AMEX 1099-INT or 1099-MISC who got one?

Old Mar 22, 2021, 12:13 am
  #31  
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Originally Posted by Sloflyer032
Does anyone file their referral bonuses if they dont receive a 1099? I have two small ones (15k Hilton Amex and 20k Chase Southwest) but haven't received anything yet. Can I just ignore these then?
If you want to be honest with your taxes, you would report these as other income. The good part about not receiving a 1099-MISC is that you can decide what the fair market value is for these points, and without a conflict with the 1099-MISC filing. The IRS could potentially challenge your claimed FMV, but that's unlikely.
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Old Mar 22, 2021, 12:46 am
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Originally Posted by Sloflyer032
Does anyone file their referral bonuses if they dont receive a 1099? I have two small ones (15k Hilton Amex and 20k Chase Southwest) but haven't received anything yet. Can I just ignore these then?
Keep in mind that a mismatch between IRS records and your return in either favor may invite an audit or request for an explanation. Many years ago I did exactly that -- reported income (a few hundred $) for which I had received no 1099 form. First I got a letter from the IRS and a bill for more tax, to be explained by a phone interview. Over the phone, the agent explained that my mystery income was matched to another 1099 (with a much larger amount) and I got billed for the difference. When I explained that the larger 1099 was properly reported and taxed on my return, the IRS agent got furious and yelled at me. He accused me of wasting hours of his time, and warned to never pull that non-existent income shtik ever again.
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Old Mar 22, 2021, 5:19 am
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Originally Posted by MaxVO
Keep in mind that a mismatch between IRS records and your return in either favor may invite an audit or request for an explanation. Many years ago I did exactly that -- reported income (a few hundred $) for which I had received no 1099 form. First I got a letter from the IRS and a bill for more tax, to be explained by a phone interview. Over the phone, the agent explained that my mystery income was matched to another 1099 (with a much larger amount) and I got billed for the difference. When I explained that the larger 1099 was properly reported and taxed on my return, the IRS agent got furious and yelled at me. He accused me of wasting hours of his time, and warned to never pull that non-existent income shtik ever again.
yeah that's what I'm worried about. Is it safe to say that if we don't receive a 1099 then the IRS won't receive the info from chase/Amex either?
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Old Mar 22, 2021, 9:21 am
  #34  
 
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Originally Posted by Sloflyer032
yeah that's what I'm worried about. Is it safe to say that if we don't receive a 1099 then the IRS won't receive the info from chase/Amex either?
You won't get one from Amex or Chase unless you had $600 or more in referrals -- how you want to file your taxes is your decision
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Old Feb 7, 2022, 4:07 pm
  #35  
 
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I got mine for 2021. What a pain. I got two for a total of $650.

Until I read this thread, I thought it was a no-brainer to just revalue it at the redemption value easy to provide support from Amex's website on the valuation. I'd lower the value by 40%, by $260. So I'd normally bother to save the tax on $260 but I saw concerns about it being a "red flag with a rocket in it" to the IRS.

Have other folks done this and gotten extra hassles about it ?
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Old Feb 8, 2022, 8:29 am
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I have offset the value of a 1099 received several times. I have not heard anything about it. Just enter an opposite value where the 1099 lands and add "see statement" and then include a short statement about your reasoning for questioning the value. The key is to get past the automated computer matching -- you have to report the amount that matches the 1099; just reduce it via a separate line item.

I believe schedule 1, part 1 line 8z is where your 1099 would land this year, and schedule 1, part 2, line 24z is where you can put your offsetting reduction in value. Consult a tax advisor, blah
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Old Feb 9, 2022, 2:19 pm
  #37  
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So AMEX still hasn't started to post these online yet? I don't think I went over $600 in 2021...
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Old Feb 11, 2022, 9:57 am
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The dreaded 1099-MISC has come to me this year. I am of the opinion that these points have 0 value unless you have a membership with AMEX. So any referral rewards after payment the membership fees could be fairly taxed, but this brings me to the next issue - not taxed at the valuation of 1c/point? The 1c/point valuation seems almost arbitrary - are we talking about average value of the point or what? I mean, AMEX points on Amazon gives a much lower value - and I think for ease, we should be taxed on the minimum/most accessible potential of the points rather than the maximum.

Last edited by currentjer; Feb 11, 2022 at 10:41 am
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Old Feb 11, 2022, 11:08 am
  #39  
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Originally Posted by currentjer
.... I think for ease, we should be taxed on the minimum/most accessible potential of the points rather than the maximum.
$0.01/point is certainly not the maximum value, and $0.01 is readily available if redeeming for gift cards rather than taking the easy path of redeeming through Amazon.

Start here: https://global.americanexpress.com/rewards/calculator > Redeem for Gift Cards > Show.
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Old Feb 11, 2022, 2:03 pm
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Originally Posted by mia
$0.01/point is certainly not the maximum value, and $0.01 is readily available if redeeming for gift cards rather than taking the easy path of redeeming through Amazon.

Start here: https://global.americanexpress.com/rewards/calculator > Redeem for Gift Cards > Show.
I agree. Arguing points are worth less than 1 cent is pretty difficult
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Old Feb 12, 2022, 7:46 am
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Originally Posted by Sloflyer032
I agree. Arguing points are worth less than 1 cent is pretty difficult
Actually, it is not that difficult to prove. The ability to adjust the value claimed on Form 1099-Misc arose from game show contestants receiving a 1099 for the prizes won and the value would often be the "suggested retail price" or a price far exceeding the actual value, which was especially true if a prize included an airfare and/or hotel component. I had a client who won a trip for two to London for five days and the 1099 stated that the value was in excess of $18,000. We filed the tax return with the $18,000 value, and then discounted it by more $13,000 and provided supplemental documentation with the tax return which included the true cost of the mentioned trip, such as comparable trips offered by other travel companies.

I also had a client who once won a car in the raffle - the 1099 received not only included the sticker price, but attached an additional $2,500 for "fees and services". This was during a period of time when the new car industry was not doing well - I had my client go to two different dealers and get price quotes for the same vehicle and took the average of the two quotes as the true value reported on the tax return.

Over the years, I have probably done a handful of returns where I have adjusted the value stated on Form 1099 - each time I included documentation showing how I calculated the true value and in each case, the tax returns were accepted as filed and no additional correspondence from either the IRS or State taxing authority.

Filing a tax return with an adjusted 1099 value without providing documentation showing the reason for the reduced value with the filing of the tax return are almost guaranteed a letter from your friendly IRS regional office.

With regard to the 1099 from Amex - it is quite easy to claim that the true value according to Amex is .5 cent per point - just include documentation that if one wanted to redeem the points earned for an Amex gift card, the cost would be .5 cent per point. This is actually the best type of documentation - obtaining a lower value from the issuer of the 1099. However, since it seems that most people have received a 1099 in the $600 range, reducing the value by 50% may make little difference in the overall tax liability, depending on the tax bracket.
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Old Jan 28, 2023, 4:23 pm
  #42  
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Originally Posted by Sloflyer032
I agree. Arguing points are worth less than 1 cent is pretty difficult
Eh, given that AmEx offers to redeem them for statement credits at a value of $0.006, a value of a penny does seem a bit disingenuous. (Note, I would never redeem them that way now, but wayyyyy back in the day, I did sometimes before I learned better redemption options. And I bet a lot of people do just redeem them to cover charges at $0.006/point.)



Anyway, I just got mine - two referral bonuses totaling a $600 1099-MISC

Last edited by chrisny2; Jan 28, 2023 at 5:21 pm
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Old Jan 28, 2023, 5:09 pm
  #43  
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Originally Posted by chrisny2
.... AmEx offers to redeem them for statement credits at a value of $0.006,
Why is the Statement Credit value the benchmark that the IRS should accept when $.0.01 is readily available?
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Old Jan 28, 2023, 5:23 pm
  #44  
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Originally Posted by mia
Why is the Statement Credit value the benchmark that the IRS should accept when $.0.01 is readily available?
They will accept it if you redeem for that --- with all the audit risk discussed earlier in this thread.
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Old Jan 28, 2023, 5:25 pm
  #45  
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If you redeem for $0.006 rather than $0.01 you are giving the money to American Express rather than to the IRS. How is that better?
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