1099MISC for Point Redemption
Jun 30, 2011 | 10:12 am
#1
Original Poster
Join Date: Jun 2011
Posts: 65
1099MISC for Point Redemption
I know if I redeem my credit card points for Air Travel, Hotel Stays and even free items (ipod etc.) I will not receive a 1099 or any tax implications from this.
However, I have heard varying stories as to if I will receive a 1099MISC for points that are redeemed for either Gift Cards or Cash Back.
The 3 cards I use are a Bank of America Worldpoints Business Card, Chase Business Ultimate Rewards and Amex Platinum Business Card.
Can anyone confirm that I can take some of these points and convert them to cash without getting a 1099MISC?
They were all earned through spending and not a "freebe" or similar type deal if that matters.
Thanks
Tom
However, I have heard varying stories as to if I will receive a 1099MISC for points that are redeemed for either Gift Cards or Cash Back.
The 3 cards I use are a Bank of America Worldpoints Business Card, Chase Business Ultimate Rewards and Amex Platinum Business Card.
Can anyone confirm that I can take some of these points and convert them to cash without getting a 1099MISC?
They were all earned through spending and not a "freebe" or similar type deal if that matters.
Thanks
Tom
Jun 30, 2011 | 10:22 am
#2
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA, IHG & Marriott Platinum; DL & HH Gold
Posts: 51,863
Credit card rewards are not taxable because they are considered to be partial refund of the amount charged. However, if you use the card for business expenses and you (or your company) deduct the full amount of the charges from taxable income there may be an issue which you should discuss with an accountant.
Rewards earned through banking (e.g. for opening an account or maintaining a balance) may be treated differently, but again you should discuss your specific circumstances with a professional and not rely on Flyertalk for decision making.
Rewards earned through banking (e.g. for opening an account or maintaining a balance) may be treated differently, but again you should discuss your specific circumstances with a professional and not rely on Flyertalk for decision making.