formerly known as daveland
Join Date: Oct 2003
Location: NY, NY, USA
Programs: Hyatt Globalist, Marriott LTP, Delta Platinum, Hilton Honors Diamond, Wyndham Diamond
Posts: 2,969
1099 for REDEEMING Citi Thank You Points
I just got a call from Citi to alert me to the fact that they have issued me a 1099 to tax the value of all the Thank You Points I *REDEEMED* in 2011.
Not earned, not from a bonus, and not from the bank side - just points I got instead of a 1 or 2% cash back on my Citi Credit Cards and REDEEMED.
Can this possibly have any basis in IRS law? I don't see how as the points are in lieu of a cash rebate. I don't even know where to begin with my frustration from this call.
So if I redeem for more than $600 in a year in flights (or anything else) from TY, I need to pay taxes on that credit card rebate?!
Anyone else? I'm still waiting for the 1099 to come in the mail and I know I will be livid when I open it.