In life, the only constants are Taxes and Death.
It is the heart wrenching time of the year as we receive Notice of Assessment from IRAS.
My income taxes of ~$3.8k are due by 1 Jul 2024.
I have explored ways to earn miles through paying taxes using payment platforms such as CardUp, IPayMy or CitiPayall.
The lowest admin fee is 1.75% and I am unable to get the $30 new user discount as my accounts do not qualify as new user.
Effectively, I would be buying a mile for $0.014 if I use CardUp or ipaymy with Citibank Premiermiles card from incurring $60+ admin fee.
I decided to skip earning miles from tax payment this year. I will just pay off using Citibank Premiermiles card on AXS without any benefit, saving up $60+ from buying miles while enjoying deferred tax payment of 1 mth from the credit card cycle. In today's high interest rate environment, the yield from $3.8k for 1 mth at 3% p.a is around $10.
There it goes.
Why not GIRO instalments? I hated continual liabilities and by paying off the taxes one-off, it gives me a peace of mind and greater freedom feeling of being debtless.
Thanks for reading.
Regards,
Roy
2 comments:
Hi Qiongster
Paying off your income tax in one go is ok if your income tax is not a substantial amount. I used to do that in my early years of working.
But when the income tax started to cross five figures, I decided that it was better to take up the interest free giro monthly payment stretched out over a year. The rest of the money could be used to buy T-bills, SSB or even stocks in the meantime.
Also while paying income taxes is painful, it is a reminder that we have an income! And the higher the income tax we pay, the higher the income we earned! And I think no high income earner would want to go back to earning less just so that they pay less taxes.😜
Hi mysecretinvestment, well said. Thanks for sharing.
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