New Years Day the clock resets on a number of benefits, and the calendar forces me to make a number of moves. I’ll be sitting on my couch with a cup of coffee early in the morning doing a number of rewards errands, before heading to the airport for a new year of travel.
Here’s my checklist for 7 tasks I’ll accomplish on New Years Day:
- Buy something from Saks. The Amex Platinum card comes with a $50 credit in each of the first and second half of the year. I’ll buy my shampoo from Saks so that the purchase really covers something I’d spend for anyway, and without going much over the allotted credit amount.
Together with the $200 airline fee credit, $200 in Uber credits, CLEAR credit and Digital Entertainment credit I more than offset the card’s fee with actual savings, which is the only way I justify keeping it. Then I get lounge access benefits, Hilton Gold and 5 points per dollar on airfare spend which I’ll wind up doing a lot of including tickets for others.
- $200 Airline Credit. The annual Amex Platinum airline fee credit resets for 2024. The rules don’t technically provide for this, and it may not last (you’ll never know when it goes away until it does perhaps), but for a few years I’ve kept Southwest Airlines as my chosen airline and have purchased two under-$100 tickets. Those have been reimbursed, and I cancel the tickets to use for credit towards others I’ll buy later.
- Pay property taxes. I outlined my strategy here a few days ago for getting this done with a credit card at no fee. I waited until 2024 to pay them (they’re due January 31) so that (1) I knew where I wanted the spend to go, and (2) it would help with status in the new year.
- Quarterly taxes. Some people make several payments. I limit myself to two, which is the IRS rule (technically it is two per quarter, not two per payment service, though I’ve never heard of anyone having an actual problem due to making too many payments). For less than 1.9% I can pay taxes with a card, which is great for meeting bonus requirements and for spending at better than 1 point per dollar and to count towards status.
- Claim my 70, 80, 90, and 100 night Hyatt benefits. I held off claiming these, because a Hyatt award lasts for the remainder of the calendar year in which it is issued, and the following year. If I chose a suite upgrade in the fall, when I first had the chance, it would expire February 2025. By waiting until January these should expire February 2026.
- Capital One Venture X $300 travel credit. This isn’t actually a calendar year reset but I haven’t used my credit yet. The Venture X credit is based on cardmember anniversary year, and I was originally approved in November 2021. I have an airline ticket to buy, and that’s how I prefer to use the credit – for the simple clarity knowing that the travel will count towards status-earning and receive the benefits of my status. (Sapphire Reserve travel credit works the same way, this is smart for the issuer because it prevents ‘double dipping’ in the first year and thus saves them money.)
- 150% transfer bonus to Air France KLM Flying Blue for Bilt Rent Day. They have 75% – 150% bonuses with Virgin, Air France and IHG. I previously took advantage of a similar Virgin offer, and will now move 120,000 points to 300,000 Flying Blue points.
Fortunately I’ll also earn the 10,000 possible bonus points from January 1’s Rent Day double points on their card in order to begin replenishing my balance.
What New Years Day errands are on your list?
I do not see any value in paying a 1.9% CC fee to pay taxes using a card. There is no program I am aware of that would return a positive value to make that doable.
If you consider the additional fees to create spend then you have to consider the net cost to earn a depreciating bonus of miles.
I go for the cash and the smaller spend requirements and also take the banking/investment bonuses that are offered – typically $2,000 to $4,000 bonuses per account move. Spin them every year and make real money not crap script.
My New Year’s Day errand? Celebrate the fact I’m in between two non-hub airports that allow me to book whom I want that fits my schedule and route best (except American, because they suck) and give my cash back card a little hug before putting it back in my wallet. And since I’m in Tokyo at the moment I’ll do it a little sooner than most.
@ Gary — Saks is useless. Every time we order from them, they get the order wrong and then waste our time and money.
@paul: Capital One Venture card.
@Gene – honestly they’ve never messed up my shampoo and body wash order
@paul: But please gives names on “banking/investment bonuses that are offered…. “
@paul – first, it’s easily worth that fee when earning a card’s initial bonus. second, it may be worthwhile when earning status credit in addition to points. but… on the first of a month 2x Bilt I’d gladly do @ 1.9%… or someone with a 3x the first year Chase Freedom offer…
@paul, I pay land taxes on a mostly undeveloped lot in the California desert using a credit card. I costs me more than the 2% I get back on that card but less than a stamp extra to send in the payment by check. Further, I don’t have to worry about the vagaries of mail delivery and I get an email receipt for the payment. Getting proof of payment by the USPS is more expensive and more complicated.
Chase Private Client bonus is 1,000 -4,000 depending on the deposit/transfer amount.(can invest at JPM)
Wells Fargo self directed 2,500 for a 250k deposit/transfer
E trade and Citi typically offer something similar
Most of the deals sunset this weekend but will return in early 2024. Retirement accounts may be a smaller bonus.
I usually spin them once in spring and once in fall and alternate lead SS number on the accounts to avoid the once a year restrictions. Qualified accounts are individual accounts, so once a year for those.
Great for something simple like stocks, CDs and bonds- not good for annuities.
Sure beats sky lira/pesos if you are fortunate to have these assets.
I use my venture x credit in Southwest and the cancel the ticket a week later. I don’t want to go through an OTA in case of IRROPs. I fly southwest enough to use them , (only lax- sfo , lax – Phx or lax-las when coach is fine).
@p;aul. Thks!
@Paul
I generally agree that it is hard to make any profit with 1.85% CC fee for paying federal taxes. An exception is when you are trying to make some spending threshold to qualify for status or an extra bonus. I made 70 nights with Hyatt this year with no problem this year but if I will be at 58 nights I will be happy to pay $5,000 in quarterly taxes by credit card (i.e., spending extra $92.50) for two qualifying nights to re qualify for Glob (+5,000 Hyatt points) instead of doing two night mattress run.
@paul
Bank of America unlimited cash rewards card is a no annual fee 1.5% cashback card. If you have preferred rewards platinum or higher with BoA, you get a 75% bonus to your credit card rewards. So with the status the card would be 2.62% cashback.
@Paul
In general, I concur that charging 1.85% CC for federal tax payment makes it difficult to turn a profit. The only exception is if you’re attempting to meet a spending requirement in order to gain extra credit or status. I used my Hyatt credit card for 70 nights this year without any issues, but if I reach 58 nights, I’d be happy to pay $5,000 in quarterly taxes (or an additional $92.50) for two qualifying nights to requalify for Glob (+5,000 Hyatt points) rather than making a two-night mattress run.
Hey Gary,
In the T’s and C’s of the $200 airline fee credit, it says you cannot get a credit for airline tickets. I also have Southwest as my chosen airline and may book a ticket today and then get reimbursed, then cancel the ticket to use as a credit like you suggested, but it says I wouldn’t be reimbursed for a airline ticket. Is that not the case?
Thanks in advance.
Bilt treats my monthly condo maintenance fees as rent, because they can be paid through ACH. Not only do I get Bilt points, I get a month’s float on this recurring expense.
I’ve already put my 2024 car insurance on my new United Infinite Card which qualifies me for the 90K miles bonus.
New Years Day USED to be the day I paid it on my soon-not-to-be-renewed Delta Amex Reserve card. But, I think we all know what happened there…?
Hey Beachfan,
You said you use your venture x to book Southwest and then cancel a week later to get the credit, but to get the $300 credit, don’t you have to book through the Capital One portal? This means that once you cancel, the credit just goes back to the Capital one card and account, not to your Southwest account. Is that right?
Thanks, in advance.
@Paul. We were moving money around to get the bank incentive bonuses. But, now that interest rates have increased those bonuses don’t seem to make up for the fact that those accounts are paying piddly interest. If you have seen otherwise let me know. I saw capital one offering a decent bonus and decent interest rates through first week of January FYI.
It’s hard for me to leave even a little bit on the table, so if nothing else, I would use my 2% cash back Fidelity card to make the tax payments.