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poptarts vs. pudding
Originally Posted by biggestbopper
You make a good point, but I just have so much energy and time for this game and I found that chasing the bonuses was starting to distort my (usually) rational purchasing behavior. Its kind of like double coupons at the grocery which we have in my area. Its nice to get two bucks off, but how many poptarts do I really need?
And, at least with poptarts, I can always eat 'em... |
State Taxes
What about State taxes?? any services to get points/miles?
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Originally Posted by FFSaver
What about State taxes?? any services to get points/miles?
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double miles for state taxes?
Originally Posted by Efrem
Official Payments Corp., which I am only using as an example, says that it handles state income tax payments for 26 states. (Nine states have no personal income tax.) Their list includes the largest ones. It works the same way as paying your Federal tax bill in terms of using a credit card and adding a fee. There are other firms that offer this type of service as well. Some of them may also work with some of the 15 states that OPC doesn't cover.
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Originally Posted by itsme
But do the double miles offers (UA Visa and SPG AmEx) apply to the payment of state taxes, or only to federal ones? If there are not to be double miles for use of the card to pay, then the miles will come at a cost of 2 cpm or more, which is not too appealing, at least to me. (Are other card issuers besides UA Visa and SPG AmEx offering double miles or other special incentives to use them?)
I suspect, though I do not have specific information, that these bonuses are handled the same way most such bonuses are. Merchants are coded as to whether they're supermarkets, gas stations, or in this case third-party tax payment services. The credit card company then applies the bonus to all charges to appropriately coded merchants. If the usual method is used, and I doubt any CC issuer would have gone to the trouble of coming up with a totally new way to handle bonuses for this, then double miles offers would apply here as well. Specific information would have to come from each CC issuer individually. |
My understanding is that MP Visa results in double miles for both State and Federal taxes and SPG Amex results in double miles for Federal taxes only. I would verify this with each site.
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Originally Posted by Efrem
I didn't get into that, since the question to which I responded didn't ask that.
... Specific information would have to come from each CC issuer individually. But different strokes for different folks, as neurologists are wont to say. Another FTer did relate how he had bought miles at 2.5 cpm to use for an expensive international ticket and how satisfied he was with the way it worked out. So what does or doesn't work for some, will or won't work for others. The thing is to know what you are getting before you take the plunge, e.g., double miles or not for paying state taxes with a card?; a cap on how many miles can be gained this way?; etc. |
Originally Posted by ned
My understanding is that MP Visa results in double miles for both State and Federal taxes and SPG Amex results in double miles for Federal taxes only. I would verify this with each site.
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Originally Posted by Eastbay1K
MP Visa gives on State and Fed.
With UA Platinum Visa, there may be an added advantage, that being the prospect of 5K of EQM if total annual spend is >$35K. 5K of EQM that way is 5K less of BIS to achieve UA status. |
Originally Posted by itsme
Does the processing fee fold in, so that one would wind up with a total of 10,124 SPG points (or 10,249?) for paying $5K in taxes with the card?
points offer applies only to the $5K portion of the payment. So 10,124 should be about right. --ss |
Originally Posted by itsme
But "double," that is the key question. (I imagine that cards which routinely give 1 mile for $1, give 1 mile for $1 of taxes paid. Don't they?)
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Originally Posted by Eastbay1K
And double is the answer. I have no doubt I wouldn't have earned about 200K in MP Visa credit for tax payments last year if my state taxes weren't doubled :) :mad:
If you can't find a way to raise your tax liability so as to collect more frequent flyer miles through these credit card deals, the federal government does have a fund to which people can, for whatever their reasons, simply contribute money that goes into the general treasury. You might explore that rather obscure possibility. For me, the ability to earn double miles by paying with a credit card is just an anodyne to ease (not eliminate) the pain of paying taxes. |
These double miles promos are really just a way for airlines and hotels to sell miles/points to retail customers at wholesale prices. They'd like to sell you miles for 2.6 cpm, but sometimes they'll settle for half that.
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Originally Posted by pinniped
In a way, I'm kind of surprised that the IRS doesn't encourage credit card use. It seems like they would save on both labor and the risks inherent with paper checks, collections, etc. if they just accepted plastic directly.
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Originally Posted by itsme
But do the double miles offers (UA Visa and SPG AmEx) apply to the payment of state taxes, or only to federal ones? If there are not to be double miles for use of the card to pay, then the miles will come at a cost of 2 cpm or more, which is not too appealing, at least to me. (Are other card issuers besides UA Visa and SPG AmEx offering double miles or other special incentives to use them?)
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