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Discussion in 'General Discussion | Miles/Points' started by Martin Eastman, Mar 6, 2011.
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are there any credit cards that give a good return on points or miles for paying taxs ?
If you can find a good deal on using a CC paying for taxes (i.e. <2-2.5%) then I'd recommend the SPG Amex.
The fees kinda kill it for the most part. You could use the Chase 5% cash back offer (first 6 months of cardmembership) and that would be worthwhile I'd say...
I think the only likely good return you can get from using your CC to pay taxes would be if it gets you over some threshold that triggers bonus points.
I think we may have to pay a big chunk this year and intend to use one of our credit cards, even though I know a commission is involved, as otherwise we will struggle to meet the targets to trigger bonus points.
Just by coincidence, saw this on the AMEX website about using Membership Rewards points towards paying your tax bills.
what I want to do is pay my taxes to earn points or miles then pay off the credit card with the money I have saved for my taxes
I use officialpayments.com to sometimes pay IRS quarterly estimates when I need the spending to get MQMs on my Delta Reserve. The cost is 2.45%, but hitting the MQM thresholds are worth it to me.
Yeah, I think you better have 3X points or a threshold to meet to make it worth using a credit card to pay taxes.
Ditto on the threshold spending. I'm using my AmEx Delta Platinum card to pay taxes to get the 10,000 Medallion Qualifying Miles bonus. I'll pay hundreds in fees but at current fare prices earning 10,000 by flying would cost hundreds more. I have no vacation time to spare for extra flying, and these credit card deals really cheese off of the BIS elites, so it seemed like a good idea.
what are the fees
Around 2.7% for AmEx, as I recall. Less for Visa/MasterCard. Some payment services offer better rates than others. I used the one affiliated with H&R Block.
AmEx seems to be 2.35% through OfficialPayments - in addition to the scenarios listed above, this could perhaps be workable if one were getting a decent MembershipRewards transfer bonus at the time ...
Perkstreet offers 2% cashback for the first several months. It's a debit card, not a credit card. Check out all of the best processors to find the best option.
In Singapore, Diners Club used to give points without any commission. But they stopped it since last year's tax cycle. And anyway the diners points to miles ratio is horrible.
The best deal I have now stumbled across here is Standard Chartered which gives 5% cashback but limited to S$200/quarter. Doesnt cover entire tax, but something is better than nothing.