# Cheap points, just for paying my taxes!



## wayman (Apr 14, 2010)

I just e-filed my PA taxes. I had the option of paying directly from my checking account or paying by credit card (and later paying my credit card bill from the same checking account). There was a $1.92 "convenience fee" for filing by credit card.

Paying by credit card -- the AGR MasterCard of course -- I basically spent $1.92 to buy some points at under 2.5 cents each 

Always nice to find a reason to smile on tax day


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## Guest (Apr 14, 2010)

So is the convenience fee a flat rate or a percentage? If it is a flat rate you could make out nice by not withholding anything and storing it in a bank account. At about 2.5% I am guessing percentage since that is about what they pay anyway.


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## wayman (Apr 14, 2010)

Guest said:


> So is the convenience fee a flat rate or a percentage? If it is a flat rate you could make out nice by not withholding anything and storing it in a bank account. At about 2.5% I am guessing percentage since that is about what they pay anyway.


It's a 2.49% fee (minimum $1). And as a percentage, you still make out like a bandit, regardless of how much or little tax you owe: it's always about 2.43 cents per AGR point, whether you owe $50 in tax or $10,000 in tax. If you figure you can easily redeem points for 3 cents per point (say, for that last-minute $90 Regional PHL-NYP for 3,000 points), and often 4 or 5 cents per point (for high-bucket roomettes or loophole itineraries), it's a pretty good deal 

Can you tell your employer "no federal or state tax withholdings", and just make quarterly federal and state estimated payments, and not be penalized? This bears consideration!...


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## Ryan (Apr 14, 2010)

I do the same thing with my electric bill - I can pay through the credit card for a flat fee (I think it's about 2 bucks). Quick and easy!


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## wayman (Apr 14, 2010)

Ryan said:


> I do the same thing with my electric bill - I can pay through the credit card for a flat fee (I think it's about 2 bucks). Quick and easy!


My mobile phone bill is auto-pay from my credit card; I don't even think they have a fee for that (T*Mobile).

That's my only monthly bill for now (everything else is bundled with rent), but should I move and wind up with more bills to pay, I'll definitely price out the "convenience fee" versus the AGR points when deciding how to set up auto-pay 

While I tend to charge almost everything possible in order to maximize AGR, I've always had a knee-jerk "avoid convenience fees" reaction. This was the first time I actually calculated out that even with the added convenience fee, because of the AGR it's still a money-saving deal to use the credit card.


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## JayPea (Apr 14, 2010)

I pay all my bills with the AGR credit card. Only the electric company charges a convenience fee for doing so. Since my power bill is so low ($25-30/month) it's certainly worth it. Now if I could only get my landlord to accept rent payments by credit card!


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## BeckysBarn (Apr 14, 2010)

JayPea said:


> I pay all my bills with the AGR credit card. Only the electric company charges a convenience fee for doing so. Since my power bill is so low ($25-30/month) it's certainly worth it. Now if I could only get my landlord to accept rent payments by credit card!


If I could only get the bank to let me pay the mortgage by credit card!


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