Does Citi still send 1099-MISC for redeeming banking earned TYP?
#1
Original Poster
Join Date: May 2016
Posts: 34
Does Citi still send 1099-MISC for redeeming banking earned TYP?
Read the threads here and there but most of them are long time ago.
I am wondering does Citi still send out 1099MISC for redeeming banking related TYPs over $600?
I have a little over 40K TYPs from opening a checking account, but I have all my points pooled under one thankyou rewards account. How can I tell how much points I have used from these 40k?
TIA
I am wondering does Citi still send out 1099MISC for redeeming banking related TYPs over $600?
I have a little over 40K TYPs from opening a checking account, but I have all my points pooled under one thankyou rewards account. How can I tell how much points I have used from these 40k?
TIA
#4
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#5
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#6
Join Date: Jul 2014
Location: Western US
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keeping my fingers crossed but last few years I have not been sent 1099's for banking pts that were redeemed.
i'm not sure why, because they do seem to state that they are taxable.
i wonder if there is some threshold they have
i'm not sure why, because they do seem to state that they are taxable.
i wonder if there is some threshold they have
#7
Join Date: May 2008
Posts: 143
I don't understand how this works. If you redeem by transfer to an FF, surely they have no visibility towards how you then use those miles. So at the point of transfer, how is redemption value calculated? Citi has a mile-to-dollar value assigned to each mileage program?
#8
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#10
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Points earned with credit cards are not "taxable". The only "taxable" points are those earned through banking -and- customer service adjustments. Read the ThankYou terms for details.
Last edited by mia; Feb 21, 2020 at 2:07 pm
#11
Join Date: May 2008
Posts: 143
Thank you for the alert. I remember reading that this use wasn't possible for banking TYPs before, but not the reason. I was just debating opening up a Citi account (bank) and was ruminating between SUB options: cash/TYP/AA. Looks like it is cash then, if I do open an account. Might I trouble for an answer about what the best redemption of banking TYPs is (cent-value-wise)?
#12
Join Date: Jul 2014
Location: Western US
Programs: Costco Executive Member, Amazon Optimus Prime
Posts: 1,251
Thank you for the alert. I remember reading that this use wasn't possible for banking TYPs before, but not the reason. I was just debating opening up a Citi account (bank) and was ruminating between SUB options: cash/TYP/AA. Looks like it is cash then, if I do open an account. Might I trouble for an answer about what the best redemption of banking TYPs is (cent-value-wise)?
Personally I would use up the TYP and not let them fester and decay. They aren't growing in value and in general most 'points' types of currency get their value diminished over time.
#13
Join Date: Feb 2012
Posts: 4,467
I got a strange form 1099-MISC from Citibank (don't think they have a dedicated thread).
It's for (3 Other income) of around ~$1200. The "account" cited doesn't exist. If I value the TYPs received at $0.01/TYP, I could not come up with a sum they claim. They must be using some multiplier. The only thing I can say, their form much less clear than AmEx's as far as how they figured that income.
It's for (3 Other income) of around ~$1200. The "account" cited doesn't exist. If I value the TYPs received at $0.01/TYP, I could not come up with a sum they claim. They must be using some multiplier. The only thing I can say, their form much less clear than AmEx's as far as how they figured that income.
#14
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Citi sends 1099's for taxable ThankYou Points when they are redeemed, not when they are earned, and they use the actual redemption value. This procedure is specific to ThankYou Points, and does not apply to AAdvantage miles.