Summary
The article explains how paying taxes with a credit card can help earn points or miles, which might lead to travel rewards. By using a credit card for a large tax bill, people could meet spending requirements for credit card bonuses, despite a small processing fee involved. It advises considering the costs and benefits to decide if this strategy is worthwhile.
Key Facts
- You can pay taxes with a credit card, but it results in a processing fee of 1.75% to 1.85%.
- Using a credit card for taxes can help meet spending requirements for welcome bonuses.
- A high tax bill could help quickly achieve a card's spending minimum.
- Consider the credit card's annual fee and whether you can handle it.
- Points earned from taxes can lead to rewards like travel points or hotel stays.
- The value gained from points could exceed the fees paid, depending on how points are used.
- This strategy is most beneficial if you plan to pay the full tax amount upfront without credit.
