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My neighbor in Phoenix said he pays his quarterly taxes with a credit card for the points
We were talking about side gigs and he mentioned he puts his whole estimated tax payment on a travel card. He said he earned enough points last year for a free flight to Denver. It got me thinking about the card processing fee, which is about 1.87%, and if the rewards really beat that cost. Has anyone else run the numbers on this for their own freelance taxes?
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graceblack6mo ago
Honestly, have you checked if your card's rewards rate is actually higher than that fee? Tbh, a lot of basic cards won't beat it.
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william_henderson6mo ago
That's a clever hack, but graceblack is right about checking the math. The real risk I see is getting hit with a big tax bill and putting it on credit because you have the points option, then carrying a balance. Those interest rates would wipe out any rewards in a week. Do you think the convenience makes people less careful with saving up for taxes?
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