Originally Posted by
teddybear99
So to the people who consider these miles/points as income, I say we still pay our fair share of taxes, just to another "bucket." We shouldn't be taxed twice as some govt. people think we should.
But this isn't an example of double taxation. A tourist buys his plane ticket with after-tax income and also pays the various sales, gas, security, etc., taxes. People who use awards to book tickets haven't paid income taxes on the awarded value.
Again, I don't recall seeing anyone here who
wants awards to be taxed. People have just pointed out the obvious by stating that these awards/points/miles have value, despite the legalese and inconsistent IRS treatment.