Mike FriedmanThis Week In Travel
Paying Taxes
This winter has flown. There’s no other way to phrase it. I don’t know if it’s all the days blurring together because of COVID-19 or just something that happens as you get older.* I don’t care what that damned groundhog says. Spring is around the corner, so start making your travel plans if you haven’t already. This is going to be an expensive year to travel, and the longer you wait, the more expensive it is going to get.
One downside to the arrival of spring: Tax time. Because whether you’re looking forward to baseball, interacting with nature or spring break, Americans also have to file taxes, and all those financial magazines are offering tips on how to save on taxes. But how many of them are offering you a way to generate a profit by doing so? Yup, it’s possible. Even easy.
Paying Taxes – Fun and Profit
Contrary to popular belief, the IRS does accept credit cards. They don’t have the “Bank of the IRS,” of course, so you do so through a payment processor. You can make payments through each of the three processors twice per calendar quarter, so you can also pay your estimated taxes through the portals. All three processors do the job the same way, so it’s best to start with Pay1040, which is the cheapest, charging 1.87% of the total as a fee.
The trick to beating the system is to use a credit card that pays rewards that are more than the fee. In this case, the best play is the easiest. The Citi Double Cash card is a no-muss, no-fuss credit card that pays you 2% on every purchase you make. No bonus categories, no annual fee, nothing to worry about. There are a number of cards that pay 2% in rewards, but none is as straightforward as the Citi Double Cash card.
Admittedly, earning 0.13% on your tax payment isn’t going to make you a millionaire, but doesn’t it feel nice to get even a small one over on the government?
Other Goodies This Week
Wynn Resorts Looking to Sell Sports Book
Last week, we wrote about some of the incredible plays available with sign-up bonuses for online sports betting. This week, we’re seeing the consequences, with the announcement that Wynn is looking to sell its online sports betting business. Apparently, the appeal of a luxury resort doesn’t carry over as well to a gambling site as management had thought. And that 51% tax rate? There’s no truth to the rumor that Matt Maddox had hired us to determine the best way to pay it with a credit card.
What to do with 500,000 Points
I thought that this article from Frequent Miler was particularly interesting. Not a lot of us have a half-million loyalty points lying around, but it’s a lot of fun to think about the trips you could take if you did.
Southwest Airlines to Start Serving Alcohol Again
Southwest Airlines recently announced that it is going to start selling booze again on its flights. And while it’s true that anyone who survives the cattle call boarding process probably needs a stiff drink, the flight attendants aren’t exactly in favor of the move. Frankly, given the somewhat questionable behavior of a bunch of passengers this year, I can’t really blame them.
Authorities Seize Crystal Cruises Ships
How can you not love an article that talks about “rogue” and “fugitive” cruise ships? The ships tried to escape, but were ultimately seized in Bimini, that Valhalla of fallen cruise ships. The passengers, of course, weren’t so lucky, as they and their luggage were unceremoniously dumped.
Find Yourself a Fancy Train
If your cruise line gets shut down and you still want to take a luxury vacation, check out some of these options to spend big bucks on the rails.
Park Your Car for Five Grand
The NFL isn’t the only group making a fortune from the upcoming Super Bowl. If you happen to own a parking lot within a couple of miles of SoFi stadium, you’ll be able to clean up during the big game. It’s enough to make me consider becoming an Uber driver and moving to Los Angeles for a day.
*Note: My parents both celebrated milestone birthdays in the past couple of years, so this column is for them. If it’s true that you turn into your parents as you get older, then my kids are pretty lucky and can thank their grandparents for it.
