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reward points

Wednesday’s need-to-know money news

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Today’s top story: Why a home warranty may not give you the fix you crave. Also in the news: 4 reasons to spend your points and miles ASAP, why the best travel plan for this holiday season is a backup plan, and how to spot fake IRS letters.

Why a Home Warranty May Not Give You the Fix You Crave
Many homeowners are looking to home warranties for peace of mind, but to avoid unpleasant surprises, it’s important to understand the limits of what you’ve purchased.

4 Reasons to Spend Your Points and Miles ASAP
With fare increases and inevitable devaluations on the way, don’t wait to cash in your points and miles.

The Best Travel Plan for This Holiday Season Is a Backup Plan
The best-laid plans are the ones that can be changed when your flight gets delayed or your COVID test is positive.

How to Spot a Fake IRS Letter
For starters, real IRS letters won’t demand immediate payments on back taxes.

Monday’s need-to-know money news

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Today’s top story: 4 workarounds to book your fall vacation rental with points. Also in the news: A new episode of the Smart Money podcast on fall financial tasks and debit cards for kids, what it costs to fill up an electric vehicle, and why waiting until the last minute could save you money on your hotel room.

4 Workarounds to Book Your Fall Vacation Rental With Points
Booking a vacation home rental with rewards points is more difficult than booking a hotel, but it’s not impossible.

Smart Money Podcast: 5 Financial Tasks for Fall, and Kid Debit Cards

What’s It Cost to Fill Up an EV?
It costs less to charge an electric vehicle than it does to buy gasoline, even when traveling — if you plan ahead.

If you’re looking for a hotel deal, it might pay to wait until the last minute
Two weeks could be the sweet spot.

Q&A: Paying taxes with plastic

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Dear Liz: I am selling a rental property that I have owned for several years. I know I could do a 1031 exchange, which would allow me to put off the tax bill by investing in another commercial property. But I just want out. I’ll pay the capital gains tax and invest the rest of the proceeds. I am considering paying the taxes by credit card and taking on the 3% premium to get rewards points offered through the card issuer. Is this a dumb idea, or does it have some merit?

Answer: The companies that process federal tax payments have processing fees of just under 2%, not 3%. You’ll still want to make sure you get more value from your rewards than you pay in fees, and that’s not a given. If your card offers only 1.5% cash back, for example, charging your taxes doesn’t make a lot of sense. But the math changes if you can get more than 2% in rewards, or if you could use the charge to help you meet the minimum spending requirements for a new credit card with a generous sign-up bonus.

If you do charge your taxes, you’ll obviously want to pay the balance in full before incurring any interest.

Monday’s need-to-know money news

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Today’s top story: How to file for Coronavirus unemployment if you’re self-employed. Also in the news: Should you save your miles and points or spend them, 8 ways to switch up the new at-home normal, and a new episode of the SmartMoney podcast on what to do when you owe the IRS.

How to File for Coronavirus Unemployment if You’re Self-Employed

Double Take: Should You Save Your Miles and Points or Spend Them?

8 Ways to Switch Up the New At-Home Normal

SmartMoney Podcast: “Help! I Owe the IRS!”

Monday’s need-to-know money news

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Today’s top story: How the IRS knows if you cheat on your taxes. Also in the news: 3 reasons to pay for spring break with a travel credit card, alternative options if you can’t find an affordable FHA-approved home, and why the bank holds your deposit for 9 days on new accounts.

How the IRS Knows If You Cheat on Your Taxes
They’re always watching.

3 Reasons to Pay for Spring Break with a Travel Credit Card
Racking up points.

Can’t Find an Affordable FHA-Approved Home? You Have Options
Alternative options.

Why the Bank Is Holding Your Deposit for 9 Days
The downside of a new account.

Wednesday’s need-to-know money news

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Today’s top story: Smart ways to establish credit in 2020. Also in the news: 3 strategies to recover from holiday overshopping, the pros and cons of merging money when married, and how to downgrade your Chase card without losing your points.

Smart Ways to Establish Credit in 2020
Sorting through the options.

Overshopped in December? Try These 3 Strategies to Recover
Beating the holiday shopping hangover.

Does Marriage Have to Mean Merging Money?
A look at the pros and cons.

How to Downgrade Your Chase Credit Card Without Losing Your Points
A change in annual fee has customers thinking twice.