Chris, an expert in maximizing credit card points and miles, discusses unique ways to earn points by paying taxes with credit cards. He talks about evaluating options, latest news in points and miles, various IRS-approved payment providers, high cashback cards, and maximizing points through tax payments. The podcast also covers financial planning tips for expecting parents, fraud protection strategies, credit card offers and promotions, new transfer partners in loyalty programs, and strategies for optimizing credit card loyalty programs and proactive tax planning.
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Quick takeaways
Paying taxes with a credit card can earn points but comes with fees below 2%, offering a point accumulation opportunity.
Using credit cards to meet minimum spending for big welcome bonuses like Hilton Aspire card benefits can outweigh fees.
Evaluating paying taxes through credit cards ensures cost-effectiveness with 2-3% cash back cards for savings and rewards.
Deep dives
Taxes and Credit Cards: A Worthwhile Combination
Paying taxes with a credit card to earn points is a strategy gaining interest. By paying through sanctioned IRS sites like PayUSAtax, you can earn points, although with associated fees. Using a credit card to pay taxes at a fee of under 2% can provide an opportunity for point accumulation and profit, especially with cards offering 3% back on payments.
Optimizing Credit Card Use for Big Bonuses
Using credit cards to meet minimum spending for significant welcome bonuses like those from the Hilton Aspire card can provide substantial benefits. By leveraging tax payments to reach spending thresholds, you can earn bonus points and perks that outweigh the fees incurred. This strategy is particularly valuable for individuals seeking to maximize rewards and travel benefits.
Potential Savings and Strategies During Tax Time
Paying taxes through credit cards can be cost-effective, especially with cards earning 2-3% cash back on purchases. While evaluating the cost-benefit of paying taxes with credit cards, considerations like profit margins, point redemptions, and card perks play a crucial role. Planning around big bonuses, minimum spends, and bonus categories can enhance savings and rewards.
Navigating Devaluations and Point Transfers
Despite recent devaluations in loyalty programs like Turkish Airlines and Wyndham, having points in flexible currencies ensures the ability to shift strategies and redeem points wisely. Transferring points between different loyalty programs like Chase, Amex, and Capital One offers diverse redemption options and mitigates the impact of devaluations, allowing for maximizing rewards.
Exploring Card-Linked Offers for Savings
Card-linked offers from Chase and Amex present opportunities for savings and rewards with various vendors. From discounts on Amazon, TurboTax, and home improvement stores to deals on massages, estate planning services, and fitness apparel, leveraging these offers with credit card spending can lead to significant savings and enhanced benefits.
Maximizing Membership Benefits for Points and Savings
Utilizing credit cards for activating membership benefits and tying them to offers from services like Trust and Will and Viori can amplify points accumulation and cost savings. By combining discounts, referral perks, and bonus point opportunities, individuals can optimize spending, accrue rewards, and elevate their overall financial and lifestyle benefits.
#164: Chris shares a unique way to earn points: using your credit card to pay taxes. He outlines the various options available to help you evaluate whether it’s worth paying taxes on your credit card. Chris also shares the latest news in the world of points and miles, including transfer partners and bonuses, recent devaluations, card-linked offers, and more.
Editor’s Note: The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.