Originally Posted by
flyer4512
Have you received any 1099-MISC from Chase for referrals ? I was going to have my dad refer me for a CSP but I don't need to drive my brother ( who does his taxes and is his caregiver) crazy for 15,000 points. I thought there was a threshold where 1099's were issued, maybe that was AMEX.
Your participation in this program may result in miscellaneous income received from Chase and we may be required to send you, and file with the IRS, a Form 1099-MISC (Miscellaneous Income) or Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) for the year in which you participate and are awarded the benefits of the program. You are responsible for any tax liability related to participating in the program. Please consult your tax advisor if you have any questions about your personal tax situation.
My understanding is, ALL referral bonuses on any amount from all 3 major issuers are now subj to 1099 Misc. Yes, Chase sent out 1099 Misc last year but the amounts were goofed up and they had to resend it several months later.
Chase even issued a 1099 Misc on a $5 earned from signing up something (forgot what it was since I did not sign up) but mis-stated the amount as $500. THAT Was part of the fiasco of 2019's 1099 Misc sent out. You might be able to search DoC site for the history.
The value Chase puts on, is very straight forward of 1c per 1p so your 15K is $150 additional income to report. Should not be any more added work unlike TYP's complicated rules (they are 2 kinds - from banking and from credit card, with one is taxable at issued and one is taxable at redeemed... NUT case, and that was where your "threshold" memory coming from. Referral bonuses have NO threshold from Day One when the banks decide such earning is taxable.
The problem was Chase did not send out the amended 1099-Misc until many months later - that could cause major inconvenience for those early filers. As RNE said, as long as Chase follows the rule and issues their 1099 no later than Jan 31st as required by IRS, most dont have issue with such.