[Consolidated] 1099s for miles & cash rewards from all banks
Feb 27, 2013, 12:43 pm
#706
Join Date: Dec 2009
Location: San Francisco Bay Area
Posts: 210
Jul 22, 2013, 5:18 am
#708
Join Date: Apr 2004
Programs: AA, UA, SQ, VA, QF, AF, BA
Posts: 2,865
I got this email targeted to me as a Citi AA Amex holder. Will this trigger a 1099?
It's a tiered offer that won't copypaste, basically 30k for spending $750 on the debit card, 15k for spending $375 or 5k for spending $125. PLUS I have to do two direct debits.
Question: Can the direct deposits be from Paypal?
We appreciate your business as a loyal Citi® / AAdvantage® credit cardmember, and we'd like to show it with a special offer.1*
Earn up to 30,000 American Airlines AAdvantage® bonus miles
Here's what you have to do: .
1. Open a qualified Regular Checking account by 8/31/13.
2. Within 60 days after account opening, complete both of the
following qualifying activities:
• One qualifying direct deposit each month for 2 consecutive calendar months AND
• Spend the required minimum amount on purchases using your Citibank® Debit Card*
Earn up to 30,000 American Airlines AAdvantage® bonus miles
Here's what you have to do: .
1. Open a qualified Regular Checking account by 8/31/13.
2. Within 60 days after account opening, complete both of the
following qualifying activities:
• One qualifying direct deposit each month for 2 consecutive calendar months AND
• Spend the required minimum amount on purchases using your Citibank® Debit Card*
Question: Can the direct deposits be from Paypal?
Jul 22, 2013, 11:33 am
#709
Join Date: Sep 2011
Posts: 891
I got this email targeted to me as a Citi AA Amex holder. Will this trigger a 1099?
It's a tiered offer that won't copypaste, basically 30k for spending $750 on the debit card, 15k for spending $375 or 5k for spending $125. PLUS I have to do two direct debits.
Question: Can the direct deposits be from Paypal?
It's a tiered offer that won't copypaste, basically 30k for spending $750 on the debit card, 15k for spending $375 or 5k for spending $125. PLUS I have to do two direct debits.
Question: Can the direct deposits be from Paypal?
Jul 22, 2013, 3:04 pm
#710
Original Member
Join Date: May 1998
Posts: 1,139
I got this email targeted to me as a Citi AA Amex holder. Will this trigger a 1099?
It's a tiered offer that won't copypaste, basically 30k for spending $750 on the debit card, 15k for spending $375 or 5k for spending $125. PLUS I have to do two direct debits.
Question: Can the direct deposits be from Paypal?
It's a tiered offer that won't copypaste, basically 30k for spending $750 on the debit card, 15k for spending $375 or 5k for spending $125. PLUS I have to do two direct debits.
Question: Can the direct deposits be from Paypal?
This is obviously unfair to those who received a 1099 in the past, since some of those customers voluntarily used their debit cards. If the telephone representative was correct, Citi will now view the requirement that the debit card be used to be sufficient to change the nature of the transaction from a bonus to a rebate, and that will allow Citi to not issue a 1099.
I realize that in most people's minds, no 1099 = no taxable income, but that is not quite the rule. Normally reducing the basis of personal items has no tax consequences. If a person buys $750 worth of groceries, gas and clothes, and if that person believes the "value" of the miles received from making those purchases is $750 (not everyone agrees with that valuation), he would reduce the basis of those purchases to $0. No tax consequences would occur from eating food, using gas and wearing clothes that do not have any tax basis. On the other hand, if someone met the spending requirement by purchasing vanilla reload cards, and that person believes that the miles have significant value, a theoretician might argue that reducing the basis of the cash obtained with a prepaid reload card might have some future tax consequences.
Jul 29, 2013, 12:44 pm
#711
Join Date: Jan 2013
Location: SEATAC
Programs: AS MVP Gold
Posts: 186
If it's based on redemption I'll tailor my redemption a little bit!
Oct 17, 2013, 11:47 am
#712
Join Date: Jun 2012
Posts: 115
BoA Alaska Airlines Miles for New Checking Acct
Anyone w/ experience w/ this bonus? Will this generate a 1099?
I just got an offer in the mail:
10K Alaska Airlines Miles when opening new checking acct and performing a few direct deposit requirements.
In the fine print it says "the value of this reward may constitute taxable income to you. BoA may issue an IRS form 1099 (or other appropriate form) to you that reflects the value such reward."
Thanks
I just got an offer in the mail:
10K Alaska Airlines Miles when opening new checking acct and performing a few direct deposit requirements.
In the fine print it says "the value of this reward may constitute taxable income to you. BoA may issue an IRS form 1099 (or other appropriate form) to you that reflects the value such reward."
Thanks
Last edited by BQatWSU; Oct 19, 2013 at 2:59 pm
Nov 18, 2013, 11:57 am
#713
Join Date: Jan 2013
Posts: 140
Anyone w/ experience w/ this bonus? Will this generate a 1099?
I just got an offer in the mail:
10K Alaska Airlines Miles when opening new checking acct and performing a few direct deposit requirements.
In the fine print it says "the value of this reward may constitute taxable income to you. BoA may issue an IRS form 1099 (or other appropriate form) to you that reflects the value such reward."
Thanks
I just got an offer in the mail:
10K Alaska Airlines Miles when opening new checking acct and performing a few direct deposit requirements.
In the fine print it says "the value of this reward may constitute taxable income to you. BoA may issue an IRS form 1099 (or other appropriate form) to you that reflects the value such reward."
Thanks
Nov 19, 2013, 9:08 am
#714
Join Date: Jan 2013
Posts: 140
Based on the telephone chat discussions a previous poster had with a Citi representative, the current belief is that Citi will not issue a 1099, but no one will know for sure until next February. By "linking" the bonus to the requirement that spending occur on the debit card, Citi appears to be utilizing the "rebate rule". The value, if any, of the miles would be viewed as a reduction in the basis of your purchases with the debit card, rather than being viewed as taxable income from opening the bank account.
This is obviously unfair to those who received a 1099 in the past, since some of those customers voluntarily used their debit cards. If the telephone representative was correct, Citi will now view the requirement that the debit card be used to be sufficient to change the nature of the transaction from a bonus to a rebate, and that will allow Citi to not issue a 1099.
I realize that in most people's minds, no 1099 = no taxable income, but that is not quite the rule. Normally reducing the basis of personal items has no tax consequences. If a person buys $750 worth of groceries, gas and clothes, and if that person believes the "value" of the miles received from making those purchases is $750 (not everyone agrees with that valuation), he would reduce the basis of those purchases to $0. No tax consequences would occur from eating food, using gas and wearing clothes that do not have any tax basis. On the other hand, if someone met the spending requirement by purchasing vanilla reload cards, and that person believes that the miles have significant value, a theoretician might argue that reducing the basis of the cash obtained with a prepaid reload card might have some future tax consequences.
This is obviously unfair to those who received a 1099 in the past, since some of those customers voluntarily used their debit cards. If the telephone representative was correct, Citi will now view the requirement that the debit card be used to be sufficient to change the nature of the transaction from a bonus to a rebate, and that will allow Citi to not issue a 1099.
I realize that in most people's minds, no 1099 = no taxable income, but that is not quite the rule. Normally reducing the basis of personal items has no tax consequences. If a person buys $750 worth of groceries, gas and clothes, and if that person believes the "value" of the miles received from making those purchases is $750 (not everyone agrees with that valuation), he would reduce the basis of those purchases to $0. No tax consequences would occur from eating food, using gas and wearing clothes that do not have any tax basis. On the other hand, if someone met the spending requirement by purchasing vanilla reload cards, and that person believes that the miles have significant value, a theoretician might argue that reducing the basis of the cash obtained with a prepaid reload card might have some future tax consequences.
Nov 19, 2013, 8:13 pm
#715
Join Date: May 2010
Location: DFW
Programs: American - Platinum Pro, Marriott - Platinum
Posts: 479
I just had an infuriatingly unproductive half-hour conversation with a Citi CSR trying to figure out how this would play out; basically the only worthwhile information I got is that they issue a 1099 for anything over $600. When it came to the question of the value they would assign per mile though, she couldn't come up with an answer and ultimately tried to explain the American Airlines award chart to me. Not exactly the question.
Until then, it's purely speculation and the phone reps would not know anything...actually the phone reps wouldn't know anything beyond Feb 2014 as well...it's the actual customers reporting on flyertalk or elsewhere that will provide the answer.
Nov 20, 2013, 11:27 pm
#716
Join Date: Feb 2011
Posts: 208
Andy2 is right...the answer will be known definitively only by Feb 2014 when members on this forum let us know whether Citi issued them 1099s for the tax year 2013.
Until then, it's purely speculation and the phone reps would not know anything...actually the phone reps wouldn't know anything beyond Feb 2014 as well...it's the actual customers reporting on flyertalk or elsewhere that will provide the answer.
Until then, it's purely speculation and the phone reps would not know anything...actually the phone reps wouldn't know anything beyond Feb 2014 as well...it's the actual customers reporting on flyertalk or elsewhere that will provide the answer.
Feb 4, 2014, 3:49 pm
#717
Original Member
Join Date: May 1998
Posts: 1,139
2014
Just wondered if anyone who opened a Citi checking account in 2012 or 2013 and was awarded miles, after Citi changed the requirements to include specified debit card use, received a Form 1099 for the "value" of any miles received from Citi? If not, it would support that the telephone agent was correct and that Citi now views the "value" of any miles awarded for opening a bank account to be a reduction in the basis of items purchased with the debit card instead of income that must be reflected on a Form 1099. It would seem that most of the 1099s would have been received by now.
Feb 5, 2014, 10:40 pm
#718
Join Date: Nov 2009
Location: MRY
Posts: 430
Thanks for bumping this Andy. I've been waiting to hear as well. I got nailed with the 1099 for 2011 and have been waiting on the sideline to see if Citi is still issuing 1099's or not. There are some new tempting offers out there . .
Feb 10, 2014, 9:40 am
#720
Join Date: Feb 2013
Location: San Antonio
Programs: AS MVP
Posts: 2,276
I opened a Citigold account with 30K AA miles and my wife opened one with 40K TYP. No 1099s for either of us. I have checked with Citi and the CSR said the 1099 would show in my account if one was going to be generated, and last time the flood of 1099 reports started mid-January. I think we are in the clear.