Author Topic: Overpay Taxes to Get CC Bonus  (Read 719 times)

Offline jschping

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Overpay Taxes to Get CC Bonus
« on: February 13, 2020, 04:28:22 PM »
I have the AMEX Delta Platinum Card. They just changed it to get 1.5 points per dollar if I make purchases over 5K in one shot.

I was thinking of intentionally overpaying the IRS by 10K or 15K and then getting the refund, in order to get close to the 25K needed to get 10,000 MQM's and achieve status on Delta.

The way I figure it, at 1.5 points per dollar and a 1.87% charge from the cheapest IRS CC processor, I only need to value Delta miles at 1.247 cents a point to break even. I usually get more than that when I redeem miles. And for sure once I factor in the MQM's I'm doing fine.

What worries me is how the IRS will react to an overpayment and then refund that big. Do you think it will raise flags? Get me audited? I'm more worried about getting such a big refund than the initial overpayment.

Does anyone know if there are thresholds that cause them to be flagged? I know there's a 10K threshold for bank transfers that gets their attention. What about this??

Offline Toasted

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Re: Overpay Taxes to Get CC Bonus
« Reply #1 on: February 13, 2020, 04:57:19 PM »
Please post your driver's license, social security number, last two years tax returns, and a picture of your credit card and a dedicated forum member will take care of this for you. 8)

Offline ShlockDoc

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Re: Overpay Taxes to Get CC Bonus
« Reply #2 on: February 13, 2020, 05:03:37 PM »
I have the AMEX Delta Platinum Card. They just changed it to get 1.5 points per dollar if I make purchases over 5K in one shot.

I was thinking of intentionally overpaying the IRS by 10K or 15K and then getting the refund, in order to get close to the 25K needed to get 10,000 MQM's and achieve status on Delta.

The way I figure it, at 1.5 points per dollar and a 1.87% charge from the cheapest IRS CC processor, I only need to value Delta miles at 1.247 cents a point to break even. I usually get more than that when I redeem miles. And for sure once I factor in the MQM's I'm doing fine.

What worries me is how the IRS will react to an overpayment and then refund that big. Do you think it will raise flags? Get me audited? I'm more worried about getting such a big refund than the initial overpayment.

Does anyone know if there are thresholds that cause them to be flagged? I know there's a 10K threshold for bank transfers that gets their attention. What about this??

Are you sure you want to have the IRS involved in your MS?  Risk/Reward

Offline confu

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Re: Overpay Taxes to Get CC Bonus
« Reply #3 on: February 16, 2020, 05:02:02 PM »
Are you sure you want to have the IRS involved in your MS?  Risk/Reward
Dan posts about this yearly, wiuld be nice if there were dp's about risk/reward

Offline jew

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Re: Overpay Taxes to Get CC Bonus
« Reply #4 on: August 04, 2020, 11:58:58 AM »
Can anyone please advise how you request the overpayment refund? Thanks

Offline daybyday

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Re: Overpay Taxes to Get CC Bonus
« Reply #5 on: August 05, 2020, 10:59:40 PM »
So if you overpaid by 5k that would earn you 7.5k miles 🤔, that is an absolute joke for the average mile chasers on here...

Offline Yehudaa

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Re: Overpay Taxes to Get CC Bonus
« Reply #6 on: August 05, 2020, 11:16:37 PM »
So if you overpaid by 5k that would earn you 7.5k miles 🤔, that is an absolute joke for the average mile chasers on here...
I was thinking of intentionally overpaying the IRS by 10K or 15K and then getting the refund, in order to get close to the 25K needed to get 10,000 MQM's and achieve status on Delta.