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  • janettebournes
    replied
















    So I have a credit card bill due on Saturday, $63K, set up to auto-pay out of my USAA checking account. (No, we didn’t spend that much. It includes our first quarter estimated tax payment.) But I notice I only have $37K in there. No big deal, I’ll just transfer money.
    Click to expand…


    Why do you pay your taxes by CC and pay the fee? Convenience? I seem you recall you mentioning your reason in the past but I couldn’t find it.
    Click to expand…


    2% back on the card and 1.87% fee. I come out a little ahead, but the convenience and float is the main reason. https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card
    Click to expand…


    It’s a free $82 ([0.02 – 0.0187] x $63k) for doing something that is *ideally* equally as convenient.  It just lost its convenience temporarily.
    Click to expand…


    Looking at most of the credit cards out there that offer 2% back and I find the following:

    1. Most cards with 2% back come with annual fees.

    2. Many don’t reward you with a straight 2% cash back but with points that will eventually get translated into a plane ticket or other travel rewards. This obfuscates the actual reward (are you buying a plane ticket where the price has been artificially increased to account for the bigger reward? Or restricted to a certain airline that you otherwise wouldn’t have flown?)

    Also – He didn’t specify how much of the $63k was taxes. If it was only $40k (I have no idea) his rewards is $52 for the taxes paid (and 2% of what’s left over). That’s still $23k in monthly expenses so maybe his taxes are closer to $55k.

    PS – It doesn’t matter (and I don’t care what he does) but it’s a fun thought exercise!

    Regardless I’m glad to hear it all worked out!

     
    Click to expand...


    1. The Citi Double Cash card doesn't come with an annual fee

    2. The Citi Double Cash card also gives 2% straight cash back in numerous convenient ways: direct deposit, check, statement credit

    For some reason, I haven't had much luck with Fidelity's card. I find the security to either be too strict (restricting my purchases) or too lax (just got hacked last weekend with a $5000 charge to some social justice website. I barely spend $5000/month, definitely not cranking out donations in the sum of $5000!)

    Leave a comment:


  • RogueDadMD
    replied


    Looking at most of the credit cards out there that offer 2% back and I find the following: 1. Most cards with 2% back come with annual fees. 2. Many don’t reward you with a straight 2% cash back but with points that will eventually get translated into a plane ticket or other travel rewards. This obfuscates the actual reward (are you buying a plane ticket where the price has been artificially increased to account for the bigger reward? Or restricted to a certain airline that you otherwise wouldn’t have flown?) Also – He didn’t specify how much of the $63k was taxes. If it was only $40k (I have no idea) his rewards is $52 for the taxes paid (and 2% of what’s left over). That’s still $23k in monthly expenses so maybe his taxes are closer to $55k. PS – It doesn’t matter (and I don’t care what he does) but it’s a fun thought exercise! Regardless I’m glad to hear it all worked out!
    Click to expand...


    Citi DoubleCash gives 2% back all the time as cash (which it sounds like he gets already).

    Something like the SWA card is a better deal if you fly a lot -- the Companion pass is worth a lot of money on its own.  The airline points aren't worth 2% on their own, but combined with the Companion pass = a lot of free plane tickets that could add up to more than the .13% he's getting now.

    Leave a comment:


  • The White Coat Investor
    replied
















    So I have a credit card bill due on Saturday, $63K, set up to auto-pay out of my USAA checking account. (No, we didn’t spend that much. It includes our first quarter estimated tax payment.) But I notice I only have $37K in there. No big deal, I’ll just transfer money.
    Click to expand…


    Why do you pay your taxes by CC and pay the fee? Convenience? I seem you recall you mentioning your reason in the past but I couldn’t find it.
    Click to expand…


    2% back on the card and 1.87% fee. I come out a little ahead, but the convenience and float is the main reason. https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card
    Click to expand…


    It’s a free $82 ([0.02 – 0.0187] x $63k) for doing something that is *ideally* equally as convenient.  It just lost its convenience temporarily.
    Click to expand…


    Looking at most of the credit cards out there that offer 2% back and I find the following:

    1. Most cards with 2% back come with annual fees.

    2. Many don’t reward you with a straight 2% cash back but with points that will eventually get translated into a plane ticket or other travel rewards. This obfuscates the actual reward (are you buying a plane ticket where the price has been artificially increased to account for the bigger reward? Or restricted to a certain airline that you otherwise wouldn’t have flown?)

    Also – He didn’t specify how much of the $63k was taxes. If it was only $40k (I have no idea) his rewards is $52 for the taxes paid (and 2% of what’s left over). That’s still $23k in monthly expenses so maybe his taxes are closer to $55k.

    PS – It doesn’t matter (and I don’t care what he does) but it’s a fun thought exercise!

    Regardless I’m glad to hear it all worked out!

     
    Click to expand...


    1. Fidelity doesn't.

    2. Fidelity does.

    I was planning to change to USAA's 2.5% back card, but apparently they don't pay rewards on tax payments.

    Leave a comment:


  • ITEngineer
    replied













    So I have a credit card bill due on Saturday, $63K, set up to auto-pay out of my USAA checking account. (No, we didn’t spend that much. It includes our first quarter estimated tax payment.) But I notice I only have $37K in there. No big deal, I’ll just transfer money.
    Click to expand…


    Why do you pay your taxes by CC and pay the fee? Convenience? I seem you recall you mentioning your reason in the past but I couldn’t find it.
    Click to expand…


    2% back on the card and 1.87% fee. I come out a little ahead, but the convenience and float is the main reason. https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card
    Click to expand…


    It’s a free $82 ([0.02 – 0.0187] x $63k) for doing something that is *ideally* equally as convenient.  It just lost its convenience temporarily.
    Click to expand...


    Looking at most of the credit cards out there that offer 2% back and I find the following:

    1. Most cards with 2% back come with annual fees.

    2. Many don't reward you with a straight 2% cash back but with points that will eventually get translated into a plane ticket or other travel rewards. This obfuscates the actual reward (are you buying a plane ticket where the price has been artificially increased to account for the bigger reward? Or restricted to a certain airline that you otherwise wouldn't have flown?)

    Also - He didn't specify how much of the $63k was taxes. If it was only $40k (I have no idea) his rewards is $52 for the taxes paid (and 2% of what's left over). That's still $23k in monthly expenses so maybe his taxes are closer to $55k.

    PS - It doesn't matter (and I don't care what he does) but it's a fun thought exercise!

    Regardless I'm glad to hear it all worked out!

     

    Leave a comment:


  • RogueDadMD
    replied


    2% back on the card and 1.87% fee. I come out a little ahead, but the convenience and float is the main reason. https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card
    Click to expand...


    Maybe it isn't worth the hassle to you, but couldn't you also use this to generate massive credit card rewards from places with signon bonuses, etc?

    You could get a SWA Companion Pass really easily.  That's a free ticket for someone to go with you everytime you fly SWA, plus the massive amount of points themselves to pay for the rest of the tickets.

    Maybe you just drive everywhere with the family for the hiking so that's not worth much, but if you fly as a family that makes back your $ very quickly.

    Leave a comment:


  • The White Coat Investor
    replied













    So I have a credit card bill due on Saturday, $63K, set up to auto-pay out of my USAA checking account. (No, we didn’t spend that much. It includes our first quarter estimated tax payment.) But I notice I only have $37K in there. No big deal, I’ll just transfer money.
    Click to expand…


    Why do you pay your taxes by CC and pay the fee? Convenience? I seem you recall you mentioning your reason in the past but I couldn’t find it.
    Click to expand…


    2% back on the card and 1.87% fee. I come out a little ahead, but the convenience and float is the main reason. https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card
    Click to expand…


    It’s a free $82 ([0.02 – 0.0187] x $63k) for doing something that is *ideally* equally as convenient.  It just lost its convenience temporarily.
    Click to expand...


    It didn't even draft Saturday. It drafted Monday! Oh well. It all worked out.

    Leave a comment:


  • DMFA
    replied










    So I have a credit card bill due on Saturday, $63K, set up to auto-pay out of my USAA checking account. (No, we didn’t spend that much. It includes our first quarter estimated tax payment.) But I notice I only have $37K in there. No big deal, I’ll just transfer money.
    Click to expand…


    Why do you pay your taxes by CC and pay the fee? Convenience? I seem you recall you mentioning your reason in the past but I couldn’t find it.
    Click to expand…


    2% back on the card and 1.87% fee. I come out a little ahead, but the convenience and float is the main reason. https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card
    Click to expand...


    It's a free $82 ([0.02 - 0.0187] x $63k) for doing something that is *ideally* equally as convenient.  It just lost its convenience temporarily.

    Leave a comment:


  • The White Coat Investor
    replied







    So I have a credit card bill due on Saturday, $63K, set up to auto-pay out of my USAA checking account. (No, we didn’t spend that much. It includes our first quarter estimated tax payment.) But I notice I only have $37K in there. No big deal, I’ll just transfer money.
    Click to expand…


    Why do you pay your taxes by CC and pay the fee? Convenience? I seem you recall you mentioning your reason in the past but I couldn’t find it.
    Click to expand...


    2% back on the card and 1.87% fee. I come out a little ahead, but the convenience and float is the main reason. https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card

    Leave a comment:


  • DMFA
    replied







    So I have a credit card bill due on Saturday, $63K, set up to auto-pay out of my USAA checking account. (No, we didn’t spend that much. It includes our first quarter estimated tax payment.) But I notice I only have $37K in there. No big deal, I’ll just transfer money.
    Click to expand…


    Why do you pay your taxes by CC and pay the fee? Convenience? I seem you recall you mentioning your reason in the past but I couldn’t find it.
    Click to expand...


    If CC points bonus is greater than the fee, you profit.

    Leave a comment:


  • ITEngineer
    replied




    So I have a credit card bill due on Saturday, $63K, set up to auto-pay out of my USAA checking account. (No, we didn’t spend that much. It includes our first quarter estimated tax payment.) But I notice I only have $37K in there. No big deal, I’ll just transfer money.
    Click to expand...


    Why do you pay your taxes by CC and pay the fee? Convenience? I seem you recall you mentioning your reason in the past but I couldn't find it.

    Leave a comment:


  • DMFA
    replied
    I don't have that good of a problem.  I guess I'm living in the second-world...?

    Leave a comment:


  • adventure
    replied
    Last time I encountered this issue, I walked into the bank, and asked if they would make the entire deposit available ASAP, as they wait for the check to clear. National bank, they said yes, no worries.

     

    Alternatively, you could take out cash from bank 1's ATMs all over town, and deposit it at bank 2's ATM. Might take a few trips, but I think the cash I deposited at an ATM is available immediately.

    * could be good exercise on a bicycle.

     

    I agree about cancelling autopay too.

    Leave a comment:


  • wideopenspaces
    replied
    I love USAA so much. They have the best customer service. When a large chunk of our home was damaged by a hurricane they allowed us to increase our credit limit and didn't charge interest for 6 months so we could pay our contractor to fix the house without waiting for our insurance company to give us our money. We were able to get back into our house after 2 months while many others had to wait much longer to fix their homes.

    Leave a comment:


  • StarTrekDoc
    replied
    Great you got this to work; it's these times where online chat or old fashioned phone works to loosen up the holds.  With good history of banking and reliable funds source, they'll release holds without issues.

    Phone/Voice/Chat elbow grease still exists for banking loyalty.

     

    Leave a comment:


  • The White Coat Investor
    replied
    So I tried the mobile deposit today. No dice there. Now I have another $5K deposit but none of it available. So I thought I'd try the old-fashioned way of just calling them up and begging them to make more of the deposit available. It worked.

    The unfortunate side effect is that on Monday I'll have way too much in checking! Oh well, at our low interest rates that sort of thing doesn't cost much.

    Leave a comment:

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