No Result
View All Result
Eye of the Flyer
  • BANK & Travel Cards ★
    • Credit Cards
    • Travel Rewards Cards
    • Airline Credit Cards
    • Hotel Credit Cards
    • Cash Back Credit Cards
    • No Annual Fee Credit Cards
    • Small Business Credit Cards
    • 0% Intro APR Cards
    • Balance Transfer Cards
  • Rookie
  • Elite Mileage Runs
  • αbout US ✉
  • BANK & Travel Cards ★
    • Credit Cards
    • Travel Rewards Cards
    • Airline Credit Cards
    • Hotel Credit Cards
    • Cash Back Credit Cards
    • No Annual Fee Credit Cards
    • Small Business Credit Cards
    • 0% Intro APR Cards
    • Balance Transfer Cards
  • Rookie
  • Elite Mileage Runs
  • αbout US ✉
No Result
View All Result
No Result
View All Result

Rookie Wednesday: How to pay your taxes to be Delta MQD exempt for $111 net!

René by René
November 12, 2014 - Updated on September 23, 2020
in Credit Cards, Rookie
11
Eye of the Flyer, a division of Chatterbox Entertainment, Inc. has partnered with CardRatings for our coverage of credit card products. Eye of the Flyer and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. As an Amazon Associate I earn from qualifying purchases.


RenesPoints Rookie

Welcome to a weekly feature on the Renés Points blog. Each week this series covers in a “rookie” way either a Delta or travel related theme and attempts to break down to a basic level each topic. You can read up on all the previous posts HERE. Now on to this week’s feature.

pay your tax with your credit card

There are so many times I get emails from folks, not just at the first of the year, but all year long about how they can get some help to meet the MQD exempt spend on their Delta AMEX card. There are many ways that work very well that are either creative or just every day spending.

The other day my fellow BA blogger Gary had a post that reminded me I need to rookie this topic. Since he is not a big Delta fan he did not touch on what is important to us as Delta flyers is becoming MQD exempt vs having to meet the rather large spending numbers flying Delta. There is no way I will spend enough next year to keep my Diamond status, but that really will not be a problem at all and I will be done in the first few months of 2015. How?

I have many ways I go about it that cost me very little but perhaps you are way too busy to do creative work to achieve this. Perhaps your time is worth enough that you just want something quick, simple and that works. Well then just pay your tax bill with your card (now it helps that you have a tax bill or can perhaps wait for a refund if you overpay). But having said that look at this. You can pay your taxes for as little as a 1.87% fee. If you happen to have a $30,000 tax bill and you pay that on your AMEX Reserve card you get:

  • 30,000 points for spending $30,000 and 15,000 bonus points netting you 45,000 points .
  • The 1.87% fee will cost $561 but you get $450 value of points = $111 net cost to you.

You can see the amazing results we can get by doing this. We knock out the $25,000 Delta MQD exempt spend threshold. We knock out the $30,000 bonus spend AMEX threshold and get both 15,000 bonus Skymiles and 15,000 bonus MQMs that can help you climb to a higher elite level. Since we can, as Delta AMEX card holders, use the pay with miles feature we get at a bare minimum 1 cent value per Skymile so we are getting $450 in value back. Thus, our net cost out of pocket is $111 to get this done this way.

paying large tax bill for points

Now I am NO tax expert. I am giving you NO tax advice. I can tell you I have done this myself in past years just not with a number as big as $30,000 (I did pay a rather large bill). So I can confirm this has worked just fine in the past and I plan to pay in January a rather sizable chuck of my taxes as well.

I would also have you consider this past rookie post to see if it is smart for you NOW to look at getting a Delta AMEX card or if it is smarter to WAIT until after 1JAN2015 to apply! – René
.
Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by American Express.

PS – Don’t forget I am giving away a $100 Delta e-Gift card this week

.

Gold-Platinum-Reserve Delta SkyMiles®
Credit Cards from American Express®
Click HERE for more info

 

Eye of the Flyer, a division of Chatterbox Entertainment, Inc. has partnered with CardRatings for our coverage of credit card products. Eye of the Flyer and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. As an Amazon Associate I earn from qualifying purchases.


Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Related

Tags: Rookie
Previous Post

Los Angeles to Madrid Spain 1st class $2160 & 19850MQMs at 10.9CPM holiday / vacation Delta Mileage Run

Next Post

My EU (EC) 261/2004 claim with Delta / KLM – You decide for me what to do next?!?

René

René

René de Lambert is a contributing writer for EyeoftheFlyer.com - He is an avid Delta and SkyTeam flyer who has held Delta’s top Diamond Medallion status for many years and flown millions of miles.

Next Post

My EU (EC) 261/2004 claim with Delta / KLM - You decide for me what to do next?!?

Comments 11

  1. Al says:
    8 years ago

    How about just changing your address? Would an address in an unincorporated US terrotery such as Puerto Rico or Guam get you exempted?

    Reply
    • rene says:
      8 years ago

      @AL – Uh, NO! http://deltapoints.boardingarea.com/2014/09/07/dumbest-things-can-get-free-discounted-travel/

      Reply
  2. Owen says:
    8 years ago

    Better still, go through a portal to buy Amex gift cards. This should offset most or all of the fee associated with paying taxes mentioned above. I have used Amex GCs to pay via this route.

    Reply
    • rene says:
      8 years ago

      @Owen – Sure I mention that but for simplicity sake this works. Plus, the problem you run there is you are MAX able to get $3000 AMEX gift card. As you can see by the screen shot, my payment was just a little higher 🙂

      Reply
  3. Levi says:
    8 years ago

    Any idea is your credit limit on the Amex Delta card isn’t ~30k? Can you call them and ask for a “1 time increase” or prepay your account with cash without setting off alarms?

    Reply
    • rene says:
      8 years ago

      @Levi – Yes and yes. You can do two things. One is send in an extra payment. Say you credit line is 10,000. You need to pay $12,000. You send in $3,000 then you for a little while have a $13,000 credit line. Or, as you mention, you can call or online request a one time credit line increase for a large purchase or charge. Or they may just bump you up as well. They MAY do a credit pull so be ready for that!

      Reply
  4. Gregg G says:
    8 years ago

    For those that live in Florida we can pay our FPL bills with Western Union’s SpeedPay for a $3.25 fee. My bill averages $400 per month, which is $4,800 of spend plus the $39 in fees. this is less than a $.01 per mile.

    Also if you have a time share mortgage with Marriott, you can call owner services and pay your mortgage with your amex for no fee.

    Reply
    • rene says:
      8 years ago

      @Gregg – Very nice! I love more and more options!

      Reply
  5. Bob F says:
    8 years ago

    A great reminder of benefits and low cost of using your Delta AMEX to pay taxes. Much easier than a mileage run!

    Reply
  6. Pingback: Rookie Wednesday: A look back on what we have covered so far (and beyond)! - Delta PointsDelta Points
  7. Pingback: Rookie Wednesday: Reader asks how to collect 1 million SkyMiles & 1 Million Membership Rewards points? Is this a smart move? - Eye of the FlyerEye of the Flyer

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

➤ Search Eye of the Flyer

No Result
View All Result

Subscribe

Subscribe To Our NewsletterJoin our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!

GREAT Travel and Cash Back Card Offers!

Eye of the Flyer May Receive a Commission from the links below. See our Privacy Policy

See CardRatings’ Top Credit Cards for This Month!

Chase Sapphire Preferred® Card travel rewards credit card

OFFER ENDS JUNE 1 at 6:00 PM EDT! Earn 60,000 80,000 bonus points after spending $4,000 in purchases within three months of card membership approval on the Chase Sapphire Preferred® Card! Learn here how to apply.

IHG Business Premier Rewards Credit Card

IHG® Rewards Premier Business Credit Card

BRAND NEW CREDIT CARD! Earn 140,000 bonus points after spending $3,000 in purchases within three months of card membership approval. Plus, complimentary Platinum elite status, great points bonuses, and more! Learn now how to apply!


Capital One Venture X Credit Card

Capital One Venture X

The brand new must-have “it” card for travel lovers! Earn 75,000 bonus points (worth at least $750 in travel) after spending $4,000 in purchases within three months of card membership approval. Plus, enjoy up $300 annually in statement credits for travel purchased through Capital One AND 10,000 bonus points every year, after the first anniversary. The $395 annual fee can EASILY be earned back — and then some! Learn now how to apply!

Chase Freedom Unlimited®

Chase Freedom Unlimited®

NEW WELCOME OFFER! Earn 1.5 bonus points on top of the other points you earn during the first year of card membership. (A $20,000 spending cap applies.) Learn now how to apply!

IHG® Rewards Premier Credit Card

IHG® Rewards Premier Credit Card

REFRESHED CARD! Earn 140,000 bonus points after spending $3,000 on purchases within three months of account opening. Plus, earn 5X points on travel, gas stations, and restaurants. 3X on everything else. Learn now how to apply!


The Platinum Card® from American Express

The Platinum Card® from American Express

THE classic travel benefits card! Earn 100,000 bonus Membership Rewards points after spending $6,000 in eligible purchases within six months of being approved. See rates and fees. Terms apply. Learn now how to apply!

American Express Business Platinum

The Business Platinum Card® from American Express

Earn 35% Membership Rewards rebates when paying with points for an eligible flight booked through Amex Travel! (Capped at 1,000,000 points a year, enrollment may be required.) Terms apply. Learn now how to apply!

  Earn cash back with Rakuten (formerly known as Ebates) Earn cash back with TopCashback! RebatesMe Earn cash back with DOSH!

✍ Editors Disclaimer | lock, login, protection, secure icon Privacy Policy | $ Advertisers Disclosure

 

Subscribe

Subscribe To Our NewsletterJoin our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!

  • BANK & Travel Cards ★
  • Rookie
  • Elite Mileage Runs
  • αbout US ✉

Copyright © 2021 Eye of the Flyer

No Result
View All Result
  • BANK & Travel Cards ★
    • Credit Cards
    • Travel Rewards Cards
    • Airline Credit Cards
    • Hotel Credit Cards
    • Cash Back Credit Cards
    • No Annual Fee Credit Cards
    • Small Business Credit Cards
    • 0% Intro APR Cards
    • Balance Transfer Cards
  • Rookie
  • Elite Mileage Runs
  • αbout US ✉

Copyright © 2021 Eye of the Flyer

Cleantalk Pixel

Subscribe To Our Newsletter


Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!