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Hey credit warriors, welcome to the show and every year I come up with imaginative ways to pay my taxes in order to earn some credit card points, free nights in hotels etc… and paying your taxes with a credit card can really give you great value, but you have to be careful because a lot of services that allow you to pay US federal and state taxes with a credit card charge fees, that can sometimes outweigh the points and rewards you earn. First I am going to tell you my horror story of what happened last year and then I’ll get into exactly what my strategy is for this year, show you my number 1 credit card for paying taxes and then actually pay my $35,000 tax bill on video.
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43 comments
The secret of your future is hidden in your day routine . Successful people do daily what the unsuccessful people do occasionally.
Why not open a new card to get a SUB?
Wait no Hilton Amex referral link?
$35,000. How much did the IRS charge you for not prepaying enough throughout the year?
Good lord that's a lot of taxes to pay.
Nice video, engaging from beginning to end, I've achieved financial freedom by day trading, and the general reader will undoubtedly be kicking themselves for losing out on the ability to invest in and buy cryptocurrencies
Using my Delta Reserve (MQMs) and Delta Gold Business (SUB) to pay my $10K.
He just loves showing off this guy! 🙂
I will have to try out the max rewards!
I pay taxes with credit cards and $500 visa gift cards bought from 5x categories
I’d love to play the IRS in pennies.
Discover debit card pays 1%. cash back if you would have had it you would have made even more profit
Didn't know about Plastique. I think I ended up using my debit card to pay my state taxes cause I didn't see a credit card option this year. Great video and I will definitely look into the details of that service! 😀
Nice haircut!
Utilisation is only reported after the due date, so if you cover the balance on your card right away you can max that card's credit limit and have no report on utilisation.
How are you not paying big penalties for not paying estimated taxes?
Lol I'm a w2 person and believe me, I'm right up there with you getting it up the bootyhole by the IRS.
Never thought of this! Doing it this year for sure!
One thing you haven't taken into account is the underpayment penalty on both the federal and state returns because you didn't make quarterly estimates. You probably paid about $200-$300 in underpayment penalties which could be avoided by making 4 quarterly estimates.
Thank you Jim Carrey for teaching me so much about credit
You look way more appealing & creditable dressed like this than the sidewards baseball cap look from your previous video 🙂 Keep it up!
Why do u owe so much in taxes?!
Between the CSP and the Amex Plat, do you recommend paying taxes with those?
Paid property tax bill to help meet the 125k Amex Plat signup bonus.
You could also use the Chase Hyatt card to earn points. You can get 2-4 cpp on many of their properties, but you would also earn 2nights toward status on every 5000 spent on the card.
I use my Bank of America premium rewards card to pay taxes. 2.625% cashback. Because cash (invested in stonks) is a king and if I suddenly need few Hilton points I would just buy as much as I need.
I sprung for a month of MaxRewards Gold, this is my third time trying the app. It seems they've made great strides with being able to actually work. However, i'm not seeing the whole "we'll add the amex offers for you" feature…?
I downloaded max rewards. I dont see where it tells me which credit card to use for categories.
Damn 35000$? That’s a lot
Awesome content!!
This it probably the first video of yours that I’ll give a thumbs down. Simply for using a debit card.
@2:16.. an Honest man. 👏🏼 thank you sir
I always pay my Federal taxes by credit card using the IRS approved providers. I pay the 2% fee and get back either (1) 2.6% cash with the BofA Premium Rewards or more often (2) Two Citi Thank You points per $1 by using the Double Cash and transferring to the Citi Premier for use with transfer partners which I value at 3.4%
The Hilton Surpass is my #1 choice, also: the free night certificate is easily worth $300 so boosts the effective return per dollar to 3.5% (and this year, because Hilton is treating what would normally be bonus points from the card as base points which count for Diamond qualification, it's even better: at $20k spend (threshold reduces for bonus category spend), your gold status from the card turns into Diamond status)).
After that, my out of left field choice would be the Amtrak Guest Rewards World Mastercard ($79 AF, IIRC). $5/10/15/20k of annual spend gets 1000 tier points each on Amtrak (you need 5k to qualify for the lowest elite status, so the card can get you 80% of the way there: $334 worth of Acela first class tickets will get you the last 1000 tier points to status; the low elite status with Amtrak gets you 2 upgrade coupons, 2 10% coupons, and 2 lounge passes: it's probably worth a couple of hundred bucks if you're in the northeast, or maybe Chicago or California). 1 AGR point is also worth about 2.5 cents for Amtrak travel, so the 1x reward rate just about cancels out the service charge anyway. I only put this in second priority because it's a Mastercard, which is the least restrictive card type for Plastiq: I can hit the $20k from my mortgage and car payments, neither of which is payable with an Amex.
I'm seriously considering the Flying Blue (Air France KLM) Mastercard from BofA ($79 or $95 AF, I forget which) as the next card for this sort of thing. 60 status points at each anniversary for hitting $15k (there's also a few thousand point bonus each year after renewal and then spending $50) is 60% of the way to elite status, with the balance being gained from 7 segments on Delta in first class (or a roundtrip in business class to Paris), and it also has the Mastercard advantage for Plastiq.
AE Hilton Aspire- Best card to use this year!!!
Thanks for this video. We just got the Marriott card and I'm going to pay our taxes with it after watching this video.
Debit cards have the same zero liability for unauthorized charges as credit cards do so I don't knownwhere you get your information.
My Plastiq check-payments to DMV got lost that created problems but luckily fixed in time !
Another one to CAFTB for real estate tax also got delayed but eventually deposited in time!
I think USPS now is more trustable but will be up to u to decide if to take the risk!
$35K taxes in 2020? Damn u r a VERY RICH ShiFu!!!
Can I pay my taxes using business credit card? I am tempting to open up a Business Chase Ink card to pay these taxes. Thanks
Where’s the 5x points on tax payments card. I’m also waiting for the 5x points on rent payments card.
do rideshare drivers have to pay quarterly taxes ?
I applied for Citi Prestige. I needed to pay my $5500 tax bill. So I used this for the signup bonus.
are plastiq fees tax deductible if the expenditures are for a business?