Should You Pay Taxes with a Credit Card? #travelhacking

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Should travel hackers pay taxes with a credit card? While it’s debatable- and I’ll share with you the pros and cons, my short answer is- YES! Hey, I’m Leen with Leen on Travel, and Anything I can put on my credit card to earn points is a win.
So let me break it down for you, by sharing why or why not, YOU should choose the same!
Ok so if you’re like me and owe thousands of dollars, I cannot turn down the option to earn points on that expense. Even if I am charged a fee for paying with a card. And that fee is usually 1.75%. Why? Getting charged $87, to earn 10,000 points, by putting my $5,000 tax bill on a card that earns 2 points per dollar spent, is a no brainer. That 10,000 points, or $87 fee, is worth a domestic one-way flight, or one night at a Hyatt category 3 hotel.

Now the downside I need to put out there though is when you analyze the Cost Per Points redemption rate, the 1.75% may not be worth every hotel room or flight paid with points. I sometimes like calculating my Cost Per Points to make sure I’m actually getting a good deal when paying in points. To calculate it, divide the cash price by the cost in points. For Hyatt, a good deal is anything over 2.3 CPP, while anything over 1.5 CPP for Southwest is a deal. But there’s plenty of award bookings out there that will fall short of 1.75 Cost Per Point.

But flipside, if you are opening a card, and earning the signup bonus with your large tax bill, you’re earning more like 10-15 points per dollar spent. And earning that jackpot of points for paying your taxes on a new card is MORE than worth the fee. So consider opening a card now whose higher minimum spend was previously unattainable, like a Chase Business Ink Preferred, a Capital One Venture X Business, an American Express Business Gold or Platinum card, or you can chase Hyatt Globalist status with a Business World of Hyatt card.

Finally, HOW exactly do you pay your taxes with a card? After filing your taxes, you just go to the IRS’ “Pay Your Taxes by Debit or Credit Card” website and follow the steps. Keep in mind that they do charge an extra 1.14% when paying with a business credit card, OR any American Express, whether it’s personal or business - which is 2.89%, versus a personal Visa, Mastercard, or Discover being just 1.75%. But again, if you’re earning a huge signup bonus with this credit card, it is worth like 5 times that 1.75 or 2.89% fee.

And if you’re ready to open a credit card too, I would be ever so grateful if you would apply using my referral link to show your support. All it means is you use my referral link instead of googling it. Thanks for watching and please, like and subscribe. Happy travel hacking from Leen on Travel!

Видео Should You Pay Taxes with a Credit Card? #travelhacking канала Leen on Travel