American Express Reward Points Can Now Help Pay Down Taxes

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American Express officials announced a list of new partners in their Membership Rewards program for 2010, including some surprising ways to use points to pay down taxes. Two leading tax payment services, Official Payments Corp. and Pay1040.com, already accepted Membership Rewards points in lieu of service fees from Cardmembers paying federal taxes online. Starting this month, participants can also exchange reward points for portions of their outstanding tax bills.  (See 2010 federal income tax brackets.)

Under the new reward redemption option, Cardmembers can convert 200 points into a $1 payment for the IRS. Some participants may prefer to spend their points on some of the program's more luxurious additions, such as free nights at participating Wynn, MGM, and Morgans Hotel Group properties. Movie tickets from National Amusements Theatres have also been added to the reward lineup, as part of an initiative to offer a wider array of redemption options for members with both high and low points balances.

Important Note! The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we can not guarantee the accuracy of the information in this article. Please verify all terms and conditions of any credit card prior to applying.


About the Author

joe

Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.