I paid my quarterly taxes with a credit card to earn a sign-up bonus


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As a self-employed freelancer, one factor that tends to creep up on me is paying estimated quarterly taxes. Just like how the vacations are right here earlier than you already know it, so is having to pay Uncle Sam.

When I had a day job, I solely wanted to fear about paying taxes in the course of the common tax season. But since I’ve been working for myself, I want to pay taxes each three months. And it is usually a truthful chunk of change — we’re speaking a number of thousand . 

One yr, I used tax time as a chance to swoop in on a candy introductory bonus deal from the Ink Business Preferred® Credit Card. At the time, in case you spent $5,000 the primary three months of getting your card, you’d earn 120,000 factors (this supply is now not obtainable — the present supply on the card is for 100,000 factors after spending $15,000 on purchases within the first three months from account opening).

Here’s how I raked in 120,000 bonus factors on my small-business credit card by paying off my quarterly self-employed estimated taxes.

We’re targeted right here on the rewards and perks that come with every card. These playing cards will not be price it in case you’re paying curiosity or late charges. When utilizing a credit card, it is necessary to pay your steadiness in full every month, make funds on time, and solely spend what you possibly can afford to pay.

Regular APR

15.99%–20.99% variable APR

Credit Score

Good to Excellent

Featured Reward

100,000 factors after spending $15,000 on purchases within the first three months from account opening

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  • Details
  • Pros & Cons

    • Earn 100okay bonus factors after you spend $15,000 on purchases within the first three months from account opening. That’s $1,000 money again or $1,250 towards journey when redeemed via Chase Ultimate Rewards®
    • Earn three factors per $1 on the primary $150,000 spent on journey and choose enterprise classes every account anniversary yr. Earn 1 level per $1 on all different purchases
    • With Fraud Protection your card transactions will probably be monitored for potential indicators of fraudulent exercise utilizing real-time fraud monitoring
    • With Zero Liability you will not be held chargeable for unauthorized fees made with your card or account info
    • Redeem factors for money again, present playing cards, journey and extra – your factors do not expire so long as your account is open
    • Points are price 25% extra while you redeem for journey via Chase Ultimate Rewards®
    • Purchase Protection covers your new purchases for 120 days in opposition to injury or theft up to $10,000 per declare and $50,000 per account
    • $95 Annual Fee
    Pros
    • High sign-up bonus
    • Offers 3x bonus factors on a number of spending classes, together with journey and promoting purchases
    • Includes complete journey protection
    Cons
    • Welcome bonus has a very excessive minimal spending requirement


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    I utilized for the card at tax time

    Because I wished to begin placing all my business-related bills on my Ink Business Preferred® Credit Card at the start of the yr, I waited till January to apply. In reality, my very first transaction on the brand new card was to pay my quarterly estimated taxes, which have been due on January 15. It was about $three,800, and I paid the total quantity on-line.

    Because I had three months to full the minimal spending requirement, and estimated taxes are due each three months, there’s a good probability I would find a way to make one among my estimated tax funds with my card. But I did not need to take any probabilities, so determined to open a card proper earlier than the January 15 fee was due.

    I paid the total tax invoice with my card

    If you utilize a credit card to pay your estimated taxes, there may be a minimal processing payment of 1.99%. Yes, I was absolutely conscious that just about 2% is not chump change, and a couple of% of $three,800 is about $76.

    When you might have the Ink Business Preferred® Credit Card, your Chase Ultimate Rewards factors are price 1.25 cents every while you redeem them for journey via the Chase Travel Portal, and 1 cent every f you redeem for money. By utilizing my tax fee to earn the welcome bonus, I was taking a look at factors price $1,200 in money or $1,500 in journey.

    Because I had that cash saved up for taxes (I save a proportion of my earnings simply to pay Uncle Sam), I paid my steadiness in full the next month. Using a credit card was purely for the factors.

    I referred colleagues for additional factors

    The Ink Business Preferred® Credit Card additionally gives a referral program. At the time, for each one that used my referral hyperlink to enroll and get authorised for the card, I earned 10,000 bonus factors (these gives go up and down periodically). This solely occurred a couple of times, nevertheless it was fairly straightforward and my associates have been already curious and knew a truthful quantity about that individual card. 

    Right now, the Ink Business Preferred® Credit Card gives 100,000 factors after spending $15,000 on purchases within the first three months from account opening. It’s a lot of cash, little question, however in case you’ve received a hefty tax invoice you might simply meet the spending requirement.

    Quick tip: If you are contemplating paying taxes with a credit card, try our listing of the best current credit card bonuses available right now. You can compare the minimum spending requirements in one spot to figure out which card fits your situation.

    If you owe less on your taxes, other small-business credit cards might suit you better. For example, the no-annual-fee Ink Business Cash® Credit Card and Ink Business Unlimited® Credit Card offer $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening.

    I made the most of the bonus categories

    While some cards offer bonus categories on groceries and gas, the Ink Business Preferred® Credit Card earns 3 points per dollar on travel, shipping, phone, cable, internet, and search engine or social media advertising purchases (up to $150,000 in combined purchases per year, then 1x) and 1 point per dollar on everything else.

    As these are issues I spend cash on anyway for my enterprise, I arrange autopay for my cellphone and web payments and linked them to my Ink Business Preferred® Credit Card. That approach, I rake in additional factors on recurring month-to-month purchases.

    You’ll want to do some primary math to see what the processing prices are to use a credit card to pay your taxes. But in case you’re self-employed and pay estimated taxes every quarter — and relying on how a lot you owe — it might be price it to pay with a credit card and benefit from a lovely welcome bonus supply.

    Disclosure: This publish is introduced to you by the Personal Finance Insider staff. We often spotlight monetary services that may show you how to make smarter selections with your cash. We don’t give funding recommendation or encourage you to undertake a sure funding technique. What you determine to do with your cash is up to you. If you’re taking motion primarily based on one among our suggestions, we get a small share of the income from our commerce companions. This doesn’t affect whether or not we function a monetary services or products. We function independently from our promoting gross sales staff.

    Disclosure: This publish is introduced to you by the Personal Finance Insider staff. We often spotlight monetary services that may show you how to make smarter selections with your cash. We don’t give funding recommendation or encourage you to undertake a sure funding technique. If you’re taking motion primarily based on one among our suggestions, we get a small share of the income from our commerce companions. This doesn’t affect whether or not we function a monetary services or products. We function independently from our promoting gross sales staff.

    Please observe: While the gives talked about above are correct on the time of publication, they’re topic to change at any time and will have modified, or could now not be obtainable.



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