Paying Taxes and getting miles?
#17


Join Date: May 2000
Location: Houston, TX, USA
Programs: UA Platinum, AA Lifetime Platinum, DL Platinum, Honors Diamond, Bonvoy Ambassador, Hertz Platinum
Posts: 8,179
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by ILUVCITIBANK:
I wrote this payment service company early Jan and proposed to charge a large quarterly payment if they would reduce to sub-2% range...they declined outright.
At 2%, this is break-even in the sense that a charger should never be willing to pay over 2% surcharge to get miles that are valued only a 2% (2c/dollar).</font>
I wrote this payment service company early Jan and proposed to charge a large quarterly payment if they would reduce to sub-2% range...they declined outright.
At 2%, this is break-even in the sense that a charger should never be willing to pay over 2% surcharge to get miles that are valued only a 2% (2c/dollar).</font>
Also, there's the issue of getting the float, which could be nearly 2 months depending on when in your billing cycle you make the charge. This is especially beneficial if you don't have the cash on hand to pay the tax, and your other alternatives would be to borrow the money at a much higher rate, or actually pay the tax late and have to pay the government penalty.
#18


Join Date: May 2000
Location: Houston, TX, USA
Programs: UA Platinum, AA Lifetime Platinum, DL Platinum, Honors Diamond, Bonvoy Ambassador, Hertz Platinum
Posts: 8,179
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Droneklax:
AND WHY ISN'T VISA ACCEPTED ? is my question. that is very irritating.</font>
AND WHY ISN'T VISA ACCEPTED ? is my question. that is very irritating.</font>
#19
FlyerTalk Evangelist
Join Date: Feb 2002
Location: El Paso, TX, USA
Programs: Kicked out of all of them
Posts: 32,554
I just got an offer from American Express.
Pay your taxes with the American Express Card and Earn 5,000 Membership Reward Points.
Just make your payment at www.officialpayments.com or 1-800-2PAY-TAX
Bonus ID 6986
Pay your taxes with the American Express Card and Earn 5,000 Membership Reward Points.
Just make your payment at www.officialpayments.com or 1-800-2PAY-TAX
Bonus ID 6986
#20
Join Date: Oct 2000
Programs: AA - Lifetime Gold
Posts: 1,513
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by jfe:
I just got an offer from American Express.
Pay your taxes with the American Express Card and Earn 5,000 Membership Reward Points.
Just make your payment at www.officialpayments.com or 1-800-2PAY-TAX
Bonus ID 6986</font>
I just got an offer from American Express.
Pay your taxes with the American Express Card and Earn 5,000 Membership Reward Points.
Just make your payment at www.officialpayments.com or 1-800-2PAY-TAX
Bonus ID 6986</font>
Any indications whether this is targeted?
#22
FlyerTalk Evangelist
Join Date: Feb 2002
Location: El Paso, TX, USA
Programs: Kicked out of all of them
Posts: 32,554
I says:
To be eligible to earn Bonus Points, you must be enrolled in the Membership Rewards program at the time of your charge and you must charge your tax payment on an eligible, enrolled American Express Card. Limit one 5,000 Membership Rewards account.
It doesn't mention anything else.
I have a Rewards Plus Card. Don't know if that has anything to do with it.
To be eligible to earn Bonus Points, you must be enrolled in the Membership Rewards program at the time of your charge and you must charge your tax payment on an eligible, enrolled American Express Card. Limit one 5,000 Membership Rewards account.
It doesn't mention anything else.
I have a Rewards Plus Card. Don't know if that has anything to do with it.
#23
Join Date: Oct 2000
Programs: AA - Lifetime Gold
Posts: 1,513
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by jfe:
I says:
To be eligible to earn Bonus Points, you must be enrolled in the Membership Rewards program at the time of your charge and you must charge your tax payment on an eligible, enrolled American Express Card. Limit one 5,000 Membership Rewards account.
It doesn't mention anything else.
I have a Rewards Plus Card. Don't know if that has anything to do with it.</font>
I says:
To be eligible to earn Bonus Points, you must be enrolled in the Membership Rewards program at the time of your charge and you must charge your tax payment on an eligible, enrolled American Express Card. Limit one 5,000 Membership Rewards account.
It doesn't mention anything else.
I have a Rewards Plus Card. Don't know if that has anything to do with it.</font>
I spoke to MR CSR, it's targeted

#25
Join Date: Nov 1999
Location: SFO
Programs: UA 1.050MM, PersonalCar 0.275MM
Posts: 1,720
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by pynchonesque:
2. Anyone know if the convenience fee is tax-deductible? That might make the double DL miles a pretty good deal.</font>
2. Anyone know if the convenience fee is tax-deductible? That might make the double DL miles a pretty good deal.</font>
There, I feel better.

I was unable to find a clear and specific statement as to whether the convenience fee is deductible. The closest I'm able to find is in Publication 17, page 201:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted gross income limit. These are the expenses you pay:
....
3) To determine, contest, pay, or claim a refund of any tax.
</font>
You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted gross income limit. These are the expenses you pay:
....
3) To determine, contest, pay, or claim a refund of any tax.
</font>
In my case, the fact that I didn't have much else that fell into the 2%-of-AGI bucket meant that the convenience fee I paid wasn't going to make a difference to the bottom line anyway.
#26

Join Date: Jun 2001
Location: Tucson, AZ, USA
Posts: 1,124
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by pynchonesque:
1. Official Payments just started accepting Visa.
2. Anyone know if the convenience fee is tax-deductible? That might make the double DL miles a pretty good deal.</font>
1. Official Payments just started accepting Visa.
2. Anyone know if the convenience fee is tax-deductible? That might make the double DL miles a pretty good deal.</font>
#27
Join Date: Jul 2000
Location: Sugar Land,Texas USA
Posts: 4,889
Just got my FriscoISD Property Tax (or whatever it is called)
Just noticed that they have a pretty sophisticated website where you can access your account The funny thing is that I can see other ppl's Taxes! hmm...anyway you can also pay it with a Credit Card (Mastercard/Visa only) with a 3% convenience fee.
Just noticed that they have a pretty sophisticated website where you can access your account The funny thing is that I can see other ppl's Taxes! hmm...anyway you can also pay it with a Credit Card (Mastercard/Visa only) with a 3% convenience fee.

