American Express Income Tax Payments Rewards

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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American Express Income Tax Payments Rewards

By Credit Federal | Published 03/17/2006

American Express now joins Discover Card as an issuer to offer rewards for using their card to make tax payments.

Delta SkyMiles? Credit Cardmembers and Starwood Preferred Guest? Credit Cardmembers Earn Double Rewards for Tax Payments; Cardmembers Receive Exclusive Offers on TurboTax?

Exclusively for American Express members, is a series of special offers and bonus rewards programs to make personal tax payments more rewarding.

The 2005 Tax Season is also the first year the IRS allows businesses to pay their balance due on their federal business taxes (Form 940 annual employment and Form 941 quarterly employment business taxes) using an American Express Card. This is in addition to paying the balance due on state and local business taxes. So, when businesses use their American Express Card, they can receive rewards.

Now through April 17, 2006, Delta SkyMiles Credit Cardmembers can earn double SkyMiles when using their Card for 2005 personal federal income tax payments. Cardmembers can also earn one mile for every eligible dollar spent when paying their state income taxes on the Card.

Through April 17, 2006, Starwood Preferred Guest Cardmembers can also earn double Starpoints on the first $5,000 of their 2005 personal federal income tax payments when paying with the Card. Cardmembers can earn one Starpoint for every eligible dollar spent when paying state income taxes.

Additionally, American Express Cardmembers who are enrolled in the Membership Rewards? program or have a rewards card such as the Hilton HHonors? Platinum Credit Card, Blue Cash?, or the TrueEarnings(sm) Card from Costco and American Express can use their Card to earn rewards for federal and state taxes in participating states this tax season.

Membership Rewards Redemption Option
Cardmembers who are enrolled in the Membership Rewards program are now able to redeem points to offset the convenience fee charged by the respective payment service providers when paying taxes on the American Express Card. Taxpayers can choose between Official Payments Corporation? (officialpayments.com) or Link2Gov Corporation? (pay1040.com) for federal, state and business taxes and can redeem 200 Membership Rewards points for each $1 of the convenience fee.

Special Offers
In addition to promotions for tax payments, American Express Cardmembers can also take advantage of several offers when they use their Card to purchase tax-related services:

TurboTax? Online sponsored by Official Payments Corporation. Through October 15, 2006, Cardmembers can save 25% on federal tax preparation when they use their American Express Card to purchase TurboTax for the Web products at officialpayments.com/turbotaxamex.

TurboTax? Business sponsored by Official Payments Corporation. From January 12, 2006 through April 18, 2006 American Express Cardmembers can save 15% on the purchase of TurboTax Business when using an American Express Card. For additional information, go to shopturbotax.com/amexbizTY05.

Businesses who apply for an American Express Business Gold Rewards Card can receive a $200 statement credit when making a tax payment with the new Card.

Making Payments with American Express Cards:
Cardmembers can use the American Express Card to pay individual federal taxes. To make a payment using the American Express Card, contact the Internal Revenue Service's approved payment processors:

Official Payments Corporation at 1-800-2PAY-TAX(sm).

Depending on the state, Cardmembers can also use the Card to pay for a variety of state personal and business taxes, estimated taxes or file for extensions either by phone or via the Internet. Tax rules vary by state and Cardmembers should check with either Official Payments Corporation or Link2Gov Corporation? to determine which taxes can be paid with the Card. State participation may vary by service provider.

Browse American Express Card offers at Credit Federal to submit your online application.

Free Online Tax Return Filing for faster refunds.

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American Express Income Tax Payments Rewards - by <a href=http://creditfederal.com>CreditFederal.com</a> American Express now joins Discover Card as an issuer to offer rewards for using their card to make tax payments. Delta SkyMiles? Credit Cardmembers and Starwood Preferred Guest? Credit Cardmembers Earn Double Rewards for Tax Payments; Cardmembers Receive Exclusive Offers on TurboTax? Exclusively for American Express members, is a series of special offers and bonus rewards programs to make personal tax payments more rewarding. The 2005 Tax Season is also the first year the IRS allows businesses to pay their balance due on their federal business taxes (Form 940 annual employment and Form 941 quarterly employment business taxes) using an American Express Card. This is in addition to paying the balance due on state and local business taxes. So, when businesses use their American Express Card, they can receive rewards. Now through April 17, 2006, Delta SkyMiles Credit Cardmembers can earn double SkyMiles when using their Card for 2005 personal federal income tax payments. Cardmembers can also earn one mile for every eligible dollar spent when paying their state income taxes on the Card. Through April 17, 2006, Starwood Preferred Guest Cardmembers can also earn double Starpoints on the first $5,000 of their 2005 personal federal income tax payments when paying with the Card. Cardmembers can earn one Starpoint for every eligible dollar spent when paying state income taxes. Additionally, American Express Cardmembers who are enrolled in the Membership Rewards? program or have a rewards card such as the Hilton HHonors? Platinum Credit Card, Blue Cash?, or the TrueEarnings(sm) Card from Costco and American Express can use their Card to earn rewards for federal and state taxes in participating states this tax season. Membership Rewards Redemption Option Cardmembers who are enrolled in the Membership Rewards program are now able to redeem points to offset the convenience fee charged by the respective payment service providers when paying taxes on the American Express Card. Taxpayers can choose between Official Payments Corporation? (officialpayments.com) or Link2Gov Corporation? (pay1040.com) for federal, state and business taxes and can redeem 200 Membership Rewards points for each $1 of the convenience fee. Special Offers In addition to promotions for tax payments, American Express Cardmembers can also take advantage of several offers when they use their Card to purchase tax-related services: TurboTax? Online sponsored by Official Payments Corporation. Through October 15, 2006, Cardmembers can save 25% on federal tax preparation when they use their American Express Card to purchase TurboTax for the Web products at officialpayments.com/turbotaxamex. TurboTax? Business sponsored by Official Payments Corporation. From January 12, 2006 through April 18, 2006 American Express Cardmembers can save 15% on the purchase of TurboTax Business when using an American Express Card. For additional information, go to shopturbotax.com/amexbizTY05. Businesses who apply for an American Express Business Gold Rewards Card can receive a $200 statement credit when making a tax payment with the new Card. Making Payments with American Express Cards: Cardmembers can use the American Express Card to pay individual federal taxes. To make a payment using the American Express Card, contact the Internal Revenue Service's approved payment processors: Official Payments Corporation at 1-800-2PAY-TAX(sm). Depending on the state, Cardmembers can also use the Card to pay for a variety of state personal and business taxes, estimated taxes or file for extensions either by phone or via the Internet. Tax rules vary by state and Cardmembers should check with either Official Payments Corporation or Link2Gov Corporation? to determine which taxes can be paid with the Card. State participation may vary by service provider. Browse <a target='_blank' href="http://creditfederal.com/americanexpress-card.html">American Express Card</A> offers at Credit Federal to submit your online application. <a target='_blank' href="http://creditfederal.com/free-online-tax-return-filing.html">Free Online Tax Return Filing</A> for faster refunds. This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.