AMEX sending out 1099s for referral bonuses
#1
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Join Date: Aug 2007
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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.
Youll 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/
"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.
Youll 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/
#2
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See also this discussion from 2017 to understand what's new -and- what is not:
https://www.doctorofcredit.com/banks...erral-bonuses/
https://www.doctorofcredit.com/banks...erral-bonuses/
#6
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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.
#7
Join Date: Mar 2011
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Programs: Delta Gold. Hilton Diamond. Hyatt Explorist.
Posts: 1,668
Doctor of Credit fixed his article and said they value is actually $0.67. I still think that is too high, but it is more reasonable I guess.
#9
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Join Date: May 1998
Posts: 2,505
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.
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.
Last edited by pgary; Feb 2, 2019 at 3:51 pm
#10
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#11
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Join Date: May 1998
Posts: 2,505
The 1099 did say it was for referral bonuses, but I did no referrals to that card. Since the spend bonus was 75K and the charge was $375, exactly 1/2 cent/mile, and since I know of no referral bonuses that add up to 75K or any combination that gets to an even fraction of that, I assumed....
#12
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Join Date: May 1998
Posts: 2,505
Here is an excellent article from Travel Codex on how to deal with this from someone who says he is a licensed tax professional.
#13
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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.
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.
#14
Original Member
Join Date: May 1998
Posts: 2,505
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.
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.
#15
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,880
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.