Getting slammed by taxes this year...will an app help?

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Sevenfeet
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Location: United States

Getting slammed by taxes this year...will an app help?

Postby Sevenfeet » Sun Apr 14, 2013 7:28 am

Well, I've been pretty good for the last 20 years in structuring my tax burden to always get something back from the IRS come April. But this year a combination of my reduction in exemptions to try to get a little more cash flow combined with my wife returning to the work force and not exempting enough resulted in a tax bill in excess of $5000.

My tax accountant is a friend of mine from high school who owns a local CPA firm and while I will meet with him on Monday to make sure that we don't end up in the same place next year, that still means that I have to come up with money I don't have right now. I could pay the entire bill out of a line of credit my wife and I have, but at 14%, that's going to be tough to swallow. I could set up a payment plan with the IRS and while the fees are more reasonable, I wouldn't have as much flexibility to pay it. I might be longer terms to do so but I'll have to see what the numbers look on that on Monday.

The last option is a credit card app. I've been holding on to an app for the Citi Thank You Preferred card that came in the mail a few weeks ago touting interest free terms for 21 months. I was going to hold onto this for an upcoming computer purchase but it looks like I may need to use this for something more important. I will have to pay a convenience fee of about 2%. But the flexibility I would gain on being to set up my own payment schedule over nearly two years may make more sense. My EQ Fico is sitting at 740, so I think I can swing this.

Anyone else had to do this? Comments?
Cards:
American Express Platinum (NPSL)
Penfed Platinum Reward Visa ($28K)
Chase Freedom Visa ($25K)
Fidelity American Express ($20K)
American Express Blue Cash Preferred ($20K)
Bank of America Cash Rewards MasterCard ($20K)
Citi Thank You Preferred Visa ($9.5K)
Chase Sapphire Preferred ($7.5K)
US Bank Cash + Visa Signature ($7K)
Discover IT ($4K)


MemberSince99
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Location: WI

Postby MemberSince99 » Sun Apr 14, 2013 7:56 am

Hummm nope never had to do that. Though it's probably coming. They just can't get enough money from folks like us. Honestly it irks the hell out of me that I pay a MUCH higher percent than the last two guys in the election pay while they make a LOT more money. It's not right, but that's how it is here, how much is actually morally right about this country anymore? Not a hell of a lot that I can see.

Anyway I can't really say much but maybe that is a viable plan. If you can get a 0% interest for say 12-15-18 months that would be perfect.

DavidNY
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Location: New York

Postby DavidNY » Sun Apr 14, 2013 9:29 am

If you find a cash back card with a decent intro 0% APR you can use it to pay the IRS and get some of your fees back.

Sevenfeet
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Postby Sevenfeet » Sun Apr 14, 2013 11:27 am

DavidNY wrote:If you find a cash back card with a decent intro 0% APR you can use it to pay the IRS and get some of your fees back.


True. It would be Thank You points, which doesn't really fit into my cash back plan, but it's better than nothing. I don't want to put it on Chase, despite the ultra low interest rate. All my other new cards except Discover do balance transfers but not 0% on purchases. And I'm not sure about which credit bureau will get pulled. I was hoping to bleed off some inquiries but I'm out of time.
Cards:

American Express Platinum (NPSL)

Penfed Platinum Reward Visa ($28K)

Chase Freedom Visa ($25K)

Fidelity American Express ($20K)

American Express Blue Cash Preferred ($20K)

Bank of America Cash Rewards MasterCard ($20K)

Citi Thank You Preferred Visa ($9.5K)

Chase Sapphire Preferred ($7.5K)

US Bank Cash + Visa Signature ($7K)

Discover IT ($4K)

cashback
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Posts: 793
Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Sun Apr 14, 2013 1:30 pm

If you could pay it off in 12 months, there is a way you could get about 4% cash back net...
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

selfmadetool
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Location: New York

Postby selfmadetool » Sun Apr 14, 2013 2:40 pm

Since the deadline for payment is tomorrow, also keep in mind that you can charge it to one of your current cards, collect the cash back, apply for a Chase Slate and transfer the balance. Obviously, you wouldn't be able to use your Freedom if you went this route.
Bank of America: BankAmericard Cash Rewards ($10k); Accelerated Cash Rewards ($12k)
Chase: Freedom ($2.6k); Amazon.com Rewards ($5k)
American Express: Blue Card Everyday ($14k)
Citibank: Forward ($7k); ThankYou ($10.5k)
Discover: More ($14.5k)
Barclaycard US: Barclaycard Ring ($9.4k)
GECRB: Banana Republic ($4.5k); Amazon.com Store Card ($10k)
Comenity: J. Crew ($3.6k)

cashback
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Posts: 793
Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Sun Apr 14, 2013 5:19 pm

If you pay with a CC you would be paying a 3% fee to use it. Doing it my way, you would end up paying with a debit card, which is a flat $3 fee, and having a net gain of about 4%...

So all in all thats about a 7% swing...
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

Sevenfeet
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Posts: 532
Joined: Thu Jan 17, 2013 7:20 pm
Location: United States

Postby Sevenfeet » Sun Apr 14, 2013 10:35 pm

Let me guess...Vanilla Reloads + Bluebird?
Cards:

American Express Platinum (NPSL)

Penfed Platinum Reward Visa ($28K)

Chase Freedom Visa ($25K)

Fidelity American Express ($20K)

American Express Blue Cash Preferred ($20K)

Bank of America Cash Rewards MasterCard ($20K)

Citi Thank You Preferred Visa ($9.5K)

Chase Sapphire Preferred ($7.5K)

US Bank Cash + Visa Signature ($7K)

Discover IT ($4K)

cashback
Centurion Member
Centurion Member
 
Posts: 793
Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Sun Apr 14, 2013 10:50 pm

Nope. PayPal MyCash cards and PayPal debit card. And sign up for the TYP that is 5% at G/G/D with 12 months 0%.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

Sevenfeet
Centurion Member
Centurion Member
 
Posts: 532
Joined: Thu Jan 17, 2013 7:20 pm
Location: United States

Postby Sevenfeet » Wed Apr 24, 2013 11:18 am

OK, a follow-up to this. I decided to do one last mini app spree and go for the Citi offer that had been in front of me for a month, mainly as a place to park this year's unexpected tax burden. I already paid 10% of the amount on April 15th and Uncle Sam cashed it yesterday.

And the drum roll.....Approved for $9500.

It's not a bad starting number for them and it's enough to do it's purpose which is to bury the tax burden for some months until we work that amount (about $4700) into the budget. The 21 month/0% balance transfer + purchase forbearance is nothing short of awesome, and I get Thank You points unlike some the other Citi products they have been mailing me for months.
Cards:

American Express Platinum (NPSL)

Penfed Platinum Reward Visa ($28K)

Chase Freedom Visa ($25K)

Fidelity American Express ($20K)

American Express Blue Cash Preferred ($20K)

Bank of America Cash Rewards MasterCard ($20K)

Citi Thank You Preferred Visa ($9.5K)

Chase Sapphire Preferred ($7.5K)

US Bank Cash + Visa Signature ($7K)

Discover IT ($4K)



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