Maximizing Credit Card Benefits with Tax Payments

Paying taxes using a credit card can be beneficial, as the cost of 1.8% to use a credit card processor is a fraction of the 10-20% return through signup bonuses. By earning points through tax payments, even with a cost of 1.8 cents per point, it can still be profitable considering the potential high returns. Furthermore, comparing earning points at 16 points per dollar with a cost of 1.8 cents per point to earning cash back at 10-15% with the same cost shows that paying taxes via credit card can be a lucrative deal.

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