AMEX 1099-INT or 1099-MISC who got one?
#31
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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.
#32
Join Date: Feb 2012
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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.
#33
Join Date: Dec 2019
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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.
#34
Join Date: Mar 2013
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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
#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 ?
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 ?
#36
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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
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
#38
Join Date: Mar 2011
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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
#39
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Start here: https://global.americanexpress.com/rewards/calculator > Redeem for Gift Cards > Show.
#40
Join Date: Dec 2019
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$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.
Start here: https://global.americanexpress.com/rewards/calculator > Redeem for Gift Cards > Show.
#41
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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.
#42
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Anyway, I just got mine - two referral bonuses totaling a $600 1099-MISC
Last edited by chrisny2; Jan 28, 2023 at 5:21 pm
#43
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#44
#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?