Originally Posted by
swat16
Some people got them from savings accounts. Nobody has stated they received them from checking account bonuses. I really don't see any need to alarm everyone. What banking products are you refering to Happy? I've only read of savings accounts receiving 1099s.
Actually there are theories going on in that thread about why some receive 1099 Misc and some receive 1099 Int - that the checking account bonus triggered 1099 Misc but the saving account bonus triggered 1099 Int.
A few posters said their 1099 $ were more than the bonus miles they got from their Ultimate Saving Accounts, but they said they also had bonuses from other Citi bank accounts, including the checking.
Personally I do not bother with Citi banking account bonus because it is often a hassle to have them posted, and then the 1099 to deal with. Although honestly I was under the impression that only ThankYou Points would generate the 1099s as TYP has a well-defined value of 0.01 per point, while AA mile has no defined value... It looks like that the bank CAN use Fair Market Value, and it seems like it is using the price AA uses to sell the miles.
Just sayng, that it may generate a 1099 and then at 0.025 per mile cost, so you would have an idea how much $ in taxes MIGHT be to acquire those miles.
Say, 5K at 0.025 = $125, at a 25% bracket that is $31.25 tax - to acquire 5K miles and it is not without work... Whether it is worth it, of course is a YMMV thing as always.