Author Topic: E-file complex taxes, low cost, and pay with points credit card?  (Read 1300 times)

FlorenG

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Howdy!

I have already figured out my taxes for this year by hand and I'll be filing the 1040, Schedules A, B, C, D, SE and a couple other forms. Since my AGI is over the low limit for free e-Filing, I typically just mail my taxes the old way and save the fee.

HOWEVER, this year I owe quite a chunk of change and I was wondering if I could use this as an opportunity to get a bunch of miles/points with credit cards, assuming there is a way to eFile cheaply that also allows paying with credit card.

Any good mustachian advice on this regard?

Thanks!

PS. I 'need' to add some statements explaining an IRA re-characterization, which <<Free File Fillable Forms>> does not allow me to do. Does anybody know if not adding the statement is a big deal?


« Last Edit: March 08, 2018, 03:47:12 PM by BetsyG »

ISawTheLight

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Re: E-file complex taxes, low cost, and pay with points credit card?
« Reply #1 on: March 08, 2018, 04:34:32 PM »
You can pay via credit card even if you paper file the return.

https://www.irs.gov/payments/pay-taxes-by-credit-or-debit-card

FlorenG

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Re: E-file complex taxes, low cost, and pay with points credit card?
« Reply #2 on: March 08, 2018, 04:37:04 PM »
Thanks, I found that out shortly after my post :(  But they take about a 1.9% fee which is a little much...

kpd905

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Re: E-file complex taxes, low cost, and pay with points credit card?
« Reply #3 on: March 08, 2018, 07:24:15 PM »
If you use it for a sign up bonus you'll make a nice profit.

seattlecyclone

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Re: E-file complex taxes, low cost, and pay with points credit card?
« Reply #4 on: March 09, 2018, 11:15:38 AM »
Also there's no fee to e-file if you use Free File Fillable Forms. You still have to fill out the forms yourself but there's less chance of a math error or post office mishap than if you use paper.

bacchi

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Re: E-file complex taxes, low cost, and pay with points credit card?
« Reply #5 on: March 09, 2018, 10:21:04 PM »
Thanks, I found that out shortly after my post :(  But they take about a 1.9% fee which is a little much...

You need a 2% card and one that, like kpd905 wrote, has a sign up bonus. Hell, get 2-3 cards and split the payment.

The Barclay Arrival+ is a 2% card with a good travel bonus.

There are plenty of other cards that have a $200 bonus on $1000. Even at 2%, you're up at least $160.


FlorenG

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Re: E-file complex taxes, low cost, and pay with points credit card?
« Reply #6 on: March 22, 2018, 12:15:40 PM »
Yup, I think you guys might be right. Maybe this is a good time to open one of those cards they recommend on Travel Miles 101 and get a bunch of them from the bonuses...

CoffeeAndDonuts

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Re: E-file complex taxes, low cost, and pay with points credit card?
« Reply #7 on: March 24, 2018, 11:17:42 AM »
Paying fed taxes at 1.87% cost is a great way to generate some credit card spend you may not have organically.

No doubt, the 10% plus return on a sign up pairs well with it.

For me personally, 2% wouldn't be worth it unless the credit card float made it worthwhile.

That said, two cards I'd highlight are unequivocally well over 2%.

Bank of America travel rewards with paired with platinum honors status yields 2.625% back with no annual fee. Getting platinum honors is best achieved by moving $100k to Merrill edge. I'm very happy with that move on it's own merits (no fees, free trades). A rollover tira is the most common means. BoA is pretty liberal with converting other credit cards to travel rewards. Also worthwhile is the boa cash rewards which nets to 5.25% at gas stations and 3.5% back at grocery and discount warehouse clubs. That they regularly offer $900-$1000 for moving $200k in new money to Merrill edge is icing on the cake. Moving $50k there is good for a lot of the benefits too.

Less complex is the amex blue for business. No annual fee. 2 amex membership rewards points per dollar up to $50k. I have a hard time valuing amex Mr at less than $.015 so it's a 3% back card. Cashing out though to that value requires defraying travel costs by booking via transfer partners like Delta or some other more complex maneuvers that require another amex card in conjunction. I like it but it's not for everyone.

So... Going back full circle, sign up bonuses are the best but there are ways to be well over 2% without them that are well worth considering.