FlyerTalk Forums - View Single Post - AA dining: win 25k bonus miles, but only new members
Old Sep 6, 2008, 11:27 pm
  #4  
pgary
Original Member
 
Join Date: May 1998
Posts: 2,505
Originally Posted by sdsearch
I don't think they said it would be taxes of $625, they just said it was approximate retail value. Whether and how it's taxable for the winner is a separate question. Whether or not the average winner will think to redeem for an award worth at least $625 is a whole seprate discussion.

At any rate, I'm not excited about contests in which I have a teeny tiny chance of winning 25k miles. I prefer to focus my efforts on bonuses rather than contests, since in the long run I'm very likely to produce oodles more miles from bonuses than from actual contest I could win, even if not every bonus by itself earns a much as a theoretical contest win by itself might...
What I meant (and I believe what I said) was that the taxes I would pay on the $625, $625 being the amount they would submit to the IRS on a 1099, would more than pay for a domestic ticket, without the restrictions, and with flight miles earned. I suspect that AA will deduct $625 from its taxes, which I think would be fraudulent.
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