American Express offers rewards for tax payments
In the USA, American Express has announced that its Delta SkyMiles and Starwood Preferred Guest credit card holders can earn double rewards for making personal tax payments using their cards.
This year marks the first time the IRS has allowed businesses to pay the balance due on federal business taxes using an American Express card. State and local business taxes can also be paid by card.
Federal and State rewards Until 17th April 2006, Delta SkyMiles credit card users will earn double SkyMiles when using their card to make their 2005 personal federal income tax payments, as well as earning 1 mile for every eligible US$1 spent when paying state income taxes on the card.
For the same period, Starwood Preferred Guest credit card users will earn double Starpoints on the first US$5,000 of their 2005 personal federal income tax payment, and will also earn 1 Starpoint for every eligible US$1 spent when paying state income taxes with their card.
Membership Rewards benefits Additionally, American Express cardholders who have enrolled in the Membership Rewards programme (or who have a rewards card such as the Hilton HHonors Platinum Credit Card, Blue Cash, or the TrueEarnings Card from Costco) can also use their card to earn rewards for federal and state taxes in participating states.
States where these rewards are currently available are: Alabama, Arkansas, Arizona, California, Connecticut, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Minnesota, Mississippi, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Virginia, Washington, Wisconsin, West Virginia and D.C.
Redeeming for fees Membership Rewards members are also able to redeem existing points to offset the convenience fee charged by the respective payment service providers when paying taxes using American Express cards. Taxpayers can choose between the Official Payments Corporation or Link2Gov Corporation to pay federal, state or business taxes, and can redeem 200 Membership Rewards points for each US$1 of the convenience fee.
Tax-related offers And, apart from these promotions for tax payments, cardholders can also benefit from several other offers when they use their card to purchase tax-related services, including:
- TurboTax Online (via Official Payments Corporation) Until 15th October 2006, they can save 25% on federal tax preparation services when they use their American Express card to purchase TurboTax online.
- TurboTax Business (via Official Payments Corporation) Until 18th April 2006, cardholders can save 15% on the purchase of TurboTax Business when by using their American Express card to pay.
- Business Gold Rewards Card credit Businesses that successfully apply for an American Express Business Gold Rewards Card will earn a US$200 statement credit when making a tax payment using the new Card.