Point Me To First Class 7. Paying Your Taxes by Credit Card (Part 2)
Apr 17, 2023
A deep dive into which reward cards work best for paying taxes and how to maximize points without doing the math. Strategies for using new-card sign-up bonuses and splitting large payments to hit multiple thresholds. How co-branded cards can earn or retain airline and hotel status through tax spending. Recommended cards that earn 1.5–2x points and practical limits to watch when charging big tax bills.
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Use Tax Payments To Trigger Sign-Up Bonuses
- Use a new rewards card to pay taxes when that payment will meet the card's sign-up spend and unlock a large bonus.
- Example: Put a $5,000 tax bill on Amex Gold to meet a $4,000 spend and earn a 90,000-point bonus plus points on the charge.
Amex Gold Example Shows Big Net Value
- Devon illustrates using Amex Gold: a $5,000 tax payment (1.85% fee) totals $5,092 and earns a 90,000-point bonus plus ~5,092 points.
- He notes those ~95,000 points easily offset the $92 fee and book premium flights worth thousands.
Split Large Bills To Earn Multiple Bonuses
- Split large tax bills across multiple new cards to hit several sign-up bonuses when practical.
- Example: Chase Ink Business Preferred can yield 100,000 points after $15,000 spend; a $20k tax charge nets the bonus plus points on the charge.