I owe ~$20k for federal taxes. According to AI, the fee to pay the IRS with a CC is 1.75-1.85%. The Citi Double Cash earns 2% back. I’m thinking about paying the taxes with this CC. The only issue is my limit is $11,500, but I suspect I can make a payment now for $10k, then pay it off and wait a few days since it is early enough, then make another payment for another $10k. Or, I just settle for partially paying with cash and partially paying with this card. Is this a good idea? What’s especially motivating me to want to do this is because I recently transferred my Citi ThankYou points to American Airlines (I have the Citi Strata Premier) and redeemed an interntaional biz class flight (my first one) for 60K points. It was such a great experience. This could help rebuild my ThankYou point balance. Thanks in advance!
Thinking about paying my federal taxes with my Citi Double Cash
byu/MentalImportance3528 inCreditCards
Posted by MentalImportance3528
2 Comments
Don’t credit cycle. Just open a new card with a sign-up bonus you want. Once you max out the new card and get its bonus, put the rest on your 2% card or whatever
Should have done it earlier so you had 2 or more cycles to work with, but yea don’t credit cycles. Open a new card so you get the sign up bonus as well, since you with citi, try strata elite, or any of the AA cards if that’s what float you boat. Also lots of boost sign up bonuses else where 175k-300k with amex depending on what card and bonus you get.