I have not looked into it in years. Back then, the fee was over 2% and now its down to 1.99% and I am currently in a bonus spend of 3% for the next few weeks when taxes are due.
I wont make a ton, I owe $1225, so the extra 1.01% is just $13.47 but I will also get interest on that money for 2 and a half weeks. (Could be more depending on your cycle date, mine is the 4th)
My only concern is its not automated and part of my return like it is with a direct ACH.
if It does not post in time, I would have late fees for the IRS and I don't want that.
I will probably not bother for state because I owe less and the fee is like 2.6%. Not worth the trouble.
My question for anyone who has done it, is there any problem with it posting to your IRS account correctly and on time?
My cc date is the 4th so I can pay anytime after the 4th but before the 17th and its all the same to me.
The 3% deal I currently have is my normal 2% with a current extra 1% because I already when over $350 which was I guess my average spend every 2 months. (For others, it varies higher or lower)
The downside is future promos will be increased because the $1200 I pay the IRS but its rare that I will go over by $1200 the rest of the year anyway.
Consumer reports just came out with a warning to be careful when paying with a credit card. But that's for people that pay interest on their cards and who only get 1% in rewards.
I am also prepaying my power bill in April because for paying $600, they only charge me a $2.45 fee. I will earn $18+ in cashback. $600 is the max per payment. I could do it twice for $1200 but probably wont. Because thats 10-11 months worth.
EDIT, my bonus points are limited to 2000. So,if they are just counting the extra 1%, that would limit the bonus to just $2000 worth. No reason to go over $2000 is the way I read it. But, I think my taxes are about $1250 and then the $600 for my power bill would be $1850. So it might max out my extra rewards if I indeed do the taxes that way. (And I am looking for feedback on that)