nyc6035

Question:

I have ~40k 'taxable' TYP from CitiGold and a new set of ~30K TYP from Prestige card. Prestige can be transferred to Airlines - Taxable cannot. That said only one real 'counter' seems to appear on their site.

If I redeem TYP for an air ticket or hotel through their booking tool - will the points used be prioritized to the 'taxable' type or will it take equally from both buckets?

Obviously my preference is that they'd pull from the oldest 'taxable' first and leave the transferrable to FFQ program TYP out of the transaction.

Also - is there a spend amount per transaction or in total for the year on taxable TYP that will invoke a 1099 from Citi?

Thanks in advance (didn't see answers in scan of prior posts).

mia

The points set to expire earliest will be redeemed first. These are not necessarily the "oldest" points.

mizzou1

Is it possible not to link banking ThankYou account to credit cards ThankYou account? (I mean keeping two separate ThankYou accounts, one for non-transferable points and another for transferable points.)

garykung

1099-INT is invoked based on time of earning (banking), not spending.

Also - Citi will invoke 1099-INT only to opening bonus from banking.

Yes - providing you have 2 different Citi login.

The issue is - what's the point? Based on Citi's design, your banking TY points only supplement your credit card earning.

mia

I believe this is inaccurate. Unless it has changed, Citi calculates the value of ThankYou Points for tax purposes at time of redemption. This is one reason they will not allow you to transfer taxable points, they cannot assign an accurate value, but if you use them for giftcards or a travel purchase the value is fixed.

mizzou1

When redeeming TY points for a gift card or travel purchase, one may want to redeem non-transferable points. If all points are in one account, TY points with earliest expiration date are automatically redeemed, which may leave no option to selectively redeem non-transferable points. So it may be good to keep non-transferable points separate from transferable points.

Another question: I believe TY points can be transferred to somebody else's TY account. Does this function work for points earned through banking (i.e. non-transferable points)? If yes, how people are taxed for the amount of points they transferred to somebody else? And will those points keep being non-transferable in the other person's (i.e. recipient) TY account?

mia

No.

https://www.thankyou.com/transferPoi...points-sharing

garykung

This is what I confuse - If what you said is true, so Citibank issues 1099 for AA miles at the time of earning, but for TY at the time of redemption?

I stand correct as I never received a 1099 from Citi even redeeming taxable TY.

I understand what you meant (separate to distinguish). My point is you will never earn more than enough nowadays due to the cut in taxable TY.

Joe1690

This is all well and good in theory, but with very few exceptions Thankyou points earned by credit card have no expiration date. I know the old AT&T Thankyou card expired after 5 years but the Thankyou Preferred, Premier, and Prestige all do not have an expiration date while banking points(taxable) do. As such, in almost all circumstances unless you just closed a thankyou credit card in which case I believe the points expire in 90 days or you have recently transferred points from another account the taxable points will always be used first since they expire (even if they have been earned after points from your credit card that do not expire).

And this is exactly what happens in my account without fail.

mizzou1

In my case, TY points from Forward have an expiration date. I think it is 3 years.

beltway

Yes, soonest-expiring points are consumed first. For a fuller discussion, see the wiki at http://www.flyertalk.com/forum/credi...derations.html