AMEX sending out 1099s for referral bonuses
Apparently, we'll now pay tax on the imputed cash value of AMEX referral bonuses:
"American Express is sending out Form 1099 for referral bonuses earned during the calendar year 2018. Amex values Hilton points at 1.25 cents per point, and all other points at 1 cent per point;that includes things like Membership Rewards, Delta, SPG, and Marriott points. Not sure why they decided to value Hilton at more than 1 cent. You’ll get a separate Form 1099 for each card you referred from, I believe. Apparently, these are being sent out even for those who did not get $600 total. ($600 is the threshold where they are required to send out the form – assuming this qualifies as a cash value.) They are sending the forms even for un-cash-out points as well, apparently." https://www.doctorofcredit.com/ameri...ng-else-1-cpp/ |
See also this discussion from 2017 to understand what's new -and- what is not:
https://www.doctorofcredit.com/banks...erral-bonuses/ |
The real joke is $0.0125/Hilton point :D |
Originally Posted by javabytes
(Post 30725557)
The real joke is $0.0125/Hilton point :D |
I would be happy to sell all my Hilton points back to AMEX at $0.01 a point.
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Inasmuch as Hilton sells points for $0.01, currently with a bonus that nets the cost to $0.005, it's difficult to understand how $0.0125 would be assigned.
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Originally Posted by javabytes
(Post 30725557)
The real joke is $0.0125/Hilton point :D
Originally Posted by mia
(Post 30725643)
Inasmuch as Hilton sells points for $0.01, currently with a bonus that nets the cost to $0.005, it's difficult to understand how $0.0125 would be assigned.
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Does this include business cards? If so, is the 1099 using the EIN or SSN?
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1099 for the 75,000 Delta Airlines bonus miles for meeting the spend requirement
I received an IRS form 1099 for $375 for the 75,000 Delta Airlines bonus miles I received for meeting the spend requirement, valuing them at 1/2 cent/mile. I have written a protest letter to Amex at the address on the 1099. Never has Amex or any other credit card issuer issued a 1099 for bonus miles for meeting a spend requirement.
Interestingly, the 1099 for Membership Rewards point for referrals to cards that earn MR points values those points at 1 cent/mile. Yet those points convert to Delta miles at 1,000:1,000. Thus they are saying definitively that the Membership Rewards points have the same value as Delta miles, or ˝ cent per point. I have sent a protest for both of these 1099s to the address on the 1099. I encourage you to do the same. |
Originally Posted by pgary
(Post 30732384)
I received an IRS form 1099 for $375 for the 75,000 Delta Airlines bonus miles I received for meeting the spend requirement....
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Originally Posted by mia
(Post 30732520)
Are you certain the 1099 is not for referral bonuses earned on Skymiles cards?
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Here is an excellent article from Travel Codex on how to deal with this from someone who says he is a licensed tax professional.
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Originally Posted by pgary
(Post 30732754)
The 1099 did say it was for referral bonuses.....
https://www.delta.com/acctactvty/man...tactvty.action ...and review all of your Skymiles activity for a Custom Period, such as all of calendar year 2018. |
Originally Posted by mia
(Post 30732800)
It looks as if you can login here:
https://www.delta.com/acctactvty/man...tactvty.action ...and review all of your Skymiles activity for a Custom Period, such as all of calendar year 2018. |
Very good, let us know the outcome. I suppose it is possible that American Express has credited referral points to some other Skymiles account, and somehow cross-linked it to your identity.
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