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Do you pay your income tax with a credit card?

Discussion in 'questions. answers. conversations.' started by Dan2, Jan 5, 2018.

  1. Dan2

    Dan2 New Member

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    Given the time of year, I’m interested in finding out if you pay your income taxes (state and/or federal) with a credit card for the miles or points. Realizing that to pay these taxes, there is a % fee involved, I am interested in hearing your calculus as to why you do or don’t pay your taxes this way.
  2. MidSouth Skier

    MidSouth Skier Well-Known Member

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    No Name likes this.
  3. Tiffany

    Tiffany One Mile At A Time

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  4. lkar

    lkar New Member

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    I pay estimated taxes with my Barclays AA card to get the EQM and EQD. I pay about 1.9 percent and value the AA mikes around 1.15 cents, so I'm paying about $575 net for 10,000 EQM and $6,000 EQD. A bit cheaper than a mileage run and I stay at home.

    I do think, though, you also should factor in the opportunity costs. I could instead put $50k on my Amex blue business and earn 100,000 MR, which I value around $1,700, for a net of about $800 above the service charge. So, you probably could argue that I'm paying about $1400 for the EQM and EQD.
    rickyw likes this.