Questions and Answers

Have a travel related question? Post it here, and I’ll do my best to answer it as quickly as possible.

While anyone can comment on regular blog post, registration is required in order to post a question in this space. Creating your account is free, and you'll be able to see when your question is answered, as well as like comments from other users. And of course, you'll earn status points for offering helpful answers!

This space is intended to be more of a community as well, so please jump in and share tips!

Filter by:

Remaining Chase 5/24 slots

1

Transfer CapOne points

1

Citi Prestige Card No longer accepting application

1

Amex Gold offers free Clear membership

Can you help?
0

Hilton hotel adds surcharge for using a credit card

1

Am I Better Off Earning 4x Amex Points or 5x Citi/Chase Points?

2

Thoughts on Bilt, the new credit card that rewards you for paying rent?

1

iPhone Outright Purchase

Can you help?
0

100,000K Marriott points or 3 free nights?

3

Chase reserve medical evacuation benefit

3

Ask a Question

Everyone can read and comment, but you must login to post a new comment.

Answers (2)

Paying Taxes with a Credit Card

Paying Taxes with a Credit Card

  1. Anonymous

    Because of the recent sale of my home, I have to pay a large amount of federal and state taxes this year. The total amount is about $260K. I have the option to pay with a major credit card incurring a 1.87% fee. In my case, I could use my AMEX Platinum card, my Platinum Delta SkyMiles card, my Starwood Preferred Guest card, or my Chase Sapphire Reserve. Is there any real benefit to using one of these cards to pay my taxes?

  2. David W

    You’d just get a boatload of points you wouldnt other wise have. $4800+ is a heck of a fee though.

    With the Delta card, you’d get the Diamond MQD waiver for spending $250k on the card, if that works for you. Otherwise, use the Amex SPG or Chase Freedom Unlimited to pay. SPG gives you 5k bonus miles when you transfer 20k. Chase Freedom Unlimited is 1.5x on all purchases. Oh, if you have the amex plat BUSINESS card, each charge that’s above $5k earns 1.5x MR points.

    That’s potentially:
    ~265k star points (becomes ~330k when transferred to most airline programs), when charging to the Amex SPG

    ~398k Chase UR points when charged to the Chase Freedom Unlimited. Since you have the Chase Sapphire Reserve card, those points can be transferred to airlines. They are also worth almost $6000 when using pay with points to book travel via their portal, so you’d more than make up for the 1.87% fee

    ~398k Amex MR points, when using the Amex Platinum Biz. Transferable to airlines. If you book a ticket (for business or first class) via their travel portal and pay with points, you get 35% if the points back, plus you’d earn your normal airline miles with the ticket.

    You’re also more than welcome to spread out the charges and maybe apply for some new cards to pick up bonuses. The Amex Platinum biz is offering 50k bonus on the first $10k spent and an additional 25k bonus on the next $10k spent on the card within the first 3 months.

    [URL]http://onemileatatime.boardingarea.com/2017/03/09/should-you-pay-your-taxes-by-credit-card/[/URL]

Sign in to help answer questions.