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Paying Taxes and getting miles?

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Paying Taxes and getting miles?

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Old Mar 5, 2002 | 11:05 pm
  #16  
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AND WHY ISN'T VISA ACCEPTED ? is my question. that is very irritating.
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Old Mar 7, 2002 | 6:41 pm
  #17  
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<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>
This is of course true only for those that value their miles at only 2 cents each. Since I use mine only for international premium travel (either free or upgraded from discount coach), miles are much more valuable to me.

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.
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Old Mar 7, 2002 | 6:43 pm
  #18  
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<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>
It's an issue with Visa itself. They want to protect the integrity of the product, and will not allow merchants to add a service fee for use of a Visa card for a transaction that appears as a purchase. The other card issuers have been willing to be flexible on this matter for tax payments, although they are generally interested in maintaining this rule for most other transactions.
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Old Mar 23, 2002 | 3:09 pm
  #19  
jfe
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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
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Old Mar 23, 2002 | 3:50 pm
  #20  
 
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<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>

Any indications whether this is targeted?

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Old Mar 23, 2002 | 4:09 pm
  #21  
 
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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.
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Old Mar 23, 2002 | 5:10 pm
  #22  
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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.
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Old Mar 23, 2002 | 6:10 pm
  #23  
 
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<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 spoke to MR CSR, it's targeted
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Old Mar 23, 2002 | 10:50 pm
  #24  
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Sorry, I didn't know it was a targeted promotion. Just trying to help.
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Old Mar 24, 2002 | 8:55 pm
  #25  
 
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<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>
BIG TIME DISCLAIMER: I AM NOT QUALIFIED TO GIVE TAX ADVICE, AND WHAT FOLLOWS IS NOT ADVICE.

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>
My fear is this: The convenience fee is precisely that, a convenience fee. Just because you are paying it in the course of paying your taxes (per the quote above) does not necessarily mean that the IRS will permit the deduction, if the IRS determines that the amount you paid was unnecessary to your paying your taxes in accordance with the law. (They can hardly argue that the actual amount is excessive, though, since the amounts are per their own agreement with these processing companies. Whereas they could argue, for example, that using a courier service to deliver your tax return is excessive when they have made it clear that they will accept a number of USPS delivery methods as adequate proof of filing.)

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.
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Old Mar 24, 2002 | 9:30 pm
  #26  
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<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>
According to my CPA, the Convenience fee is NOT TAX DEDUCTIBLE. Although someone with a more creative mind may be able to find someway to include the fee as say a "professional Service" or some such. Possibly even as a Business Travel expense if you are away from home on the 15th? But as a fee for paying taxes, she says no way.

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Old Oct 16, 2002 | 9:09 am
  #27  
 
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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.
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