[Consolidated] 1099s for miles & cash rewards from all banks
Mar 15, 2014, 7:44 am
#736
Join Date: May 2004
Programs: AA lifetime platinum, Jet Blue Mosaic
Posts: 438
Interesting thread. In the past 2 years I have redeemed over 200,000 TY points for airline travel and have not received nor do I expect to receive a 1099. I still have a few hundred thousand unredeemed points.
Very few of my points are related to my checking or savings accounts. The bulk are related to credit card sign up bonuses and spend.
It is my understanding that only bonuses and spend related to checking or saving accounts are considered taxable by Citi. Citi generally considers the tax trigger to be the date of redemption.
Very few of my points are related to my checking or savings accounts. The bulk are related to credit card sign up bonuses and spend.
It is my understanding that only bonuses and spend related to checking or saving accounts are considered taxable by Citi. Citi generally considers the tax trigger to be the date of redemption.
Last edited by kayjay; May 19, 2014 at 9:46 pm Reason: spelling
Mar 19, 2014, 9:47 am
#737
FlyerTalk Evangelist
Join Date: Mar 2006
Location: DFW
Programs: AA 1M
Posts: 31,475
Extra data point for those who are interested.
Got hit with a 1099-misc from Citibank for Thank You redemptions in 2013 for $619. This, of course, is just barely over the $600 redemption threshold that triggers the 1099-misc. According to the TY folks, they have the exclusive job of determining the value of a redemption, but it is supposedly one cent per point for travel redemptions. All TY redemptions in a calendar year apply towards the $600 reporting threshold. They didn't make a distinction between where the points came from.
I asked to challenge Thank You's valuation of the redemptions I received. Specifically, a hotel stay that they valued at $400 was absurdly inflated. Unsurprisingly, there is no official way to challenge the valuation.
Luckily, I'm a Citi-gold member so after, an hour on the phone, I got a Citi-gold supervisor to conference in a Thank You rewards supervisor and they ultimately offered to give me a statement credit for the extra taxes I would have to pay due to the 1099-misc.
Bottom line don't redeem TY points for big travel if you don't want the tax hit. I sure won't in the future.
But if you're stubborn enough and have a reasonable challenge to TY's valuation of a redemption, you may be able to get a statement credit to offset the tax hit.
Got hit with a 1099-misc from Citibank for Thank You redemptions in 2013 for $619. This, of course, is just barely over the $600 redemption threshold that triggers the 1099-misc. According to the TY folks, they have the exclusive job of determining the value of a redemption, but it is supposedly one cent per point for travel redemptions. All TY redemptions in a calendar year apply towards the $600 reporting threshold. They didn't make a distinction between where the points came from.
I asked to challenge Thank You's valuation of the redemptions I received. Specifically, a hotel stay that they valued at $400 was absurdly inflated. Unsurprisingly, there is no official way to challenge the valuation.
Luckily, I'm a Citi-gold member so after, an hour on the phone, I got a Citi-gold supervisor to conference in a Thank You rewards supervisor and they ultimately offered to give me a statement credit for the extra taxes I would have to pay due to the 1099-misc.
Bottom line don't redeem TY points for big travel if you don't want the tax hit. I sure won't in the future.
But if you're stubborn enough and have a reasonable challenge to TY's valuation of a redemption, you may be able to get a statement credit to offset the tax hit.
Did you earn any TYP from checking/savings bonuses last year?
Mar 19, 2014, 10:10 am
#738
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,958
Close. Citi only issues 1099's for points earned from banking, rather than from credit cards, but they issue the 1099 only when those points are redeemed because that's when they can assign a value.
Mar 19, 2014, 10:12 am
#739
FlyerTalk Evangelist
Join Date: Mar 2006
Location: DFW
Programs: AA 1M
Posts: 31,475
That makes a poor program even worse. I redeemed quite a bit last year for airfare but fortunately have not got a 1099. Need to inform those in my circle.
Mar 19, 2014, 10:39 am
#740
Join Date: Jan 2013
Location: SEATAC
Programs: AS MVP Gold
Posts: 186
I redeemed over 40K TYP (citigold offer, but also had a premier account and am a current prestige card holder) on flights at 1.33 cents/pt in 2013, and apparently they preferentially take banking points out of your account first (cleared up after a lengthy call). So I ended up redeeming something like $580 worth before I realized I may be close and called in to clarify.
They said I would have to redeem 60k TYP earned from banking to trigger a 1099, but to be safe I didn't redeem any more points in 2013 since banking points are apparently always used preferentially to cc points and I was so close in value to $600 at that point.
Bottom line: I earned and redeemed around $580 worth (40+K) of banking thank you points in the calendar year 2013 and did not receive a 1099. This seems to be in line with other reports...so it's a useful system/bonus when you're aware of Citi's rules.
They said I would have to redeem 60k TYP earned from banking to trigger a 1099, but to be safe I didn't redeem any more points in 2013 since banking points are apparently always used preferentially to cc points and I was so close in value to $600 at that point.
Bottom line: I earned and redeemed around $580 worth (40+K) of banking thank you points in the calendar year 2013 and did not receive a 1099. This seems to be in line with other reports...so it's a useful system/bonus when you're aware of Citi's rules.
Mar 19, 2014, 6:57 pm
#741
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Location: Danville, CA, USA;
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I received 1099 for Wells Fargo 1% cash rewards credit card. I don't recall if BofA sent a 1099 on its cash rewards - I think not. CapOne has never sent a 1099 form but then again I haven't redeemed anything there.
No 1099
Mar 24, 2014, 3:34 pm
#743
Join Date: Oct 2012
Location: SFO
Programs: Hyatt Glob; AA ExPlat; Hilton Diamond
Posts: 317
Is it safe to say that citi checking accounts for AA miles that require a debit spend will NOT trigger a 1099?
I have a 30k sign up promo for a citigold account with 750 debit spend and 2 dd that ends this month
I have a 30k sign up promo for a citigold account with 750 debit spend and 2 dd that ends this month
Mar 24, 2014, 4:26 pm
#744
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Join Date: Mar 2006
Location: DFW
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I think they issue 1099's based on your redemptions. Try not to redeem too much in one year.
May 18, 2014, 12:10 am
#745
Join Date: Mar 2013
Location: LAX
Posts: 54
Was your Wells Fargo 1099 for less than or more than $600?
May 18, 2014, 7:22 am
#746
Join Date: Aug 2008
Posts: 385
I have redeemed more than $600 in WF cc rewards in 2014 -- I'm reluctant to leave them w/ WF since they threatened to close my cc because I accidentally overpaid it once (although, if I kept my annual redemptions under $600 I could have a lifetime annuity of $599.99 
). Anyhow, has anyone else redeemed WF cc rewards, and if so what was the amount and was a 1099 issued? Be good to know for TPP (tax planning purposes).
). Anyhow, has anyone else redeemed WF cc rewards, and if so what was the amount and was a 1099 issued? Be good to know for TPP (tax planning purposes).
May 18, 2014, 9:22 am
#747
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Join Date: Nov 2002
Location: BOS, MHT
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A good MS friend wrote:
The key to scare tactics is reputation or friendship guise. New kids have neither.
Does anyone really believe the 1099 story? or no? (so far only Citi banking says it will do it in the fine print)
The key to scare tactics is reputation or friendship guise. New kids have neither.
Does anyone really believe the 1099 story? or no? (so far only Citi banking says it will do it in the fine print)
May 18, 2014, 9:39 am
#748
Join Date: Aug 2008
Posts: 385
In all fairness, it's possible that the writer was confused and actually received the 1099 based on the $600 interest earned on the $600K in his WF bank account.
May 19, 2014, 2:27 am
#749
Join Date: Mar 2013
Location: LAX
Posts: 54
A new kid he is not...
Boraxo
Join Date: Dec 2002
Location: Danville, CA, USA;
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May 19, 2014, 7:18 pm
#750
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Boraxo, are you really sure that you received a 1099 based solely on rebates from your Wells Fargo 1% cash rewards credit card? Personal finance journalists would probably be interested in talking to you if so. If not, please clarify.