guess a month or so of float is worth something, maybe, to be generous, 0.3%.
I try to maintain a rule to pay nothing extra to get miles.
Feb 17, 2006 | 8:55 pm
#23
Join Date: Jun 2004
Programs: united airlines
Posts: 4,967
Originally Posted by biggestbopper
Just saw an offer from Citibank Aadvantage MasterCard offering a reduced "convenience" fee of 1.99% on FEDERAL tax payments (reduced from the "standard" (wonder who set the "standard") fee of 2.49%. Valid to April 17, 2006 for payments made through www.officialpayments.com/caoffer.jsp. User must be primary cardholder or authorized user (darn it, I wanted to pay my taxes with someone else's card). Offer doesn't say you have to have received the offer, i.e., apparently not targeted.
Personally, I wonder about the value of paying 2% extra in taxes just to get some miles. I guess a month or so of float is worth something, maybe, to be generous, 0.3%.
I try to maintain a rule to pay nothing extra to get miles.
Personally, I wonder about the value of paying 2% extra in taxes just to get some miles. I guess a month or so of float is worth something, maybe, to be generous, 0.3%.
I try to maintain a rule to pay nothing extra to get miles.
Am I right that for the double miles offer on tax payments there is no limit amounts of $s spent and miles earned with UA Platinum Visa, but $5K cap (and 10K points) with SPG AmEx?
Feb 17, 2006 | 8:58 pm
#24
Join Date: Jun 2004
Programs: united airlines
Posts: 4,967
how many miles per $1 in fees
Originally Posted by the_traveler
The payments are treated as "purchases", not "cash advances", so you still have the float!
Feb 17, 2006 | 9:25 pm
#25
Join Date: Jan 2006
Posts: 22
Okay, how about this:
1. Pay $5,000 tax due using Starwood Amex and pay $124.50 in fees.
2. Pocket 10,000 Starpoints.
3. Do a balance transfer to another credit card with 0% interest for 12 months, no transfer fee.
4. Put $5,000 in an HSBC savings account (4.80% APY) or get a 12 month CD. Total return after 12 months = $240
5. Net: $240 (interest earned) - $124.50 (fee) = $115.50
6. Total: $115.50 + $125 (assuming 10,000 Starpoints worth $125) = $240.50
2. Pocket 10,000 Starpoints.
3. Do a balance transfer to another credit card with 0% interest for 12 months, no transfer fee.
4. Put $5,000 in an HSBC savings account (4.80% APY) or get a 12 month CD. Total return after 12 months = $240
5. Net: $240 (interest earned) - $124.50 (fee) = $115.50
6. Total: $115.50 + $125 (assuming 10,000 Starpoints worth $125) = $240.50
Feb 17, 2006 | 10:10 pm
#26
Join Date: Jun 2004
Programs: united airlines
Posts: 4,967
Originally Posted by AK01
1. Pay $5,000 tax due using Starwood Amex and pay $124.50 in fees.
2. Pocket 10,000 Starpoints.
3. Do a balance transfer to another credit card with 0% interest for 12 months, no transfer fee.
4. Put $5,000 in an HSBC savings account (4.80% APY) or get a 12 month CD. Total return after 12 months = $240
5. Net: $240 (interest earned) - $124.50 (fee) = $115.50
6. Total: $115.50 + $125 (assuming 10,000 Starpoints worth $125) = $240.50
2. Pocket 10,000 Starpoints.
3. Do a balance transfer to another credit card with 0% interest for 12 months, no transfer fee.
4. Put $5,000 in an HSBC savings account (4.80% APY) or get a 12 month CD. Total return after 12 months = $240
5. Net: $240 (interest earned) - $124.50 (fee) = $115.50
6. Total: $115.50 + $125 (assuming 10,000 Starpoints worth $125) = $240.50
Feb 17, 2006 | 10:20 pm
#27
Join Date: Jan 2006
Posts: 22
Re:
Originally Posted by itsme
3. Do a balance transfer to another credit card with 0% interest for 12 months, no transfer fee. Have I been missing out on a good thing, that is free money? I have always ignored come-ons to transfer balances from one card to another because I try never to carry balances and because I have always assumed it would not be a good deal. Don't they treat transfers something like cash advances, imposing an upfront 2% or 3% fee? There are cards that would invite you to transfer $5K in debt over to them and let you have the use of that money for up to 12 months with no interest or other charges for the privilege? Which cards are that generous/stupid?
I don't carry balances either so haven't actually done it. But what if you apply for the above card, do the no-fee balance transfer from Starwood Amex and not use the card for 12 months. That is the key, not use the card. Because if you use the card, the payment you make will apply to the balance transfer amount, and your purchases will continue to accrue interest until you pay the whole thing off. That is how they get you.
This is discussed in the Credit Cards - Important Starting Info section of the following website:
http://www.freefrequentflyermiles.com/index.htm
* Some cards offer a limited time 0% interest on balance transfers. These can be quite useful, but consider:
o The transfers often do not earn miles.
o Often there is a 3% fee for the transfer. Frequently this is capped at $50 or so per transfer, so a very large transfer might be worth the fee. Do the math.
o Payments are always credited to the lowest interest rate debits first. This means that if you actually charge purchases to the card, you will be paying interest on those purchases, usually at a very high rate, until you completely pay off the card. So if you make a 0% balance transfer to the card, be sure that you have not and will not make purchases on it.
o You must make the minimum payment each month to keep your 0% rate. I am told that it will help your credit score if you pay at least $1 more than the minimum each month.
o My Holy Grail of credit cards would be one that offers 0% interest for balance transfers, charges no fee for the transfer, and gives miles for that transfer. If you find it, please let me know.
Here is a little known fact about Citibank 0% balance transfer, no fee offers: You can call to get the "transfer" immediately sent to you as a check. It charges to your credit card as a balance transfer, not a cash advance. Free loan, no fee, no interest for a year.
o Ask for a "Direct Check" for $1 less than the full credit limit of the card (they won't give you the full limit).
o Very carefully confirm that there will be no fee and 0% interest.
o Carefully listen to the script they read to you before doing the final transaction. It should confirm 0% and no fee, and tell you when you have to pay off the loan.
o If the rep doesn't know how to do this, ask for a supervisor.
o Put the money you receive in an interest bearing account and pay $1 over the minimum (for less impact on your credit score) each month from that account. A Virtual Bank or ING Bank account would be fine for this. (See the bottom of the Banking section of my Finance page.)
o Or, if you are sufficiently financially disciplined, pay down a higher interest loan (such as a home equity loan) with the check. Just be sure you will be able to pay off the 0% loan when it becomes due.
o Be sure to read my cautions on 0% balance transfer offers above.
Feb 17, 2006 | 10:40 pm
#28
Join Date: Dec 2004
Posts: 1,328
I wonder, if Delta says you get lifetime status for 1 million miles earned through credit card and/or actual miles, wouldn't it be beneficial to spend the 150k for 300k miles and in a couple of years he will have bought lifetime elite status from Delta along with actually being able to use the 1 million miles for free tix? Just a thought.
By the way, this is post 90 for me.
By the way, this is post 90 for me.
Feb 18, 2006 | 2:51 am
#29
FlyerTalk Evangelist
Join Date: May 2004
Location: DFW/DAL
Programs: AA Lifetime PLT, AS MVPG, HH Diamond, NCL Platinum Plus, MSC Diamond
Posts: 21,424
Originally Posted by psyflyer
just do the math. 2.5% on 100+k generating a 3.5k fee means that my tax payment is around 150k (guess i hate putting this dam number on paper as its been haunting me since last week when my accountant told me... but hey wish I had to pay 100+mm)
I guess y'all r right... I will get some good miles at a decent cost. However I use Starwood Amex and the double points is up to 5k... Don't have UA and usually use NW/DL/AA... does it make sense to load the expense all on starwood amex? If you had to charge around 150k of taxes to your credit card how would you do it??
I HATE MILES AND POINTS! they drive you to do things you otherwise wont!
I guess y'all r right... I will get some good miles at a decent cost. However I use Starwood Amex and the double points is up to 5k... Don't have UA and usually use NW/DL/AA... does it make sense to load the expense all on starwood amex? If you had to charge around 150k of taxes to your credit card how would you do it??
I HATE MILES AND POINTS! they drive you to do things you otherwise wont!
That would be 300K toward awards, PLUS 300K toward my 2 Million Mile goal for Lifetime Platinum. 2 MM gets you 4 EVIPS, so consider 300K to be 6/10 of an EVIP (plus the PLT bonuses you will get sooner, if you don't usually qualify for PLT, and the int'l AC club access)
To me, that would be worth 3500
Feb 18, 2006 | 6:29 am
#30
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 53,010
Originally Posted by jgoodm
I wonder, if Delta says you get lifetime status for 1 million miles earned through credit card and/or actual miles, wouldn't it be beneficial to spend the 150k for 300k miles and in a couple of years he will have bought lifetime elite status from Delta along with actually being able to use the 1 million miles for free tix? Just a thought.
By the way, this is post 90 for me.
By the way, this is post 90 for me.
AA counts all sources though. Just haven't ever seen an uncapped 2x offer for them...