Apr 8, 2021, 10:27 am
Last edit by: funnyfarm299
Miles usually post on Bask website on the second business day of the month, to AA a day or 2 later.
Check the "Rewards" section of your Bask dashboard or the Recent Activity section of your AA account.
Current earn rate as of June 2023: 2.5 miles/dollar/year, awarded monthly (no LP's).
Check the "Rewards" section of your Bask dashboard or the Recent Activity section of your AA account.
Current earn rate as of June 2023: 2.5 miles/dollar/year, awarded monthly (no LP's).
Questions on BankDirect, now Bask Bank (consolidated)
Sep 3, 2010, 4:08 pm
#91
Join Date: May 2003
Programs: AA (1MM), Marriott (LT Gold)
Posts: 1,766
Actually, the IRS tried. As I recall they proposed taxing award miles to employees, adding it to your w-2, and there was enough of an uproar that Congress passed a law preventing taxation of frequent flyer miles. Back then, all miles were flight miles, so I think the tax-free BankDirect miles are an unintended beneficiary of that law.
Sep 3, 2010, 4:14 pm
#92
Join Date: May 2007
Location: San Francisco Area
Programs: Hyatt Diamond, SPG Platinum, Fairmont Platinum, ICG Platinum Royal Ambassador, Avis President's Club
Posts: 317
I've never heard that account before, but it is certainly contradicted by all of the contests and promotions that are run by companies which give out "large" prizes in airline miles or hotel points and send out a 1099 for the value of those miles. I can't count the number of times I've seen threads about whether or not a prize winner has to use the value set by the company on the miles awarded.
Sep 3, 2010, 5:02 pm
#93
Join Date: May 2003
Programs: AA (1MM), Marriott (LT Gold)
Posts: 1,766
I guess I've been asleep at the wheel for the past 7 years on this board!
Sep 3, 2010, 5:29 pm
#94
Join Date: Apr 2006
Location: LIS/ATL/other
Programs: UA 1K, Avis PC, Hertz PC, Sixt Plat, Marriott Gold, HH Silver
Posts: 1,983
I am going to go for this BankDirect deal on AA miles. Better than getting 1%-tax interest. Does anyone want to sent me a referral, please?
Edit: Referral no longer needed
Edit: Referral no longer needed
Last edited by CaptainMiles; Sep 4, 2010 at 8:16 pm
Sep 3, 2010, 8:26 pm
#95
Join Date: Feb 2009
Location: LA/NYC
Programs: AA (LT Plat, ex-ConciergeKey), SPG (Plat), DL (Diamond), Marquis Jet Card
Posts: 77
I stand corrected. Could someone please send me a copy of the law that says that frequent flyer miles cannot be taxed? That might come in handly someday if I win a big contest and get sent a 1099 for the value of those miles.
I guess I've been asleep at the wheel for the past 7 years on this board!
I guess I've been asleep at the wheel for the past 7 years on this board!
"Until the IRS issues further guidance, employers should be permitted to continue treating frequent flyer miles earned by business travelers as an intangible nontaxable benefit despite the lack of a clearly discernable income exclusion. The IRS has indicated that there is no current enforcement program regarding frequent flyer miles, and there are no instructions in the Internal Revenue Manual regarding the audit of such programs. Legislation was introduced in Congress in 1996 and reintroduced earlier this year that would exclude from income frequent flyer miles earned and awards received by business travelers. Passage of such legislation would be the most certain resolution to a problem that has existed ever since American Airlines introduced the first frequent flyer program in 1981.
IRS UPDATE - February 2002
By way of the recently issued Announcement 2002-18, the IRS has reiterated that there is not currently a tax enforcement program in place with respect to frequent flyer miles. The IRS will not currently assert that any taxpayer has understated his federal income tax liability by reason of the receipt or personal use of frequent flyer miles. Any future guidance offered by the IRS on the taxation of frequent flyer miles would be applied prospectively.
It should be noted that this relief from tax liability does not apply to travel or other benefits that are converted into cash, to compensation that is paid in the form of travel, or in other circumstances where benefits are used for tax avoidance purposes."
http://www.ssbb.com/index.php/publications/entry/24
More info and links here:
http://taxprof.typepad.com/taxprof_b...x-treatme.html
Sep 3, 2010, 9:58 pm
#96
FlyerTalk Evangelist
Join Date: Dec 2003
Location: STL
Programs: AA 2MM, AS MVP Gold, Hilton Diamond
Posts: 12,966
Sep 5, 2010, 4:55 pm
#97
Suspended
Join Date: Jan 2002
Location: LAX
Programs: AA Gold
Posts: 2,741
Sep 5, 2010, 5:11 pm
#99
Suspended
Join Date: Jan 2002
Location: LAX
Programs: AA Gold
Posts: 2,741
Also I've had miles deducted from AAdvantage eshopping (for Nordstrom returns) but the PTD miles weren't adjusted.
Sep 5, 2010, 7:31 pm
#101
Suspended
Join Date: Jan 2002
Location: LAX
Programs: AA Gold
Posts: 2,741
FWIW when the glitch happened b4 I honestly can't remember if the PTD miles on AA.com were adjusted when BD corrected the miles posted.... and it's the PTD miles that effect lifetime status....
Sep 6, 2010, 7:37 am
#103
FlyerTalk Evangelist
Join Date: Dec 2003
Location: STL
Programs: AA 2MM, AS MVP Gold, Hilton Diamond
Posts: 12,966
Sep 6, 2010, 10:16 am
#105
Join Date: Apr 2010
Programs: FB Platinum, AA Plat/2MM, SPG Plat/LT Gold
Posts: 379
Extensive thread on crossing the million mile thresholds here:
http://www.flyertalk.com/forum/ameri...solidated.html
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