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Federal Taxes on CC to get miles?

The last post in this topic was posted 2782 days ago. 

 

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I owe just over 12K in Federal taxes. I am considering using one of my cards to pay this so that I get the miles/points. I have the money in my checking account to cover the 12K and could pay it directly as well. Is it a bad idea (i.e. will it trigger bad things with Chase (would probably use of my Chase cards)) to do this? I can pay the balance off immediatly and it would be nice to get the points...but I seem to remember reading that certain purchases can cause issues or make your account look bad to CC companies... Any ideas on this? I need to pay via efile tonight so any advice is appreciated. Thx!!!!!

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Why pay additional interest on a credit card to get a gimick? Pay the debt off and save your money.What if you loose your job or get sick and can't work to pay off the credit card debt ? Learn to save and invest your money properly and treat your hard earned money with some respect. :wave:

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Why pay additional interest on a credit card to get a gimick? Pay the debt off and save your money.What if you loose your job or get sick and can't work to pay off the credit card debt ? Learn to save and invest your money properly and treat your hard earned money with some respect. :wave:

He has the money to pay off the debt, there is no gimick or interest to be paid.

 

OP, I don't know anything about Chase however if I was in your situation, had the cash to pay the credit card off I would definitely use it to get points.

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Don't they charge anywhere from a 1.89% - 2.35% fee for paying the IRS with a CC plus a small flat fee? That's whats posted on the IRS site.

Edited by robjane58

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Yeah, there's usually a fee of around 2% or so when paying taxes with CC's which makes it almost impossible to score any kind of rewards.

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ugh!!! Robjane58...I just noticed that. It says 2.49% of the total owed. I owe $11,899 so that would be 11,899 * .0249 = $296.28. My Chase card is only giving me 1 point per dollar...hmmmm

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Unless you happen to have the JCB 3% card, you can't make this worth your while. Just pay it through your checking account and have it done with, unfortunately.

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I took a chance with paying my taxes using my Cash+ card, hoping it would be coded as billpay and get the 5% cash back (total owed was only about $800)...unfortunately it wasn't and cost me about $10 in fees net or rewards earned.

 

Using a card with airline miles could be interesting though, as miles don't really have a set value. Say you were using the miles to put towards a business/first class ticket overseas. In those cases, the net value of the miles could exceed the fees incurred.

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