It’s that time of year again! April 15, 2015, is the IRS tax filing deadline, and readers often ask if it’s worth paying taxes with a credit card to earn miles and points.
I’ve written about paying income taxes with a credit card, and whether doing so will code as a cash advance (it won’t).
But because you’ll pay processing fees of up to 2.35%, it’s generally not worth it except under specific circumstances.
Paying Taxes With a Credit Card Might Make Sense in Certain Situations
Here’s how to pay taxes with a credit card and when it might make sense for you.
Do you have the Barclaycard US Airways card?
If so, your card will soon be switched to the Barclaycard American Airlines Aviator card. And to encourage you to use their cards, Barclays is offering a 50% bonus on miles (up to 10,000 miles) earned from spending with either card through June 30, 2015!
You Should Receive Your New Barclaycard American Airlines Aviator Card in the Mail Between April 1, 2015, and July 15, 2015
I’ll show you how to get in on this deal!
First, I must say, I love maps! So I am very biased in favor of this free tool that quickly shows where you can fly with British Airways Avios points!
One of the best uses of British Airways Avios points is for short-haul domestic flights on partner airlines like American Airlines, US Airways, and Alaska Airlines.
That’s because they have a distance-based award chart, which means you’ll pay fewer points (and no fuel surcharges) for shorter trips.
The visual map tool by Wandering Aramean makes it much easier to figure out how many British Airways Avios points you’ll need for a short-haul, nonstop award flight.
Where Can You Go With British Airways Avios Points? This Tool Will Show You!
The site will save you a lot of time. Now you don’t have to look up distances (by using Great Circle Mapper for example) or award charts. I’ll show you how to use it!
And I’ll remind you of 3 easy ways to collect lots of British Airways Avios points for your flights!
Citi has added Australia’s largest airline as the newest transfer partner to their Citi ThankYou points program.
You can now transfer Citi ThankYou points to Qantas at a 1:1 ratio. So they now have 11 airlines (plus Hilton hotels) to choose from.
Just last month, Citi added Virgin Atlantic as a partner, so they’re expanding to compete with other transferable points programs like Chase Ultimate Rewards and American Express Membership Rewards.
But there are very few situations where transferring points to Qantas would make sense. That’s because their award chart is expensive compared to most other airlines, and they add fuel surcharges!
Is Transferring Citi ThankYou Points to Qantas a Reason to Jump for Joy?
Let’s have a quick look at Qantas’ frequent flyer program and see if it’s worth transferring points.
Are you planning medium or long-haul domestic award flights in the next few months? Do you live in a city not served by many nonstop American Airlines flights? And do you have a lot of American Airlines miles?
If so, you might save miles by booking Citi AAdvantage American Airlines reduced mileage awards!
The new list of Citi AAdvantage American Airlines reduced mileage award cities is out. You could save 5,000 to 7,500 miles on award tickets between specific destinations which change each month.
But only if you hold certain Citi American Airlines cards.
And there’s good news! American Airlines no longer charges a phone booking fee for reduced mileage awards. In the past, American Airlines charged $25 per ticket.
Spend Fewer Miles With American Airlines Reduced Mileage Awards
American Airlines publishes the list of eligible destinations every other month, with discounts listed for the next 4 months.