Overpaying taxes for rewards

[yfan]

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@Involver wrote:

I genuinely don't understand why my inquiry is so upsetting to you.

I didn't say I was going to do it.  

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Like kdm said, we are not stupid.

[[Edited: tax payments would only be the same as cash-equivalents if a specific agreement forbids earning rewards from them.]]

Practically speaking, the IRS is probably not going to stop you from overpaying your taxes, although your issuer may not be so kind. But since I doubt any "category" cards cover taxes, just how much reward can you expect on the 20K? You are also looking at paying around 2% in fees just to pay your taxes with a credit card  - which will probably wipe your rewards anyway.

[Anonymous]

I don't think the OP set out to call anyone stupid, so let's calm down.

[longtimelurker]

In the worse case the refund would go back to the card.  I would assume that they don't!

[elim]

If you pay via "PayUSATAX.com" it is 1.87% when paying with a MasterCard. Visa is over 2%.

so if you can find a 2% MC in your arsenal and make a 20k overpayment...

you will net $26.

ehh.

[Anonymous]

Arrival+?

[yfan]

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@Anonymous wrote:
Arrival+?

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That's $80. I am not sure I will ever find it reasonable to tie up $20,000 to get 80 bucks and take the chance that Barclay's is going to take AA.

[Anonymous]

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@Anonymous wrote:
I don't think the OP set out to call anyone stupid, so let's calm down.

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I agree.. Why is this such a sensitive subject? I just don't get it.

[elim]

Way to think outside the box OP. I like it!

keep em' coming!

[kdm31091]

For the record, I wasn't saying the OP set out to call anyone stupid. They didn't. I was simply saying that we are not stupid enough to think that paying your taxes with CC is the same as overpaying, to the tune of 20 grand, for the hopes of less than a hundred dollars in rewards.

Makes absolutely no sense to tie up so much money, hope you won't get AA from the lender, likely max out your card, wait months for a refund, to get $75 or less? Why in the world...?

[Anonymous]

Not worth it just for standard rewards.