I owe $65k taxes - what’s the best way to benefit?

Meta
🔹 blue

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🔹 blue
Apr 2 29 Comments

How can I benefit from this much in taxes? I have the cash on hand but I also want to maximize my payment…

I’ve heard of paying through a credit card and racking up points… anything else I can do?

TC 365

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TOP 29 Comments
  • Amazon
    🍸prestige🍸

    Go to company page Amazon

    🍸prestige🍸
    How tf you owe 65k in taxes? You run your own business? You sold a house? You blew to the moon with GME?
    Apr 2 5
    • Investment Management Firm
      lCAT62

      Investment Management Firm

      lCAT62
      Careful Uber. Safe harbor is 110% of the past year tax if your income is above a threshold (something like 150k). Judging by how much you owe, you are over that threshold.
      Apr 7
    • Hubspot
      paiebthxid

      Go to company page Hubspot

      paiebthxid
      @ySfe02 I did sell more shares, I paid about $65k in estimated taxes throughout the year to try to avoid a big tax bill. I didn’t calculate tax burden exactly though, and it turned out to not be enough.
      Apr 9
  • Uber
    uOG

    Go to company page Uber

    uOG
    You can use a 2% card and make the difference of that and 1.87% with pay1040.

    Used to be a golden opportunity last year using PayPal key which counted as a debit card but was a proxy to your cc so you just had to pay a flat $2.20 fee, but sadly PayPal key went away 😭

    You can sign up for a new cc and use this to hit the sign up bonuses. There’s a few that give outsized bonuses for large spends like 20k+ for the first year that you can easily hit with this tax payment. You can also split and use two cards per payment processor for one tax payment and there are three of those so you can do up to 6 sign up bonuses this way.

    You can buy visa gift cards that count as debit cards and use that to pay taxes at the flat fee, although the largest denomination is 1k so you are capped to paying 5k this way at the lower fee and the rest you have to use your cc directly.

    Pay USA tax allow PayPal payments and discover had 5% cash back category on this but limited to $1500.

    Supposedly the best is nearside debit which is giving unlimited 2.2% cash back for using its debit card until 2023. Since it’s a flat $2.20 fee, this can potentially work but need to double check tax payments work.

    Look at this for more information about it all: https://frequentmiler.com/pay-taxes-via-credit-card/#

    In short use your cc to do it, and ideally if you find a debit card way and still earn cc rewards then you hit the jackpot. But you are just saving 2% or so typically this way.
    Apr 2 0
  • VMware
    OJBw57

    Go to company page VMware

    OJBw57
    Did you calculate your penalty for underpayment to his Lordship.
    Apr 2 3
  • Meta
    simulatios

    Go to company page Meta

    PRE
    Uber, Google
    simulatios
    Following, 95k. For a total of 300k total.

    I don’t think there really is an optimal way really. More like cutting your loss. Credit card payments to IRS seem to charge 1-2% fee (and also assuming you have the credit limit)
    Apr 2 0
  • Investment Bank
    Glinda

    Investment Bank

    PRE
    HP
    Glinda
    Only pay through a credit card, for points, if you pay it off immediately, and you take into account the fee the IRS collects when you pay via credit. Carrying that much debt will lower your credit rating which affects your insurance and other rates
    Apr 2 6
    • If its a personal credit card, it will show up on credit report and it has a slight tendency to decrease you score because your overall available credit ratio decreases.

      If people want to take advantage of 0% APR to pay their taxes, to get points, sign up bonus etc, i usually suggest them to do that by signing up for a business card instead of a personal. The above is not a problem for business cards.
      Apr 2
    • Google
      chewcheww

      Go to company page Google

      chewcheww
      Yes but the only credit hit is when you open?
      Apr 2