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getting as much points as possible out of a large tax bill

Discussion in 'questions. answers. conversations.' started by Amadeus, Nov 7, 2019.

  1. Amadeus

    Amadeus Reader

    Hello Lucky

    I have a 50K tax bill that I need to pay soon. I would like to get as much points/cash back as possible out of paying it. I am thinking about applying for new credit cards but not sure which ones to apply to. I have an excellent credit score and the 5/24 chase rules as well as the others rules don't apply to me. Any recommendation? Does using the Citi double cash back make sense? how about the Capital one Business card that offers 200K points?

    To pay taxes using a credit card, most Tax agencies use third parties that charge up to 2%. Is there a way to use a different third party that charges less?

    Thank you

    A
     
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  2. MidSouth Skier

    MidSouth Skier Well-Known Member

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    Hopefully this post from Frequent Miler will help:
    https://frequentmiler.boardingarea.com/pay-taxes-via-credit-card-2019-edition/

    This is a great way to hit a bunch of spending thresholds on new cards. If you could tell us what cards you have now and approximate point balances that might help us provide guidance. Also, if you have particular travel goals in mind let us know where you are based and what destinations you're considering as that may impact our answers.
     
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  3. Amadeus

    Amadeus New Member

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    Hello

    Thank you for your prompt reply.
    Card I have:
    Chase: IHG (200K points), Saphire preferred, ink business, Chase freedom, chase slate (120K points)
    Citi: AA business platinum (80K) Thank You (380K)
    Amex Hilton Honors Surpass (120K), Amex Marriot (100K), Amex delta, Amex Gold (150K)
    Bank of America Alaska business and personal
    I have no immediate plan for traveling.
    I applied today for the Capital one spark business but since I had it in the past, I was told they I won't be able to get the $2000 sign on bonus.
    I also have gift cards that I don't mind using to make some of the payments.
    Thank you again
     
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  4. Tiffany

    Tiffany One Mile At A Time

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    You have to think about how you value the points, along with the potential earnings on everyday spend. I would look at a card that earns at least 1.5x if possible....maybe convert your Freedom to a Freedom Unlimited if you can't get a signup bonus and aren't typically maximizing the 5x categories?

    https://onemileatatime.com/pay-taxes-credit-cards/
     
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