And then MS will send you a 1099 for the $695 engagement bonus. So in the end it's basically a wash.
Originally Posted by
ddavis
MS subtracted fees paid from the engagement bonus to come up with the 1099 amount (if any).
Keep in mind, if you apply the card now, you will get engagement bonus against 2023 and you wouldn't have paid sufficient monthly fees to offset the 1099 amount. Eg: $695 - 2 X $55 (assuming 2 months fee before end of the year) = $585 1099 amount. So you need to time the offer to be early in the year but the 125k offer is ending on Nov 8.
However, idk if you can get the card now through other qualifying accounts AND open Cash Plus Platinum early 2024 to still receive the $695 engagement bonus. If that works, assuming you keep the card for rest of 2024, it would be only $40 on 1099 amount. So technically you would end up paying $660 + $20 (taxes assuming 50% bracket) = $680 for annual fee instead of $695. And if you close the card in Nov 2024, you may even come ahead.