cchang4

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

LAX_Esq

I couldn't find a more recent thread, but I just got a 1099-MISC from Citibank this year, which I think is for redeeming Checking Account points I earned way back in 2012.

mia

Citi sends the 1099 when ThankYou points are redeemed, not when they were earned, because the value is established when redeemed.

mrkymark

No kidding. So what did they value the points at a cent per TYP?

mia

The valuation reflects the specific redemption. This is a reason that Taxable ThankYou points cannot be Shared or Transferred. Citi needs to see the cash value of the redemption.

akr1970akr

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

AbyssalLoris

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?

mia

You are correct. This is the reason that TYP earned through banking are not eligible for Sharing with other members or Transfer to airlines.

xooz

Interesting. Might impact my thinking on converting "double cash" value to TYP. To my knowledge my Citi cash has no tax impact when used. Or, is this ONLY points acquired through some "banking" bonus activity?

mia

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.

AbyssalLoris

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)?

akr1970akr

Back in the good old days banking pts could be used nicely on AA & AA Codeshares at 1.6cpp if you had a Prestige card, but now the next best option is to have a Premier card, and book travel at 1.25 cpp, through their portal. You have to closely inspect the deal to make sure you are getting a fair deal though. For airfares they have a habit of moving your fare class around, so for someone who is very specific about flying in a certain class (whether for upgrades, or status earning) it can be vexing. For hotels, they tend to show the taxes/fees, so prices look superficially higher than other portals / OTAs that don't show all in fees, but sometimes you can find an ok/fair deal. Occasionally they offer special hotel coupons for TYP bookings, which can be handy. NB OTA hotel bookings are almost always not going to count for loyalty earning, status benefits, nor corp discount codes. I've never found car rentals to be all that attractive through the portal (compared to Costco, Autoslash, etc.) but the Chase UR portal at one point used to be pretty good for that.

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.

MaxVO

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.

mia

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.