Originally Posted by
FrequentFlyer9000
So if you received 40K in miles, how much in taxable income in $ is that equivalent to? $1000? Which means if you pay say, 35% in taxes, that comes out to $350 that you have to pay for the 40K miles? That makes it barely worth it to seek out the promotion.
Is my math right?
Yes the math is correct. As for whether or not this would make it "worth it" that's a subjective matter that everyone has to evaluate for themselves.
It all depends on how effectively you use your miles, if you used that 40K to get an AA low-season award to Europe then it might be worth it to many people.