[Consolidated] 1099s for miles & cash rewards from all banks

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Mar 6, 2015, 9:05 am

#766

xSTRIKEx6864

Join Date: Oct 2010

Location: BOS

Posts: 814

No 1099 for Chase UR

Mar 9, 2015, 5:14 pm

#767

peanut528

Join Date: Mar 2015

Location: Austin, TX

Programs: AAdvantage, United Plus, Rapid Rewards, Chase Sapphire

Posts: 4

I earned > 200,000 this year through Citi, and they didn't send me any tax forms. That is odd!

Mar 9, 2015, 5:46 pm

#768

mia

Moderator

Join Date: Jun 2003

Location: Miami, Mpls & London

Programs: AA & Marriott Perpetual Platinum; DL & HH Gold

Posts: 48,954

Quote:

Originally Posted by peanut528

I earned > 200,000 this year through Citi, and they didn't send me any tax forms. That is odd!

What did you earn, ThankYou points, AAdvantage miles, HHonors points, US Dollars?

Earned using credit cards or through banking?

If earned through banking, have you redeemed the miles or points?

Last edited by mia; Mar 11, 2015 at 2:40 pm

Mar 16, 2015, 8:58 pm

#769

Diotallevi

Join Date: Aug 2013

Location: New Jersey

Programs: IHG Platinum Ambassador, United Gold

Posts: 43

Quote:

Originally Posted by mia

Close. Citi only issues 1099's for points earned from banking, rather than from credit cards, but they issue the 1099 only when those points are redeemed because that's when they can assign a value.

Do you know what Citi values TY points at that are transferred to miles? Not sure if it makes a difference, but in my case, Singapore Airline miles?

Thanks,

Mar 17, 2015, 4:30 am

#770

mia

Moderator

Join Date: Jun 2003

Location: Miami, Mpls & London

Programs: AA & Marriott Perpetual Platinum; DL & HH Gold

Posts: 48,954

Quote:

Originally Posted by Diotallevi

Do you know what Citi values TY points at that are transferred to miles? ,

Taxable ThankYou Points are not eligible to be transferred.

Mar 22, 2015, 9:17 pm

#771

Diotallevi

Join Date: Aug 2013

Location: New Jersey

Programs: IHG Platinum Ambassador, United Gold

Posts: 43

Quote:

Originally Posted by mia

Taxable ThankYou Points are not eligible to be transferred.

Wow, I didn't know that. That sort of sucks.

Thanks for the info.

Apr 24, 2015, 11:11 pm

#772

pstravels

Join Date: Oct 2014

Location: USA

Programs: Chase Ultimate, Amex, Delta, AA, BA Avios, United, US Airways, Marriott, Hilton

Posts: 260

I just ignore the 1099 INTs for miles since I believe the miles have no value for me and they are in the possession of the airline until they are used.

I have never had an issue with my return. I am pretty sure this is a reasonable argument.

Apr 24, 2015, 11:14 pm

#773

Centurion

Join Date: May 2002

Location: Arizona

Posts: 5,689

Quote:

Originally Posted by pstravels

I just ignore the 1099 INTs for miles.

This is a mistake. Big mistake.

Apr 27, 2015, 9:58 am

#774

raj_cl

Join Date: May 2010

Location: DFW

Programs: American - Platinum Pro, Marriott - Platinum

Posts: 479

Quote:

Originally Posted by pstravels

Just curious since when have you been doing this? I mean for what years did you ignore the 1099 for miles?

If it is in the past 2-3 years, IRS notices do take some time to catch up, so I would not take the leap of faith and say that there is no issue for the returns where you ignored 1099 INTs for miles.

On the other hand, if it has been more than 3 years, then the only inference is that contrary to popular belief, IRS ignores 1099INTs for miles.

Experts - thoughts?

May 4, 2015, 4:31 am

#775

TMM1982

Suspended

Join Date: Dec 2014

Posts: 8,460

Quote:

Originally Posted by Centurion

This is a mistake. Big mistake.

Not really. Worst case scenario is the IRS notices within 3 years and comes after poster for back dated taxes + penalty + interest (which likely won't be much at all). Not really the end of the world.

Jul 16, 2015, 7:45 pm

#776

dkjb3t4

Join Date: Aug 2014

Posts: 466

I am thinking about getting the ThankYou points from Citigold checking signup.
How much tax am I looking at from this?

Jul 16, 2015, 8:09 pm

#777

mia

Moderator

Join Date: Jun 2003

Location: Miami, Mpls & London

Programs: AA & Marriott Perpetual Platinum; DL & HH Gold

Posts: 48,954

ThankYou Points earned by opening a bank account cannot be transferred to airlines or hotel programs. The maximum redemption value if used to purchase airfare is $0.016 per point. 40,000 X .016 = $640 added to your taxable income. The amount of Federal income tax due will depend on your tax bracket.

Aug 2, 2015, 12:37 pm

#778

lkar

Join Date: Nov 2007

Location: PHX

Posts: 4,787

Quote:

Originally Posted by mia

Does citi value the points based on the actual redemption or on the maximum total potential redemption. So, if I get 40k for opening a checking account and redeem 30k for airfare (30kx$.016=$480) and 10k for something worth $.01 on thankyou.com, will I be under the $600 threshold? $580 in value with no 1099 is worth more to me than $640 with a 1099.

Aug 2, 2015, 12:56 pm

#779

mia

Moderator

Join Date: Jun 2003

Location: Miami, Mpls & London

Programs: AA & Marriott Perpetual Platinum; DL & HH Gold

Posts: 48,954

Quote:

Originally Posted by lkar

Does citi value the points based on the actual redemption .

This is my understanding, but I have no direct experience. Bear in mind that any large institution may apply rules inconsistently.

Apr 12, 2016, 2:43 pm

#780

Gitangali

Join Date: Feb 2016

Posts: 826

Citi sends you 1099 if the redemption value of bank bonus miles is more than $600 in a calendar year. Is that per household or per account?

For e.g. If both spouses redeem points worth $550 each ($1100 total), will they get 1099 or NO 1099 because each of the bonus was less than 600 bucks?