It's tax season!
And while I know it's not exactly the most exciting time of the year, it IS an amazing opportunity to rack up some serious credit card points that you can use to travel in luxury.
So if that's you, keep on reading!
How to pay your taxes with credit cards (the right way)
By paying your taxes with the right credit cards, you can earn a huge windfall of points that will pave the way to luxurious getaways.
In this article, I'm gonna show you how to make the most of tax season, from strategically getting new cards and choosing the best cards that earn the RIGHT kinds of points.
Buckle up and get ready to thank tax season for the ultimate luxury travel hack.
The key to earning a large amount of points during tax season is to open new credit cards, ones that come with lucrative bonuses, and split your tax payment between them.
Make sure you choose cards that offer transferable points, such as Chase Ultimate Rewards or American Express Membership Rewards, and avoid cash back cards at all costs.
And yes, paying taxes with a credit card usually has a fee associated with it.
But luckily they're pretty low.
Here's the current breakdown of the processing fees to pay your taxes via credit card:
- www.payusatax.com – 1.85%
- www.pay1040.com – 1.87%
- fed.acipayonline.com – 1.98%
The three major payment processors for federal income tax payments charge between 1.85% and 1.98%.
But since points can be worth 5-10 times what the credit card companies will tell you, paying that fee is easily justified, especially right after opening a card when you're in the bonus period.
Now, to the important part. What cards should you get to take advantage of this strategy?
Well, assuming you're just starting out in this world and maybe don't have any good points earning cards yet, here are the top 4 cards I recommend (in the order I'd pick them):
- Top Choice – Chase Sapphire Preferred
- American Express Gold
- Chase Ink Business Preferred
- American Express Platinum
If you already have one of these, you can skip it, but these cards will allow you to build a large balance of points quickly, and provide you with a solid foundation on which to build your luxury travel dreams.
For example (at the time of this writing) if you secured all four of these cards and met their spending requirements, you could earn a combined 360,000 points.
To give you an idea of what that's worth, it's enough for an average business class round-trip ticket to Europe or Asia for two people (150,000 points per person).
So to sum it all up, even though tax season can be a not-so-positive experience for most people, with the right strategy and cards, it can become an incredible opportunity to earn points to send you on your next luxury trip for very close to free.
If you pick the right cards, take advantage of the right bonuses, and understand the fees involved, you can transform a potentially stressful situation into a rewarding one.
So don't miss out!