gq_dq

Thanks, great thread - although really all over the place!! Sounds like Chase didn't quite know what they were doing. Not sure if they figured it out for 2020 and are sending out 1099s only above $600.

philemer

We'll find out in Jan.

RNE

I'm under $600, alas.

Often1

$600 is the base set by the IRS for a 1099. Amounts lower than $600 are still income, but are not reported by the payor to IRS.

RNE

I know it's only mid-month, so I won't ask if anyone has received a 1099 yet, but I will remind one and all to let us know if/when you do.

Repooc17

$600 is the min. reporting threshold for self-employment income (1099-MISC). In my experience, 1099s from banks/credit card companies arrived in the form as "interest" income - 1099-INT, and the min. reporting threshold for interest related income is $10.

bgriff

In the past, when Chase has issued 1099-MISCs for referral bonuses, has there been any way to view them on the Chase website (via secure messages or anything), or did the form just come by USPS?

I had one 10k referral bonus so just wondering whether to expect a form (I know in theory they only need to send if if the value is >$600 but there also seem to be some data points of forms being sent for less), and the USPS is not as reliable these days as it once was so would be convenient if there were some other way to see if a form was issued and get a copy of it.

gq_dq

Just spoke with another dept at chase. They seem to be of the opinion that if you transfer the UR points to an airline program or something like that then it is not considered income. However if you use the value of the points to pay for something like a purchase or apply it towards your statement balance, it is valued at 1/100th i.e. 1 cent per point and > $600 which is 60,000 points will trigger a 1099-MISC.

Not sure how that loops in referrals, or if you redeemed points for like a flight or hotel on the website.

RNE

That person's opinion is absurd. Tax due, if at all, would be effective the tax year those UR are earned, not on how they are used, which could happen years or decades later or never.

mia

Taxable Citi ThankYou Points are valued and reported on a 1099 in the year redeemed, not the year earned. Citi limits the redemption options for Taxable points so that each redemption has an unambiguous monetary value. That said, this is not the way that Chase does it. They could, but they do not.

Repooc17

Are you sure? My bonus TY points (not referral) were taxable in the same tax year I got them. IIRC, it was spelled out as such in the T&C.

RNE

You lost me, but whatever.

mia

What is it, specifically, that you do not understand? When you redeem the points Citi issues a 1099 based on the value of the redemption.

I am sure that in past years Citi reported Taxable ThankYou points when redeemed, rather than when earned. It is, of course, possible that they changed this for 2020.

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Repooc17

Since my very first Citi card under the TY program, I have redeemed TYP every year including and prior to 2020, I have never received a 1099 on the redemption. I assume redemption includes transfers to travel partners.

Is there a distinction between taxable and nontaxable TYP? At least for me, redemption from TYP shows only a single bucket of available points.

Taxable items from banks and credit cards are generally reported under 1099-INT, and their min. reporting threshold is $10 or higher. Your min. reporting threshold is always $1 or higher for any item.

I got a 2020 1099-INT for ~$350 in valuation of miles earned.

$600 min. reporting threshold (payor level) is for nonemployee compensation (usually subject to self-employment taxes). Bonus earnings from banks and credits aren't nonemployee compensation. Also, nonemployee comp is now reported under 1099-NEC as of 2020 tax year.

mia

Yes. You would know if you had Taxable points because they cannot be transferred to airlines or shared with other people.

• Quote:

  Taxes The monetary value of a Reward for which You redeem your Points may be considered taxable income from Citibank in the tax year in which You redeem the Points, in accordance with U.S. tax law. Citibank may be required to send You (and file with the IRS) a Form 1099-MISC (Miscellaneous Income) for the year in which You redeem your Points for a Reward when the value of the Reward plus other taxable Miscellaneous Income You receive from Citibank totals $600 or more for a calendar year. We determine the monetary value of Rewards received through your Points redemptions for tax purposes. The value of Rewards received by redeeming certain Points, such as Points received through your Citibank Checking Account and related bonus promotions, is taxable income. The value of Rewards received by redeeming certain other Points, such as Points earned on purchases made with a Card Account, is not taxable income. You're responsible for any personal tax liability due to the receipt of a Reward due to your Point redemption – consult with your tax advisor.

https://www.thankyou.com/cms/thankyo...tc&src=TYUSENG