 |
|
|
April 11, 2002
"Paying Taxes With Your Credit Card"
Host: Unless you've been living under a rock, you know income taxes are due Monday. Sorry about that. But in this week's edition of "The Road To Riches," personal finance expert Jordan Goodman talks about how something good can come out of having to give it up for Uncle Sam.
Dear IRS:
Please charge my credit card for the amount due on my 2001 tax return. And thank you very much for this option. Sincerely, John and Jane Q. Public »Is this a letter you should write? Maybe. If you pay your balance monthly, and won't incur interest for doing so, paying your taxes by credit card can be a smart money move. Here's how: The biggest news this year in the field of paying your taxes by credit card is that Visa has joined the federal and state tax payment programs. This gives consumers a wider choice, and has spurred competition among the card companies to woo these consumers. For example, American Express is offering double miles on its Delta SkyMiles card for federal payments, and the First USA/United Airlines Visa is offering 5,000 bonus miles for federal payments. Here are some details on the programs mentioned: •First USA and United Offer 5,000 Bonus MilesEarn United Mileage Plus bonus miles by paying income taxes with the United Mileage Plus Visa card United Airlines and First USA, Bank One's credit card company, announced that consumers can Earn More Miles this tax season by using their United Mileage Plus Visa card to pay their 2001 income taxes. Cardmembers will earn one point for each dollar spent paying their taxes. In addition, when they use their card to pay taxes through May 30, 2002, they will receive 5,000 bonus miles, which will be reflected on their Mileage Plus statements. To pay taxes with the Mileage Plus Visa credit card, or for additional information about this process, call 1-800-2PAYTAX or go to their Web site www.officialpayments.com•American Express Cardmembers Can Earn Rewards For Paying 2001 Income Taxes on the Card
American Express Cardmembers can earn reward points or miles when using their card to pay their 2001 personal federal or state income tax, if they are enrolled in the Membership Rewards program from American Express, or have a co-brand card tied to a rewards program. Cardmembers enrolled in the Membership Rewards program can earn one point for every dollar spent when paying their taxes with an eligible card. Points are then redeemable for a wide selection of rewards, including travel and vacation packages, retail merchandise, and shopping gift certificates from a variety of popular retailers. Other American Express cards that offer rewards for tax payments include: •Delta SkyMiles Credit Card
Cardmembers can earn double SkyMiles when paying federal taxes, or one SkyMile when paying state taxes, on their card between February 15 through April 16, 2002 when filing through Official Payments Corp. SkyMiles can be used for travel on Delta, Delta Connection carriers, Delta Express, Delta Shuttle and Delta's airline partners. •Hilton HHonors Platinum Credit Card
Cardmembers earn three Hilton HHonors bonus points when paying their taxes on the card. Hilton HHonors points are redeemable for free hotel stays at Hilton, Conrad, Doubletree, Embassy Suites Hotels, Hampton Inn, Hampton Inn & Suites, Hilton Garden Inn and Homewood Suites by Hilton, as well as for free airline tickets, free vacation packages, and other great travel rewards. •Starwood Preferred Guest Credit Card
Cardmembers earn one Starpoint and will be able to redeem Starpoints for free nights at Starwood Hotels & Resorts, including The Luxury Collection, St. Regis, Sheraton, Westin, Four Points by Sheraton and W Hotels, or for airline miles on major carriers with a conversion rate of one Starpoint for one mile with most airline partners. Cardmembers, who plan to use the American Express Card this tax season to pay their federal or state income taxes, can pay their taxes through Official Payments Corporation. (call 1-800-2PAYTAX or go to their Web site www.officialpayments.com) Taxpayers who pay with plastic will be charged a convenience fee that is set and collected by the payment processor. The convenience fee is based on the size of a cardmember's tax bill. Again this year, taxpayers paying with plastic will have the option of paying any balance due on their taxes (Form 1040), requesting an extension of time to file (Form 4868), or paying their estimated taxes (Form 1040-ES). Additionally, taxpayers in 21 states have the option of paying their state taxes on their card. Pennsylvania and Rhode Island are new states accepting the American Express Card for the 2001 tax season. These states join Alabama, Arkansas, California, Connecticut, Illinois, Indiana, Iowa, Kansas, Maryland, Minnesota, Mississippi, New Jersey, New York, Ohio, Oklahoma, Virginia, Washington, Wisconsin, West Virginia and the District of Columbia.
|
Minnesota Public Radio | Search | Comments | © Copyright & Terms of Use | Privacy |