Expecting A Tax Bill? Open A New Credit Card!

It’s everyone’s favorite or least favorite time of year again… Tax preparation season! For most small businesses and individual’s who elect to have less taxes taken out of their paychecks, January 15th is your final quarterly payment due date for the 2021 tax year. These large payments are often one of the easiest ways to reach your intro bonus spending goals and earn outside value for your points. Let’s take a look at some of the large welcome bonuses currently being offered and why it makes sense to pay the fee!

Fee For Using A Credit Card

One of the first questions I get asked is, “Don’t they charge a fee to use a credit card”? Yes, There is a 1.87% fee associated with using a credit card however, if you are earning a 2%(2 cents per point) or higher return then it makes financial sense to pay that fee. For example, if you open an American Express Gold Card your intro bonus is 75,000 Membership Reward points for $4,000 spend in the first 6 months.

Let’s say your tax bill is $4,000 and the “convenience fee” is 1.87%(the current fee from pay1040.com), this would mean that you would actually be paying $4,074.80. Your intro bonus(75K points) is worth $1,500(2 cents per point) so therefore you are paying $74.80 to earn $1,580 worth of points(75K points + 4000 points for actual spend = $1,580 value)! I will gladly pay $74.80 to earn $1,580 on something I was going to pay anyways.

Large Welcome Bonuses

The start of the new year is bringing some large intro bonuses for both American Express and Chase.

1. American Express Platinum – Currently offering 150,000 Membership Reward points once you spend $6,000 in the first 6 months. Combine that with benefits like 5X points on all travel booked through amextravel.com or the airline directly, a $200 airline credit, access to the Delta SkyClub, access to the American Express Centurion Lounges, Hilton Honors Gold status, Marriott Bonvoy Gold Elite status, National Rental Car Executive status, $100 a year to Saks Fifth Avenue, and a $120 Uber/Uber Eats Credit and this intro bonus will pay for the annual fee for years to come!
2. American Express Gold – Currently offering 75,000 Membership Reward points for $4,000 in spend in the first 6 months. As discussed above, this membership offer is worth approximately $1,500 in points! The American Express Gold is arguably the card I use the most, offering 4X Membership Rewards points at restaurants and grocery stores, 3X points on travel, and 1x point on everything else as well as $120($10 a month) to Uber/Uber Eats for a modest $295 annual fee. This card is where I put a majority of my everyday spend and has been ranked as the top “Keeper Card” by majority of us in the Points Game.
3. Chase Freedom Unlimited/Flex – Currently offering $200 bonus for $500 in spend in the first 3 months. If you are looking for a no annual fee cash back card, the Chase Freedom Unlimited or Chase Freedom Flex are your go to products! You can earn 5% back at grocery stores(excluding Walmart and Target) on both cards and either 1.5% cash back on the Chase Freedom Unlimited or 5% back on quarterly rotating categories with the Chase Freedom Flex. I personally have the Chase Freedom Unlimited for stores that do not accept American Express.
4. American Express Hilton Aspire – Currently offering 150,000 Hilton Honors points after $4,000 spend in your first 3 months. The Hilton Aspire card is arguably one of the best cobranded hotel cards on the market, providing you Hilton Diamond Status and unlocking a bunch of free perks! These perks include $250 Airline credit, $250 Hilton Incidental credit, free breakfast, early check-in, late checkout, free WiFi, and most importantly Enhanced room upgrades! These room upgrades can often save you hundreds of dollars a night by allowing you to book a normal room and upgrading you to a suite, or in the case of traveling to the Maldives… THOUSANDS OF DOLLARS A NIGHT!

Keep in mind, if you are looking to maximize your earnings and have a large enough tax bill… you can open multiple cards to capitalize! What are you going to do with all of your free points after you pay Uncle Sam? Drop a comment below!