Tax Day is just around the corner and if your luck is anything like mine, you probably owe the IRS some money. As you’re filing, you might want to consider paying your taxes on a credit card. Though paying with a credit card comes with some fees, it might make sense to do so if you’re looking to cash in on some travel rewards.
Check this out:
Let’s say you owe $4,000 in taxes. The fee for using a credit card to file is 3%. That comes out to $120 extra.
If you open the Capital One Venture Rewards Card and use it to pay what you owe, you’ll automatically hit the $4,000 intro bonus requirement and receive 75,000 points. Even with the $120 fee and the Venture’s $95 annual fee, you’re still in the green when you consider what 75,000 points can get you. With that size of an intro bonus you could:
- Fly roundtrip from the US to Europe by transferring your miles to Air France, British Airways, Virgin Atlantic, Avianca, and more
- Get up to 10 domestic US one-way flights on United by transferring your miles to Turkish Airlines
- Take a one-way business flight to Asia by transferring your miles to Virgin Atlantic or Air Canada and flying ANA
- Stay multiple nights in a Wyndham Hotel by transferring your miles to Wyndham Rewards
It’s super important that you pay the card off before the next cycle. Only pay with a credit card if you have the cash on hand to do so. Carrying a balance incurs interest, and every month that goes by diminishes the real value of your points.
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